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Earkart IPO
Earkart Limited
₹1,35,000 /1000 sharesMinimum Investment
Earkart IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 25 Sep ‘25 - 29 Sep ‘25 | ₹2,70,000 | 1,000 | ₹135 - ₹135 |
| Issue Size | IPO Doc |
|---|---|
| 49.26Cr | RHP PDF |
Subscription rate
As of 29 Sep'25, 04:02 PM
| Qualified Institutional Buyers | 0.00x |
| Non-Institutional Investor | 1.58x |
| Retail Individual Investor | 0.30x |
| Total | 1.08x |
About Earkart
Founded in
2021
Managing director
Mr Rohit Misra
Parent organisation
Earkart Limited
Strengths & Financials of Earkart
Strengths
Risks
Earkart Limited claims to be a trusted supplier on the government e-marketplace (GeM) for hearing aids and related accessories. The company supplies products to the Artificial Limbs Manufacturing Corporation of India (ALIMCO), a government enterprise under the Ministry of Social Justice and Empowerment.
Earkart Limited claims to have developed the Earkart OMNI, a remote audiometry machine that enables audiologists to test hearing loss for patients from any location. This device integrates cloud-based CRM technology, allowing real-time interactions between audiologists and patients, including live diagnostics and hearing aid fittings. The Earkart OMNI also incorporates video otoscopy, air conduction audiometry, and bone conduction audiometry, providing a comprehensive diagnostic solution.
The company is ISO 13485 certified for its quality management systems. Its manufacturing facility is also approved by the Central Drugs Standard Control Organisation (CDSCO), ensuring that all hearing aids manufactured meet stringent quality requirements. Additionally, each hearing aid is Bureau of Indian Standards (BIS) certified, guaranteeing its safety and performance.
The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 28.92 crore in FY23 to Rs 31.75 crore in FY24 and Rs 43.11 crore in FY25. PAT increased from Rs 1.31 crore in FY23 to Rs 3.06 crore in FY24 and Rs 6.88 crore in FY25.
Earkart derives a significant portion of its revenue from government institutions. They accounted for Rs 29.39 crore (69.32 percent) of the company’s total sales of products in FY25, Rs 23.47 crore (75.85 percent) in FY24, and Rs 24.03 crore (86.56 percent) in FY23. Any failure to secure similar government contracts in the future could adversely impact the company’s business, operating results, and financial condition. Additionally, changes in government policies regarding tenders, payment delays, or disputes could negatively affect Earkart's revenue and cash flow.
The top supplier accounted for Rs 13.73 crore (54.12 percent) of the company’s total purchases in FY25, Rs 6.87 crore (28.72 percent) in FY24, and Rs 9.00 crore (41.91 percent) in FY23. Any disruption in supplies from this vendor could adversely affect the company’s business and finances.
Earkart relies heavily on suppliers from China for a significant portion of its raw material needs. It accounted for Rs 13.93 crore (54.92 percent) of the company’s total purchases in FY25, Rs 11.82 crore (49.40 percent) in FY24 and Rs 9.00 crore (41.91) percent in FY23. Any disruptions in the supply chain from China, such as geopolitical tensions, tariff increases, or trade restrictions, could adversely impact the availability and cost of materials, thereby affecting the company’s production capacity and financial performance.
The company’s sole manufacturing facility is located in Noida (Uttar Pradesh). Any disruption in this region could hurt the company’s financial condition and cash flow.
The top customer accounted for Rs 28.99 crore (67.25 percent) of the company’s revenue in FY25, Rs 22.64 crore (71.29 percent) in FY24, and Rs 23.93 crore (82.76 percent) in FY23. Any failure to retain this key customer or a loss of business from them could adversely affect the company’s business and financial standing.
The company reported negative cash flow from operating activities amounting to Rs 1.00 crore in FY24 and Rs 0.30 crore in FY23. This was primarily driven by increases in net working capital and tax payments. Additionally, negative cash flow from investing activities amounted to Rs 1.31 crore in FY25 and Rs 1.29 crore in FY24. This was mainly due to the net purchase of fixed assets and investment in fixed deposits. The company also reported negative cash flow from financing activities amounting to Rs 0.41 crore in FY25, primarily on account of interest payments. If negative cash flows continue, it could adversely affect the company’s ability to operate and meet its financial obligations.
Uttar Pradesh accounted for Rs 32.57 crore (76.83 percent) of the company’s revenue from the sale of products in FY25, Rs 24.98 crore (80.74 percent) in FY24, and Rs 24.50 crore (88.26 percent) in FY23. The company’s concentration in this area exposes it to regional risks, including natural disasters, political instability, or regional economic downturns, which could severely disrupt its operations.
Earkart Limited is exposed to credit risk from its customers, as the company extends credit periods that make it vulnerable to delayed or non-payment. As of FY25, it had trade receivables of Rs 18.57 crore, a sharp increase from Rs 6.34 crore in FY24 and Rs 4.70 crore in FY23. If customers fail to make timely payments, it could result in difficulties in managing bad debt and affect the recoverability of trade receivables, further straining the company’s financial condition.
Earkart Limited has a limited operating history in the hearing aid manufacturing sector, with just over three years of experience since its establishment in 2021. As a relatively new entrant in this market, the company faces risks related to advancing technologies, product reliability, operational efficiency, and adapting to changing customer demands. Investors must consider these challenges when evaluating the company's business prospects, as failure to address these risks could adversely affect its growth and long-term sustainability.
The company’s senior management personnel is involved in a certain ongoing tax proceeding. Any adverse judgments in this case could be detrimental to the company’s business prospects.
The company has experienced a high employee attrition rate, with 59.74 percent, 53.73 percent, and 50.91 percent of employees leaving in FY25, FY24, and FY23, respectively. This turnover could disrupt operations, as the company may require significant time and capital to hire and train replacement personnel.
As of FY25, the company had financial indebtedness of Rs 4.96 crore. Any failure to service or repay these loans can hurt the company’s operations and financial position.
Earkart Financials
*All values are in Rs. Cr
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Application Details of Earkart IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Individual investor | ₹135 - 135 | ₹2 - 5 Lakh |
For Earkart IPO, eligible investors can apply as Individual investor.