Wiscon Industries Limited, a Delhi-based consumer electronics brand incorporated in 2022, has filed its Draft Red Herring Prospectus (DRHP) for an SME IPO. The company reported a consolidated revenue of ₹196.87 crore in FY2026, driven by sales of LED TVs and electric scooters across 22 states.

About the Company

Wiscon Industries operates as a consumer electronics brand offering LED TVs, air coolers, washing machines, air conditioners, and third-party branded electric scooters under the 'Wiscon' label. The company utilizes a dual-channel distribution model, combining an offline B2B dealer network with a direct-to-consumer B2C website. In 2025, the company acquired Dalmia Technologies Limited (DTL), a wholly owned subsidiary, to establish Surface Mount Technology (SMT) production lines for PCB manufacturing, aiming for backward integration in its LED TV segment.

Financial Performance

The company has demonstrated rapid revenue growth and a shift from losses to profitability. Standalone revenue grew from ₹3.21 crore in FY2024 to ₹14.49 crore in FY2025. Following the consolidation of DTL, revenue surged to ₹196.87 crore in FY2026. Net profit improved from a loss of ₹1.36 crore in FY2024 to ₹20.41 crore in FY2026. Q1 FY2027 results showed continued momentum with ₹69.85 crore in revenue and ₹7.89 crore in net profit.

Despite reported profits, the company recorded negative operating cash flows of ₹20.01 crore in FY2026 and ₹9.89 crore in Q1 FY2027, indicating that operations are currently funded through financing activities.

Why the Company Is Raising Funds

The fresh issue proceeds are designated for specific strategic purposes:

• Capital Expenditure: Investment in Dalmia Technologies Limited for the purchase of plant and machinery, specifically two SMT production lines for PCB manufacturing.
• Working Capital: Funding incremental working capital requirements for the subsidiary and general corporate purposes for the parent company.
• Marketing: Financing promotional activities including celebrity endorsements, digital marketing, and dealer meets to expand brand awareness.

Business Strengths

• Revenue Growth: The company achieved a standalone revenue CAGR of 377.82% between FY2024 and FY2026.
• Backward Integration: The acquisition of DTL enables in-house PCB manufacturing, reducing dependence on third-party suppliers for LED TVs.
• Distribution Network: A PAN India presence across 22 states and 3 Union Territories, supported by both offline dealers and online channels.
• Management Experience: Led by Promoter and Managing Director Mr. Sidhant Dalmia, who brings seven years of industry experience.

Key Risks

• BIS Non-Compliance: Between 30.36% and 35.06% of purchases in recent periods were from vendors without Bureau of Indian Standards (BIS) registration, exposing the company to regulatory actions and penalties.
• Supplier Concentration: Top 10 suppliers account for over 99% of total purchases, with no long-term exclusive agreements, creating significant supply chain vulnerability.
• Customer Concentration: Top 10 customers contributed between 63.36% and 67.75% of revenue in recent periods, with no long-term contracts in place.
• Geographic Concentration: Delhi, Uttar Pradesh, and Haryana contribute between 74.25% and 83.76% of total revenue.
• Negative Cash Flows: Persistent negative operating cash flows despite reported profits highlight working capital intensity and reliance on external financing.

Important IPO Dates

• IPO Open Date: 27-Oct-2026
• IPO Close Date: 29-Oct-2026

Bottom Line

Wiscon Industries presents a high-growth profile with significant revenue expansion and profitability turnaround since its 2022 incorporation. The strategic move toward backward integration via DTL aims to secure margins. However, material risks regarding BIS compliance, extreme supplier and customer concentration, and negative operating cash flows remain critical factors disclosed in the DRHP.