Defrail Technologies Limited IPO: ₹9.69 Crore Issue Opens January 9 for Expansion
Defrail Technologies Limited, a Faridabad-based rubber components manufacturer founded in 2023, is launching a ₹9.69 crore IPO on January 9, 2026. The company has demonstrated exceptional growth with revenue increasing from ₹0.72 crores in FY2024 to ₹62.21 crores in FY2025, representing 8,540% growth. IPO proceeds will fund machinery purchase (₹7.96 crores) and solar panel installation (₹1.73 crores). While the company benefits from RDSO approval for railways sector participation and experienced management, it faces significant concentration risks with 92-96% revenue from rubber hose products and heavy dependence on the automobile sector.
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Defrail Technologies Limited, a specialized manufacturer of rubber components, is set to launch its Initial Public Offering (IPO) worth ₹9.69 crores on January 9, 2026. The Faridabad-based company serves diverse applications across automotive, railways, and defence industries through its two manufacturing facilities spanning 7,253.33 sq. yards.
Company Overview and Operations
Founded in 2023, Defrail Technologies operates as a manufacturer of rubber parts and components, including Rubber Hose and Assemblies, Rubber Profiles and Beadings, and Rubber Moulding parts. The company maintains its registered office at Plot no 180, Sector 24, Faridabad, Haryana, and operates two manufacturing plants in the same region.
| Facility: | Details |
|---|---|
| Plant 1 Area: | 2,420 sq. yards |
| Plant 1 Capacity Utilization: | 32.91% |
| Plant 2 Area: | 4,833.33 sq. yards |
| Plant 2 Capacity Utilization: | 42.42% |
| Additional Facilities: | In-house Testing Laboratory and R&D Centre |
The company has secured RDSO (Research Designs & Standards Organization) approval effective July 8, 2024, enabling participation in the Indian Railways supply chain. This certification represents a strategic milestone for diversification beyond the automotive sector.
Financial Performance Analysis
Defrail Technologies has demonstrated remarkable financial growth since its incorporation. The company's revenue trajectory shows exceptional expansion from its initial operations.
| Period: | Revenue (₹ Crores) | Growth Rate |
|---|---|---|
| FY2024: | 0.72 | - |
| FY2025: | 62.21 | 8,540.28% |
| Q2 FY2026: | 39.08 | - |
The profitability metrics reveal the company's operational efficiency across different periods:
| Metric: | FY2024 | FY2025 | Q2 FY2026 |
|---|---|---|---|
| Total Revenue (₹ Cr): | 0.72 | 62.22 | 39.08 |
| Net Profit (₹ Cr): | 0.11 | 3.42 | 1.51 |
| Net Profit Margin: | 15.28% | 5.50% | 3.86% |
As of September 30, 2025, the company's balance sheet shows total assets of ₹37.22 crores, with current assets of ₹23.39 crores and total equity of ₹10.62 crores.
IPO Structure and Fund Utilization
The IPO is scheduled to open on January 9, 2026, and close on January 13, 2026. The entire issue comprises fresh shares worth ₹9.69 crores.
| Purpose: | Amount (₹ Crores) | Percentage |
|---|---|---|
| Equipment/Machinery Purchase: | 7.96 | 82.15% |
| Solar Panel Installation: | 1.73 | 17.85% |
| General Corporate Purposes: | Balance Amount | - |
The capital expenditure focus indicates the company's commitment to expanding manufacturing capabilities and adopting renewable energy solutions. The solar panel installation aligns with sustainable manufacturing practices while potentially reducing operational costs.
Business Strengths and Market Position
Defrail Technologies benefits from several competitive advantages that position it favorably in the rubber components manufacturing sector. The management team brings over 15 years of industry experience, providing operational expertise and market understanding.
Key business strengths include:
- RDSO Approved Vendor Status for Indian Railways supply chain participation
- Diversified Product Portfolio across automotive, railways, and defence applications
- In-house R&D Capabilities supporting continuous product development
- Established Customer Relationships ensuring consistent demand
- Strategic Location in Faridabad, Haryana, providing logistics advantages
Risk Considerations
Despite strong growth prospects, the company faces several operational and market risks that potential investors should consider. The business model shows significant concentration across multiple dimensions.
| Risk Factor: | Impact Level |
|---|---|
| Product Concentration: | 92-96% revenue from Rubber Hose products |
| Sector Dependence: | 86-100% revenue from Automobile Sector |
| Geographic Concentration: | 85-100% revenues from Haryana state |
| Customer Concentration: | Top customer: 61-90% revenue |
| Supplier Dependency: | 80-95% materials from top 10 suppliers |
Additional operational challenges include low capacity utilization rates at both manufacturing plants and negative operating cash flows in recent periods. The company also faces dependency on leased facilities rather than owned properties.
Investment Outlook
Defrail Technologies presents a growth story centered on India's manufacturing expansion and infrastructure development. The company's RDSO approval opens opportunities in the railway sector, while the defence applications provide additional diversification potential.
The planned capital expenditure through IPO proceeds aims to enhance production capacity and operational efficiency. However, investors should weigh the exceptional growth trajectory against concentration risks and capacity under-utilization challenges. The company's recent incorporation in 2023 means limited operating history for comprehensive performance assessment.
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