What the company does
The company manufactures metal rolls used in rolling mills, engineering castings, alloy-steel rounds and flats, forging ingots, shafts and blocks. Its customers operate across steel and other capital-intensive industries.
The product strategy has shifted toward higher-value metal rolls, tool steel, die steel and customized castings. FY26 EBITDA margin reached 18.97%, but sustaining that mix requires metallurgical quality control, customer approvals and consistent utilisation.
Operations are centered in Punjab and are exposed to electricity, scrap and alloy input costs. Selling prices and raw-material pass-through can move with the steel cycle and customer contracts.
Repeat customers generated 84.69% of FY26 revenue, while the top ten customers generated 38.00%. This supports relationship continuity but does not remove order risk because customers are not tied in by long-term contracts.
Where the IPO money goes
Three-year financial snapshot
| Year | Revenue | EBITDA | PAT | Net worth | Borrowings | Assets |
|---|---|---|---|---|---|---|
| FY24 | ₹446.08 Cr | ₹60.99 Cr | ₹35.79 Cr | ₹193.66 Cr | ₹41.21 Cr | ₹262.08 Cr |
| FY25 | ₹507.91 Cr | ₹81.31 Cr | ₹52.95 Cr | ₹241.62 Cr | ₹7.58 Cr | ₹295.98 Cr |
| FY26 | ₹534.03 Cr | ₹101.33 Cr | ₹64.64 Cr | ₹306.1 Cr | ₹17.78 Cr | ₹367.87 Cr |
Restated financial information from IPO source materials; rounding may create small differences.
FY26 EBITDA margin
18.97%
Up from 13.67% in FY24 as EBITDA per tonne rose to ₹11,495.
FY26 PAT margin
12.10%
PAT increased 22.1% to ₹64.64 crore while revenue grew 5.1%.
FY26 debt/equity
0.06×
Borrowings were ₹17.78 crore, above FY25's ₹7.58 crore but well below FY24's ₹41.21 crore.
FY24–FY26 PAT CAGR
34.4%
Profit growth continued to outpace revenue because of margin expansion.
FY26 operating cash flow
₹27.54 crore
Only 42.6% of PAT after inventories rose ₹23.29 crore and receivables and other assets rose ₹22.26 crore.
FY26 working-capital days
132 days
Up from 104 days in FY25; the cash-conversion cycle also lengthened from 72 to 93 days.
FY26 debtor / creditor days
60 / 24 days
Customers took about 2.5 times as long to pay as the company took to pay suppliers, reinforcing the working-capital burden.
Inventory plus receivables
₹200.16 crore
₹104.39 crore of inventory plus ₹95.77 crore of receivables represented 54.4% of FY26 total assets.
FY26 inventory days
57 days
Up from 42 days in FY25 and 34 days in FY24; inventory was ₹104.39 crore and 28.38% of total assets.
Top-ten supplier share
38.39%
FY26 procurement from the top ten suppliers was ₹176.70 crore; the company has no long-term raw-material contracts.
May 2026 order book
₹178.57 crore
Approximately 33.4% of FY26 revenue and based on cancellable or delayable purchase orders rather than long-term contracts.
FY26 capacity utilisation
87.71%
SMS/foundry utilisation was 94.47%, while rolling-mill utilisation was 82.02%.
Pre-offer promoter/group holding
88.51%
The filed capital table shows 3,45,53,485 shares held by promoters and promoter-group members out of 3,90,39,325 pre-offer shares.
Fresh-share dilution
7.71% of post capital
The final BSE count of 4,23,02,482 shares less 3,90,39,325 pre-offer shares reconciles to 32,63,157 new shares.
Post-offer promoter/group range
69.57%–70.84%
A bounded calculation from the confirmed 73.20-lakh OFS and filed seller caps; the final seller-by-seller allocation remains unavailable from the rejecting prospectus host.
Filed seller WACA range
₹1.12–₹89.65
DRHP acquisition costs range from ₹1.12 for Rajesh Garg to ₹89.65 for SG Tech Engineering, versus the ₹285 issue price; final allocated sale counts are not assumed.
NSE / BSE first-day outcome
₹502.20 / ₹502.55
NSE close and BSE 4:00 p.m. end-of-session value, equal to +76.21% and +76.33% versus ₹285. Official exchange values are preserved separately.
What stands out
- EBITDA margin expanded from 13.67% in FY24 to 18.97% in FY26 as EBITDA per tonne and higher-value product contribution increased.
- PAT increased from ₹35.79 crore in FY24 to ₹64.64 crore in FY26, materially faster than the increase in revenue.
- Borrowings were ₹17.78 crore at FY26 and only ₹9.44 crore was drawn against ₹69.10 crore of sanctioned working-capital facilities at 31 May 2026.
- Three decades of promoter experience and established steel-industry relationships support customer qualification and procurement.
Key concerns
- Steel and foundry demand is cyclical and linked to industrial capex, mill utilization and commodity prices.
- The FY26 margin step-up may normalize if high-value product mix, realisations, energy costs or plant utilisation weaken.
- Net working capital increased to ₹192.45 crore and 132 days in FY26 from ₹145.37 crore and 104 days in FY25. Operating cash flow fell to ₹27.54 crore despite ₹64.64 crore PAT as inventory and receivables absorbed cash.
- Inventory and receivables together represented 54.4% of total assets at FY26. Debtor days of 60 were well above creditor days of 24, so growth requires funding the gap between customer collection and supplier payment.
- The full ₹63.04 crore equipment-and-solar programme was undeployed at the RHP date and orders were still to be placed. The budget relies on quotations, is not bank-appraised and is scheduled entirely for FY27, creating ordering, delivery and cost-overrun risk.
- Manufacturing Facility 1's programme changes product mix but does not increase total installed capacity because a 5,000-tonne increase in rolls and castings is offset by a 5,000-tonne reduction in ingots. Manufacturing Facility 2 adds 15,000 tonnes, so returns depend on mix and utilisation rather than headline capex alone.
- The top ten customers supplied 38.00% of FY26 revenue and no customer has a contract longer than one year; the ₹178.57 crore May order book is based on purchase orders that can be delayed or cancelled.
- Top-ten suppliers represented 38.39% of FY26 expenses and raw materials are purchased without long-term contracts. Scrap, ferro-alloy, ingot and billet availability or pricing can therefore affect both throughput and margin.
- The RHP reports ₹3.56 crore of FY26 contingent liabilities and ₹1.93 crore of capital commitments. The contingent balance includes ₹2.84 crore of bank guarantees plus GST and TDS-related matters under review or dispute.
- The company disclosed historical delays in TDS, TCS and GST payments. Although the RHP says the restated financial statements contain no audit qualification or reservation, statutory-payment discipline remains a governance control to track.
- The company remains modest in scale relative to several listed engineering and casting peers.
- Product defects, rejection, metallurgical inconsistency or delayed customer approvals can create warranty, rework and reputation costs.
- The OFS is about 69% of the cap-price offer, so only ₹93 crore of the approximately ₹301.62 crore issue is primary capital.
- The filed capital table shows 88.51% pre-offer promoter and promoter-group ownership. The confirmed final OFS is smaller than the DRHP maximum, but the lead manager's final prospectus file was rejecting retrieval at this checkpoint; the exact seller-level reduction and resulting post-offer holding should therefore be verified rather than proportionally assumed.
What to monitor after listing
- Revenue, EBITDA per tonne and margin by product category, particularly metal rolls and specialty alloy steel.
- Inventory, receivable days, working-capital days and operating cash conversion as volumes increase.
- Debtor days versus creditor days and the share of assets locked in inventory and receivables.
- Energy, scrap and alloy-input costs and the timing of price pass-through.
- Ordering, commissioning and utilisation of the ₹63.04 crore programme, including the 15,000-tonne Facility 2 addition and product-mix change at Facility 1.
- Order-book conversion, repeat-customer contribution, cancellations and customer additions outside the existing base.
- Top-supplier dependence, inventory ageing, disputed GST and TDS matters, contingent liabilities and statutory-payment timeliness.
- Post-listing delivery, liquidity and price convergence after the ₹502.20 NSE close and ₹502.55 BSE end-of-session value on 19 August; the final seller-by-seller OFS allocation, exact post-issue promoter holding, related-party transactions and fresh-proceeds deployment.
Valuation context
At the confirmed ₹285 issue price, BSE's 4,23,02,482 post-issue shares imply a market capitalisation of about ₹1,205.62 crore and a dilution-consistent FY26 P/E near 18.65×. The ₹502.20 NSE close implies approximately ₹2,124.43 crore and 32.87× FY26 PAT, while BSE's ₹502.55 4:00 p.m. value implies ₹2,125.91 crore and 32.89×. These are dated first-day market calculations, not assessments of fundamental fair value.
The RHP peer set spans Jayaswal Neco, AIA Engineering, Steelcast, RHI Magnesita India, Vardhman Special Steels, IFGL Refractories and Kennametal India. It reports an FY26 peer P/E range of 18.48–62.02× and 31.36× average, but scale, export exposure, product mix and capital intensity differ materially.
The valuation question is whether FY26's 18.97% EBITDA margin and ₹11,495 EBITDA per tonne represent a durable product-mix shift or a favourable point in the steel and input-cost cycle, particularly as working-capital days moved higher.
At the indicative cap-price market capitalisation, inventory and receivables equal roughly one-sixth of equity value. The multiple therefore depends not only on maintaining margin but on releasing cash from the 93-day conversion cycle as the new capacity ramps.
Behari Lal Engineering IPO FAQs
What is the Behari Lal Engineering IPO price band?
The stated price band is ₹271–₹285; issue price ₹285. Offer terms should be checked against the final prospectus and exchange notices.
When does the Behari Lal Engineering IPO open and close?
The IPO is scheduled to open on 12 August 2026 and close on 14 August 2026. The stated listing date is 19 August 2026 on BSE and NSE.
What is the Behari Lal Engineering IPO issue size?
The stated total issue size is ₹301.62 Cr, comprising ₹93 Cr of fresh issue and ₹208.62 Cr of offer for sale.
What is the minimum lot for the Behari Lal Engineering IPO?
The stated minimum lot is 52 shares.
What do the latest Behari Lal Engineering financials show?
For FY26, the offer documents report revenue of ₹534.03 Cr, EBITDA of ₹101.33 Cr and PAT of ₹64.64 Cr. Read these figures with the cash-flow, leverage and working-capital analysis on this page.
What is a key risk in the Behari Lal Engineering IPO analysis?
Steel and foundry demand is cyclical and linked to industrial capex, mill utilization and commodity prices.
How is the Behari Lal Engineering IPO valued?
At the confirmed ₹285 issue price, BSE's 4,23,02,482 post-issue shares imply a market capitalisation of about ₹1,205.62 crore and a dilution-consistent FY26 P/E near 18.65×. The ₹502.20 NSE close implies approximately ₹2,124.43 crore and 32.87× FY26 PAT, while BSE's ₹502.55 4:00 p.m. value implies ₹2,125.91 crore and 32.89×. These are dated first-day market calculations, not assessments of fundamental fair value.