A manpower solutions company with 10,374 deployed workers and 25 clients to raise Rs 17 cr
PAN HR Solutions Ltd. is in the business of putting people to work — literally. The company provides comprehensive manpower solutions on a B2B model, supplying blue-collar workers ranging from unskilled labour to skilled personnel across client locations. Before the corporate structure, this was a staffing operation built on a simple premise: companies need workers, workers need placement, and someone in the middle needs to manage the paperwork.
The company has built a pan-India presence over time, serving approximately 25 clients — described in the offer document as well-established companies with national and regional operations. These clients span e-commerce, logistics, manufacturing, and information technology. As of November 30, 2025, PHSL had 10,374 personnel deployed at various client locations and 178 employees on its own payroll.
What the Company Does
PHSL’s service offering covers six areas: manpower services, payroll services, facility management, staffing solutions, compliance audit, and e-commerce logistics support. The facility management vertical supplies housekeeping staff, pantry boys, office assistants, and other support roles.
The business currently runs on a “Collect and Pay” model — PHSL raises invoices on clients for services rendered, collects payment, and then disburses wages to deployed personnel. The company is in the process of gradually shifting to a “Pay and Collect” model, where it would pay workers first and then invoice clients for recovery. This transition, if completed, would change the working capital dynamics of the business.
The company has received client awards for its service delivery.
Revenue Growth and Operating Parameters
PHSL’s topline has grown steadily, though not dramatically. Revenue went from Rs 256.36 crore in FY23 to Rs 281.92 crore in FY24 — a 10% increase — and edged up further to Rs 283.69 crore in FY25. In the first eight months of FY26, the company posted Rs 154.23 crore in revenue. Annualized, that would place the full-year run rate at roughly Rs 231 crore — below FY25’s level, though the staffing business can be seasonal and back-ended.
Net profit has been on a clearer upward path: Rs 3.88 crore in FY23, Rs 4.20 crore in FY24, Rs 5.02 crore in FY25, and Rs 5.13 crore in just eight months of FY26 — already surpassing the full-year FY25 number with four months remaining.
PAT margins are thin, as is typical for manpower and staffing businesses where the bulk of revenue is pass-through wage cost. Margins have moved from 1.52% in FY23 to 1.50% in FY24, 1.77% in FY25, and 3.33% in the eight-month FY26 period — a noticeable improvement in the most recent period.
Return on capital employed has been consistently strong: 42.51% (FY23), 40.35% (FY24), 38.30% (FY25), and 26.76% (8M FY26). This reflects the asset-light nature of the staffing business — you don’t need factories or heavy capex to deploy manpower.
The three-year average EPS stands at Rs 9.25 and average return on net worth across reported periods is 29.05%.
The Industry
India’s staffing and manpower solutions market has been expanding as more companies — particularly in e-commerce, logistics, and manufacturing — move toward flexible workforce models. The shift from informal to formal employment, driven by compliance requirements and GST-led formalization, has created a growing addressable market for organized staffing firms. Large-scale warehouse operations, last-mile delivery networks, and manufacturing units increasingly prefer to outsource recruitment, payroll, and compliance management rather than handle it in-house.
The sector is, however, intensely competitive and margin-thin. The value proposition for staffing companies lies not in pricing power but in scale, compliance capabilities, and the ability to deploy and manage large numbers of workers reliably across locations.
The IPO
This is a book-built issue — the final price is determined through investor bidding within a price band, unlike a fixed-price issue where all applicants pay the same predetermined price. The price band is Rs 74 to Rs 78 per share.
This is a combo issue — comprising both a fresh issue of 18,00,000 shares (raising Rs 14.04 crore for the company) and an offer for sale of 3,84,000 shares (worth Rs 3.00 crore, where existing shareholders sell their holdings). The fresh issue proceeds go to the company; the OFS proceeds go to the selling shareholders.
| Parameter | Detail |
|---|---|
| Issue type | Book-built, fresh issue + OFS |
| Total shares offered | 21,84,000 (Rs 10 face value) |
| — Fresh issue | 18,00,000 shares / Rs 14.04 crore |
| — Offer for sale | 3,84,000 shares / Rs 3.00 crore |
| Price band | Rs 74 – Rs 78 |
| Issue size (upper band) | Rs 17.04 crore |
| Minimum retail application | 3,200 shares / Rs 2,49,600 |
| Post-IPO market cap | Rs 56.25 crore |
| Equity dilution | 30.29% |
| Pre-IPO paid-up capital | Rs 5.41 crore |
| Post-IPO paid-up capital | Rs 7.21 crore |
| Listing platform | BSE SME |
| Open – Close | Feb 6 – Feb 10, 2026 |
| Lead manager | Marwadi Chandarana Intermediaries Brokers |
| Registrar | Maashitla Securities |
| Market maker | Giriraj Stock Broking |
Use of Proceeds (Fresh Issue Only)
| Purpose | Amount (Rs Cr) |
|---|---|
| Working capital requirements | 9.75 |
| General corporate purposes | ~4.29 |
| Total (fresh issue) | ~14.04 |
The bulk of the fresh issue proceeds — nearly 70% — is earmarked for working capital. This is consistent with the nature of the business, especially as the company looks to transition from a “Collect and Pay” to a “Pay and Collect” model, which would require the company to fund wage disbursements before receiving client payments. The remainder goes into the general corporate purposes bucket.
Financial Performance
| Period | Total Income (Rs Cr) | Net Profit (Rs Cr) | PAT Margin | RoCE |
|---|---|---|---|---|
| FY23 | 256.36 | 3.88 | 1.52% | 42.51% |
| FY24 | 281.92 | 4.20 | 1.50% | 40.35% |
| FY25 | 283.69 | 5.02 | 1.77% | 38.30% |
| 8M FY26 | 154.23 | 5.13 | 3.33% | 26.76% |
Capital History
Promoters initially subscribed to equity at par (Rs 10). Further shares were issued between October 2020 and March 2025 in a price range of Rs 919 to Rs 6,123 per share. A bonus issue of 250 shares for every 1 held was made in September 2025. The promoters’ and selling stakeholders’ average cost of acquisition works out to Rs 2.02 and Rs 4.54 per share. Valuation
At the upper band of Rs 78, the price-to-book value is 1.80x based on a NAV of Rs 43.23 per share as of November 30, 2025. Post-IPO NAV has not been disclosed in the offer document.
The P/E ratio works out to 11.21x on FY25 earnings, and 7.31x on annualized eight-month FY26 earnings.
The offer document lists ITCons E-Solutions (P/E 76.2x), Happy Square (11.4x), and Spectrum Talent (32.8x) as listed peers, as of February 3, 2026. However, these companies differ in scale and business model, and a direct comparison has limited utility.
Dividend History
Unlike many SME IPOs, PHSL has a dividend track record. The company paid dividends of 3,571.43% in FY23, 11,734.69% in FY24, and 10,204.08% in FY25 — the unusually high percentages reflect dividends calculated against a very small pre-bonus face value base. The company has adopted a dividend policy linked to financial performance and future prospects.
Marwadi Chandarana Intermediaries Brokers, lead manager, has managed 9 IPO mandates in the last two fiscal years.
Risk Factors
The staffing business operates on inherently thin margins — the bulk of revenue is pass-through wage cost, leaving limited room for error. PHSL serves approximately 25 clients, which means revenue concentration risk is real; the loss of even a few large accounts could materially impact the topline. The planned transition from “Collect and Pay” to “Pay and Collect” would increase working capital requirements and introduce cash flow timing risk.
The 8-month FY26 annualized revenue run rate appears lower than FY25’s full-year number, though the staffing business can be lumpy. Blue-collar staffing is intensely competitive with low barriers to entry. The company’s post-IPO paid-up capital of Rs 7.21 crore is small, indicating a longer gestation period before any potential migration to the main board. Post-IPO NAV is not disclosed in the offer document.
