Paluck Technologies Limited, a Gurgaon-based diversified engineering services and infrastructure support company founded in 2010, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an SME IPO. The pure fresh issue earmarks at least ₹23.10 crore for capex, debt repayment, and working capital, with the IPO set to open on 28-Aug-2026.

Company Overview

Paluck Technologies (CIN: U74110HR2010PLC040347) operates across three business verticals from its headquarters at 192/6, Nitin Vihar, Gurgaon – 122 001, Haryana. The company is recognized as one of the largest construction equipment rental fleet operators in North India, with a geographic footprint spanning Delhi NCR, Rajasthan, Haryana, Madhya Pradesh, Gujarat, Odisha, and Jammu & Kashmir.

Business Segments:

• Automobile & Engineering Services: Authorized dealerships and service centers for OEMs in power equipment, commercial vehicles, and two-wheelers; specializes in NGT-compliant diesel generator sets.
• Logistics & Equipment Rental: Fleet of 92 transit mixers, 13 concrete pumps, and 23 logistics trucks deployed on a lease/rental basis to infrastructure developers and EPC contractors.
• Telecom Engineering: Manages 7,500+ telecom sites across India with expertise in 10,000+ telecom site operations and maintenance.

Promoters & Key Management:

The core management team has been retained for over 10 years. The company has over 15 years of operational history and benefits from sector tailwinds including government infrastructure spending and India's 5G telecom rollout.

Offer Details

Objects of the Issue

• RMC Machinery & DG Sets (₹10.00 crore): Purchase of new Ready-Mix Concrete machinery and DG sets to expand rental fleet capacity and enhance execution capability.
• Debt Repayment (₹3.10 crore): Pre-payment or repayment of certain outstanding borrowings to reduce debt servicing costs and improve the debt-to-equity ratio.
• Working Capital (₹10.00 crore): Fund working capital requirements to support order book execution and capitalize on growing infrastructure and telecom demand.
• General Corporate Purpose: Balance proceeds, not exceeding fifteen percent of Gross Proceeds or ₹10 crore, whichever is lower.

Financial Highlights

Note: The period ending 28/02/2026 represents an 11-month period (April 2025 – February 2026).

PAT grew from ₹3.43 crore in FY2024 to ₹9.63 crore in FY2025 and further to ₹13.84 crore in 11M FY2026, with 11M FY2026 PAT already exceeding full-year FY2025 by ₹4.21 crore. The debt-to-equity ratio improved sharply from 1.90x to 0.52x over the same period, reflecting active deleveraging funded by strong internal accruals.

Risk Factors

1. Customer Concentration: Top 10 customers accounted for 44.73% of revenue in February 2026 and 65.56% in Fiscal 2023; loss of key clients could materially impact revenues and cash flows.
2. Past Loan Repayment Delays: The company experienced delays in repayment of loans from Equitas Small Finance Bank Limited totalling ₹101.05 lakhs in 2025-2026; while regularized, this may affect future credit access and investor confidence.
3. Working Capital Intensity: The business model requires substantial upfront financing with long payment cycles from customers, creating liquidity risk if receivables are delayed or external funding is constrained.
4. Fleet & Equipment Dependence: Business is critically dependent on continuous availability and utilization of fleet assets; prolonged downtime or breakdowns could significantly affect operational performance and profitability.
5. Sector Cyclicality: Revenues are closely tied to the cyclical infrastructure and construction sectors; economic slowdowns or reduced government spending could lead to asset underutilization and margin compression.

Valuation & Peer Comparison

As the price band has not been disclosed in the DRHP, precise valuation multiples such as P/E and P/B cannot be computed at this stage. No peer comparison data is provided in the DRHP extract; the company's multi-segment nature — spanning construction equipment rental, telecom engineering, and OEM dealerships — makes direct benchmarking complex. Investors should refer to the peer comparison section in the full DRHP document once available.

Bottom Line

Paluck Technologies presents a consistent revenue base above ₹100 crore, a dramatic improvement in PAT margins from 3.37% to 13.17%, and a sharply improved debt-to-equity ratio of 0.52x as of 11M FY2026. The IPO is a pure fresh issue with no OFS component, meaning all proceeds are directed toward business expansion. Key concerns include customer concentration, past loan repayment delays, and the working capital-intensive nature of the business. The price band remains undisclosed, making valuation assessment pending. Investors should monitor the price band announcement and the full DRHP for peer comparison and EPS data before forming a view.