Infrax Renewable Ltd is coming out with a ₹40.88 crore fixed-price SME IPO at ₹104 per share.
Infrax Renewable is an ISO 9001:2015-certified solar EPC company providing solutions for rooftop and ground-mounted solar projects. Its activities include project design, engineering, procurement, installation, testing, commissioning and operation and maintenance.
The company also supplies solar PV modules, inverters and other related products. In addition, it has an Independent Power Producer business through its solar power plant at Bhadla, Jasdan, Gujarat, where electricity is sold to Paschim Gujarat Vij Company Limited under a Power Purchase Agreement.
The company’s business has expanded rapidly in FY26. However, the sustainability of this growth, particularly the sharp jump in profitability immediately before the IPO, remains an important consideration for investors.
IPO Details
| Particulars | Details |
|---|---|
| IPO Open Date | September 9, 2026 |
| IPO Close Date | September 11, 2026 |
| Allotment | September 15, 2026 |
| Tentative Listing Date | September 17, 2026 |
| Issue Price | ₹104 per share |
| Face Value | ₹10 per share |
| Issue Size | ₹40.88 crore |
| Issue Type | Fixed Price IPO |
| Fresh Issue | 32,50,800 shares |
| Offer for Sale | 6,80,400 shares |
| Total Shares Offered | 39,31,200 shares |
| Lot Size | 1,200 shares |
| Minimum Application | 2 lots / 2,400 shares |
| Minimum Investment | ₹2,49,600 |
| Listing | BSE SME |
| Lead Manager | Smart Horizon Capital Advisors Pvt. Ltd. |
| Registrar | Bigshare Services Pvt. Ltd. |
| Market Maker | Shreni Shares Ltd. |
| Post-IPO Market Cap | Around ₹148.05 crore |
The IPO comprises a fresh issue as well as an Offer for Sale. The issue represents around 27.61% of the post-IPO paid-up capital.
At ₹104 per share, an investor applying for the minimum two lots will need to commit ₹2.496 lakh. This relatively high minimum application amount is typical of the SME IPO segment but also means the issue is more suitable for investors who can absorb higher capital and liquidity risk.
GMP Watch
Infrax Renewable IPO is currently seeing little to no meaningful grey-market premium, with the latest widely reported GMP around ₹0 per share against the fixed issue price of ₹104.
At a GMP of ₹0, the indicative listing price would be around ₹104, implying no premium or discount to the issue price.
FY26 financial growth
The most striking feature of the company’s recent financial performance is the sharp improvement in both revenue and profitability.
Revenue increased more than threefold between FY24 and FY26, while PAT expanded more than tenfold over the same period.
The company also reported a FY26 PAT margin of around 10.94%, which is higher than the 9.36% recorded in FY25.
Unlike a book-built IPO, Infrax Renewable has a fixed issue price of ₹104 per share. Therefore, there is no conventional price band between which investors can bid.
The ₹104 price needs to be assessed against the company’s earnings, book value and post-IPO capital structure.
Based on FY26 earnings and the fully diluted post-IPO equity capital, the issue is valued at around 14.5 times FY26 earnings.
On the surface, this may appear reasonable considering the company’s sharp FY26 growth. However, the picture changes substantially when FY25 earnings are used. On that basis, the implied P/E rises to around 52 times.
The issue is also priced at approximately 6.59 times its March 31, 2026 book value, based on the reported NAV of ₹15.77 per share.
Therefore, market analysts see the ₹104 issue price as dependent on the company sustaining a large part of its FY26 earnings improvement rather than being supported by a long-established earnings track record.
Financial Performance
Infrax Renewable has reported rapid growth in its financial performance over the last three years.
| Financial Year | Revenue | Expenses | PAT | Assets |
|---|---|---|---|---|
| FY24 | ₹9.66 cr | ₹8.15 cr | ₹0.96 cr | ₹4.40 cr |
| FY25 | ₹30.48 cr | ₹26.20 cr | ₹2.85 cr | ₹8.24 cr |
| FY26 | ₹93.33 cr | ₹79.55 cr | ₹10.20 cr | ₹31.53 cr |
Revenue grew from ₹9.66 crore in FY24 to ₹30.48 crore in FY25 and then surged to ₹93.33 crore in FY26.
PAT followed a similar trajectory, rising from ₹0.96 crore to ₹2.85 crore and then ₹10.20 crore.
The numbers indicate a significant expansion in scale.
However, investors should distinguish between historical growth and sustainable growth. The FY26 numbers are particularly important because they form the basis for much of the valuation justification for the IPO.
The PAT margin has remained relatively stable around 9–11%, while RoCE has declined as the company’s asset base and scale have increased.
The FY26 RoCE of 63.89% remains high in absolute terms, but the decline from 125.59% in FY24 is worth noting.
The reported average EPS for the three-year period is around ₹6.82, while average RoNW is around 94.11%.
The very high return ratios partly reflect the company’s relatively small historical equity base and should therefore be interpreted alongside the post-IPO capital structure.
Price-to-Earnings Analysis
The P/E calculation gives a very different picture depending on the earnings year used.
| Basis | Approximate P/E |
|---|---|
| FY25 earnings | 52.0x |
| FY26 earnings | 14.5x |
| Issue Price | ₹104 |
The FY26 P/E of around 14.5x may look reasonable for a fast-growing renewable-energy company.
However, the FY25 P/E of around 52x demonstrates how much the valuation depends on the exceptional improvement in FY26 earnings.
For market analysts, the central valuation question is therefore not simply whether 14.5x is expensive or cheap, but whether ₹10.20 crore of FY26 PAT can be sustained and grown after listing.
Comparison with Listed Peers
The offer document identifies Acme Solar, Alpex Solar and Solarium Green as listed peers.
Their reported P/E multiples as of September 8, 2026 were approximately:
| Listed Peer | P/E |
|---|---|
| Acme Solar | 49.0x |
| Alpex Solar | 11.8x |
| Solarium Green | 16.6x |
At around 14.5x FY26 earnings, Infrax Renewable is below Acme Solar’s reported multiple and broadly in the vicinity of Alpex Solar and Solarium Green.
Risks
The biggest issue for investors is the sustainability of the FY26 numbers. Revenue increased from ₹30.48 crore in FY25 to ₹93.33 crore in FY26, representing growth of more than 200%.
Market analysts may therefore want to see whether the FY26 performance represents a sustainable change in the company’s scale and profitability or whether it reflects project timing, unusually strong business conditions or other factors that may not repeat at the same pace.
At ₹104, the issue is valued at approximately 14.5 times FY26 earnings but around 52 times FY25 earnings. This creates a wide valuation gap depending on which year’s earnings investors consider sustainable. The valuation therefore leaves limited room for disappointment if earnings normalise after FY26.
A substantial portion of the company’s sales is derived from Gujarat. Although the company is expanding into other states, concentration in one major market can expose the business to regional competition and demand fluctuations.
The renewable-energy industry has attracted a large number of EPC companies and equipment suppliers. Intense competition can put pressure on project pricing and margins, particularly for smaller companies.