Spectraa Technology Solutions Limited, a Bengaluru-headquartered engineering services provider for breweries and distilleries, has filed its Draft Red Herring Prospectus (DRHP) for an SME IPO. The company plans to open its book on September 17, 2026, aiming to raise ₹26.98 crore primarily for facility expansion and debt repayment.

About the Company

Incorporated in 2009 and converted to a public limited company in 2021, Spectraa provides end-to-end engineering solutions including design, fabrication, installation, and commissioning. The company serves industries such as Breweries, Distilleries, Food & Beverages, Malt Spirit & Blending, Extraction Plants, FMCG, and Pharmaceuticals. It operates dual manufacturing facilities in Bengaluru and Jaipur, covering an aggregate built-up area of 33,214.75 sq. ft. Spectraa holds ISO 9001:2015 certification and maintains a 100% Factory Acceptance Testing (FAT) success ratio with zero warranty claims during the period ended September 30, 2025.

Financial Performance

The company reported significant financial improvement in FY2026 following a strategic shift towards higher-margin products. Revenue from operations grew by 34.58% to ₹101.16 crore from ₹75.17 crore in FY2025. Net profit after tax (PAT) surged by 135.44% to ₹11.56 crore in FY2026, up from ₹4.91 crore in FY2025. Total assets stood at ₹106.29 crore as of March 2026.

Operating cash flow improved dramatically to ₹7.98 crore in FY2026 compared to ₹0.60 crore in FY2025. The debt-to-equity ratio improved from 6.62x in FY2025 to 3.28x in FY2026.

Why the Company Is Raising Funds

The identified use of proceeds totals ₹26.98 crore, allocated as follows:

• Capital Expenditure at Jaipur Manufacturing Facility: ₹11.00 crore for expansion including civil work and machinery procurement.
• Repayment of Term Loans: ₹6.48 crore to reduce indebtedness and improve debt metrics.
• Working Capital Requirements: ₹9.50 crore for raw material procurement such as sheet metal and copper.
• General Corporate Purposes: Balance amount for operating expenses and business development.

Business Strengths

Spectraa leverages a geographical advantage with manufacturing facilities in Bengaluru and Jaipur, providing strategic coverage across southern, western, and northern India. The company practices vertical integration by fabricating all equipment in-house, ensuring high customization and quality control. As of August 25, 2026, the company held a confirmed order book of ₹8,129.61 lakhs. Additionally, 90% of its employees are technical staff, supporting its engineering-intensive operations.

Key Risks

Customer concentration is a material risk, with the top five customers accounting for 46.75% of total revenue in FY2026. Supplier dependency is also notable, as the top ten suppliers accounted for 43.35% of total purchases. Trade receivables stood at ₹4,446.70 lakhs as of March 31, 2026, with approximately 10% contingent on project completion milestones. A significant regulatory risk involves the company's inability to locate the Consent to Establish (CTE) for its Jaipur manufacturing unit, which could subject it to penalties or operational suspension. Furthermore, over 57% of revenue is derived from customers in Maharashtra, Goa, Uttarakhand, and Karnataka, exposing the business to regional regulatory changes.

Important IPO Dates

• IPO Open Date: 17-Sep-2026
• IPO Close Date: 21-Sep-2026
• Allotment Date: 22-Sep-2026
• Listing Date: 24-Sep-2026

Bottom Line

Spectraa Technology Solutions presents a strong financial turnaround with PAT growing 135.44% in FY2026, driven by a shift to higher-margin projects. The IPO proceeds will fund capacity expansion and debt reduction, though investors must weigh these positives against customer concentration risks and regulatory compliance gaps regarding the Jaipur facility.