SJP Ultrasonics Limited, a Maharashtra-based end-to-end plastic joining and industrial automation solution provider, has filed a DRHP for an SME IPO estimated at ₹21.19 crore. The company reported revenue from operations of ₹26.56 crore in FY2026, reflecting a two-year growth trajectory from ₹15.21 crore in FY2024.

About the Company

Incorporated in 2012 and headquartered in Vasai East, Palghar, SJP Ultrasonics operates across three core segments: Plastic Joining Solutions, Industrial Automation, and Laser Technology Solutions. The company serves B2B customers in automotive, medical, electrical, electronics, FMCG, defence, and packaging industries. In FY2026, Industrial Automation contributed 50.48% of revenue (₹13.40 crore), while Plastic Joining Solutions accounted for 46.52% (₹12.35 crore). The automotive sector was the largest vertical, contributing 44.79% of total revenue.

The company maintains a pan-India presence with a growing international footprint. Its top five customers contributed 38.52% of FY2026 revenue, while the top ten customers accounted for 55.28%. Maharashtra remained the largest geographic market, generating 44.05% of revenue.

Financial Performance

SJP Ultrasonics demonstrated consistent top-line growth over the last three fiscal years. Revenue from operations increased by 38.46% in FY2025 and further by 26.11% in FY2026. Profit After Tax (PAT) rose from ₹3.40 crore in FY2024 to ₹5.24 crore in FY2026.

EBITDA margin stood at 31.02% in FY2026, while PAT margin was 19.65%. Return on Equity (ROE) declined from 50.52% in FY2024 to 26.08% in FY2026, primarily due to equity expansion. However, cash flow from operations remained negative in FY2025 (-₹2.88 crore) and FY2026 (-₹2.70 crore), with the company relying on financing activities to sustain operations.

Why the Company Is Raising Funds

The estimated issue size of ₹21.19 crore is allocated as follows:

• Capital Expenditure: ₹13.22 crore (62.39%) for purchasing machinery such as milling machines, CNC lathe machines, compressors, robots, and laser cutting units.
• Working Capital: ₹4.92 crore (23.22%) to fund operational requirements.
• General Corporate Purposes: ₹3.05 crore (14.39%) for strategic initiatives, brand building, and debt repayment.

Business Strengths

• End-to-End Solutions: The company offers comprehensive services from design and raw material selection to machine manufacturing, installation, and post-sales support.
• Diversified Clientele: Exposure to multiple high-growth sectors including automotive, pharma, and packaging reduces single-sector dependency.
• Quality Certifications: ISO 9001:2015 certified for the manufacture and supply of plastic welding machines.
• Strong Order Book: As of March 31, 2026, the company held an order book worth ₹21.19 crore, providing near-term revenue visibility.

Key Risks

• Negative Operating Cash Flows: The company reported negative cash flows from operations in FY2025 and FY2026, indicating reliance on external financing.
• Customer Concentration: Top ten customers contributed 55.28% of FY2026 revenue, creating dependency risks.
• Regulatory Non-Compliance: The company failed to register under EPF and ESIC Acts until June 2024 and has a history of delayed statutory filings, exposing it to potential penalties.
• Unappraised Capex: The proposed machinery procurement is based on management estimates without bank appraisal, and orders for 100% of the machinery have not yet been placed.

Important IPO Dates

• Issue Opening Date: 30-Sep-2026
• Issue Closing Date: 05-Oct-2026
• Allotment Date: 06-Oct-2026
• Listing Date: 08-Oct-2026

Bottom Line

SJP Ultrasonics presents a growth story driven by industrial automation demand, with revenue expanding at a 32% CAGR over two years. While profitability metrics remain healthy with 31% EBITDA margins, investors must weigh these against persistent negative operating cash flows and historical regulatory compliance issues. The IPO proceeds are strategically directed toward capacity expansion to support its ₹21.19 crore order book.