Atharva Poly-Plast files DRHP for ₹19 Cr SME IPO
Atharva Poly-Plast Limited filed its DRHP for an SME IPO to raise ₹19.00 Cr, with the issue opening on 30-Jun-2026. The company reported a 14.58% YoY revenue growth to ₹47.54 Cr in FY25 and a significant improvement in PAT margins to 10.78%. Proceeds will fund working capital, capex, and debt repayment, though investors face risks related to high customer and geographic concentration.
*this image is generated using AI for illustrative purposes only.
Atharva Poly-Plast Limited has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO) on the SME platform, aiming to raise a minimum of ₹19.00 Cr to fund expansion and reduce debt. The Pune-based manufacturer of precision injection-moulded plastic components reported a 14.58% year-on-year increase in revenue from operations to ₹47.54 Cr in FY25, while profit after tax (PAT) improved significantly to ₹5.29 Cr from ₹2.00 Cr in FY24. The IPO, scheduled to open on 30-Jun-2026 and close on 02-Jul-2026, comprises a fresh issue with no offer for sale component.
Financial Performance
The company has demonstrated a strong turnaround in profitability over the last three financial years. Revenue from operations, which declined to ₹41.49 Cr in FY24 from ₹45.30 Cr in FY23, recovered to ₹47.54 Cr in FY25. Consequently, PAT margins expanded dramatically from 1.52% in FY23 to 10.78% in FY25, a level maintained during the 10-month period ending 31-Jan-2026. Total equity grew from ₹5.72 Cr in FY23 to ₹17.73 Cr by Jan 2026, reflecting retained earnings accumulation.
| Period | Revenue from Operations (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) |
|---|---|---|---|
| FY2023 | 45.30 | 0.71 | 1.52% |
| FY2024 | 41.49 | 2.00 | 4.64% |
| FY2025 | 47.54 | 5.29 | 10.78% |
| 10M FY2026 | 42.42 | 4.73 | 10.78% |
Objects of the Issue
Atharva Poly-Plast intends to deploy the net proceeds towards specific operational and financial objectives. The company plans to utilise ₹3.00 Cr for capital expenditure to purchase machinery, including moulds for specific product lines like the Star Base and GTX-Seat Base Pan Bench. Additionally, ₹3.00 Cr is allocated for the repayment or prepayment of outstanding borrowings to reduce indebtedness. The largest tranche of ₹13.00 Cr is earmarked for funding working capital requirements, which are projected to rise significantly in FY2027.
| Purpose | Amount (₹ Cr) |
|---|---|
| Working Capital | 13.00 |
| Capital Expenditure | 3.00 |
| Debt Repayment | 3.00 |
| Total Identified | 19.00 |
Business Profile and Risks
Incorporated in 2014, Atharva Poly-Plast serves industrial verticals including furniture, home appliances, and automotive assemblies. The company holds a GREENCO Gold Rating and ISO 14001:2015 certification. However, the DRHP highlights several risk factors, including high customer concentration, with the top customer accounting for 51.76% of revenue as of Jan 2026. The company also faces geographic revenue concentration, with 95.86% of revenue generated from Maharashtra, and relies on a single manufacturing facility located in Satara District.
How does the company plan to mitigate the risks associated with its high customer concentration and geographic reliance post-IPO?
What specific strategies will be employed to sustain the expanded 10.78% PAT margins as the company scales operations?
Will the capital expenditure for new machinery lines like Star Base and GTX-Seat Base Pan Bench help diversify the current revenue mix?
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