Gabion Technologies India Limited IPO: ₹23.17 Crore Issue Opens January 6, 2026
Gabion Technologies India Limited launches ₹23.17 crore IPO from January 6-8, 2026, focusing on gabion manufacturing and infrastructure solutions. The company showed revenue growth from ₹78.76 crore (FY2023) to ₹104.76 crore (FY2024) with improving PAT margins reaching 7.09% in Q2 FY2026. Despite strong profit growth with 39.59% PAT CAGR, the company faces challenges including consistently negative operating cash flows, high debt-equity ratio of 1.98, and significant geographical concentration risks with majority revenue from Northern and Eastern India.
*this image is generated using AI for illustrative purposes only.
Gabion Technologies India Limited is set to launch its initial public offering worth ₹23.17 crore, opening for subscription on January 6, 2026, and closing on January 8, 2026. The company specializes in manufacturing, designing, and installing gabions, rockfall protection nettings, and geosynthetic materials for infrastructure projects across India.
Company Operations and Business Model
Incorporated in February 2008, Gabion Technologies operates through three core business verticals. The company manufactures mechanically woven double twisted hexagonal steel wire mesh gabions, provides design and construction services for gabion structures, and trades auxiliary products for infrastructure applications. The business serves diverse sectors including railways, airports, irrigation, energy, mining, defense, and real estate developments.
The management team includes Mr. Madhusudan Sarda as Managing Director, Mrs. Urvashi Sarda as Chief Executive Officer, and Ms. Priyanandini Sarda as Chief Financial Officer, along with other key executives overseeing operations, technology, and marketing functions.
Financial Performance Analysis
The company's financial trajectory shows mixed results with notable revenue growth followed by recent decline:
| Period | Revenue (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) | Growth Rate |
|---|---|---|---|---|
| FY2023 | 78.76 | 3.41 | 4.32% | - |
| FY2024 | 104.76 | 5.82 | 5.55% | 33.04% |
| FY2025 | 100.36 | 6.63 | 6.56% | -4.20% |
| Q2 FY2026 | 60.42 | 4.30 | 7.09% | - |
Despite revenue volatility, profitability margins have shown consistent improvement, with PAT margins expanding from 4.32% in FY2023 to 7.09% in Q2 FY2026. The company achieved a PAT CAGR of 39.59% between FY2023 and FY2025, indicating strong profit growth despite revenue fluctuations.
Balance Sheet and Cash Flow Concerns
The company's balance sheet reflects rapid asset growth, with total assets expanding from ₹51.77 crore in FY2023 to ₹100.58 crore in Q2 FY2026. However, this growth has been accompanied by significant debt accumulation, resulting in a debt-equity ratio of 1.98 as of November 2025.
| Financial Metric | FY2023 | FY2024 | FY2025 | Q2 FY2026 |
|---|---|---|---|---|
| Total Assets (₹ Cr) | 51.77 | 70.12 | 87.52 | 100.58 |
| Total Equity (₹ Cr) | 9.72 | 15.51 | 22.15 | 26.45 |
| Current Assets (₹ Cr) | 24.79 | 42.56 | 58.20 | 71.18 |
| Current Liabilities (₹ Cr) | 21.47 | 38.30 | 45.81 | 54.78 |
A critical concern is the company's consistently negative operating cash flows across all reported periods, ranging from -₹4.31 crore in FY2023 to -₹0.22 crore in Q2 FY2026. This indicates challenges in converting profits into actual cash generation from operations.
IPO Proceeds Utilization
The entire ₹23.17 crore fresh issue proceeds will be allocated toward specific business objectives:
| Purpose | Amount (₹ Cr) | Percentage |
|---|---|---|
| Working Capital Requirements | 22.11 | 95.4% |
| Capital Expenditure | 1.06 | 4.6% |
The major portion will fund working capital needs to support growth strategy and reduce external borrowing dependence. The capex component will finance purchase of five servo motor gabion mesh machines and PVC machinery to expand manufacturing capacity.
Key Strengths and Risk Factors
The company's competitive advantages include its dual manufacturer-contractor model, experienced design team with IIT-evaluated solutions, and comprehensive one-stop solution approach. The business maintains quality standards aligned with international benchmarks including ASTM, EN, and IS specifications.
However, significant risk factors require investor attention:
- Geographical Concentration: 66.23%-85.73% revenue dependence on Northern and Eastern India
- Supplier Dependency: 53.29% raw materials sourced from Himachal Pradesh without long-term contracts
- High Employee Attrition: 36.42% attrition rate among 159 employees
- Government Contract Exposure: 21.70% revenue from government projects with low bid acceptance rates
Investment Considerations
Gabion Technologies operates in the growing infrastructure development sector with specialized expertise in slope stabilization and erosion control solutions. The company's improving profitability margins and comprehensive service model present growth opportunities. However, investors must weigh these positives against persistent negative operating cash flows, high leverage levels, and significant operational concentration risks. The working capital intensive nature of the business and regulatory compliance challenges add additional layers of complexity for potential investors.
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