Behari Lal Engineering IPO announced: ₹63.61 crore use of proceeds, what you need to know
Behari Lal Engineering Limited files DRHP for IPO opening on 12-Aug-2026. The integrated steel manufacturer reports FY2026 revenue of ₹534.02 Crore and PAT of ₹64.64 Crore. Proceeds will fund capex at two Punjab facilities. Key risks include customer concentration and raw material volatility.
*this image is generated using AI for illustrative purposes only.
Behari Lal Engineering Limited (BLEL), an integrated iron and steel manufacturing company based in Mandi Gobindgarh, Punjab, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company, incorporated in 1995, specialises in precision-engineered components and is recognised by CRISIL as one of India's largest producers of metal rolls. The IPO is scheduled to open on 12-Aug-2026 and close on 14-Aug-2026.
Company Overview
Behari Lal Engineering operates two manufacturing facilities in Mandi Gobindgarh, a prominent steel hub in Punjab. The company has a combined installed capacity of 1,19,690 MT, with a capacity utilisation of 87.71% in FY2026. Its product portfolio includes Metal Rolls, Engineering Castings, Alloy Steel Products, and Forging Ingots/Forged Shafts/Blocks. These products serve diverse industries such as Automobile, Steel, Mining, Infrastructure, Power, Aerospace & Defence, and Cement.
The company holds a strong market position, meeting approximately 10.00%–11.50% of India's metal rolls demand in Fiscal 2026. It serves 1,825 customers as of 31-Mar-2026, with 84.69% of its revenue in FY2026 coming from repeat customers. The management team includes Dinesh Garg as Managing Director and Bhuvnesh Garg as CEO, backed by founder Parkash Chand Garg’s 30 years of experience.
Offer Details
The DRHP discloses that the IPO will open on 12-Aug-2026 and close on 14-Aug-2026. Specific details regarding the price band, issue size, lot size, and face value are not available in the current filing. There is no Offer for Sale (OFS) component disclosed. The allotment and listing dates are yet to be determined.
Objects of Issue
The net proceeds from the fresh issue will be utilised for the following purposes:
| Object of Issue | Amount |
|---|---|
| Capital expenditure at Manufacturing Facility 1 (Village Salani) | ₹22.99 Crore |
| Capital expenditure at Manufacturing Facility 2 (Village Turan) | ₹40.05 Crore |
| Repayment/pre-payment of fund-based borrowings | ₹0.57 Crore |
| General corporate purposes | Amount Not Specified |
The total identified use of proceeds, excluding general corporate purposes, is ₹63.61 Crore. The funds will enhance machining capacity for metal rolls, increase heat treatment and forging capacity, and support deleveraging efforts.
Financial Highlights
Behari Lal Engineering has demonstrated consistent growth in revenue and profitability over the last three fiscal years. Revenue from operations grew from ₹446.08 Crore in FY2024 to ₹534.02 Crore in FY2026, registering a CAGR of 9.41%. Profit After Tax (PAT) surged from ₹35.79 Crore to ₹64.64 Crore over the same period, a CAGR of 34.38%.
| Metric | FY2024 (₹ Crore) | FY2025 (₹ Crore) | FY2026 (₹ Crore) |
|---|---|---|---|
| Revenue from Operations | 446.08 | 507.91 | 534.02 |
| Total Revenue | 449.96 | 516.30 | 546.52 |
| Profit Before Tax (PBT) | 49.92 | 69.36 | 86.58 |
| Profit After Tax (PAT) | 35.79 | 52.95 | 64.64 |
| PAT Margin (%) | 8.02% | 10.42% | 12.10% |
Key financial ratios indicate improving efficiency and low leverage. The Return on Equity (ROE) was 21.12% in FY2026, while the Debt-to-Equity ratio stood at 0.20x. The Current Ratio improved to 4.28x in FY2026 from 3.06x in FY2024. However, cash from operations declined to ₹27.54 Crore in FY2026 from ₹61.89 Crore in FY2025, likely due to increased working capital requirements.
Risk Factors
Investors should consider the following material risks highlighted in the DRHP:
- Customer Concentration: Top 10 customers contributed 38.00% of revenue in FY2026. The company does not enter into long-term contracts, making it vulnerable to order fluctuations.
- Raw Material Costs: Raw materials constitute 61.02% of total expenses in FY2026. Fluctuations in prices or supply disruptions could impact margins.
- Working Capital Intensity: Net working capital grew significantly to ₹1,924.50 million in FY2026, indicating higher capital intensity.
- Geographic Concentration: 91.02% of revenue in FY2026 came from Indian customers, limiting international diversification.
- Indebtedness: As of 31-May-2026, total outstanding indebtedness was ₹148.65 million against sanctioned limits of ₹840.79 million. Restrictive covenants may limit operational flexibility.
Valuation & Peer Comparison
Specific peer comparison data and valuation multiples (P/E, P/B) are not available in the DRHP as the price band has not been finalised. Investors will need to assess valuation once the issue price is announced, comparing it against listed peers in the precision-engineered steel components sector.
Bottom Line
Behari Lal Engineering presents itself as a market leader in metal rolls with strong profitability growth and a clean balance sheet. The IPO aims to fund capacity expansion and debt repayment. With no price band or issue size disclosed yet, investors must wait for further filings to evaluate the valuation proposition. The absence of long-term customer contracts and high raw material costs remain key operational risks to monitor.
How might the planned capacity expansion at the Salani and Turan facilities impact BLEL's market share in the metal rolls segment given its current 10-11.5% hold?
What strategies will management implement to mitigate the risk of raw material cost volatility, which constitutes over 60% of total expenses?
Will BLEL consider entering into long-term supply agreements with its top 10 customers to stabilize revenue streams and reduce order fluctuation risks?
15
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
