Gurunanak Agriculture India IPO IPO

The company states that it is known for producing durable, high-performance agricultural machinery suited to the challenging conditions of Indian farming. The company claims that its products, such as the popular combined harvester, have earned strong trust and consistent demand among farmers.

The company claims to invest heavily in research and development (R&D) to enhance product efficiency, performance, and reliability. Its in-house R&D team develops solutions tailored to diverse agro-climatic conditions. The company states that this dedication towards R&D ensures that the equipment keeps pace with the evolving needs of the agricultural sector.

By manufacturing locally and controlling production costs, the company claims that it offers competitively priced machinery without compromising on quality. This affordability makes its products accessible to cost-sensitive farmers seeking efficient and economical solutions.

The company states that it operates a large, well-equipped plant featuring advanced machinery such as CNC machines, hydraulic presses, welding units, and paint booths. This infrastructure supports consistent and high-quality production.

Gurunanak Agriculture India states that it maintains a dedicated service structure to deliver prompt assistance. Farmers first receive on-site support from dealership service teams, and unresolved issues are escalated to the company’s own technical staff, who provide direct field-level solutions.

The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 38.97 crore in FY23 to Rs 44.02 crore in FY24 and Rs 43.86 crore in FY25. PAT increased from Rs 0.61 crore in FY23 to Rs 2.45 crore in FY24 and Rs 6.05 crore in FY25.

The company’s top 5 customers accounted for Rs 23 crore (52.45 percent) of the company’s total revenue in FY25, Rs 21.57 crore (49 percent) in FY24, and Rs 18.68 crore (47.94 percent) in FY23. Loss of any of these customers or a termination of agreements with them could adversely affect the company’s operations and finances.

The company’s revenue is heavily influenced by seasonal demand. Around 85 percent to 95 percent of total income over the last three years has come from threshers. Because the thresher market is cyclical and dependent on monsoon patterns and farmer sentiment, sales typically peak between August and November. As a result, quarterly performance and cash flows vary significantly and are not always comparable or indicative of annual results.

The company derives a significant portion of its revenue from the sale of threshers. Threshers accounted for Rs 36.95 crore (84.26 percent) of the company’s total revenue in FY25, Rs 41.80 crore (94.96 percent) in FY24, and Rs 37.35 crore (95.85 percent) in FY23. Any sudden decline in the demand for threshers or the company’s inability to introduce new products and services in the market could adversely affect the company’s operations and financial health.

All manufacturing activities are carried out in Durg, Chhattisgarh, and a large share of revenue comes from this state. It accounted for 72.59 percent of the company’s total revenue in FY25, 65.62 percent in FY24 and 57.04 percent in FY23. Any adverse developments, such as social unrest, economic fluctuations, adverse weather, natural disasters, and other unforeseen local events, could damage production facilities and negatively affect the company’s business and finances.

Revenue is dependent on a well-established company and dealership network. The partnership with the well-established company accounted for Rs 13.10 crore (29.87 percent) of the company’s total revenue in FY25, Rs 10.27 crore (23.34 percent) in FY24, and Rs 9.89 crore (25.38 percent) in FY23. Dealers accounted for Rs 25.65 crore (58.48 percent) of the company’s total revenue in FY25, Rs 21.17 crore (48.10 percent) in FY24, and Rs 18.37 crore (47.14 percent) in FY23. Loss of any dealer, a decline in their performance, or a reduction in active dealers could hurt the company’s business operations and finances.

The company’s top 5 suppliers accounted for Rs 12.37 crore (40.39 percent) of the company’s total purchases in FY25, Rs 11.13 crore (35.47 percent) in FY24, and Rs 8.85 crore (36.77 percent) in FY23. Any disruption in supplies from one or more of these suppliers could adversely affect the company’s business and finances.

The company reported negative cash flows from investing activities amounting to Rs 5.74 crore in FY24 and Rs 1.56 crore in FY23. It also recorded negative cash flows from financing activities amounting to Rs 6.81 crore in FY25 and Rs 3.15 crore in FY23. Furthermore, the net decrease in cash and cash equivalents amounted to Rs 1.84 crore in FY24. The company’s negative cash flows from investing activities were due to capital advances and the purchase of new assets. In addition, negative cash flows from financing activities occurred as a result of regular loan repayments and interest obligations. Failure to manage cash flows in the future, or if cash outflows continue to exceed inflows, could result in the company facing liquidity challenges in the future.

The company, its directors, promoters, and group entities are involved in certain legal cases, including some criminal and tax-related cases. Any adverse judgment in any of these cases could be detrimental to the company’s business prospects.

As of FY25, the company has total indebtedness amounting to Rs 4.66 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.