Swastika Infra IPO Everything You Need To Know About Dates Price Lot Size and Issue Details

Swastika Infra Limited is a power infrastructure engineering, procurement and construction company. It executes turnkey work for underground cabling, substations, rural and urban electrification, feeder lines and street lighting, with a growing presence in transmission and renewable-energy evacuation projects.

The investment case is not just about a large order pipeline. Revenue from operations rose from Rs 209.58 crore in FY2024 to Rs 503.57 crore in FY2026, while EBITDA margin improved to 14.07%. Yet operating cash flow remained negative in each of those three years because project growth absorbed cash in receivables, retention balances, unbilled work and bank-linked deposits. The IPO is therefore chiefly a working-capital raise.

The issue opens on 23 September 2026 at a price band of Rs 175 to Rs 185 per share. At the upper band, the total offer is approximately Rs 160.88 crore, comprising a fresh issue of about Rs 128.50 crore and an offer for sale of about Rs 32.38 crore.

What matters most

• Growth has been strong: revenue from operations recorded a 55.01% two-year CAGR from FY2024 to FY2026, while PAT grew faster and margins expanded.

• Cash conversion is the central issue: cumulative operating cash flow was negative across FY2024 to FY2026 despite cumulative PAT of nearly Rs 82.86 crore.

• The order pipeline is sizeable but concentrated: 18 ongoing projects had an aggregate contract value of Rs 2,036.65 crore, with Rs 916.55 crore unexecuted as at 31 July 2026. All of the order book came from government utilities.

• The IPO directly addresses liquidity pressure: Rs 90 crore of net proceeds is earmarked for incremental working capital, with the balance used for general corporate purposes after offer expenses.

• Valuation is not detached from execution risk: the upper-band post-issue P/E is about 15.24 times FY2026 earnings, broadly around the disclosed peer range, while cash generation remains materially weaker than reported profit.

IPO dates and launch details

Price band and investment details

The minimum investment is calculated as 81 shares multiplied by the upper price of Rs 185. Investors bidding at cut off should plan for the upper-band amount.

IPO structure

The fresh issue brings new capital into the company. The offer for sale proceeds go to the selling shareholders and do not strengthen Swastika Infra's balance sheet. The offer reserves up to 50% for qualified institutional buyers, at least 15% for non-institutional investors and at least 35% for retail investors.

How the company will use the fresh capital

This use of proceeds is economically important. Swastika Infra recognises revenue as projects progress, but cash may be collected later because utilities retain amounts, certify bills over time and require bank guarantees or margin deposits. Fresh equity can reduce the need to fund that gap entirely through borrowings. It does not, by itself, solve delayed certification or collection.

About Swastika Infra

The business traces its operating history to the partnership firm Swastika Electricals and Fertilizers, established in 1969. The enterprise entered power distribution EPC work in 2012, converted into a private limited company in 2019 and became Swastika Infra Limited in January 2025.

Its core work is turnkey execution. The company procures approved cables, transformers, switchgear and related electrical material, manages civil and electrical installation, tests the network and commissions it for the customer. Work spans underground high-voltage and low-voltage cabling, gas-insulated and air-insulated substations, rural and urban electrification, feeder segregation, meter connections and street-lighting systems.

As at 31 July 2026, it had completed 36 projects, laid 18,579.47 kilometres of distribution lines and was executing 18 projects across six states. The company had 182 full time employees, including 65 engineers and technicians. It uses an asset-light model, leasing much of the project-specific equipment and relying on subcontractors for execution under its own project management.

Business model and revenue engine

Swastika Infra earns primarily from EPC contracts awarded through competitive tenders. The customer typically specifies technical standards and approved vendors. Revenue is recognised as contractual performance obligations are met, while collections depend on billing milestones, certification and release of retained amounts.

The shift towards EPC revenue improves scale and keeps the business aligned with grid investment, but it also makes collections and contract execution more important than product inventory alone. In FY2026, 96.87% of revenue came from government-utility projects. The top five clients accounted for 96.87% of revenue and the top ten accounted for 99.58%.

Order book and execution visibility

The unexecuted order book gives revenue visibility, but it is not guaranteed revenue. Scope changes, slow site handovers, delayed drawings, funding constraints and payment disputes can postpone conversion. Most projects experienced delays of six to twelve months over the last three years, largely for customer-side reasons.

Swastika Infra Financial performance

Revenue growth was accompanied by operating leverage. EBITDA rose faster than sales and the margin expanded by 276 basis points between FY2024 and FY2026. A richer EPC mix, scale absorption and project execution supported profitability. Finance cost, however, rose from Rs 6.03 crore to Rs 16.90 crore as the funding requirement expanded.

The divergence between PAT and operating cash is more consequential. Across the three years, the company earned nearly Rs 82.86 crore of PAT but used about Rs 89.53 crore of operating cash. That does not mean the reported profit is false. It means growth has required cash before customers released it. Investors should look for a durable reversal in this gap after the IPO.

Swastika Infra Balance sheet debt and returns

Borrowings more than doubled in FY2025, reflecting the cash cost of scaling execution, and then remained broadly stable in FY2026. The FY2026 debt-to-equity ratio improved mainly because net worth expanded after the Rs 40 crore pre-IPO placement and retained earnings. The fresh issue should add liquidity, but the RHP does not earmark proceeds for debt repayment, so the post-issue outcome depends on whether working-capital equity substitutes for incremental borrowing.

Working capital and cash conversion

Days are calculated from closing balances. Receivable days use revenue from operations; inventory and payable days use procurement and cost of revenue. The conventional cash conversion cycle is incomplete for an EPC contractor because it excludes retention money, unbilled revenue, mobilisation balances, margin deposits and other project assets.

The apparent FY2026 cash conversion cycle improved because supplier credit rose sharply. Yet receivables also increased by Rs 43.67 crore and other current assets remained substantial. This explains why operating cash stayed negative despite a reported near-zero conventional cycle. Post-listing, investors should monitor receivables, unbilled revenue and retention balances together, not inventory days in isolation.

Sector and market context

India's power transmission and distribution system requires continuing investment in loss reduction, feeder segregation, underground cabling, substation capacity, renewable-energy evacuation and rural reliability. Government programmes and state-utility capex can therefore support a long pipeline for capable EPC contractors.

The same structure creates risk. Tendering is price competitive, qualification rules can change and state utilities may delay site access, approvals or payments. Swastika Infra won only 29% of bids by value in FY2026, after losing 71%. Its opportunity is therefore tied to disciplined bidding as much as market growth. Underpriced contracts can fill an order book while weakening margins and cash flow.

Strengths

• Established execution record: 36 completed projects and 18,579.47 kilometres of distribution lines demonstrate operating experience beyond a newly assembled IPO story.

• Visible project pipeline: Rs 916.55 crore of unexecuted orders was about 1.82 times FY2026 revenue, providing a base for future billing if milestones are met.

• Improving profitability: EBITDA margin rose from 11.31% in FY2024 to 14.07% in FY2026 while PAT grew faster than revenue.

• Asset-light operating model: leased equipment and subcontracting limit owned fixed assets and support high asset turnover.

• Broader technical scope: movement from distribution into transmission and renewable-energy evacuation can increase addressable opportunities.

Risks

• Government and client concentration: government utilities generated 96.87% of FY2026 revenue and accounted for the entire order book at 31 July 2026.

• Persistent cash absorption: operating cash flow was negative for three consecutive years, and the company depended on financing cash flow to bridge the gap.

• Execution delays and disputes: customer-side delays can still create cost overruns, liquidated damages and long collection cycles. A writ petition concerning price-variation recovery is pending.

• Subcontractor dependency: subcontracting cost was Rs 98.47 crore, or 21.87% of FY2026 expenses. Swastika Infra remains contractually responsible for quality and timeliness.

• Competitive bidding: low win rates and fixed-price elements can pressure future margins if projects are priced aggressively or input costs rise.

• Financing and compliance history: prior credit-rating non-cooperation classifications and delayed statutory filings are governance and funding monitorables, even though the April 2026 rating was CRISIL BBB plus Stable.

Opportunities and post listing monitorables

Valuation and dilution

The RHP identifies Rajesh Power Services and Vikran Engineering as listed peers. Their disclosed P/E multiples were about 10.1 times and 14.6 times respectively, compared with Swastika Infra's upper-band post-issue multiple of about 15.24 times. This is only a directional comparison. Scale, project mix, cash conversion, listed-history length and reporting bases differ.

At this valuation, the market is being asked to pay for continued execution and margin resilience. The strongest argument is the growth and order pipeline. The principal counterweight is that accounting profit has not yet translated into operating cash. A sustained improvement in collections would strengthen the valuation case more than another year of revenue growth funded by debt and supplier credit.

Balanced conclusion

Swastika Infra enters the market with credible experience in power EPC, a meaningful unexecuted order book and strong recent growth. Its margins and return ratios suggest that the company can execute profitably. The IPO also directs fresh equity towards the part of the business that most needs support: working capital.

The unresolved question is cash conversion. Three years of negative operating cash flow, rising receivables and near-total exposure to government utilities mean that project awards alone are not enough. Investors should track the conversion of the Rs 916.55 crore backlog, the release of retention and unbilled balances, bid discipline and whether finance costs moderate after the issue. 

Disclaimer: This blog is only for educational and informational purposes and does not constitute investment advice. Please consult your financial advisor before taking any investment decisions.