Shyam Dhani Industries Limited IPO: Financial Performance, Valuation, Strengths and Risks

The Shyam Dhani Industries Limited IPO is an upcoming SME book-building issue that is proposed to be listed on the NSE EMERGE platform. The company operates in the agro-processing sector and is based in Jaipur, Rajasthan.

With an issue size of ₹38.49 crore, the IPO has attracted attention from investors looking for opportunities in the SME segment. Holani Consultants is acting as the merchant banker for the issue, while the company filed its Draft Red Herring Prospectus (DRHP) on March 28, 2025.

Before considering the IPO, investors should look beyond the issue size and understand the company’s financial performance, valuation, debt position and business risks.

Shyam Dhani Industries IPO – Key Details

ParticularDetails
CompanyShyam Dhani Industries Limited
IPO TypeSME IPO
Issue TypeBook Building
Proposed ExchangeNSE EMERGE
IPO Size₹38.49 Crore
SectorAgro
Merchant BankerHolani Consultants
DRHP Filing DateMarch 28, 2025
Registered OfficeJaipur, Rajasthan

About Shyam Dhani Industries Limited

Shyam Dhani Industries Limited operates in the agro-processing industry and serves the domestic market.

The company’s financial numbers show a noticeable improvement in revenue and profitability over the reported financial years. EBITDA and PAT have also increased, indicating an improvement in operating performance.

At the same time, the company has a relatively high debt level compared with its net worth. This is an important factor investors should consider before making an investment decision.

Shyam Dhani Industries Financial Performance

The company’s financial performance has improved over the last few years. Revenue increased from ₹67.95 crore in FY23 to ₹124.68 crore in FY25.

Profitability has also moved higher, with PAT increasing from ₹2.92 crore in FY23 to ₹8.04 crore in FY25.

Balance Sheet Snapshot

Figures in ₹ Crore

Particular30-Sep-25FY25FY24FY23
Total Assets88.7982.4752.8427.51
Net Worth27.8123.6015.569.26
Total Debt48.1847.2324.4512.75

The numbers indicate that the company’s assets and net worth have expanded considerably. However, total debt has also increased, which makes the company’s leverage an important point to monitor.

Shyam Dhani Industries Revenue and Profit

The company has reported steady growth in its top line as well as profitability.

ParticularFY26 AnnualisedFY25FY24FY23
Revenue127.54124.68107.6067.95
EBITDA17.3814.5810.885.96
PAT8.408.046.302.92

Note: FY26 figures are annualised based on the financial information available as of September 30, 2025.

The trend shows that revenue has grown consistently, while EBITDA and PAT have increased at a faster pace. This indicates that the company’s profitability has improved alongside its business growth.

Shyam Dhani Industries IPO KPI

Key performance indicators provide a better picture of the company’s profitability and financial efficiency.

Metric30-Sep-25FY25FY24FY23
EBITDA Margin13.63%11.69%10.11%8.77%
PAT Margin6.59%6.45%5.86%4.30%
EPS₹2.82₹5.41₹4.24₹1.97
ROE15.10%34.07%40.49%31.53%
ROCE19.53%39.00%46.16%39.69%
ROA4.73%9.75%11.92%10.61%
Debt-Equity1.73x2.00x1.57x1.38x

One positive development is the improvement in the EBITDA margin, which has increased from 8.77% in FY23 to 13.63% as of September 30, 2025.

However, the decline in ROE, ROCE and ROA compared with earlier periods needs to be considered while evaluating the company’s overall financial performance.

Shyam Dhani Industries IPO Valuation

Based on the IPO valuation figures, the company has the following key multiples:

Valuation MetricValue
Market Capitalisation₹142.59 Crore
Enterprise Value₹190.76 Crore
EV/EBITDA10.98x
P/E Ratio16.97x
P/B Ratio2.15x
NAV₹18.70

The P/E ratio of 16.97x gives investors an indication of how much they are paying relative to the company’s earnings.

Similarly, an EV/EBITDA of 10.98x provides a way to compare the company’s operating valuation with other businesses in the same space.

While these numbers may appear reasonable on the face of it, SME IPO valuations should always be studied alongside liquidity, business scale, debt and industry-specific risks.

Strengths of Shyam Dhani Industries IPO

There are several factors that may attract investors to the Shyam Dhani Industries IPO.

Consistent Revenue Growth

Revenue has increased substantially over the reported financial years, indicating expansion in the company’s business operations.

Improving Profit Margins

The EBITDA margin has improved steadily, which suggests that the company has been able to generate better operating profitability.

Growth in PAT

Profit after tax increased from ₹2.92 crore in FY23 to ₹8.04 crore in FY25, showing strong improvement in reported profitability.

Attractive Agro Sector Opportunity

The agro-processing industry serves an essential market, and demand for agricultural and food-related products can provide opportunities for companies operating in this space.

Reasonable Valuation

The reported P/E and EV/EBITDA multiples suggest that the IPO is not being offered at an extremely high valuation based on the available financial numbers. However, investors should compare the valuation with suitable listed and SME peers before reaching a conclusion.

Risks Associated With Shyam Dhani Industries IPO

Like any SME IPO, the Shyam Dhani Industries issue also comes with certain risks.

High Debt

The company’s total debt is considerably higher than its net worth. The debt-equity ratio was 1.73x as of September 30, 2025.

Higher leverage can increase financial pressure, particularly if business conditions become weaker.

SME Stock Liquidity

Shares listed on the SME platform can have lower trading volumes compared with large-cap stocks. Investors may therefore face difficulty buying or selling shares at their preferred price.

Agro Commodity Risks

The company’s business is connected with the agro sector, where raw material prices, supply conditions, weather and commodity cycles can influence margins.

Limited Scale

Compared with larger established companies, SME businesses generally operate at a smaller scale and may have greater exposure to changes in individual markets or customers.

Shyam Dhani Industries IPO FAQs

What is the revenue of Shyam Dhani Industries?

The company reported ₹127.54 crore in annualised FY26 revenue, based on the September 30, 2025 financial data.

What is the PAT of Shyam Dhani Industries?

The company’s annualised FY26 PAT is ₹8.40 crore based on the available September 30, 2025 figures.

What is the P/E ratio of Shyam Dhani Industries IPO?

The reported P/E ratio is 16.97x.

What is the market capitalisation of Shyam Dhani Industries after the IPO?

The reported post-IPO market capitalisation is approximately ₹142.59 crore.

Is Shyam Dhani Industries IPO fairly valued?

Based on the reported earnings, improving margins and valuation multiples, the IPO may appear reasonably valued. However, investors should also consider the company’s debt, SME liquidity, business risks and peer valuations before making an investment decision.

Final Verdict: Should You Consider Shyam Dhani Industries IPO?

The Shyam Dhani Industries Limited IPO presents an interesting opportunity in the SME agro-processing space. The company has shown strong revenue growth, improving EBITDA margins and rising profits over the reported periods.

At the same time, the company’s debt position and SME market liquidity are factors that should not be overlooked.

For investors with a higher risk appetite and a long-term investment horizon, the IPO may be worth studying in greater detail. However, an IPO should not be judged only by its valuation or recent profit growth. Investors should carefully examine the company’s financial statements, debt obligations, business model, industry outlook and IPO documents before making any investment decision.