Metalic Technoforge files DRHP for SME IPO to fund expansion
Metalic Technoforge Limited filed its DRHP for an SME IPO scheduled from 21-Jul-2026 to 23-Jul-2026, listing on 28-Jul-2026. Proceeds of ₹30.81 crore will fund a new manufacturing unit and upgrades, while ₹6.72 crore will repay debt. Financials show revenue rising from ₹50.85 crore in FY2024 to ₹95.55 crore in FY2026, with net profit growing to ₹12.36 crore. However, negative operating cash flow and high working capital requirements pose risks alongside customer concentration.
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Metalic Technoforge Limited has filed its Draft Red Herring Prospectus (DRHP) for an SME IPO to fund capacity expansion and repay debt, aiming to capitalize on strong revenue growth. The company, incorporated in 2016, manufactures closed die forged and precision-machined components for automotive and non-automotive OEMs. The IPO opens on 21-Jul-2026 and closes on 23-Jul-2026, with allotment on 24-Jul-2026 and listing on 28-Jul-2026.
The net proceeds from the fresh issue will be allocated towards specific corporate objectives. The company plans to utilise ₹30.81 crore for capital expenditure to set up Manufacturing Unit IV and upgrade existing units in Rajkot, Gujarat. Additionally, ₹6.72 crore is earmarked for the full or partial repayment of outstanding secured borrowings. The balance funds will be used for general corporate purposes.
Financial Performance
Metalic Technoforge has demonstrated significant growth in its financial metrics. Revenue from operations increased from ₹50.85 crore in FY2024 to ₹95.55 crore in FY2026. Net profit also rose, growing from ₹4.26 crore in FY2024 to ₹12.36 crore in FY2026. The company’s total assets expanded to ₹92.09 crore in FY2026, while total equity stood at ₹33.42 crore.
| Metric | FY2024 (₹ Cr) | FY2025 (₹ Cr) | FY2026 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 50.85 | 74.37 | 95.55 |
| Total Revenue | 51.50 | 75.64 | 97.98 |
| Net Profit (PAT) | 4.26 | 9.03 | 12.36 |
| Total Assets | 33.67 | 65.10 | 92.09 |
| Total Equity | 7.72 | 17.40 | 33.42 |
Operational Highlights
The company operates a single manufacturing facility in Rajkot, Gujarat, spanning 5,968.51 square meters with an installed capacity of 6,800 metric tons per annum. Energy requirements are partially met by a 1 MW solar power plant. The product portfolio includes big rings, small rings, ball studs, gear blanks, and coupling assemblies, with component weights ranging from 250 grams to 16 kg.
As of 30-Jun-2026, the company held a confirmed order book of ₹2,761.15 lakhs. International operations contributed 35.40% of total revenue in FY2026, with customers in Germany, Finland, and the United States. Repeat customers accounted for 89.10% of revenue in FY2025-26.
Risk Factors
Investors must consider several material risks disclosed in the filing. Net working capital requirements escalated to ₹3,997.82 lakhs in FY2026, representing 41.84% of revenue, up from 15.00% in FY2024. Consequently, cash from operations turned negative at -₹0.96 crore in FY2026 despite a positive PAT.
The company faces geographic and customer concentration risks, with 62.45% of domestic revenue concentrated in Gujarat, Maharashtra, and Uttar Pradesh in FY2026. The top 10 customers accounted for 64.61% of revenue in the same period. Furthermore, the company has outstanding litigation, including a taxation matter involving ₹5.77 lakhs and allegations regarding bogus invoices and wrongful availment of input tax credit in proceedings involving promoter-related entities.
How will the company address the widening gap between positive net profit and negative cash flow from operations post-IPO?
What strategies will be employed to diversify the customer base given the high concentration risk among the top 10 clients?
Will the capacity expansion at Manufacturing Unit IV be sufficient to meet the demand from the confirmed ₹2,761.15 lakh order book?
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