Confidential Information Summary
Electrical-products manufacturer and dealer-led distributor, India — minority growth-capital raise
Executive summary
A founder-led electrical-products company selling through a dealer-led network is raising minority growth capital. The investor question is whether rising earnings turn into cash, because the balance sheet carries heavy stock, receivables and debt service.
Revenue has been uneven since its FY23 peak, while EBITDA has risen in every year of the period.
Stock and receivables absorb most of the capital employed, and the growth plan starts with stock availability.
At a glance
Basis of preparation. FY22–FY25 are audited; FY26 is provisional. EBITDA is PBT + finance cost + depreciation and amortisation, and includes other income. Revenue is revenue from operations. Figures are company-level statements.
Investment highlights
EBITDA up in every year
EBITDA has grown in every year since FY22.
3.2x since FY22Margin expanded 4.7 points
EBITDA margin has widened in every year of the period.
+4.7 pts since FY22Revenue back to growth
Revenue returned to growth after two years of decline from the FY23 peak.
+9.8% FY26PSix categories, one dealer channel
One dealer channel carries the whole range, from switching and protection to lighting.
6 categoriesProfitable in every year
PAT was positive in all five years.
PAT ₹0.78 Cr FY26PBusiness overview
The company manufactures and trades electrical products for residential, commercial and industrial use. It reaches the market through manufacturing, wholesale and retail, and dealers.
Modular & protection
Modular switches, sockets and accessories; MCBs and switchgear.
Wires, cables & conduit
Electrical wires and cables; PVC conduit and related products.
Lighting
LED lighting, sold alongside the wiring and switching range.
Business model & economics
Revenue depends on product breadth, dealer coverage and stock availability. The growth plan targets availability first, then reach.
Dealers and distributors; management figure. Active count to follow.
Monthly inventory shortage cited by management; stock-out records to follow.
Prospective dealers a month, per management; CRM evidence to follow.
The thesis is to improve inventory availability, widen distribution and add online and Tier 1 reach. Revenue split by route, product and geography will be provided in the data room.
Working capital & inventory cycle
Stock and receivables are the largest assets and the main call on capital. Payables cover only part of them.
| FY24 | FY25 | FY26P | |
|---|---|---|---|
| Inventory | 14.86 | 13.59 | 14.87 |
| Trade receivables | 13.96 | 17.05 | 18.90 |
| Inventory + receivables | 28.82 | 30.64 | 33.77 |
| Trade payables | 9.61 | 9.61 | 8.63 |
| Net of payables | 19.21 | 21.03 | 25.14 |
| Inventory + receivables, % of revenue | 69.5% | 77.1% | 77.4% |
| Receivable days, on revenue | 123 | 157 | 158 |
| Cash | 0.09 | 0.17 | 0.41 |
| Operating cash flow | 0.34 | (0.52) | — |
Weakest metric. In FY26P, inventory plus receivables rose ₹3.13 Cr while EBITDA rose ₹0.86 Cr. Receivables grew from 123 to 158 days of revenue between FY24 and FY26P, and the working-capital line is drawn ₹9.67 Cr of a ₹10.00 Cr sanction. FY25 operating cash flow was negative despite EBITDA of ₹2.32 Cr.
Customer mix & concentration
Buyers are residential, commercial and industrial users reached mainly through dealers and distributors. Reach, not a small set of accounts, is the commercial proposition.
Concentration is unquantified. Customer-level billings, the top 25 accounts, dealer activity and geographic sales are not in this document and will be provided in the data room. Until then the dealer count is a management claim.
Financial snapshot
Revenue has been uneven while profit has risen steadily, and finance cost has grown faster than either.
| FY22 | FY23 | FY24 | FY25 | FY26P | |
|---|---|---|---|---|---|
| Revenue | 38.12 | 46.30 | 41.44 | 39.73 | 43.64 |
| Growth | — | 21.5% | −10.5% | −4.1% | 9.8% |
| PBT | 0.54 | 0.57 | 0.59 | 0.60 | 1.05 |
| Finance cost | 0.37 | 0.52 | 0.83 | 1.48 | 1.89 |
| Depreciation & amortisation | 0.07 | 0.13 | 0.21 | 0.23 | 0.24 |
| EBITDA | 0.98 | 1.21 | 1.63 | 2.32 | 3.18 |
| EBITDA margin | 2.58% | 2.62% | 3.93% | 5.84% | 7.29% |
| PAT | 0.40 | 0.40 | 0.47 | 0.44 | 0.78 |
| PAT margin | 1.04% | 0.86% | 1.14% | 1.10% | 1.78% |
Finance cost. It rose about fivefold from FY22 to FY26P while PBT roughly doubled, so most of the operating gain has gone to lenders.
Quality of earnings
EBITDA here is PBT plus finance cost plus depreciation and amortisation, so it includes other income.
In FY26P (₹0.001 Cr in FY25). It is 46% of the EBITDA increase; nature not yet established.
FY26P EBITDA on operations alone, a 6.4% margin against 7.29% shown.
Debt position
No add-backs are applied: promoter remuneration, related-party items and one-offs are not yet quantified. The term-loan schedule is one part of total debt; a lender-wise reconciliation will be in the data room. FY26P is roughly six months old.
Management & organisation
The company is owned and run by two promoter-directors, with a founder whose stated experience exceeds three decades.
| Shareholder | Role | Holding |
|---|---|---|
| Promoter-Director (1) | Director | 50.00% |
| Promoter-Director (2) | Director | 49.83% |
| Minority shareholder | Former director, resigned March 2025 | 0.17% |
| Total | 100.00% |
Governance. Neither promoter alone holds more than 50%, so ordinary resolutions need both promoters or the minority holder. Supplied reports state no material litigation and no insolvency proceeding; current searches will be provided.
Capital raise & use of funds
The company is seeking minority growth capital to lift stock availability, extend distribution and develop a smart-home product.
Transaction parameters
Smart blinds: an option, not revenue
Pre-launch DIY blinds, rechargeable with no rewiring; manufacture outsourced at first. No revenue exists, so the core figures here carry none.
Risks & mitigants
Working capital
Stock and receivables far exceed cash, and the working-capital line is 97% drawn.
Mitigant: ageing and lender stock statements in the data room.
Finance cost and lender consent
Finance cost takes most of the operating gain, and sanction terms restrict ownership change and new borrowing.
Mitigant: EBITDA cover is improving; lender engagement before structuring.
Earnings quality
A large share of FY26P EBITDA growth is other income, and FY26 is provisional.
Mitigant: normalised EBITDA bridge and final FY26 accounts.
Revenue volatility
FY26P revenue is still below its FY23 peak.
Mitigant: FY26P grew 9.8%; category and dealer sales data to follow.
Unverified commercial claims
The dealer count, stock shortfall and dealer pipeline are management-stated.
Mitigant: dealer master and sales by dealer in the data room.
Statutory findings
The FY25 tax audit carries qualifications in four areas; FY24 and FY25 audit reports note no software audit trail.
Mitigant: quantified closure plan before circulation.
Unconfirmed deal terms
The stated use of funds sums to 95%, and pre/post-money is unconfirmed.
Mitigant: final terms and allocation stated at NDA stage.
Smart-blinds execution
Pre-launch with no revenue; outsourced manufacture and unproven unit economics.
Mitigant: assessed separately; prototype, BOM and IP evidence to follow.
Process & next steps
Proposed sequence
Contact: CA Dhiraj Ostwal & Co. — Transaction Advisory.
Confidentiality and disclaimer. This summary is prepared for preliminary discussions with prospective investors from information supplied by management and the transaction team. It is not an audited or diligence report.
Figures described as management-stated, provisional or unconfirmed have not been independently verified by the adviser. Recipients must carry out their own financial, tax, legal, commercial, operational and regulatory diligence.
Identifying information is withheld until an NDA is signed. Nothing here is an offer, solicitation or commitment; any transaction is subject to definitive documentation, satisfactory diligence, lender and other approvals.