Millworks Technologies FY26 revenue surges to ₹148.77 Cr
Millworks Technologies Limited reported a significant surge in revenue from operations to ₹148.77 Cr in FY26, up from ₹22.10 Cr in FY25. The precision engineering company, which has filed its Draft Red Herring Prospectus for an SME IPO, aims to fund ₹61.03 Cr in capital expenditure and ₹81.50 Cr for working capital. Despite the growth, the company faces risks including negative operating cash flows of ₹10.76 Cr in FY26 and high customer concentration.
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Millworks Technologies Limited, a Bengaluru-based precision engineering company, reported a sharp increase in revenue from operations to ₹148.77 Cr in FY26, up from ₹22.10 Cr in the previous fiscal year. The company, incorporated on November 1, 2021, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO) on the SME platform. The issue aims to support capital expenditure and working capital requirements as the company expands its footprint in the railways, aerospace, defence, and semiconductor sectors.
Financial Performance
The company demonstrated a hypergrowth trajectory over the last two fiscal years. Total profit after tax (PAT) rose to ₹37.06 Cr in FY26, compared to ₹5.25 Cr in FY25 and ₹1.95 Cr in FY24. PAT margins expanded to 24.16% in FY26 from 23.42% in FY25. However, this rapid expansion was accompanied by negative operating cash flows, which stood at ₹10.76 Cr in FY26 and ₹2.92 Cr in FY25.
| Metric | FY2024 (₹ Cr) | FY2025 (₹ Cr) | FY2026 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 9.39 | 22.10 | 148.77 |
| Total Revenue | 9.40 | 22.42 | 153.40 |
| Total Expenses | 7.02 | 15.34 | 103.10 |
| Profit Before Tax | 2.38 | 7.08 | 50.23 |
| Total Profit (PAT) | 1.95 | 5.25 | 37.06 |
IPO Structure and Objects
The SME IPO is scheduled to open on July 14, 2026, and close on July 16, 2026. The company plans to utilise the net proceeds to fund capital expenditure for plant and machinery amounting to ₹61.03 Cr and working capital requirements of ₹81.50 Cr. A portion of the funds will also be allocated for general corporate purposes. The offering consists solely of a fresh issue, with no offer for sale component.
Business Operations and Risks
Millworks Technologies operates under Build-to-Print (BTP) and Build-to-Spec (BTS) models, supplying to Original Equipment Manufacturers (OEMs). The company holds AS9100D and ISO 9001:2015 certifications and exports to nine countries, with export sales contributing 26.97% to FY26 revenue. It operates four manufacturing facilities in Bengaluru.
Despite the strong top-line growth, the DRHP highlights several material risks. Trade receivables represented 93.22% of revenue in FY26, up from 20.05% in FY24, indicating elongated working capital cycles. The company exhibits high customer concentration, with its top customer accounting for 47.02% of FY26 revenue and the top ten customers contributing 92.06%. Additionally, the company has a limited operating history and regulatory compliance issues under the Companies Act 2013.
How will Millworks Technologies manage the widening gap between rising profits and negative operating cash flows post-IPO?
What strategies will the company employ to reduce its high dependency on the top customer, which accounts for nearly half of its revenue?
Will the planned capital expenditure successfully diversify the company's revenue base beyond its current heavy reliance on the railways sector?
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