Q&T Foods Limited, a Ghaziabad-based manufacturer of savoury bakery products under the brand 'American Bakers', has filed its Draft Red Herring Prospectus (DRHP) with SEBI. The company is proposing a fresh issue worth ₹22.59 crore to fund capital expenditure, working capital requirements, debt repayment, and general corporate purposes. The IPO is scheduled to open on 12-Aug-2026 and close on 14-Aug-2026.

Company Overview

Q&T Foods Limited was incorporated in 2018 and operates in the organised bakery products segment, primarily serving consumers across Uttar Pradesh. The company manufactures and distributes a diversified portfolio including Milk Bread, White Bread, Multigrain Bread, Brown Bread, Kulcha, Pav, Burger Bun, and Pizza Base.

The company operates an ISO 22000:2018 and HACCP certified in-house manufacturing facility in Ghaziabad with an installed capacity of 9,472 TPA. It maintains a dealer network of more than 50 dealers across Uttar Pradesh. The management team includes Nishant Raj Gupta as Managing Director, Khushbu Varshney as CEO, and Usha Gupta as Director.

Offer Details

The proposed issue is a fresh issue with no Offer for Sale (OFS) component. The total aggregate amount for the stated objects of the issue is ₹22.59 crore. Specific details regarding the price band, face value, and lot size are not yet available in the DRHP.

Use of Proceeds:

• Capital expenditure – Purchase of Equipment/Machineries: ₹4.42 Crore
• Part finance Working Capital requirements: ₹7.50 Crore
• Repayment/pre-payment of certain borrowings: ₹6.75 Crore
• General Corporate Purposes: ₹3.92 Crore

Key Dates:

• IPO Open Date: 12-Aug-2026
• IPO Close Date: 14-Aug-2026
• Listing Date: Not Available
• Allotment Date: Not Available

Financial Highlights

Q&T Foods has demonstrated consistent revenue growth and improving profitability over the last three years. Revenue from operations grew from ₹40.22 crore in FY2024 to ₹54.78 crore in FY2026, representing a 3-year CAGR of approximately 16.67%. Net profit scaled significantly from ₹1.96 crore in FY2024 to ₹5.20 crore in FY2026.

Operating cash flows improved significantly from negative ₹0.17 crore in FY2024 to ₹3.99 crore in FY2026. The debt-to-equity ratio improved substantially from 4.88x in FY2024 to 1.17x in FY2026.

Risk Factors

Investors should note several material risks disclosed in the DRHP:

1. Delays in Statutory Dues: The company has reported significant delays in payment of statutory dues, including Employee Provident Fund (EPF) delays of up to 2,435 days and Employee State Insurance (ESI) delays of up to 915 days. This may attract financial penalties.
2. Trademark Opposition: The trademark application for "AMERICAN BAKERS" has been opposed by a third party under Sections 9, 11, and 18 of the Trade Marks Act, 1999. An adverse outcome could require rebranding.
3. Outstanding Litigation: There are pending litigation proceedings involving ₹51.11 lakhs against the company and ₹36.01 lakhs against promoters.
4. Leased Facility: The manufacturing facility operates on leased premises. Inability to renew leases or relocate may adversely affect operations.
5. Inventory Growth: Inventory levels increased by 114.72% over two years, from ₹250.07 lakhs in March 2024 to ₹536.95 lakhs in March 2026, posing working capital and spoilage risks.

Valuation & Peer Comparison

As the price band has not been disclosed, valuation metrics such as P/E ratio and P/B ratio cannot be calculated at this stage. Peer comparison data is also not available in the provided DRHP data.

Bottom Line

Q&T Foods presents a growth story with strong revenue and profit expansion, supported by a certified manufacturing facility and expanding dealer network. However, investors must carefully evaluate the compliance concerns regarding statutory dues, pending litigation, and the legal challenge to its primary brand name before making investment decisions.

Q&T Foods Limited, a Ghaziabad-based manufacturer of savoury bakery products operating under the brand 'American Bakers', has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is planning a fresh issue IPO with proceeds totaling approximately ₹22.59 Crore. The issue aims to fund capital expenditure, working capital requirements, and debt repayment, marking a significant step for the regional player in the organised bakery segment.

Company Overview

Q&T Foods Limited was incorporated in 2018 and is headquartered in Ghaziabad, Uttar Pradesh. The company manufactures and distributes savoury bakery products, including breads, buns, pizza bases, and kulcha. Its primary brand, 'American Bakers', is sold through a network of over 50 dealers in Uttar Pradesh.

Key operational strengths include:

• Certified Facility: ISO 22000:2018 and HACCP certified manufacturing unit.
• Capacity: Installed capacity of 9,472 TPA at its leased facility in Ghaziabad.
• Market Focus: Deep penetration in Uttar Pradesh, which contributed 99.25% of revenue in FY2026.

Offer Details

The IPO is structured as a Fresh Issue with no Offer for Sale (OFS). The total proceeds are estimated at ₹22.59 Crore. While the price band and lot size are not yet disclosed, the timeline for the issue is set as follows:

Objects of the Issue

The company intends to utilize the IPO proceeds for the following purposes:

Financial Highlights

Q&T Foods has demonstrated consistent revenue growth and improving profitability over the last three years. Revenue from operations grew from ₹40.22 Crore in FY2024 to ₹54.78 Crore in FY2026, representing a ~16.71% CAGR. Net profit (PAT) saw a sharper rise, growing from ₹1.96 Crore to ₹5.20 Crore, a ~62.97% CAGR.

Financial Performance Table

Other key financial metrics include:

• Debt-to-Equity: Improved significantly from 4.88x in FY2024 to 1.17x in FY2026.
• Operating Cash Flow: Turned positive, rising from negative ₹(0.17) Crore in FY2024 to ₹3.99 Crore in FY2026.
• Total Equity: Grew from ₹2.44 Crore to ₹12.24 Crore over the same period.

Risk Factors

Investors should note several material risks disclosed in the DRHP:

1. Trademark Opposition: The trademark application for 'American Bakers' is opposed by a third party. An adverse outcome could necessitate rebranding, impacting brand recognition.
2. Statutory Dues Delays: The company has faced significant delays in paying statutory dues, including Employee Provident Fund (up to 2,435 days) and Employee State Insurance (up to 915 days), which may attract penalties.
3. Geographic Concentration: 99.25% of revenue in FY2026 was derived from Uttar Pradesh, exposing the company to regional economic risks.
4. Product Concentration: Bread products constituted 99.91% of total revenue in FY2026.
5. Leased Premises: The manufacturing facility is on leased premises (rent ₹45,000/month); failure to renew leases could disrupt operations.

Valuation & Peer Comparison

As the price band has not been disclosed, precise valuation metrics such as P/E ratio cannot be calculated. However, with FY2026 PAT of ₹5.20 Crore, the final issue price will determine the entry valuation. Peer comparison data is not available in the current DRHP data provided.

Bottom Line

Q&T Foods Limited presents a growth story with expanding margins and improving cash flows, supported by a strong regional brand presence. However, investors must carefully weigh these positives against critical risks, particularly the ongoing trademark dispute for its primary brand and compliance issues regarding statutory dues. The IPO opens on 12-Aug-2026, and further details on pricing will be available closer to the issue date.