For investors, it can be quite challenging to decide if the Urban Company IPO is a good investment or not. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we bring you the top important key factors and a detailed review of the Airfloa Rail Technology IPO. This will help you analyze the strengths, risks, and financial details of the Airfloa Rail Technology, making your investment decision better.
About Company
Airflow Rail Technology Limited, one of the leading companies incorporated in 1998, manufactures Indian Railways’ rolling stock components via production units like the Integral Coach Factory (ICF) and other coach factories. The company also offers turnkey interior furnishing projects for the Indian Railways, aerospace, and defence sectors. Over the years, the company has completed the interior furnishing projects for Sri Lankan DEMU and Mainline Export Coaches, Agra-Kanpur Metro Coach, RRTS Coach, Vistadome Coach, and Train-18 Vande Bharat Express.
Having over 20 years of experience in handling turnkey interior furnishing projects in the railways, aerospace, and defence industries, the company offers a strong expertise as a trusted supplier of high-precision forged and machined components. Moreover, the company has a stable work order book, a proven financial and scalable model position for continued growth, and is meeting rising market demands. To expand its business, the company is also involved in producing components for projects such as AMCA ground simulators. The company includes a total of 281 employees as of July 31, 2025.
Strengths
- Its manufacturing facilities are known to provide high-quality components, allowing it to become one of the leading and trusted firms in the railway, aerospace, and defence sectors.
- With experienced promoters and deep industry expertise, the company has built a strong client relationship in the railway and aerospace industries.
- Airflow Rail technology has built a reputation for offering turnkey project solutions in the railway industry and providing end-to-end solutions, which is much more than manufacturing.
Weaknesses
- The company’s business mainly depends on the Indian Railways, meaning that if any changes happen by the Ministry of Railways (MoR), it can negatively impact the business, cash flow, and financial performance.
- A sudden increase in the price of the raw materials required for the making of railway components will badly affect the company’s operations.
- The manufacturing facility and registered office from where the company operates are not owned by them, which may expose the business to risks.
- Airflow rail technology revenue mostly comes from a limited number of clients. Losing any major clients can negatively affect the business and cash flow.
Airfloa Rail Technology IPO Review
To be updated soon
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Airfloa Rail Technology IPO Details
| IPO Open Date: | September 11, 2025 |
| IPO Close Date: | September 15, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹133 to ₹140 Per Share |
| Issue Size: | Approx ₹91.10 Crores |
| Fresh Issue: | Approx ₹91.10 Crores |
| Registrar | KFin Technologies Limited. |
| IPO Lead Managers | GYR Capital Advisors Pvt.Ltd. |
| Basis of Allotment | September 16, 2025 |
| IPO Listing Date: | September 18, 2025 |
| Listing | BSE SME |
Financial Performance Trend Details
| Performance | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Revenue from operations | 19,238.70 | 11,930.36 | 9,517.39 |
| Growth in revenue from operations (%) | 61.26% | 25.35% | -30.78% |
| Total Income | 19,266.26 | 12,287.22 | 9,532.90 |
| EBITDA | 4,740.84 | 3,457.92 | 1,468.46 |
| EBITDA Margin (%) | 24.61% | 28.14% | 15.40% |
| PAT | 2,554.76 | 1,423.28 | 149.36 |
| PAT Margin (%) | 13.28% | 11.93% | 1.57% |
| RoE (%) | 30.64% | 29.13% | 3.64% |
| RoCE (%) | 26.28% | 26.42% | 11.31% |
| Debt- Equity Ratio | 0.54 | 1.14 | 1.44 |
Peer Comparison with the Company
| Name of the Company | CMP(₹) | EPS(₹) | Face Value (₹) | P/E Ratio | RoNW (%) | NAV Per Share | Total Income (₹ in Lakhs) |
| Airflow Rail Technology | [●] | 15.63 | 10 | 9.57 | 23.06% | 63.81 | 19,266.26 |
| Jupiter Wagons Limited | 343.25 | 9.08 | 10 | 37.80 | 13.81% | 64.88 | 4,00,763.60 |
| Titagarh Rail Systems Ltd | 855.10 | 20.39 | 2 | 41.94 | 11.07% | 184.40 | 3,94,310.00 |
Promoters & Track Records, if any
- Mr. Venkatesan Dakshinamoorthy, the Promoter, Chairman, and Managing Director of the Company, holds 64,95,996 of Equity shares in the company, representing 37.20% of Pre-Issue Equity Share Capital
- Mr. Manikandan Dakshnamoorthy, the Promoter and Joint Managing Director of the Company, holds 64,95,999 Equity Shares in the Company, representing 37.20% of Pre-Issue Equity Share Capital.
- Ms. Nandhini Manikandan is the Promoter and Non-Executive Director of the Company.
- Mr. Sathishkumar Venkatesan is the Promoter and Whole-Time Director of the Company.
Information on Industry’s P/E Ratio
As per the Univest, the company Airfloa Rail Technology’s P/E ratio is 9.57. However, let’s check out the industry’s P/E ratio to understand it more. The industry peer group shows a P/E ratio ranging from 37.80 (lowest) to 41.94 (highest), with an average of 39.87.
Expansion
- The proceeds raised from the fresh issue will be utilized to handle the purchase of machinery and equipment.
- Some funds will be used for the repayment/prepayment of certain borrowings taken by the company.
- Meeting working capital needs.
- Lastly, the remaining funds will be utilized for the company’s general corporate purposes.
Airfloa Rail Technology IPO – Should You Apply or Not?
Airfloa Rail Technology is one of the leading players involved in the manufacturing of railway components. The company is backed by a strong order book, healthy financial growth, and experienced promoters in railway interior projects. The company is known to offer diversified products across Indian Railways, aerospace, and defence sectors. However, there are some risks too that one must keep in mind, like raw material price fluctuations, negative cash flows, and a limited number of clients, which one must keep in mind before applying to this IPO.
As of September 10, the Grey Market Premium (GMP) of the Airfloa Rail Technology IPO stands at ₹170, against the issue price of ₹140. This indicates the IPO may list around ₹210, offering investors the potential for strong listing gains.
Those with a higher tolerance for risk can apply for this IPO, and cautious investors must carefully analyze the company’s financial background, risks, strengths, and strategies before applying to it.
Please Note:
This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
