Acme India Industries IPO Review by Dilip Davda (BSE SME)

• The company is engaged in the Indian Railway Rolling stock sector focusing on warranty maintenance of railway coaches’ interiors.
• It enjoys the status of “Business Associate” under a “Navratna” PSU.
• As of June 30, 2026, its overall order book stood at Rs. 737.97 cr.
• Based on its recent average financial data, the issue appears aggressively priced.
• However, well-informed investors may park funds for medium to long term.

Acme India Industries Ltd. (AIIL) is engaged in the Indian railway rolling stock sector, focusing on the design, manufacture and warranty maintenance of railway coach interior, wherein the business is primarily operating on a tender-based. It provides turnkey furnishing solutions for the interiors of new railway coaches, refurbishment, up-gradation and conversion of old coaches and up gradation of toilet facilities within railway coaches. Additionally, it manufactures and supplies components to Indian Railways. Its services and products are designed towards comfort, safety, hygiene and functionality in line with the specific requirements of Indian Railway and its affiliates.

Its sole proprietorship M/S Acme India began operation with the introduction of braille signage, for “Divyangjan” in the railway sector. Additionally, in 2016, the company started doing business of fire-retardant epoxy flooring, which complied with EN- 45545 standards for interior furnishings in Indian Railways. Since then, it has expanded its scope, initially focusing on manufacturing products for Indian railway coaches and later venturing into turnkey furnishing, refurbishment & up gradation of coaches and up gradation of toilets from 2017 onwards. It has footprints across 16 railway zones, 3 production units and 2 mid-life rehabilitation unit. The company has successfully executed records of 28 different variants of coaches in Indian Railways.

In the turnkey furnishing of new railway coaches, AIIL undertakes the design and installation of interiors for various types of coaches. This includes different variants of Linke Hofmann Busch (“LHB”) coaches, self-propelled units such as Vande Bharat, self-propelled inspection coaches and overhead equipment coaches like the diesel electric tower car. It executes these projects at all major railway production facilities, including the Modern Coach Factory (“MCF”) in Raebareli, the Integral Coach Factory (“ICF”) in Chennai, and the Rail Coach Factory (“RCF”) in Kapurthala. Since 2017, it has successfully completed 28 projects of turnkey furnishing, delivering a total of 1,610 coaches.

In the refurbishment, upgradation and conversion of old railway coaches, AIIL focuses on both LHB and ICF coaches. Its refurbishment operations include interior designs & redesigns, replacement of worn-out components with new upgraded materials. The typical refurbishment cycle is 10-12 years (Source: D&B Industry report). Refurbishment of LHB and ICF coaches is carried out at designated railway workshops. Since securing its first up gradation contract in 2018, the company has successfully refurbished and upgraded a total of 1,888 coaches till 30th June 2026.

The company specializes in the up-gradation and modernization of toilet facilities in railway coaches, both LHB and ICF. Till date, it has completed 10,948 units of toilet upgrades. These upgrades are designed to enhance hygiene, safety and passenger experience, aligning with the modernization efforts within the Indian Railways network. As part of refurbishment projects, old components such as washbasins, fittings, panels, and other materials are not discarded but systematically removed and handed back to Indian Railways through their established channels, thereby supporting sustainable practices and minimizing environmental impact.

AIIL is a regular manufacturer and supplier of products such as Braille signage, Fibre reinforced plastic (FRP) products and sanitary ware made of aluminum polymer composite. It is a regular supplier of products such as Epoxy flooring, decorative glass fabric reinforced plastic, toilet doors,  intercommunication/Compartment doors, seat and berth, fire barrier decorative coating and hygiene related products such as Automatic Hygiene and Odur Control (AHOC), Soap dispenser, Automatic Odur Control (AOC) and vacuum circuit breakers. These products are manufactured in compliance with the specific requirements of railway standards and used in various passenger coaches. All tender related activities happen in IREPS which is Indian railways e-procurement portal.

AIIL is empaneled as a “Business Associate” under a Navratna PSU of Government of India. As of June 30, 2026, it had 43 employees on its payroll, additional third party 235 workers, in various department. It also hires contract workers as and when required. For FY26, it received highest order book from toilet upgradation worth Rs. 257.99 cr. As of June 30, 2026, its order book stood at Rs. 737.97 cr.