Acme India Industries Files DRHP for ₹85.27 Crore Fresh Issue Amid ₹737.97 Crore Order Book

Railway coach interior and turnkey furnishing solutions provider Acme India Industries Limited has filed its Draft Red Herring Prospectus (DRHP) to raise funds via an initial public offering (IPO). The issue includes a fresh issue of shares aimed at deploying ₹85.27 crore towards core business expansion, accompanied by an offer for sale (OFS). The company plans to list its equity shares on the BSE SME platform.

The issue arrives amid an expansion drive across the Indian rolling stock and passenger rail modernization landscape, supported by a confirmed order book of ₹737.97 crore as of June 30, 2026.

Issue Structure and Financial Snapshot

Acme India Industries has earmarked the capital raised from the fresh issue to strengthen its balance sheet and support upcoming railway contract executions. The proceeds will be allocated towards:

Objects of the Fresh Issue:

• Meeting working capital requirements to finance ongoing rolling stock execution cycles
• Repayment or pre-payment, in full or part, of existing borrowings availed by the company
• Funding capital expenditure towards the purchase of additional plant and machinery
• General corporate purposes

The company reported total revenue of ₹267.89 crore in FY26, representing a 25.5% year-on-year increase compared to the previous fiscal. Profit after tax (PAT) grew 48% to ₹24.36 crore in FY26, while EBITDA stood at ₹39.82 crore. Key performance indicators for FY26 showed a Return on Equity (ROE) of 30.65%, Return on Capital Employed (ROCE) of 23.20%, and a PAT margin of 9.24%.

Business Profile and Railway Exposure

Originally incorporated in December 2021, Acme India Industries operates in the rolling stock segment, focusing on the design, manufacturing, supply, installation, and warranty maintenance of railway coach interiors and components. Its product suite covers Braille signage, fire-retardant epoxy flooring, passenger information systems (PAPIS), toilet and compartment doors, modular toilets, and interior seating.

Since 2017, the enterprise has executed turnkey furnishing across 1,610 coaches, refurbished or upgraded 1,888 coaches, and completed 10,948 toilet upgrades across 16 railway zones. The company operates manufacturing and testing units in Sonipat, Haryana, spanning more than 92,000 square feet. Acme India has also secured contracts for Vande Bharat coaches and entered into international tie-ups for specialized rolling stock components.

What Investors Should Monitor

While the order book of ₹737.97 crore provides clear medium-term revenue visibility, investors must evaluate operational risks highlighted in the draft filings:

Key Risk Factors:

• Customer Concentration: Although Indian Railways' direct share of revenue declined to 46.77% in FY26 from 91.54% in FY25, the company's overall order pipeline remains heavily exposed to Ministry of Railways tenders and budgetary allocations.
• Working Capital Intensity: Railway contracts operate with extended receivable horizons and inventory commitments, leading to high working capital requirements and periods of negative operating cash flows.
• Tender Dependence: Future revenue hinges on competitive bidding under the Indian Railways e-Procurement System (IREPS), where pricing pressure and qualification criteria dictate contract wins.

Tags: Acme India Industries Indian Railways BSE SME SEBI Railway Infrastructure IPO