Atharva Polyplast IPO opens Jun 30, PAT jumps to ₹5.29 crore
Atharva Polyplast Limited has filed its DRHP for an SME IPO opening on 30-Jun-2026, aiming to raise ₹19 crore via a fresh issue. The proceeds will fund working capital, capital expenditure, and debt repayment. The company reported a strong financial turnaround, with PAT rising to ₹5.29 crore in FY2025 from ₹0.71 crore in FY2023, while revenue grew to ₹47.54 crore. Key risks include high customer concentration and reliance on a single manufacturing facility in Maharashtra.
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Atharva Polyplast Limited, a Pune-based precision plastic components manufacturer, has filed its Draft Red Herring Prospectus (DRHP) for an SME IPO scheduled to open on 30-Jun-2026. The company aims to raise ₹19 crore through a fresh issue, with proceeds allocated towards funding working capital requirements, capital expenditure, and debt repayment. This capital infusion comes as the company reported a significant turnaround in profitability, with profit after tax (PAT) rising to ₹5.29 crore in FY2025 from ₹0.71 crore in FY2023.
Financial Performance and Turnaround
The company has demonstrated a strong recovery in its financial metrics over the past three years. Revenue from operations grew to ₹47.54 crore in FY2025, up from ₹41.49 crore in the previous year. For the 10-month period ended 31-Jan-2026, revenue stood at ₹42.42 crore. The profitability surge is reflected in the PAT margins, which expanded from 1.52% in FY2023 to 10.78% in FY2025, maintaining a similar level of 10.77% in the 10-month period of FY2026.
| Metric | FY2023 | FY2024 | FY2025 | 10M FY2026 |
|---|---|---|---|---|
| Revenue from Operations (₹ Cr) | 45.30 | 41.49 | 47.54 | 42.42 |
| Total Revenue (₹ Cr) | 46.82 | 43.09 | 49.06 | 43.90 |
| Profit Before Tax (₹ Cr) | 0.81 | 2.62 | 6.55 | 5.94 |
| Total Profit (PAT) (₹ Cr) | 0.71 | 2.00 | 5.29 | 4.73 |
| PAT Margin (%) | 1.52% | 4.64% | 10.78% | 10.77% |
The balance sheet has also strengthened, with total equity growing from ₹5.72 crore in FY2023 to ₹17.73 crore in the period ended 31-Jan-2026. Consequently, the debt-to-equity ratio improved substantially from 4.76x in FY2023 to 1.40x in 10M FY2026.
IPO Structure and Use of Proceeds
The public issue comprises a fresh issue with no Offer for Sale (OFS). The company plans to utilise the net proceeds to support its growth trajectory and reduce leverage. The quantified portion of the issue amounts to ₹19 crore, with the majority directed towards working capital needs.
| Purpose | Amount (₹ Crore) |
|---|---|
| Funding Working Capital Requirements | 13.00 |
| Repayment/Prepayment of Borrowings | 3.00 |
| Capital Expenditure – Machinery | 3.00 |
| Total Quantified Proceeds | 19.00 |
Business Overview and Risks
Atharva Polyplast specialises in injection-moulded components serving diverse verticals such as furniture, home appliances, and automotive assemblies. The furniture segment is the primary revenue driver, contributing approximately 51% for the period ended 31-Jan-2026. The company holds a GREENCO Gold Rating and ISO 14001:2015 certification for its operations.
Despite the growth, the DRHP highlights several risk factors. There is a high customer concentration risk, with the top customer contributing 51.76% of revenue and the top 10 customers accounting for 97.78% of total revenue. Additionally, the company operates from a single manufacturing facility in Satara District, Maharashtra, which generates 95.86% of its revenue. The working capital requirements are intensive, estimated at ₹1,563.96 lakhs for FY2027 compared to ₹724.44 lakhs for the period ended 31-Jan-2026.
IPO Timeline
The IPO timeline indicates a short subscription window. The issue opens on 30-Jun-2026 and closes on 02-Jul-2026. Basis of allotment is scheduled for 03-Jul-2026, with listing expected on 07-Jul-2026. The price band and lot size were not available in the DRHP data provided.
How will the company mitigate the risks associated with high customer concentration given that the top 10 customers account for nearly 98% of revenue?
What specific capital expenditures are planned for the new machinery, and how will this capacity expansion impact future revenue growth?
With the debt-to-equity ratio improving significantly, will the company maintain this lower leverage post-IPO or utilize debt for future expansion?
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