Gallard Steel Ltd.

About Gallard Steel

Incorporated in 2015, Gallard Steel manufactures ready-to-use components, assemblies and sub-assemblies for Indian railways, defence, power generation and allied industries. Its ISO 9001:2015-certified facility is primarily located in Pithampur, Dhar, Madhya Pradesh. The company has Class ‘A’ Foundry Status from the Research Designs and Standards Organization (RDSO) and is an approved vendor for critical electric locomotive and traction motor components. It operates an integrated, in-house manufacturing setup.

Gallard Steel IPO Details

Use of IPO Proceeds

• Manufacturing facility expansion: INR 20.73 Cr. is allocated to capital expansion at the existing manufacturing facility.
• Repayment of borrowings: INR 7.2 Cr. is allocated to repayment of borrowings.
• General Corporate Purposes: An amount is shown as [●] in the issue summary.

Strengths

• Planned capacity expansion: The company plans to expand casting capacity from 2,400 MT p.a. to 6,100 MT p.a. and machining capacity from 7,500 units p.a. to 10,000 units p.a.
• Railway credentials: Gallard Steel holds RDSO Class ‘A’ Foundry Status and is an approved vendor for critical locomotive components. Traction Motor & Bogie Assembly accounted for 77.04% of FY25 revenue from operations.
• Defence and power product range: The company has highlighted product offerings across railways, hydro power and defence. The report notes that it has yet to show significant revenue from defence, and that other verticals have been lumpy.
• Acquisition and product diversification: Sleeploop India Pvt Ltd (SIPL), acquired in February 2024, is now a wholly owned subsidiary; its CNC machining division supports precision finishing of cast components. The company also added a rebonded foam manufacturing division and incorporated Gallard Steel Europe B.V. in the Netherlands on October 21, 2025.
• Improving realizations: Realization per kg for Traction Motor & Bogie Assembly increased from 123.55 in FY23 to 184.16 in FY25, as presented in the report.

Gallard Steel Key Financials

Business and Capacity

Traction Motor & Bogie Assembly was the largest product category throughout the periods shown. Rebonded foam increased to 19.68% of revenue in FY25 after the SIPL acquisition, while defence components contributed 0.04% in FY25 and 0.00% in H1FY26.

Ferrous casting capacity utilization was 92.94% in FY25, when actual production was 2,230.55 MT against installed capacity of 2,400 MT. The planned increase comprises 3,700 MT p.a. of additional GSL casting capacity and 2,500 units p.a. of additional SIPL machining capacity.

Shareholding

Management

• Zakiuddin Sujauddin: Promoter and Managing Director, with over 19 years of overall work experience, including about 10 years in the cast components business.
• Hakimuddin Ghantawala: Promoter, Whole Time Director and Chief Financial Officer; oversees accounts and finance, as well as sales and marketing operations.
• Kaid Johar Kalabhai: Promoter and Chief Operating Officer; oversees production, quality and compliance across the manufacturing units.

IPO Valuation and Our View

The IPO is valued at a P/E ratio of 23.5x based on FY25 PAT. The report weighs the capacity expansion plan, product range and improving realizations against the company’s small scale, revenue concentration and lack of confirmed order-book visibility. Minerva Capital Research Solutions recommends May Subscribe to the issue.

INR 142 to 150 per share

IPO price band

23.5x

P/E based on FY25 PAT

May Subscribe

Recommendation

Key Risks

• Customer concentration: The Top 10 customers contributed 87.48% of FY25 revenue.
• Sector and geographic concentration: Railways contributed 78.8% of revenue and 52.76% of total sales came from Madhya Pradesh, as stated in the report’s FY25 risk discussion.
• Limited revenue visibility: No projections were filed in the RHP and the order book is unknown; the company relies on customer purchase orders.
• Competition: The report describes alloy steel manufacturing as competitive and highly fragmented, with small, medium and large multinational players.

Our View

Gallard Steel’s proposed capacity additions, railway credentials and product diversification support the IPO case, alongside growth in reported revenue and EBITDA. However, concentrated sales and the absence of confirmed order-book visibility temper the positives; the report’s recommendation is May Subscribe.

Standard disclosures

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Regulatory disclosures

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

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• Equity Research Analyst for this report: Mr. Shubham Upadhyay (+91-9953459775)

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%