Defence support equipment manufacturer, Western India
Confidential Information Summary · Blind, pre-NDA · Prepared by CA Dhiraj Ostwal & Co., Transaction Advisory
Executive summary
Kamdhenu designs and builds mechatronic and hydraulic equipment that raises, levels and positions military shelters, antennas and ground-support loads. Its customers are Indian defence public-sector units and the armed forces.
The promoters, a founder-led family, are selling because the next generation will not take over. A first tranche of 60% is offered, with the balance in two later phases.
At a glance
Basis of preparation. All figures are ₹ crore, net revenue, as supplied by the promoters. FY2025-26 is provisional and unaudited. The perimeter (standalone or consolidated) and the depreciation, interest and tax split are not stated; EBITDA and PAT are shown as supplied. Land and building leave the perimeter by de-merger before completion.
Investment highlights
Five features a buyer can test in diligence.
Recovery to a record year
Revenue rose from ₹4.98 Cr in FY24 to a provisional ₹12.00 Cr in FY26, with EBITDA of ₹2.16 Cr.
EBITDA +87.8% in FY26Defence-only customer base
Supplies are made to defence electronics, aerospace and land-systems public-sector units and a private defence integrator.
Defence PSU accountsPatented products
Two patents, on tyre handling and on electromechanical masts, were granted in 2023. Management values them at about ₹2.00 Cr.
2 patentsRecent order win
A state-owned aerospace OEM ordered 15 helicopter ground-handling tugs in 2024, a product the company developed.
15-unit orderEngineering depth and in-house testing
25 engineers and an in-house environmental test chamber for jacks and masts, installed in 2012, support qualification work.
25 engineersBusiness overview
The company began as a maker of large bearings and moved into defence three years later. It now sells mostly electromechanical and hydraulic support equipment, and earns from product supply rather than services. Pricing, margin by product and cash cycle are not disclosed.
Masts and positioning
Electromechanical and hydraulic masts, antenna positioning systems and stabilised platforms.
Jacks
Electromechanical and hydraulic leveling jacks for tactical shelters and containers.
Ground support
Trolleys, material handling, vehicle-mounted equipment and helicopter ground-handling tugs.
High-rise workstations
Vehicle-mounted high-rise platforms for aircraft maintenance and airport services.
Special-purpose machines
Built for defence applications, in collaboration with the national defence research body.
Legacy
Large bearings up to 6 ft in diameter, the founding product line.
Customers
Customers are defence public-sector manufacturers and the armed forces, which buy this equipment as a sub-system of larger programmes. Repeat orders follow programme cycles.
Customer-level data is not in the source material. Billings by account, concentration tiers and year-on-year movement by customer are unavailable, and no estimate is made. They will be supplied in the data room. Buyers should assume concentration in a handful of PSU accounts until shown otherwise.
Financial snapshot
Revenue fell by 38.7% between FY22 and FY24, then recovered to a level 47.6% above FY22.
| Year | FY22 | FY23 | FY24 | FY25 | FY26P |
|---|---|---|---|---|---|
| Net revenue | 8.13 | 5.94 | 4.98 | 7.80 | 12.00 |
| Growth | – | -26.9% | -16.2% | +56.6% | +53.8% |
| EBITDA | 1.15 | 0.62 | 0.96 | 1.15 | 2.16 |
| EBITDA margin | 14.1% | 10.4% | 19.3% | 14.7% | 18.0% |
| PAT | 0.34 | 0.11 | 0.57 | 0.44 | 0.84 |
| PAT margin | 4.2% | 1.9% | 11.5% | 5.6% | 7.0% |
Balance-sheet items disclosed
The ₹5.07 Cr figure is dynamic. It is the only working-capital measure available.
Weakest number: FY24 revenue of ₹4.98 Cr. Revenue fell for two years before the recovery, and the FY26 jump rests on provisional figures. A buyer will ask whether FY26 is a programme-timing peak or a new base.
Quality of earnings
EBITDA and PAT are as supplied by the promoters, with no add-backs or normalisation applied.
EBITDA margin ranged from 10.4% to 19.3% over five years, so the 18.0% in FY26 is within the historical range, not above it. FY24 had the highest margin on the lowest revenue, which suggests mix rather than scale drove it.
Cash conversion
Operating cash flow is not provided.
Leverage and capex
Debt is not disclosed. ₹0.80 Cr of machinery was added recently.
Recency
FY26 closed in March 2026 and is still provisional.
Management & organisation
The business is run by its founder-engineer and family, and the second generation is not taking over. Day-to-day depth sits in a team of 25 engineers.
Key-man dependence. The promoters hold the customer relationships and design knowledge. Their age and conservative approach are why the company has not pursued market share. A buyer should plan a handover period and retention terms for the engineering team.
M&A proposition
The promoters offer 100% of the operating business, with land and building removed by de-merger. The sale is staged so the promoters can support the transition.
Transaction parameters
No successor in the family, and the promoters' caution has capped growth.
An engineering or defence group, or a financial buyer with an operating partner.
Management cites these levers, none yet evidenced by orders:
Management targets carry no weight. The promoters target ₹20.00 Cr of revenue in FY27 and ₹25.00 Cr in FY28. These are management's own, are not a forecast, are not validated by the adviser, and should have no weight in valuation until tested against an order book.
Risks & mitigants
Small scale and volatile revenue
Revenue fell 38.7% from FY22 to FY24. Mitigant: two consecutive years of recovery, and the order book will be shared in the data room.
Provisional FY26 figures
The latest year is unaudited. Mitigant: audited FY26 accounts should be sought before any offer, and completion can be priced on them.
Customer and tender concentration
Sales go to a few PSU buyers, ordered by programme. Mitigant: account-level data is available in the data room, and a private-sector push is planned.
Promoter and key-man dependence
Relationships and design knowledge sit with the promoters. Mitigant: phased 60% / balance structure keeps them engaged through transition.
Premises after de-merger
Land and building are excluded, so site tenure is not part of the ask. Mitigant: a lease can be agreed with the promoters as a condition of the deal.
Unverified order book and approvals
No order book, certifications or clearance status are disclosed. Mitigant: these will be provided in the data room and tested by the buyer.
Patent value is a management estimate
The ₹2.00 Cr value has no stated source. Mitigant: patent documents and a valuation can be commissioned in diligence.
Thin financial disclosure
Debt, gross margin and cash flow are not provided. Mitigant: full audited statements are due with the data room.
Process & next steps
Enquiries go through CA Dhiraj Ostwal & Co., Transaction Advisory, which is the sole point of contact for this mandate.