Tipco Engineering India Ltd

About Tipco Engineering

Incorporated in 2021, Tipco Engineering India Ltd designs, fabricates, assembles and supplies industrial process machinery. It operates from a manufacturing facility and registered office in Sonipat, Haryana, using an in-house execution model. Its equipment is grouped into the Mill Series, Disperser Series and Homogenizers Series. Installed capacity reached 520 machines by FY25, with capacity utilisation of approximately 82.69%.

Tipco Engineering IPO Details

Use of Fresh Issue Proceeds

• Repayment of borrowings: INR 30.00 Cr.
• Funding working capital: INR 7.66 Cr.
• General Corporate Purposes: The amount is shown as [●].

Strengths

• Order book visibility: The order book was INR 76.4 Cr as of Dec’25. Services revenue reached INR 12.5 Cr in 9M FY26, compared with INR 13.1 Cr in full FY25, which the report links to commissioning and turnkey work converting into revenue.
• Planned debt reduction: INR 30 Cr of the INR 48.49 Cr fresh issue is intended for repayment of existing borrowings. FY25 finance costs were INR 4.62 Cr.
• Improving margins: EBITDA margin rose from 9.6% in FY23 to 17.9% in FY25. The report associates the improvement with operating leverage and the services mix shift.
• Growing services contribution: Services increased from 2.4% of revenue in FY23 to 14.5% in 9M FY26. The report describes services as capturing execution and implementation work on turnkey projects.
• Broader revenue mix: Paint & Coating represented 58.1% of revenue in 9M FY26, down from 87.9% in FY24, while Chemical and Construction & Infra contributed 21.7% and 12.5% respectively.

Tipco Engineering Key Financials

Revenue rose from 36 in FY23 to 133 in FY25, while EBITDA increased from 3.5 to 23.9 over the same period. For the period ended 31 Dec’25, revenue was 86 and CFO / EBITDA was (54.0%).

IPO Valuation and Our View

The issue is valued at a P/E ratio of 11.8x based on FY25 PAT. Revenue growth, order-book expansion and margin improvement support the case, while working-capital intensity, ageing receivables and negative CFO in 9MFY26 temper it. Minerva Capital Research Solutions recommends May Subscribe.

INR 84 to 89 per share

IPO price band

~INR 184.83 Cr.

M.Cap

May Subscribe

Recommendation

Key Risks

• Working capital and receivables: The report flags increasing inventory and trade-receivable days as revenue scales. Receivables outstanding for >6 months were about 51% of total receivables, and NWC days reached 203 by 31 Dec’25.
• Customer concentration: The top 1, 5 and 10 customers accounted for 25.6%, 68.3% and 78.8% of FY25 revenue respectively.
• Related-party transactions: Hanutech Engineering Solutions, Tipco Engineering Works and KR Industries operate in the same line of business. Purchases from these entities were INR 15.59 Cr in FY25; the report notes that non-compete clauses partially mitigate the risk.
• Cash flow: CFO for 9MFY26 was negative and remains a monitorable for full-year FY26.
• Other monitorables: The report highlights ambiguity around freehold land purchases and sales, and notes FY25 stock-in-trade purchases of INR 34. 99 Cr as a monitorable for margins.

Business and Capacity

Paint & Coating accounted for 58.1% of revenue in 9M FY26, while Chemical contributed 21.7% and Construction & Infra 12.5%. Exports represented 9.6% of revenue in 9M FY26, compared with 3.0% in FY25; the report also states that export sales increased from INR 4.06 Cr in full FY25 to INR 8.21 Cr in 9M FY26.

Installed capacity increased from 520 machines in FY25 to 631 in 9M FY26, with utilisation at 82.56% in 9M FY26. The report notes that product mix can affect sales realisation per machine and that higher trading may affect margin growth.

Shareholding

Management

• Ritesh Sharma: The Promoter, Chairman and Managing Director has over 18 years of experience in machine manufacturing and trading. His responsibilities include production, product development, sales, exports, turnkey execution, financing, budgeting, quality compliance and overall strategy.
• Sonia Sharma: The Promoter and Whole Time Director has over 7 years of experience in the machine manufacturing industry. Her responsibilities include human resources, operations management and business administration.

Our View

Tipco Engineering combines a growing order book with higher reported margins and an increasing services contribution. The report’s positive factors are balanced by working-capital pressure, customer concentration and negative CFO in 9MFY26; its IPO recommendation is May Subscribe.

Standard disclosures

• Research Analyst has served as an officer, director or employee of subject company(ies): No
• We or our associates have received compensation from the subject company(ies) in the past 12 months: No
• We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
• We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months –No
• We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report –No
• We or our associates or Research Analyst or his/her relative's financial interest in the subject company(ies)- No
• Nature of financial interest in subject company, if any –Nil
• We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of Research Report – No
• Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report-No.
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Regulatory disclosures

Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).

Registration granted by SEBI and certification from NISM in no way promise or guarantee that the research recommendation will provide any assured, minimum or risk-free return to the investors.

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For any queries or grievances: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in or guptanishant.iimi@gmail.com | Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In

• Equity Research Analyst for this report: Mr. Shubham Upadhyay (shubham.upadhyay@mcapital.in)

Rating rationale

Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.

• Buy:> 15%
• Hold: -5% to 15%
• Reduce: -15% to -5%
• Sell: <-15%