Airfloa Rail Technology Ipo

Review: Based on the current market sentiment, the IPO looks more promising, as the company is among the leading providers of train interiors and parts to Indian Railways. They have a strong order book in hand. However, investors should note that liquidity could be a concern since the stock will list on the SME platform. The grey market premium indicates an expected listing gain around 90%. Overall, prospects look positive, and we can hope for a strong debut.

Manufacturer of train parts and interiors for Indian Railways, contributed projects like Vande Bharat Express, RRTS coaches, Vistadome coaches, and the Agra-Kanpur Metro.

Has good financial growth in last few years. The PAT doubled in in 2025. Revenues also shown a good growth over the years.

The company also serve other Rails factories, and global rolling stock OEMs.

They have good opportunity to be bullish on Indian Railways modernisation with having such projects onboarded.

EBITDA margin is 24.6% and PAT margin 13.3% that is one of the good points to consider.

As of August 28, 2025 our order book from the Indian Railways was ₹ 271.28 crores.

Debt-to-equity ratio is 0.54 in FY25, which is better from risk/interest burden standpoint.

RoE 30-31% and RoCE looks high but may lead to a strong business in coming years.

SME IPO and liquidity risk is there to consider with having high GMP lead to 90% listing gain.

Railway components & precision engineering rely on metals like steel/alloys, etc. The costs may be volatile and might impact on margins.

The company’s dependence on government due to that they might lead to payment delays, procurement delays, contract award delays might hit their cash flows.

GYR Capital Advisors Pvt.Ltd.