Twinkle Papers files DRHP for ₹21.50 crore SME IPO
Twinkle Papers Limited filed a DRHP for a ₹21.50 crore SME IPO to fund capital expenditure, debt repayment, and working capital. Revenue grew 41% in FY25 to ₹81.65 Cr, while PAT for 9M FY26 reached ₹54.01 Cr. Key risks include 50.72% customer concentration and 88.86% geographic reliance on Punjab.
*this image is generated using AI for illustrative purposes only.
Twinkle Papers Limited has filed its Draft Red Herring Prospectus (DRHP) with the exchange to launch an SME IPO worth ₹21.50 crore, aiming to fund capital expansion and reduce debt. The company intends to utilize the net proceeds for capital expenditure, debt repayment, and working capital requirements. The issue is scheduled to open on 29-Jun-2026 and close on 01-Jul-2026.
Issue Structure and Objects
The IPO comprises a fresh issue of equity shares, with no offer for sale component. The company has allocated ₹6.50 crore for capital expenditure to purchase new machinery for automotive industry products at its existing manufacturing unit in Jitwal Khurd, Punjab. Additionally, ₹7.00 crore is earmarked for the repayment of secured and unsecured business loans, while ₹8.00 crore will support working capital requirements. The balance will be used for general corporate purposes.
Financial Performance
Twinkle Papers reported a steady increase in its financial metrics over the past three fiscal years. Revenue from operations grew from ₹5,444.60 Lakhs in FY2023 to ₹8,164.66 Lakhs in FY2025. Profit after tax (PAT) improved significantly from ₹89.93 Lakhs in FY2023 to ₹346.79 Lakhs in FY2025. For the nine-month period ending 31-Dec-2025, the company recorded a revenue of ₹7,206.56 Lakhs and a PAT of ₹540.11 Lakhs.
Financial Summary (₹ Lakhs)
| Period | Revenue from Operations | PAT | PAT Margin |
|---|---|---|---|
| FY2023 | 5,444.60 | 89.93 | 1.65% |
| FY2024 | 5,789.43 | 159.50 | 2.75% |
| FY2025 | 8,164.66 | 346.79 | 4.25% |
| 9M FY2026 | 7,206.56 | 540.11 | 7.49% |
Business Overview and Risks
Incorporated in 1995, Twinkle Papers operates under the 'Twinkle' brand, manufacturing corrugated boxes and polymer-based molded packaging products. The company serves diverse industries, including food, dairy, pharmaceuticals, and textiles. Its manufacturing facility in Malerkotla, Punjab, is ISO 9001:2015 certified and operated at a capacity utilization of 79.40% as of 31-Dec-2025.
The DRHP highlights several risk factors, including a heavy dependence on plastic products, which accounted for 76.10% of revenue as of 31-Dec-2025. The company also faces significant customer concentration, with its top customer accounting for 50.72% of revenue in the stub period. Furthermore, 88.86% of its revenue is derived from Punjab, indicating geographic concentration. The company reported contingent liabilities of ₹29.35 Lakhs as of 31-Dec-2025.
How will the company mitigate the risks associated with its heavy dependence on plastic products given potential regulatory shifts?
What strategies are planned to reduce the high customer concentration and expand the geographic footprint beyond Punjab?
Will the capital expenditure for new machinery significantly improve capacity utilization rates beyond the current 79.40%?
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