Infrax Renewable Limited, a Gujarat-based solar EPC and renewable energy services provider, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering. The company plans to raise ₹31.32 crore through a fresh issue to fund capital expenditure for a proposed manufacturing facility and meet incremental working capital requirements.

About the Company

Incorporated in 2024, Infrax Renewable Limited operates across three business segments: Engineering, Procurement, and Construction (EPC) services for residential rooftop and commercial ground-mounted solar projects; Independent Power Producer (IPP) activities via Power Purchase Agreements with PGVCL; and supply and distribution of solar products including PV modules and inverters. The company is empaneled as a national vendor under the Government of India's PM Surya Ghar: Muft Bijli Yojana scheme.

The company maintains an operational footprint with three warehouses in Rajkot, Ahmedabad, and Kanpur, and six branch offices across four states. As of FY2025-26, it boasts an authorized dealer network of 2,830 dealers. Over the last three financial years, Infrax Renewable successfully executed 5,708 rooftop and ground-mounted solar projects with an aggregate project value exceeding ₹8,743.95 lakhs.

Financial Performance

The company has demonstrated rapid revenue growth over the last three fiscal years. Revenue from operations increased from ₹9.65 crore in FY2024 to ₹30.47 crore in FY2025, and further surged to ₹93.21 crore in FY2026, representing a 205.93% year-on-year growth. Net profit followed a similar trajectory, rising from ₹0.96 crore in FY2024 to ₹10.20 crore in FY2026.

Despite profitability, operating cash flow turned negative at ₹-2.70 crore in FY2026, reflecting significant working capital build-up as the business scales. Total equity increased substantially to ₹15.77 crore in FY2026, while the debt-to-equity ratio improved to 1.00x.

Why the Company Is Raising Funds

The proceeds from the ₹31.32 crore fresh issue are allocated as follows:

• Capital Expenditure: ₹12.29 crore for purchasing machinery and equipment for a proposed manufacturing facility focused on solar panel recycling, silver extraction, solar mounting structures, and solar frame production.
• Working Capital: ₹17.00 crore to fund incremental working capital requirements.
• General Corporate Purposes: ₹2.03 crore for strategic initiatives, partnerships, joint ventures, acquisitions, and brand promotion.

Business Strengths

• Execution Track Record: Successfully commissioned 5,708 solar projects with aggregate value exceeding ₹8,743.95 lakhs.
• Government Empanelment: Registered as a national vendor under the PM Surya Ghar: Muft Bijli Yojana scheme.
• Diversified Model: Three-pronged approach involving EPC, IPP, and distribution reduces single-segment dependency.
• Dealer Network: Extensive network of 2,830 authorized dealers supports wide geographic reach.
• Infrastructure: Strategic presence with warehouses in Rajkot, Ahmedabad, and Kanpur reduces logistics costs.

Key Risks

• Geographic Concentration: 97.41% of revenue in FY2025-26 was generated from Gujarat, exposing the company to regional economic or regulatory risks.
• Negative Operating Cash Flow: Operating cash flow was negative at ₹-2.70 crore in FY2026, indicating high working capital needs.
• Policy Dependence: Business is significantly dependent on government subsidies and policies; any withdrawal or delay could adversely affect demand.
• Customer and Supplier Concentration: Top 10 customers contributed 47.02% of revenue, and top 10 suppliers accounted for 65.86% of purchases in FY2025-26, with no long-term agreements in place.
• Manufacturing Execution Risk: Delays or cost overruns in setting up the proposed manufacturing facility could impact growth prospects.

Important IPO Dates

• IPO Opening Date: 09-Sep-2026
• IPO Closing Date: 11-Sep-2026
• Allotment Date: 15-Sep-2026
• Listing Date: 17-Sep-2026

Offer Details

• Issue Type: Fresh Issue
• Total Issue Size: ₹31.32 Crore
• Offer for Sale: Nil
• Price Band: Not Available

Bottom Line

Infrax Renewable presents a high-growth profile with revenue tripling annually, supported by government scheme empanelment and a robust dealer network. However, investors should note the extreme geographic concentration in Gujarat, negative operating cash flows due to working capital intensity, and the execution risks associated with its new manufacturing venture.