Skytech Infinite Platform Limited, a Bangalore-based industrial automation specialist, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company, which designs and supplies turnkey automation solutions including control panels, is raising ₹16.81 crore through a fresh issue to meet working capital needs. The IPO is scheduled to open on 14-Aug-2026.

Company Overview

Skytech Infinite Platform Limited operates in the industrial automation sector, providing end-to-end turnkey solutions. The company designs, engineers, supplies, installs, and maintains Control Panels integrating Programmable Logic Controllers (PLCs), Variable Frequency Drive (VFD) systems, switchgear, and sensors. Incorporated in 2009, the firm has over 15 years of operating history and holds ISO 9001:2015 certification.

The company serves more than 12 industrial verticals, including Power, Water, Energy, Automotive, Pharmaceuticals, and Manufacturing. It acts as an authorized system integrator and distributor for global brands such as Mitsubishi Electric India, Endress + Hauser India, Exor India, and Euroteck Environmental. The management team is led by Managing Director Paramashivam Deiveekan and CEO Suma Deiveekan.

Offer Details

The issue comprises a fresh issue of ₹16.81 crore, with no Offer for Sale (OFS). The primary objective is to raise funds for working capital requirements. The price band and lot size have not been disclosed in the DRHP.

Financial Highlights

Skytech Infinite reported a significant improvement in profitability over the last three 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 PAT margins stabilized at approximately 8% in FY2025 and FY2026, operating cash flow turned negative at -₹1.66 Cr in FY2026, highlighting the need for working capital infusion.

Objects of the Issue

The proceeds from the IPO will be utilized as follows:

• Working Capital Requirements: ₹16.81 Crore for procurement of raw materials, maintaining inventory, advances to suppliers, and managing sundry debtors.
• General Corporate Purposes: Unquantified amount for strategic initiatives, partnerships, brand building, and contingencies.
• Issue Related Expenses: Unquantified amount for management fees, underwriting fees, legal advisor fees, and listing fees.

Risk Factors

Investors should consider the following material risks identified in the DRHP:

• Negative Operating Cash Flow: Operating cash flow was -₹1.66 Cr in FY2026 despite strong PAT, indicating working capital strain.
• Rising Leverage: The Debt-to-Equity ratio increased from 1.03x in FY2025 to 1.50x in FY2026.
• Customer Concentration: Top 10 customers contributed 47.23% of revenue in FY2026.
• Raw Material Volatility: Procurement of electronic components and sensors is subject to global supply chain disruptions and price fluctuations.

Valuation & Peer Comparison

Valuation metrics such as P/E ratio cannot be assessed as the price band has not been disclosed. Peer comparison data is also not available in the current DRHP filing. Investors should wait for the final Red Herring Prospectus (RHP) for detailed valuation benchmarks.

Bottom Line

Skytech Infinite Platform Limited presents a profile of improving profitability with PAT growing over 200% in two years. However, the negative operating cash flow in FY2026 and rising leverage are key concerns. With the IPO opening on 14-Aug-2026, investors should monitor the final price band and subscription trends before making investment decisions.

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.