Steamhouse India Limited, a Gujarat-based industrial utility provider specializing in centralized steam and nitrogen distribution, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering. The company is raising ₹294.13 crore through a fresh issue to fund capacity expansions and reduce its debt burden.

About the Company

Incorporated in 2015, Steamhouse India operates seven community steam boilers across Gujarat with a combined installed capacity of 345 Tons Per Hour (TPH). The company serves 202 customers in sectors including pharmaceuticals, chemicals, and textiles by generating steam and distributing it via dedicated underground pipeline networks. It also produces and distributes nitrogen through pipeline networks, a unique model in India that replaces traditional cryogenic tank deliveries. The promoters introduced the community boiler system in 2014, establishing the company as a pioneer in this segment.

Financial Performance

The company reported strong revenue growth over the last three fiscal years. Revenue from operations increased from ₹291.71 crore in FY2024 to ₹491.51 crore in FY2026, reflecting a two-year Compound Annual Growth Rate (CAGR) of approximately 29.80%. Profit after tax (PAT) grew from ₹27.19 crore in FY2024 to ₹38.64 crore in FY2026.

Despite revenue growth, profit before tax (PBT) margins declined from 14.77% in FY2024 to 10.35% in FY2026. As of March 31, 2026, total borrowings stood at ₹281.62 crore, resulting in a net debt-to-equity ratio of 1.57x.

Why the Company Is Raising Funds

The ₹294.13 crore fresh issue proceeds are allocated as follows:

• Debt Repayment: ₹180.00 crore for repayment and prepayment of outstanding borrowings.
• Ankleshwar Expansion: ₹37.98 crore for Phase 3 capacity addition (+60 TPH).
• Panoli Expansion: ₹37.98 crore for Phase 2 capacity addition (+60 TPH).
• Dahej GIDC Facility: ₹38.17 crore for a new greenfield facility (60 TPH).
• General Corporate Purposes: Balance net proceeds.

Business Strengths

Steamhouse India holds a leading market position as the first mover in India's community boiler system. Its exclusive pipeline networks within industrial clusters create high barriers to entry due to limited physical space for competitors. The company benefits from high customer stickiness, with 90.72% of FY2026 revenues derived from repeat customers. Its facilities are strategically located 45–50 kilometers from Indian ports, facilitating efficient coal imports.

Key Risks

The company faces significant customer concentration risk, with the top 10 customers contributing 47.87% of revenue in FY2026. Coal purchases constituted 77.29% of total purchases in FY2026, exposing the business to supply chain disruptions and price volatility. High financial leverage is another concern, with a net debt-to-equity ratio of 1.57x. Additionally, related party transactions accounted for 73.74% of revenue from operations in FY2026. The company has also previously violated certain material approvals from the Gujarat Pollution Control Board.

Important IPO Dates

• IPO Open Date: 09-Sep-2026
• IPO Close Date: 11-Sep-2026
• Allotment Date: 15-Sep-2026
• Listing Date: 17-Sep-2026

Offer Details

• Total Issue Size: ₹294.13 Crore
• Fresh Issue: ₹294.13 Crore
• Offer for Sale: Not Available
• Price Band: Not Available

Bottom Line

Steamhouse India’s DRHP highlights a fast-growing industrial utility player with a niche market position in community steam and nitrogen distribution. While the company demonstrates strong revenue growth and customer retention, investors must weigh these strengths against high related-party revenue dependency, significant coal price exposure, and substantial existing debt levels that the IPO aims to reduce.