IPO Reviews / Poojaa Precision

Poojaa Precision Engg. Limited

Poojaa Precision: where EBITDA went, and how the new plant was funded.

Profit is not cash: track working capital days every year, and start your expansion before the IPO so it is already visible.

Platform
BSE SME
Status
Listed 4 August 2026
fresh issue
Rs 159.83 crore

The business in brief

Poojaa Precision Engg. Limited, earlier called Pooja Castings Private Limited, is a Pune-based maker of aluminium die-cast parts (parts made by pouring or pressing molten metal into a steel mould) and machined components. It uses gravity, low-pressure and high-pressure die casting, followed by machining. The Red Herring Prospectus (RHP) dated 22 July 2026 describes over 600 products (SKUs, or stock keeping units), made at two plants in Chakan, Pune, for the automobile industry, including electric vehicles (EV), and for agriculture, defence, energy, healthcare and engineering goods. The abridged prospectus also states that the company has recently entered aerospace, with vendor approval from a customer.

In FY26 (the year ended 31 March 2026) revenue from operations was Rs 293.86 crore and profit after tax was Rs 30.90 crore. Automobile customers gave 72.58% of FY26 revenue, with commercial vehicles alone at 50.88%; EV parts gave 9.81% and non-automobile sectors 17.61%. The promoters held 82.63% of the shares before the issue and 60.63% after it.

The IPO was entirely a fresh issue (new shares, with no sale by existing shareholders) of Rs 159.83 crore, as per the Prospectus dated 31 July 2026. Of the proceeds, Rs 106.34 crore was for a new manufacturing facility at Khed, Pune (proposed Unit 3), Rs 30 crore for working capital (money needed to run day-to-day operations), and the balance for general corporate purposes (money not tied to a named use) and issue expenses. The Draft Red Herring Prospectus (DRHP) was dated 23 March 2026. Bidding ran from 28 to 30 July 2026, and the shares were listed on BSE SME on 4 August 2026.

Three years in numbers

Rs crore unless statedFY24FY25FY26
Revenue from operations (Rs crore)173.72222.00293.86
EBITDA (Rs crore)27.4539.8951.78
EBITDA margin15.80%17.97%17.62%
Profit after tax (Rs crore)16.1023.9330.90
Cash from operating activities (Rs crore)16.2715.8723.80
Inventory / receivable / payable days33 / 42 / 4444 / 58 / 5663 / 64 / 72
Total borrowings (Rs crore)14.2819.5441.16
Top ten customers, share of revenue96.00%90.63%88.64%

Restated financial information, cash flows and working capital days as stated in the Abridged Prospectus dated 22 July 2026; top ten customer share from the customer-wise table in the Risk Factors of the Prospectus dated 31 July 2026. Rs lakh figures converted to Rs crore. EBITDA means earnings before interest, tax, depreciation and amortisation. Days are the document's own figures, calculated on year-end balances. No stub period was presented.

The deeper read

What most readers miss.

  1. 01

    Less than half of EBITDA became cash

    On our arithmetic from the abridged prospectus, over FY24 to FY26 EBITDA added up to Rs 119.11 crore, but cash from operating activities was Rs 55.94 crore, or 47% (59%, 40% and 46% year by year). Between 31 March 2024 and 31 March 2026, inventories and trade receivables together rose by Rs 66.77 crore, while trade payables rose by Rs 17.95 crore.

    How an investor reads it. An investor reads profit through the cash flow statement: when growth absorbs this much working capital, the next question is how that growth was funded.

    In your company: put EBITDA and cash from operations side by side for each of the last three years and write one line explaining the gap, before the offer document is drafted.

  2. 02

    Working capital days lengthened every year

    Inventory days went from 33 to 44 to 63, receivable days from 42 to 58 to 64, and payable days from 44 to 56 to 72, so on our arithmetic the net cycle (inventory plus receivable days, minus payable days) moved from 31 to 46 to 55 days, with 61 days estimated for March 2027. On the same basis the working capital gap grows from Rs 59.53 crore (March 2026) to an estimated Rs 115.19 crore (March 2027), which is the base for the Rs 30 crore working capital object.

    How an investor reads it. The days trend tells an investor whether a working capital object is a one-time top-up or a need that will come back each time the company grows.

    In your company: calculate inventory, receivable and payable days at every quarter end, and record the reason for any jump (a new customer's credit terms, stock built for a launch) while the facts are fresh.

  3. 03

    Concentration fell while the largest customer grew

    The largest customer's share of revenue fell from 41.94% in FY24 to 31.75% in FY26, and the top ten's share from 96.00% to 88.64% (99.01% in FY23, as per the DRHP). The largest customer's revenue still rose, from Rs 72.86 crore to Rs 93.29 crore, while revenue from customers outside the top ten grew from Rs 6.95 crore to Rs 33.37 crore.

    How an investor reads it. A share that falls because new customers grow faster reads very differently from one that falls because a big customer buys less, and a customer-wise table lets an investor see which one it is.

    In your company: report revenue from customers outside your top ten as its own line every year; it is the simplest proof that diversification is real.

  4. 04

    Expansion money: part spent, part refinancing

    Of the Rs 110.43 crore estimated cost of the new unit at Khed, Rs 22.84 crore had already been deployed as certified by the statutory auditor on 14 July 2026, and Rs 18.75 crore of the IPO money was set aside to repay loans used for machinery advances, including SBI machinery finance and an HSBC solar loan, each named with its interest rate. The unit sits in an already-built shed held on a five-year leave and licence agreement from September 2025, and the IPO-funded Rs 106.34 crore was scheduled as Rs 74.50 crore in FY27 and Rs 31.83 crore in FY28.

    How an investor reads it. An investor checks each part of a capex object against a document (auditor's certificate, sanction letter, lease) and reads how much of the project is already in place.

    In your company: begin the project with bridge funding a few months before filing, and keep each lender's sanction letter, the auditor's certificate of amounts spent and a year-wise schedule ready for the objects chapter.

Use it in your company

Three things to do before your own filing.

  1. Pick a peer-reviewed statutory auditor earlyThe RHP disclosed, among its risk factors, that the restated financial statements were prepared by peer-reviewed chartered accountants other than the statutory auditor. In your company: appoint a statutory auditor with a valid ICAI peer review certificate at least two years before filing, so the same firm audits and restates your numbers.
  2. Show your main input and supplier spreadThe document showed aluminium at 72% to 76% of raw material consumed, and the top ten suppliers' share of purchases falling from 65.66% in FY24 to 57.17% in FY26. In your company: compute both figures every year and keep a second approved supplier for each key input.
  3. Record state-wise sales as you add marketsMaharashtra's share of revenue fell from 68.44% in FY24 to 60.64% in FY26, while Haryana rose from 0.80% to 6.15%. In your company: tag every invoice by state so new markets show up in your own books, year by year.

How the document presented it

  • Customer dependence shown year by yearThe RHP gave a customer-wise revenue table for the top ten customers across three years, so readers could see the top five's share fall from 84.42% to 74.72%.
  • Revenue split by end sectorRevenue was broken into automobile, EV and non-automobile sectors, with commercial vehicles and energy shown as separate lines.
  • Capex linked to a specific siteThe new plant was described by its survey numbers at Khed, its planned capacity, the amount already spent and a two-year spending schedule.

The offer document put weight on the company's range of casting processes, its more than 600 products and its move beyond automobiles into EV, energy and a first aerospace vendor approval. It placed the new Khed unit, with a planned capacity of 15,000 MTPA (metric tonnes per annum) for melting and 6,600 MTPA for casting and finishing as stated in the abridged prospectus, at the centre of the use of proceeds.

Sources: Red Herring Prospectus dated 22 July 2026, Abridged Prospectus dated 22 July 2026 and Prospectus dated 31 July 2026 of Poojaa Precision Engg. Limited, accessed from the offer documents page of the Book Running Lead Manager, Hem Securities Limited (hemsecurities.com); the RHP is also hosted on the company website (poojacastings.in) and is linked from BSE. The RHP refers to the DRHP dated 23 March 2026 and to BSE's in-principle approval dated 23 June 2026. Customer and supplier tables were read in the Risk Factors of the Prospectus; the FY23 top ten share comes from the DRHP dated 23 March 2026 (hemsecurities.com). Restated cash flows, working capital days, the capex funding table and the loans to be repaid were read in the Abridged Prospectus. Listing on BSE SME on 4 August 2026 (scrip code 544844) was located through press reports (Chittorgarh, 5paisa) because the BSE website could not be accessed directly for this review.

This review is general commentary for promoters on how a company's offer document presented its business. It is not a research report, not investment advice and not a recommendation to buy, sell or hold any security. Mansukhbhai (Manshukhbhai Management Services Pvt. Ltd.) is not registered with SEBI as a research analyst or investment adviser. Company names are used only to identify the issuer; no connection with, or endorsement by, the company is implied.

All IPO reviewsWhy do key numbers matter so much?

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