What the company does
The company designs, engineers, assembles, installs and supports turnkey automation systems, including PCC, MCC, PLC, VFD, APFC and control-desk panels that integrate controllers, drives, switchgear, sensors and actuators.
Skytech is an authorised channel partner, distributor, integrator or solution provider for Mitsubishi Electric India, Endress+Hauser India, Exor India and Euroteck Environmental within defined product, territory and customer scopes.
EPC contracts contributed 79.90% of FY26 revenue, product supply 14.91% and AMC or other services 5.20%. Promoters Paramashivam Deiveekan and Suma Deiveekan have led the Bengaluru-based company since its early operating period.
Annual maintenance contracts are generally signed for one year, with revenue terms agreed contract by contract. The AMC relationship can recur, but the disclosed tenure does not create a multi-year contracted revenue base.
The RHP does not disclose a quantified order book or backlog. Revenue visibility therefore depends on individual purchase orders, project execution and collections rather than a published contracted pipeline.
Skytech generally provides an 18-month warranty from supply. The RHP reports no significant warranty issue in the last three years, but a larger EPC mix increases the future importance of commissioning quality, warranty provisions and field-service response.
Where the IPO money goes
Three-year financial snapshot
| Year | Revenue | EBITDA | PAT | Net worth | Borrowings | Assets |
|---|---|---|---|---|---|---|
| FY23 | ₹35.13 Cr | ₹3.13 Cr | ₹1.75 Cr | ₹9.75 Cr | ₹5.79 Cr | ₹27.34 Cr |
| FY24 | ₹44.13 Cr | ₹3.09 Cr | ₹1.35 Cr | ₹11.1 Cr | ₹3.9 Cr | ₹26 Cr |
| FY25 | ₹45.14 Cr | ₹6.13 Cr | ₹3.71 Cr | ₹14.81 Cr | ₹5.39 Cr | ₹30.05 Cr |
| FY26 | ₹51.65 Cr | ₹6.65 Cr | ₹4.2 Cr | ₹19.02 Cr | ₹9.25 Cr | ₹47.57 Cr |
Restated financial information from IPO source materials; rounding may create small differences.
FY26 operating EBITDA margin
12.9%
Operating EBITDA was ₹6.65 crore, compared with ₹6.13 crore in FY25.
FY26 PAT margin
8.1%
PAT increased 13.4% to ₹4.20 crore as revenue rose 14.4%.
FY26 RoNW / ROCE
22.11% / 25.45%
Final-RHP ratios on the pre-issue capital base; RoNW was below FY25's 25.07% despite higher PAT.
Fresh issue / FY26 net worth
119.2%
The ₹22.68 crore gross fresh issue exceeds FY26 net worth of ₹19.02 crore and represents about 30.0% of the post-issue share count.
Cap price / pre-issue NAV
2.78×
Derived from the ₹77 cap and FY26 NAV of ₹27.66 per share; the RHP leaves post-issue NAV blank pending final pricing.
FY26 debt/equity
0.49×
Borrowings increased to ₹9.25 crore but remained below net worth.
FY26 operating cash flow
-₹1.66 crore
Negative despite ₹4.20 crore PAT as receivables, inventory and working capital absorbed cash.
FY26 debtor days
196 days
The RHP projects a fall to 110 days in FY27 and FY28; collection performance is central to the working-capital case.
NSE close-window demand
58,57,600 bids / 1.99×
Official feed rechecked at approximately 9:35 p.m. IST on 18 August against the 29,45,600-share displayed gross offer. Because that denominator includes 1,48,800 market-maker shares, demand is approximately 2.09× the residual 27,96,800-share public pool by calculation. The feed still marked the issue Active and the company was absent from NSE's past-issues table; the reading is not a final reconciled or category-wise book.
NSE exchange transition
Past issues; price/listing unavailable
At approximately 10:10 a.m. IST on 19 August, Skytech appeared in NSE's official past-issues table, but the exchange still showed dashes for final issue price and listing date.
Promoter ownership bridge
≈100% → 70.01%
Suma and Paramashivam Deiveekan retain 68,74,945 shares after the entirely fresh issue; 29,45,600 new shares equal 29.99% of the 98,20,600 post-issue capital.
Promoter average cost
₹0.91 per share
RHP-reported average acquisition cost for both promoters. The ₹73–₹77 band is about 80.2–84.6× that historical cost, which is not a substitute for business valuation.
Three-year promoter lock-in
19,64,120 shares
Exactly 20.00% of post-issue capital, split equally between Suma and Paramashivam Deiveekan. The excess promoter holdings are split into 24,55,413 shares for two years and 24,55,412 shares for one year.
FY26 working-capital line utilisation
98.8%
₹5.75 crore was drawn from a ₹5.82 crore sanctioned fund-based limit at 31 March 2026.
FY26 working-capital gap / revenue
36.34%
Up from 17.07% in FY24 as the working-capital gap rose to ₹18.95 crore and the cycle lengthened to 103 days.
Receivables over six months
₹4.94 crore
17.8% of FY26 receivables; this includes ₹0.75 crore classified as disputed and outstanding for more than three years.
Allowance for doubtful debts
Nil
The full ₹27.71 crore FY26 receivable balance was classified good despite ₹4.94 crore being over six months old and ₹0.75 crore being disputed for more than three years.
FY26 director-loan balance
₹0.50 crore
The company took ₹0.81 crore from promoter-directors and repaid ₹0.37 crore during FY26; the closing balance was ₹50.11 lakh.
IPO working-capital coverage
47.9% of FY28 gap
The ₹16.81 crore allocation is measured against the RHP's projected ₹35.07 crore FY28 working-capital gap.
Longest disclosed MSME filing delay
997 days
The RHP lists historical half-yearly MSME-return delays of 267–997 days, including a 2021 return filed in January 2024.
PNB cash-credit rate
7.45%
The facility is secured by stock and book debts, an equitable mortgage and personal guarantees from both promoter-directors.
FY26 current ratio
1.65×
Down from 1.89× in FY25 as receivables, inventory and short-term borrowings expanded with the working-capital cycle.
FY26 existing-customer revenue
83.91%
Repeat customers supplied most revenue, up from 66.95% in FY24; this indicates relationship continuity but is not a disclosed recurring-contract or backlog measure.
FY26 domestic revenue
100%
The RHP states that Skytech supplied only to Indian states, so revenue is exposed to domestic industrial capex rather than export diversification.
FY26 inventory composition
78.9% raw material
₹6.83 crore of ₹8.66 crore inventory was raw material, ₹1.70 crore work-in-progress and ₹0.13 crore finished goods.
Top-three procurement states
84.56%
Karnataka, Maharashtra and Haryana supplied 84.56% of FY26 purchases, compared with 91.71% in FY25.
AMC contract duration
Generally one year
The RHP describes AMCs as one-year, mutually negotiated contracts, so recurring service revenue should not be treated as multi-year backlog.
Prior listed-board experience
None disclosed
The RHP states that none of Skytech's directors had previously served as a director of a listed company.
FY26 employee attrition
1.22%
One employee left against an average headcount of 82; low turnover supports execution continuity but does not offset the new listed-company compliance burden.
What stands out
- A 16-year operating history and authorisations from established automation vendors provide product access, technical support and customer credibility.
- The company combines panel assembly, engineering, integration, commissioning and aftermarket support rather than relying on simple component resale.
- FY26 revenue reached ₹51.65 crore and PAT ₹4.20 crore, with reported net worth of ₹19.02 crore.
- The offer is entirely fresh capital and directly targets the working-capital constraint involved in procuring components before project collection.
Key concerns
- FY26 revenue grew 14.4% while operating EBITDA rose more slowly. The durability of project mix, procurement gains and expense controls must be tested across project cycles.
- The top ten customers generated 47.23% of FY26 revenue, an improvement from 64.99% in FY25 but still meaningful for a project-led SME business.
- Trade receivables reached ₹27.71 crore and inventory ₹8.66 crore at FY26, together exceeding two-thirds of annual revenue.
- Operating cash flow turned negative ₹1.66 crore from positive ₹0.81 crore in FY25. The RHP's FY26 working-capital gap was ₹18.95 crore and its operating cycle 103 days.
- Between FY24 and FY26, revenue increased by ₹7.52 crore while the working-capital gap increased by ₹11.41 crore. Current assets reached 71.23% of revenue, versus 39.98% in FY24, showing that balance-sheet intensity rose faster than sales.
- The company had used ₹5.75 crore of its ₹5.82 crore sanctioned fund-based working-capital line at FY26. The IPO therefore arrives with little headroom in the existing bank facility before the forecast improvement in collections is demonstrated.
- The working-capital forecast assumes debtor days fall from 196 in FY26 to 110 in FY27, inventory days from 61 to 40 and creditor days from 155 to 30. Faster collections and inventory turns are therefore essential even as the company plans to pay suppliers much sooner.
- The FY26 receivables ageing table shows ₹4.94 crore, or 17.8%, outstanding beyond six months. This includes ₹74.64 lakh of disputed receivables older than three years, linked in the RHP to a ₹76.64 lakh commercial recovery suit that remained at the evidence stage. The company nevertheless recorded no allowance for doubtful debts across the ₹27.71 crore receivable balance; no post-10 August court update was verified in the offer document set.
- Promoter-directors supplied ₹80.75 lakh of loans and received ₹37.43 lakh of repayments during FY26, leaving ₹50.11 lakh outstanding. The amount is modest, but continued promoter funding alongside a nearly exhausted bank line is a governance and liquidity signal until the fresh issue is deployed.
- The PNB cash-credit facility is priced at 7.45% and secured by inventory, book debts, an equitable mortgage over company or guarantor property and personal guarantees from both promoter-directors. The RHP does not commit to releasing those guarantees or the mortgage after the IPO.
- The current ratio fell to 1.65× in FY26 from 1.89× in FY25 while the company used 98.8% of its sanctioned fund-based line. Liquidity therefore depends on customer collections and fresh-issue deployment rather than unused bank headroom.
- The financial statements present ₹8.80 crore as creditors other than MSMEs, but the FY26 ageing schedule classifies the same ₹8.80 crore as disputed MSME dues. This internal RHP classification conflict is material to supplier-payment quality and requires clarification in a corrigendum, final prospectus or post-listing financials.
- The top ten suppliers accounted for 43.79% of FY26 purchases, and the company disclosed no long-term supply contracts. Component availability, price changes and vendor terms can disrupt project execution.
- The supply chain is geographically concentrated: Karnataka, Maharashtra and Haryana represented 84.56% of FY26 purchases. A disruption in one of these corridors can affect component availability even though individual-supplier concentration has improved.
- FY26 inventory nearly doubled to ₹8.66 crore, of which ₹6.83 crore was raw material and ₹1.70 crore work-in-progress. The accounts value inventory at the lower of cost and net realisable value but do not separately disclose an obsolescence or slow-moving-stock allowance, making ageing and subsequent usage important evidence gaps.
- EPC work carries design error, component availability, site delay, commissioning, warranty, liquidated-damages and cost-overrun risk. Fixed-price orders can compress margin when delivery slips.
- Authorised-partner arrangements may be changed or terminated, and vendor pricing, territories, warranties and product availability can affect competitive position.
- Government revenue rose to 21.37% of FY25 sales from 9.61% in FY24, increasing exposure to tender qualification, documentation, payment timing and policy decisions.
- Promoters are expected to retain 68,74,945 shares, or 70.01%, after the entirely fresh issue, preserving concentrated control. Their RHP-reported average acquisition cost is ₹0.91 per share after a 10:1 bonus issue in July 2024. Bank guarantees of approximately ₹0.91 crore are contingent obligations tied to contract execution.
- The RHP records historical PAS-3 errors for allotments made in 2014, 2015 and 2021. Corrected filings were made on 16 April 2025 and an adjudication application was filed on 7 May 2025; the final regulatory outcome was not disclosed in the RHP.
- Corporate compliance was historically delayed in several areas. The most pronounced disclosure is the MSME half-yearly-return series, with delays of 267, 448, 632, 813 and 997 days, which is relevant alongside the RHP's conflicting ₹8.80 crore supplier classification.
- The standard 18-month product warranty creates a post-delivery obligation. Although no significant warranty issue was reported for the last three years, larger and more customised EPC installations could raise provision, rework and service costs.
- The RHP says AMCs are generally one-year arrangements. The 5.20% AMC and other-services share may repeat through customer relationships, but it is not a disclosed multi-year contracted annuity and still carries annual renewal and pricing risk.
- None of the directors had prior directorship experience at a listed company. That transition risk is more relevant because Skytech is entering public-market reporting with historical PAS-3 corrections, long MSME filing delays and an unresolved supplier-classification conflict in the RHP.
- The ₹22.68 crore gross fresh issue is 119.2% of FY26 net worth and expands the equity base by about 42.8%, even though the new shares are about 30.0% of post-issue capital. Historic RoNW therefore cannot carry forward without a substantial increase in cash-generative earnings.
- The RHP attributes part of FY26 material-cost improvement to a transition in HMI-panel procurement from Emerson to Mitsubishi. That is a disclosed historical margin driver, but the persistence of the benefit depends on Mitsubishi pricing, authorisation and component availability.
- NSE Emerge shares can have limited liquidity, large tradable lots, market-maker dependence and wide bid-ask spreads.
What to monitor after listing
- Order book, execution cycle, cancellations, cost overruns and revenue mix among EPC, product supply, AMC and services.
- Customer concentration, government receivables, ageing, retention money and whether debtor days move toward the RHP's 110-day forecast.
- Resolution or provisioning of the long-running RKP Drives recovery suit, and any change in the ₹74.64 lakh disputed balance.
- Creation of a receivable allowance, bad-debt write-offs and collection of the ₹4.94 crore balance older than six months.
- Clarification of the FY26 ₹8.80 crore trade-payables classification conflict between the headline statement and ageing schedule.
- Operating cash flow versus PAT and deployment of the ₹16.81 crore working-capital allocation.
- Sanctioned working-capital limits, utilisation, interest cost and the mix of IPO proceeds, internal accruals and borrowings used to fund the projected gap.
- Repayment or replacement of the ₹50.11 lakh director-loan balance and any new promoter funding after the IPO proceeds enter the business.
- Release or continuation of the promoter personal guarantees and equitable mortgage supporting the PNB cash-credit facility after the fresh issue is deployed.
- Gross and EBITDA margin by project, supplier rebates, foreign-exchange exposure and pass-through of component costs.
- Status of Mitsubishi, Endress+Hauser, Exor and Euroteck authorisations, plus supplier concentration and product availability.
- Related-party transactions, promoter dependence, contingent liabilities, warranties and NSE Emerge liquidity.
- Outcome of the PAS-3 adjudication application, timeliness of MSME and other statutory filings and any clarification of supplier-payment records.
- Warranty claims, provisions, rework costs and service turnaround under the 18-month coverage period as project size increases.
- Inventory ageing, slow-moving or obsolete components, write-downs and the conversion of ₹6.83 crore of raw material and ₹1.70 crore of work-in-progress into billed projects.
- The 83.91% existing-customer revenue share versus signed recurring contracts, order frequency and customer-specific project values; repeat business should not be treated as contractual backlog without those disclosures.
- Procurement concentration across Karnataka, Maharashtra and Haryana, plus the cost and availability of HMI panels following the disclosed supplier transition.
- AMC renewal rates, contract repricing and the conversion of one-year service agreements into repeat billings rather than assumed multi-year backlog.
- Board and audit-committee evidence of timely listed-company reporting, internal-control remediation and investor disclosure after a board with no prior listed-directorship experience enters the public market.
- Final depository lock-in schedule after allotment, including the 19,64,120-share three-year promoter block, the two excess-promoter blocks and the five public 11-share holdings subject to one year.
Valuation context
Across the ₹73–₹77 band, 98,20,600 post-issue shares imply an equity value of approximately ₹71.69–₹75.62 crore, or about 17.1–18.0× FY26 PAT of ₹4.20 crore. The price advertisement's 12.59× cap-price P/E uses pre-issue diluted FY26 EPS of ₹6.12, so it does not capture the full fresh-issue dilution.
At the cap, the offer is 2.78× FY26 pre-issue NAV of ₹27.66 per share. The 22.11% FY26 RoNW and 25.45% ROCE were earned before an issue equal to 119.2% of net worth, making post-issue capital deployment and cash conversion more relevant than the historic return ratios alone.
Adding the ₹22.68 crore cap-price fresh issue to ₹19.02 crore FY26 net worth gives an illustrative gross post-issue book value of ₹42.46 per share and 1.81× price-to-book before issue expenses. The RHP does not populate after-issue NAV, so this is a transparent arithmetic bridge rather than an issuer-reported ratio.
The RHP reports a ₹14.55 bonus-adjusted weighted acquisition cost for the last disclosed secondary transaction, making the ₹77 cap 5.29× that historical reference. The promoters' separate ₹0.91 average cost mainly reflects original and rights subscriptions plus bonus shares; neither cost measure establishes operating fair value.
The DRHP identifies no directly comparable listed Indian company. Capital-goods and automation peers differ greatly in proprietary technology, product manufacturing, service annuities, customer scale and export exposure.
A normalized valuation should test FY24-like margins, slower customer collections and the return generated on a working-capital base projected to expand much faster than recent revenue.
Skytech Infinite Platform IPO FAQs
What is the Skytech Infinite Platform IPO price band?
The stated price band is ₹73–₹77. Offer terms should be checked against the final prospectus and exchange notices.
When does the Skytech Infinite Platform IPO open and close?
The IPO is scheduled to open on 14 August 2026 and close on 18 August 2026. The stated listing date is Final NSE Emerge notice pending.
What is the Skytech Infinite Platform IPO issue size?
The stated total issue size is ₹22.68 Cr, comprising ₹22.68 Cr of fresh issue and ₹0 Cr of offer for sale.
What is the minimum lot for the Skytech Infinite Platform IPO?
The stated minimum lot is 3200 shares.
What do the latest Skytech Infinite Platform financials show?
For FY26, the offer documents report revenue of ₹51.65 Cr, EBITDA of ₹6.65 Cr and PAT of ₹4.2 Cr. Read these figures with the cash-flow, leverage and working-capital analysis on this page.
What is a key risk in the Skytech Infinite Platform IPO analysis?
FY26 revenue grew 14.4% while operating EBITDA rose more slowly. The durability of project mix, procurement gains and expense controls must be tested across project cycles.
How is the Skytech Infinite Platform IPO valued?
Across the ₹73–₹77 band, 98,20,600 post-issue shares imply an equity value of approximately ₹71.69–₹75.62 crore, or about 17.1–18.0× FY26 PAT of ₹4.20 crore. The price advertisement's 12.59× cap-price P/E uses pre-issue diluted FY26 EPS of ₹6.12, so it does not capture the full fresh-issue dilution.