Acme India Industries Ltd IPO

The company has an established presence in the Indian railway sector. Since 2017, it has completed turnkey furnishing of 1,610 coaches, refurbishment, conversion and upgradation of 1,888 coaches, and toilet upgrades for 10,948 units. Its work covers 28 coach variants, 3 production units, 2 mid-life rehabilitation units and 16 railway zones.

The company has a diversified range of railway coach products and services. Its offerings include turnkey furnishing, refurbishment, conversion and upgradation of coaches, toilet upgrades, and supply of products such as Braille signage, epoxy flooring, FRP products, toilet doors, seats and berths, fire barrier coatings and hygiene-related products.

As of June 30, 2026, the company had an order book of Rs 737.97 crore across 40 orders. This included Rs 346.28 crore from toilet upgradation, Rs 229.09 crore from supplies to private clients, Rs 67.36 crore from refurbishment, upgradation and conversion, Rs 62.79 crore from turnkey furnishing, and Rs 32.45 crore from supplies to Indian Railways.

The company has entered into collaborations and tie-ups with entities from Russia, the USA and Belgium. These arrangements include specialised railway doors, aluminium foils and sheets, water-based polyurethane coating solutions, and proposed joint ventures or special purpose vehicles for passenger information systems for Vande Bharat and metro trains.

The company claims to have in-house manufacturing and testing capabilities for railway coach components. It manufactures products including sidewalls, ceilings, modular toilets, toilet washbasins, dustbins and Braille signage and claims to operate an in-house testing facility for raw materials and finished products.

The company is ISO 9001:2015 certified by TUV Nord Group, Germany, for design, manufacture, supply, trading, installation and commissioning, and maintenance of exterior and interior components for passenger coaches and rolling stock. It is also ISO 15085 certified by UK Certification & Inspection for welding in the railway sector.

The company is heavily dependent on Indian Railways, which contributed Rs 123.06 crore (46.77%), Rs 192.23 crore (91.54%), and Rs 185.42 crore (88.00%) to its total revenue in FY26, FY25, and FY24, respectively. Any adverse change in the policies of the Ministry of Railways, reduction in spending on railway coaches, withdrawal of programmes benefiting private companies, or reduction in orders from Indian Railways can adversely affect the company’s business, financial condition and results of operations.

The company, its directors and promoters are involved in outstanding legal proceedings. Any adverse decisions in these matters could affect the company’s cash flows and profit or loss through demands, interest or penalties, while also diverting management time and attention and adversely affecting its business, prospects, results of operations and financial condition.

The company depends on a limited number of suppliers, with its top 10 suppliers accounting for Rs 142 crore (76.95%), Rs 100.36 crore (66.88%), and Rs 80.96 crore (58.15%) of total purchases in FY26, FY25, and FY24, respectively. Any delay, quality issue, supply disruption, business failure, or insolvency involving these suppliers could affect the company’s manufacturing and project delivery schedules. The company does not have long-term contracts with its raw material suppliers, which may make it difficult to secure timely and adequate alternate supplies on favourable terms.

The company’s revenue is concentrated in the second half of the financial year, with October to March accounting for 91.13%, 76.25%, and 81.98% of sales turnover in FY26, FY25, and FY24, respectively. The timing of Indian Railways tenders and project execution depends on budget allocations, approvals and other factors, while monsoons, logistical delays and changes in regulations or policies may further affect project execution. These factors could cause fluctuations in the company’s revenue and profitability between periods.

The company reported negative cash flow from operating activities of Rs 11.50 crore in FY26 and Rs 6.09 crore in FY24, compared with positive cash flow of Rs 23.97 crore in FY25. The negative operating cash flow in FY26 was mainly due to an increase in trade receivables, inventory, and other current assets. In FY24, negative operating cash flow was mainly due to an increase in trade receivables and other current assets. The company also reported negative cash flow from investing activities of Rs 3.97 crore, Rs 28.52 crore and Rs 17.10 crore in FY26, FY25 and FY24, respectively. This was mainly due to investments in fixed deposits, security deposits and advances, purchase of fixed assets and, in FY24, purchase of goodwill and investments in subsidiaries or other entities. Continued negative cash flows could affect the company’s ability to fund growth plans, liquidity and general financial condition.

The company had contingent liabilities of Rs 96.64 crore as of March 31, 2026. Any adverse outcome or materialisation of these liabilities could affect the company’s financial position, results of operations and cash flows.

The company had outstanding financial indebtedness of Rs 76.21 crore as of June 30, 2026. Any failure to service or repay its borrowings on time could adversely affect the company’s business, financial condition, and cash flows.

The company had trade receivables of Rs 252.18 crore as of March 31, 2026. Any delay or failure in collecting these receivables could increase working capital requirements and adversely affect the company’s cash flows and financial condition.