Dhara Rail Projects IPO

Dhara Rail Projects IPO offers a specialised bet on rail maintenance and electrical services, directly linked to Indian Railways’ capex and higher-speed trains like Vande Bharat.​

Dhara Rail Projects IPO – Overview

• Company: Dhara Rail Projects Limited
• Sector: Rail maintenance, repair and electrical services
• Core Client: Ministry of Railways / Indian Railways via AMCs and project contracts​

Key IPO details (dates/size/price to be taken from live RHP, as placeholders remain in the shared data):

• IPO Type: Main-board SME-style, book-built issue
• IPO Open date :- Dec 23, 2025
• IPO Closing date :- Dec 26, 2025
• IPO Listing date :- Dec 31, 2025
• Lead Manager: Hem Securities Ltd.
• Registrar: Bigshare Services Pvt. Ltd
• Face Value Rs 10 per share
• Price band Rs 120 -126
• Total issue size :- 50 Cr​

Promoters: Tejas Lalit Mehta, Jagruti Tejas Mehta and Dhara Tejas Mehta.​
Promoter holding: 1,11,00,000 shares pre-issue; 1,50,84,000 shares post-issue (final % stake in RHP).​

Business Snapshot

Dhara Rail Projects provides maintenance, repair and electrical services to Indian Railways to ensure train safety and uptime.​

Key service lines:​

• AMC & repair of train lighting systems (including Vande Bharat)
• AMC & repair of OHE maintenance vehicles (tower wagons)
• AMC & repair of power car equipment and HVAC systems
• Supply, installation, testing & commissioning (SITC) of electrical equipment
• Outsourced coach operation and troubleshooting services

The company works largely on long-term Annual Maintenance Contracts and on‑call repair projects, with 849 employees as of 31 August 2025.​

Financial Highlights

Financials (₹ in crore):​

Dhara Rail Projects Ltd.'s revenue increased by 40% and profit after tax (PAT) rose by 120% between the financial year ending with March 31, 2025 and March 31, 2024.

Period Ended	30 Sep 2025	31 Mar 2025	31 Mar 2024	31 Mar 2023
Assets	61.73	46.24	47.29	33.98
Total Income	28.83	48.00	34.23	27.39
Profit After Tax	7.06	6.53	2.97	1.06
EBITDA	9.60	5.28	1.33	0.75
NET Worth	19.95	12.89	6.36	3.39
Reserves and Surplus	8.85	12.79	6.26	3.29
Total Borrowing	21.29	21.33	28.17	22.74
Amount in ₹ Crore

Objective of the Issue (₹ crore):​

• Repayment / pre-payment of borrowings: 7.00
• Working capital requirements: 28.00
• General corporate purposes

IPO Reservation

Dhara Rail Projects IPO offers total 39,84,000 shares. Out of which 18,89,000 (47.41%) allocated to QIB, 7,56,000 (18.98%) allocated to QIB (Ex- Anchor), 5,67,000 (14.23%) allocated to NII  13,24,000 (33.23%) allocated to RII and 11,33,000 (28.44%) allocated to Anchor investors.

IPO Lot Size

Investors can bid for a minimum of 2,000 shares and in multiples of 1,000 shares thereof. 

Key Ratios FY25:​

• ROE: 67.85%
• ROCE: 25.59%
• EBITDA Margin: 11.88%
• PAT Margin: 14.67%
• Debt–equity: 1.66
• EPS (Basic): ₹5.88
• RoNW: 50.66%
• NAV: ₹11.61

Peer group: No directly comparable listed companies in India as per the offer note.​

Strengths

• Focused niche in rail AMCs and safety‑critical systems
• Strong growth in revenue and PAT over FY23–FY25
• High ROE and RoNW with double‑digit margins
• Large IPO allocation for working capital to support order execution
• Exclusive dependence on Indian Railways creates visibility (but also concentration risk)

Risks

• High leverage (debt–equity 1.66) even with planned repayment
• Client concentration – heavily reliant on Ministry of Railways
• Project/AMC execution risk, including penalties for delay or failures
• Working‑capital intensive model with receivables risk
• No listed peers make valuation benchmarking less straightforward

FAQs – Dhara Rail Projects IPO

Q1. What does Dhara Rail Projects do?
Dhara Rail Projects handles AMCs, repairs and electrical services for Indian Railways, including train lighting (Vande Bharat), tower wagons, power cars, HVAC and related electrical equipment, plus outsourced coach operation and troubleshooting.​

Q2. Who are the main clients?
The company primarily works with the Ministry of Railways/Indian Railways under maintenance contracts and project work orders.​

Q3. How strong is the company’s financial performance?
Revenue grew from ₹27.39 crore in FY23 to ₹48.00 crore in FY25, while PAT increased from ₹1.06 crore to ₹6.53 crore, with ROE at 67.85% and PAT margin at 14.67% in FY25.​

Q4. How will IPO funds be utilised?
Proceeds are earmarked for repaying/prepaying borrowings (₹7 crore), meeting working capital needs (₹28 crore) and general corporate purposes.​

Q5. Are there any comparable listed peers?
The DRHP/summary notes that there are no directly comparable listed companies in India in the same niche rail maintenance/electrical services segment.​

Q6. What are key risks for investors?
High leverage, dependence on a single major client (Indian Railways), working‑capital intensity, and execution risk on AMCs and project contracts.​