Armee Infotech
Armee Infotech (AIL) is an IT infrastructure solution and managed services company. The company is headquartered in Gujarat and is part of the Armee Group.The company has also diversified into retail sales and renewable energy, expanding its business beyond its core IT services.
AIL services can be broadly classified asIT infrastructure, IT managed services, retail sales and renewable energy segments. The IT infrastructure segment provides IT hardware and software, along with installation, integration, maintenance, and related support services. The managed services offer technical manpower, skill development and training, and annual maintenance services. Retail salesoperate experience zones focused on IT products, consumer electronics, gaming, and related merchandise. The renewable energy segment provides EPC services for solar power projects and develops solar power projects under power purchase agreements (PPAs), along with battery energy storage system (BESS) projects.
In FY2026, the company derived 85.81% of its revenue from IT infrastructure segment, 5.26% from IT manage services, and 8.93% from renewable segment.
As on June 30, 2026, AIL had 99 ongoing projects out of which 65 are under IT Infrastructure category, 21 are under IT managed services category, 10 are under the renewable energy EPC and 1 is for renewable energy PPA and 2 are for renewable energy BESS. Of the 99 projects, 74 projects are based in the state of Gujarat, 11 in Maharashtra, 2 each in Bihar, Andhra Pradesh, Uttar Pradesh, Madhya Pradesh and Rajasthan and 1 each is based in Telangana, Tamil Nadu, Uttarakhand, and New Delhi. The order book as on June 30,2026 stood at Rs 3,287.37 crore.
Object of the offer
The IPO is entirely a fresh issue of shares worth Rs 300 crore at the upper price band of Rs 375. There is no OFS component. At the upper end of the price band, the company is expected to be valued at Rs 1189.93 crore post listing.
The funds of Rs 155 crore raised will be used for the purpose of securing performance bank guarantees(PBG) for expansion of business, Rs 60 crore will be utilised towards funding working capital requirements, Rs 6.5 crore will be utilised towards repaying certain borrowingsand the balance is towards general corporate purposes.
Strengths
Proven track record in executing projects for Government / PSU clients.
The company provides IT Infrastructure and IT managed services to clients engaged in diverse sectors including education, healthcare, public distribution system, rural & urban development, science & technology sectors.
The order book stood at Rs 3287.37 crore as on June 30, 2026, providing revenue visibility in the near to medium term.
AIL and Acer contemplate jointly identifying and finalizing locations for up to 60 single-brand, exclusive experience zones that will be operated and managed by the company pursuant to the Acer Agreement. This provides revenue diversification going forward.
Experienced board of directors and management with extensive domain knowledge. The promoters, Kiritkumar Chimanbhai Patel and Ami Ridhish Patel,have over two decades of experience.
Weaknesses
Most of the business operations are concentrated in the states of Gujarat, Maharashtra and Tamil Nadu. As of March 31, 2026, more than 86% of the revenue was recognized from projectsexecuted in Gujarat, Maharashtra and Tamil Nadu. Assuch, the company faces geographical concentration risk.
AILis dependent on orders from the Government/PSU clients. As of March 31, 2026, more than 83.84% of the revenue was recognized from Government/PSU clients. Additionally, the loss of or inability to qualify for such orders may affect the prospects of the company.
The in-house procurement operations for renewable energy space projects expose it to certain risks and may incur unexpected expenses if the suppliers of components in its power projects default on their warranty obligations.
76.7% of the total revenue in FY2026 was derived from top 5 customers as such the company faces customer concentration risk.
As of March 31, 2026, 65.84% of the purchases were from top three technology partners and, thus, faces supplier concentration risk. Also, the failure of the technology partners to deliver these products in the necessary quantities, on time or to meet specified quality standards or technical specifications, could adversely affect its operations.
Required to furnish PBGs as part of its business contracts and the company competitively bids for government/PSU projects where such bank guarantees may be required. Thecompany?s inability to arrange such guarantees, the invocation of such guarantees, or its inability to win and service sufficient competitive bids, may adversely affect financial condition.
Incurred negative cash flows in the past.
Operations of the company are working capital intensive.
Contingent liabilities as on March 31,2026, stood at Rs 129.23 crore.
Consolidated sales were up by 6.3% to Rs 1396.636crore in FY2026.Operating profit margin (OPM) expanded from 4.47% to 5.42%, leading to a 29%increase in operating profit to Rs 75.64crore. Other income inclined 445% to Rs 13.47crore. Interest cost inclined 270.9%to Rs 24.94 crore and depreciationcostinclined by165.5% to Rs 3.17crore. PBT was higher by 14.7% to Rs 60.99 crore as against Rs 53.20crore.PAT was higher by 9.1% to Rs 45.47crore as against Rs 41.67 crore in FY2025. Tax expenses was 15.53 crore in FY2026 as against Rs 11.67 crore.
At the higher price band of Rs 375, the offer is made at a P/E of 26.17 times FY2026 EPS (of Rs 14.33).
Close listed peers are Esconet Technologies, Rashi Peripherals, Dynacons Systems & Solutions and Orient Technologies. Esconet Technologies trades at 33.0times TTM P/E, Rashi Peripherals trades at 16.6 times TTM P/E, Dynacons Systems & Solutions trades at 15.3 times TTM P/E and Orient Technologies at 51.9 times TTM P/E.
The OPM and ROE stood at 5.42% and 28.52%, respectively, in FY26. These were 2.5% and 8.03% for Esconet Technologies, 2.9% and 14.7% for Rashi Peripherals, 10.0% and 31.1% for Dynacons Systems & Solutions, and 4.8% and 7.08% for Orient Technologies, respectively.
| Armee Infotech: Issue Highlights | |
| Fresh issue (in Rs crore) | 300.0 |
| Offer for sale (in Rs crore) | - |
| Offer for sale (in number of shares) |
|
| - in Upper price band | - |
| - in Lower price band | - |
|
|
|
| Price Band (Rs) | 350-375 |
| For Fresh Issue Offer size (in no of shares) |
|
| - in Upper price band | 8000000 |
| - in Lower price band | 8571429 |
| Post issue capital (Rs crore) |
|
| - in Upper price band | 31.73 |
| - in Lower price band | 32.30 |
|
|
|
| Post issue Promoter and Promoter Group shareholding |
|
| -On higher price band (%) | 69.35% |
| -On lower price band (%) | 68.12% |
| Bid Size (in No. of shares) | 40 |
| Issue open date | 23/09/2026 |
| Issue close date | 25/09/2026 |
| Listing | BSE, NSE |
| Rating | 37/100 |
| Armee Infotech : Consolidated Financials | |||
|
| 2403 (12) | 2503 (12) | 2603 (12) |
| Sales | 1020.57 | 1313.31 | 1396.63 |
| OPM (%) | 7.01 | 4.47 | 5.42 |
| OP | 71.58 | 58.64 | 75.64 |
| Other inc. | 3.42 | 2.47 | 13.47 |
| PBIDT | 74.99 | 61.11 | 89.10 |
| Interest | 6.68 | 6.72 | 24.94 |
| PBDT | 68.32 | 54.39 | 64.16 |
| Dep. | 4.53 | 1.19 | 3.17 |
| PBT Before EO | 63.78 | 53.20 | 60.99 |
| Exceptional items | - | - | - |
| PBT After EO | 63.78 | 53.20 | 60.99 |
| Total Tax | 13.65 | 11.53 | 15.53 |
| PAT | 50.13 | 41.67 | 45.47 |
| EPS (Rs)* | 15.8 | 13.1 | 14.33 |
| EPS is on post issue equity capital of Rs 31.73 crore of face value of Rs 10 each | |||
| Figures in Rs crore | |||
| Source: Armee Infotech Issue Prospectus | |||
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