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 |
|
61.73 |
46.24 |
47.29 |
33.98 |
|
|
28.83 |
48.00 |
34.23 |
27.39 |
|
|
7.06 |
6.53 |
2.97 |
1.06 |
|
|
9.60 |
5.28 |
1.33 |
0.75 |
|
|
19.95 |
12.89 |
6.36 |
3.39 |
|
|
8.85 |
12.79 |
6.26 |
3.29 |
|
|
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
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