Skytech Infinite Platform Limited, a Bangalore-based industrial automation company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The company, which specializes in turnkey automation solutions and control panels, aims to raise capital to fund working capital requirements. The IPO is scheduled to open on 14-Aug-2026 and close on 18-Aug-2026.

Company Overview

Skytech Infinite Platform Limited (CIN: U51506KA2009PLC049970) operates in the industrial automation and control systems sector. With over 15 years of operating history since its incorporation in 2009, the company designs, engineers, supplies, installs, commissions, and maintains various types of Control Panels.

The company serves a diverse range of industries including Power, Water, Energy, Machine Tools, Infrastructure, Food & Beverages, HVAC, Chemicals & Pharmaceuticals, Automotive, and Process Industries. It holds ISO 9001:2015 certification and acts as an authorized system integrator/distributor for reputed brands such as Mitsubishi Electric India, Endress + Hauser India, Exor India, and Euroteck Environmental.

Offer Details

The IPO is structured as a Fresh Issue, meaning 100% of the proceeds will flow to the company, with no Offer for Sale (OFS) component from promoters. The primary object of the issue is to meet working capital requirements.

Objects of Issue

The company has earmarked ₹16.81 Cr for working capital requirements, which includes procuring raw materials, maintaining inventory, advances to suppliers, and managing sundry debtors. Additional funds will be utilized for general corporate purposes and issue-related expenses, though specific amounts for these categories are not specified in the DRHP.

Financial Highlights

Skytech Infinite has shown significant improvement in profitability over the last two years. Revenue from operations grew from ₹44.13 Cr in FY2024 to ₹51.65 Cr in FY2026. Profit After Tax (PAT) surged from ₹1.35 Cr in FY2024 to ₹4.20 Cr in FY2026.

While profitability improved, investors should note that operating cash flow turned negative at -₹1.66 Cr in FY2026, despite positive PAT. This divergence is attributed to significant working capital build-up, with current assets rising from ₹22.65 Cr in FY2025 to ₹40.08 Cr in FY2026.

Risk Factors

Based on the financial data provided in the DRHP, key risks include:

1. Negative Operating Cash Flow: Operating cash flow was -₹1.66 Cr in FY2026, indicating high working capital consumption.
2. Rising Liabilities: Current liabilities increased by 102.66% in FY2026, from ₹12.01 Cr to ₹24.34 Cr, suggesting reliance on short-term borrowings.
3. Sector Concentration: Revenue is entirely dependent on the industrial automation sector, making it susceptible to cyclical downturns in industrial capital expenditure.
4. Competition: The company faces competition from large multinational companies and numerous regional players in the control panel manufacturing space.

Valuation & Peer Comparison

As the price band and issue size are not yet available in the DRHP, a precise valuation analysis cannot be performed. Investors will need to wait for the Red Herring Prospectus (RHP) to assess the P/E multiple against peers in the SME automation and electrical equipment space. The pre-issue total equity stood at ₹19.02 Cr as of FY2026.

Bottom Line

Skytech Infinite Platform presents a case of improving profitability and revenue growth, supported by strong strategic partnerships and a diversified client base across 12+ industrial verticals. However, the negative operating cash flow in FY2026 and rapid rise in current liabilities warrant careful scrutiny. Investors should monitor the final price band and subscription levels before making investment decisions.