🚫 Avoid
Listed
Compressors, Pumps & Diesel Engines
Powerica Limited IPO
₹1100 Cr · Fresh Issue & OFS · Compressors, Pumps & Diesel Engines
Price Band
₹375 – ₹395
GMP (Grey Market)
—
No GMP data yet
Issue Size
₹1100 Cr
Fresh Issue & OFS
Market Cap
₹4988.60 Cr
At upper band
P/E Ratio
28.4x
P/S: 1.9x
Listing Date
02 Apr 2026
BSE & NSE
IPO Timeline
✓
Opens
24 Mar 2026
✓
Closes
27 Mar 2026
✓
Allotment
30 Mar 2026
✓
Refund
31 Mar 2026
✓
Listing
02 Apr 2026
IPO India Hub: Avoid
Conviction
3/10
The company faces severe operational headwinds with revenue and PAT declining 20.9% and 22.9% respectively over two years, signaling deteriorating market position or demand. While valuation at 1.23× sector midpoint appears reasonable on paper, the sharp earnings contraction and weak 9.1% net margin make this a value trap rather than a bargain.
Listing Performance
Issue Price
₹395
Allotment price
Listing Price
₹375
-5.06% on listing day
Current Price (CMP)
₹569.1
+44.1% vs issue
Listed On
02 Apr 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Strong balance sheet and cash generation
Debt-to-equity of 0.24x is conservative, and ROCE of 27.02% demonstrates efficient capital deployment. The company generates substantial cash, which supports the ₹525 Cr debt repayment plan from IPO proceeds.
✓ Strength
Promoter commitment post-listing
Promoter holding remains high at 77.2% post-issue, signaling confidence in the business. OFS at 36.4% is moderate and does not suggest aggressive insider exit.
⚠ Risk
Severe two-year revenue and profit decline
Revenue collapsed from ₹2,710.9 Cr (FY-1) to ₹1,474.9 Cr (FY0), a 45.6% drop in a single year, with PAT falling 23.4% in the same period. This sharp contraction raises questions about market share loss, pricing pressure, or structural demand weakness in compressors and diesel engines.
⚠ Risk
Deteriorating profitability and margins
Net profit margin of 9.1% is weak for a capital-intensive manufacturing business, and the 22.9% PAT CAGR decline over two years indicates margin compression. EBITDA margin of 13.03% offers limited buffer for operational stress or cyclical downturns.
₹ Valuation
Fair valuation masks underlying weakness
At 28.4x P/E and 1.23× the niche sector midpoint of 23x, the company appears reasonably valued. However, this masks a business in contraction: the P/E is anchored to a depressed profit base, and there is no evidence of recovery or growth inflection to justify even fair-value entry.
👁 Watch
Monitor FY0 results and order pipeline
Investors must closely track whether the sharp FY0 revenue decline was temporary (one-time customer loss, project delay) or structural. Quarterly order inflows and capacity utilization post-listing will be critical to assess if the company can stabilize or recover market position.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Powerica Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹2653.27 Cr
Net Profit
₹175.83 Cr
Industry
Compressors, Pumps & Diesel Engines
Issue Type
Fresh Issue & OFS
Promoters
BHARAT OBEROI, RENU NARESH OBEROI, JAI RAM OBEROI, NARESH OBEROI FAMILY TRUST, BHARAT OBEROI FAMILY TRUST AND KABIR AND KIMAYA FAMILY PRIVATE TRUST
Lead Managers
ICICI Securities, IIFL Capital and Nuvama Wealth Management
Quick Actions
Frequently Asked Questions
Avoid. The company faces severe operational headwinds with revenue and PAT declining 20.9% and 22.9% respectively over two years, signaling deteriorating market position or demand. While valuation at 1.23× sector midpoint appears reasonable on paper, the sharp earnings contraction and weak 9.1% net margin make this a value trap rather than a bargain.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
Lot size details will be updated when the DRHP is filed. The price band is ₹375 – ₹395.
The IPO opens on 24 Mar 2026. It closes on 27 Mar 2026. Allotment is expected on 30 Mar 2026. Refunds initiate on 31 Mar 2026. Listing on BSE and NSE is on 02 Apr 2026.
The lead managers for the IPO are ICICI Securities, IIFL Capital and Nuvama Wealth Management. Check the SEBI filing for the registrar details.
The IPO listed on 02 Apr 2026 at ₹375 against an issue price of ₹395 (-5.06% on listing day). The current market price (CMP) is approximately ₹569.1 (44.1% vs issue).
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 27 Mar 2026. The company faces severe operational headwinds with revenue and PAT declining 20.9% and 22.9% respectively over two years, signaling deteriorating market position or demand. While valuation at 1.23× sector midpoint appears reasonable on paper, the sharp earnings contraction and weak 9.1% net margin make this a value trap rather than a bargain.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 27 Mar 2026. The IPO is priced at a P/E of 28.4x. Market cap at issue price is ₹4988.60 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The issue closes on 27 Mar 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Powerica Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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