Karbonsteel Engineering Limited is a structural engineering and fabrication company engaged in delivering precision steel structures, heavy steel structures, pre-engineered buildings, and fabricated solutions for industrial and infrastructure projects. Its products serve steel plants, gas plants, chemical plants, high-rise buildings, railway bridges, and other large-scale developments.
With manufacturing facilities at Khopoli and its Umbergaon facility equipped with in-house manufacturing and testing capabilities, the company ensures timely project execution and adherence to technical specifications. Backed by a strong management team, Karbonsteel has established itself as a trusted engineering solutions provider across diverse sectors.
Core business
Karbonsteel Engineering Ltd is a fabrication company engaged primarily in designing, manufacturing, and assembling large-scale steel structures. The company operates from manufacturing facilities at Khopoli and the existing Umbergaon facility. The company provides:
- Heavy Steel Fabricated Structures such as beams, columns, platforms, pipe racks, conveyor galleries, and crane girders, whose fabricated structures form the backbone of various development projects.
- Precision Fabricated Steel Structures for industrial units including furnace supports, accumulator towers, and welded/bolted frameworks.
- Pre-Engineered Buildings and Bridges including railway bridges, steel bridge structures, and high-rise applications such as high rise buildings and industrial plants.
- In-house manufacturing and testing capabilities at the Umbergaon facility.
Karbonsteel Engineering Ltd has delivered structural engineering solutions for complex industrial and infrastructure projects. The company supports large scale projects and other industrial units across diverse sectors. The company is also making ongoing investments and expansion at the existing Umbergaon facility.
Company overview
Karbonsteel Engineering Limited is a prominent engineering solutions provider specializing in structural engineering and fabrication for diverse sectors. The company is renowned for designing, manufacturing, and supplying high-quality products tailored to the needs of steel plants, railway bridges, oil and gas plants, and refineries. With a strong commitment to reliability and efficiency, Karbonsteel Engineering has become a trusted partner for industrial and infrastructure projects across India. Its expertise spans precision steel structures, steel bridge structures, and pre-engineered buildings, enabling the company to execute large-scale industrial and infrastructure projects with exceptional accuracy. By consistently delivering structural engineering and fabrication solutions that meet the technical specifications of various industries, Karbonsteel Engineering Limited has established a solid reputation for quality and performance in the market.
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Karbonsteel engineering limited IPO details
| **Particulars | Details** |
|---|---|
| IPO Type | BSE SME (Book Built Issue) |
| Fresh Issue | Up to 30,39,600 equity shares |
| Offer for Sale (OFS) | Up to 6,90,000 equity shares by promoters (Shrenik Kirit Shah: 4,14,000 shares; Mittal Shrenik Shah: 2,76,000 shares) |
| Total Issue | Up to 37,29,600 equity shares |
| Face Value | ₹10 per share |
| Price Band | To be announced |
| Market Maker | SS Corporate Securities Ltd |
| Market Maker Reservation Portion | 1,88,000 equity shares |
| Market Maker Shares | 1,88,000 equity shares (5.04% of total issue) |
| Registrar | Maashitla Securities Pvt Ltd |
| Promoters | Shrenik Kirit Shah and Mittal Shrenik Shah |
| Listing | BSE SME |
| Tentative Listing Date | To be announced (expected on BSE SME platform) |
Market Makers: Rikhav Securities Ltd. and SS Corporate Securities Ltd. are the designated market makers for this IPO, facilitating liquidity and price stability.
Use of proceeds
| Purpose | Details |
|---|---|
| Capital Expenditure | Expansion and upgradation of existing manufacturing facilities |
| Repayment / Prepayment of Borrowings | Reducing outstanding debt obligations |
| General Corporate Purposes | To support overall business growth and operations |
Industry overview
India is targeting USD 1 trillion in manufacturing exports by 2030, supported by strong policy initiatives such as Make in India and PLI schemes that are driving higher capital expenditure across sectors. The demand for fabricated steel structures is rising steadily, particularly in infrastructure projects, industrial units, automotive, aerospace, and other large-scale developments. With supportive government policies and continuous capital investments, the outlook for the structural engineering and fabrication industry remains robust and well-positioned for sustained growth.
Facility and production
Karbonsteel Engineering operates two advanced manufacturing facilities strategically located in Gujarat and Maharashtra, offering a combined capacity of 32,400 metric tons per year. These state-of-the-art facilities are equipped with cutting-edge machinery, including CNC plasma and oxy-fuel cutting machines, CNC drilling machines, and robotic saw welding systems, ensuring precision and efficiency in every project. The company’s in-house manufacturing and testing capabilities allow it to uphold stringent quality standards, guaranteeing that every product meets the highest benchmarks for safety and durability. Karbonsteel Engineering’s facilities are designed to handle a broad spectrum of fabricated structures, from heavy steel structures and steel bridges to pre-engineered buildings, making it a comprehensive solution provider for the industrial and infrastructure sectors. This robust production infrastructure enables the company to consistently supply high-quality products and fabricated structures to clients across infrastructure segments.
Promoters and shareholding
Karbonsteel Engineering Limited is led by its promoters, Shrenik Kirit Shah and Mittal Shrenik Shah, who together hold 72.17% of the company’s pre-IPO capital. The strong management team, guided by the promoters’ vision and industry expertise, has played a pivotal role in the company’s sustained growth and operational excellence. Karbonsteel Engineering’s focus on delivering high-quality products and services has fostered long-standing relationships with key customers in the steel, oil and gas, and infrastructure sectors. The significant shareholding of the promoter selling shareholders underscores their commitment to the company’s long-term success and ensures that their interests remain closely aligned with those of other shareholders. This alignment, combined with a reputation for reliability and quality, positions Karbonsteel Engineering as a preferred partner for major industrial and infrastructure projects.
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Financials
(₹ in crores, except eps)
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from Operations | 155.35 | 211.34 | 273.05 |
| EBITDA | 16.22 | 25.79 | 36.61 |
| Profit After Tax (PAT) | 5.11 | 9.42 | 14.16 |
| Earnings Per Share (EPS) (₹) | 5.11 | 9.42 | 12.78 |
| Net Worth | 28.68 | 45.11 | 56.56 |
| Net Worth per Share (₹) | 28.76 | 43.78 | 54.47 |
| Total Borrowings | 66.17 | 78.55 | 78.55 |
Revenue from Operations
The company’s revenue grew from ₹155.35 Cr in FY23 to ₹273.05 Cr in FY25, showing strong business momentum. This growth reflects steady order inflows and execution across industrial and infrastructure projects.
EBITDA
EBITDA improved from ₹16.22 Cr in FY23 to ₹36.61 Cr in FY25, almost doubling in two years. The rise indicates better operating leverage and strong cost management.
Profit After Tax (PAT)
PAT increased from ₹5.11 Cr in FY23 to ₹14.16 Cr in FY25, reflecting a 175% jump. This steady profitability trend shows resilience in bottom-line performance.
Borrowings
Borrowings stood at ₹66.17 Cr in FY23 and increased to ₹78.55 Cr in FY25. The rise is linked to funding expansion and working capital, though debt levels remain moderate compared to revenue scale.
Earnings Per Share (EPS)
EPS rose from ₹5.11 in FY23 to ₹12.78 in FY25, more than doubling over the period. This consistent growth highlights strong shareholder value creation and earnings momentum.
Strengths
- Strong management team led by promoters with decades of industry experience.
- In-house manufacturing and testing capabilities at Umbergaon facility.
- Proven ability to execute large scale industrial and infrastructure projects.
- Diversified product portfolio including heavy and precision steel structures, bridges, and pre-engineered buildings.
- Recognized clients in steel plants, gas plants, chemical plants, and infrastructure projects.
Peer Comparison
| Company | Business Focus | Revenue (FY24) | EBITDA Margin | PAT Margin | Remarks |
|---|---|---|---|---|---|
| Karbonsteel Engineering Ltd | Fabrication solutions, precision steel structures, pre-engineered buildings, steel bridges, industrial and infrastructure projects | ₹211.34 Cr | ~12% | ~4% | Strong order book and in-house manufacturing at Umbergaon facility |
| Everest Industries | Pre-engineered buildings, roofing, and steel structures | ₹2,200+ Cr | ~9% | ~3% | Larger scale but similar exposure to pre-engineered building and fabrication market |
| Pennar Industries | Engineering products, pre-engineered buildings, steel fabrication | ₹2,100+ Cr | ~8% | ~2.5% | Diversified across engineering products with strong fabrication presence |
| Salasar Techno Engineering | Transmission towers, telecom towers, and steel structures | ₹1,600+ Cr | ~10% | ~3% | Similar fabrication profile with focus on towers and infrastructure structures |
Revenue Comparison
Karbonsteel Engineering reported revenue of ₹211 Cr in FY24, significantly smaller compared to peers like Everest Industries (₹2,200 Cr) and Pennar Industries (₹2,100 Cr). However, as an SME player, Karbonsteel’s growth trajectory is sharper, showing strong scalability potential.
PAT Margin Comparison
Karbonsteel’s PAT margin of 4% is slightly higher than peers like Everest (3%), Pennar (2.5%), and Salasar (3%). This indicates better profitability efficiency despite its smaller revenue base, reflecting strong cost control and execution discipline.
Risks
- High working capital requirements and delayed customer payments.
- Significant dependence on key customers which can materially affect results.
- Exposure to project-specific risks such as cost overruns and technical delays.
- Regulatory scrutiny and tax matters, including outstanding TDS defaults and GST notices.
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Conclusion
The Karbonsteel Engineering IPO offers exposure to a growing engineering IPO in the structural engineering and fabrication segment, with expertise in precision steel structures, pre-engineered buildings, steel bridges, and large-scale industrial and infrastructure projects. The company has shown strong revenue growth, rising EPS, and expanding net worth, supported by its in-house manufacturing and testing facilities at Umbergaon and the capability to execute large-scale industrial and infrastructure projects.
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