Acme India Industries Ltd. IPO

ACME India Industries

• ACME India Industries is coming out with an initial public offering (IPO) of 62,08,800 shares in a price band of Rs 186-196 per equity share.
• The issue will open for subscription on September 30, 2026 and will close on October 06, 2026.
• The shares will be listed on SME platform of BSE.
• The face value of the share is Rs 10 and is priced 18.60 times of its face value on the lower side and 19.60 times on the higher side.
• Book running lead manager to the issue is HEM securities.
• Compliance officer for the issue is Bhawna.

Profile of the company

ACME India Industries 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.

In the turnkey furnishing of new railway coaches, it 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. In the refurbishment, upgradation and conversion of old railway coaches, it 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.  Refurbishment of LHB and ICF coaches is carried out at designated railway workshops.

The company is 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 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.

Proceed is being used for:

• Funding to meet working capital requirements
• Repayment and/or pre-payment, in full or part, of borrowing availed by the company 
• Funding capital expenditure towards purchase of additional plant & machinery 
• General corporate purpose

Industry overview

India has one of the world’s largest railway networks and due to its socio-economic importance, the Indian government is investing heavily in the revamping of the railway overall infrastructure, making it an attractive market for investors and entrepreneurs alike. This also involves modernization of the railway coaches, including refabrication of railway furniture and other interior furnishing to raise passenger satisfaction and make their travel experience comfortable and enjoyable. The furnishing and modernization of railway coaches involved improvement and modernization of seating area in the passenger coach including seats, seats fabric (textiles, sustainable leathers, and alternative materials), ceiling, Flooring, lights, HVAC, gallery equipment, passenger infotainment system, washroom facilities, door system, safety system, fire safety and protections and others.

From FY 2021 to FY 2026, the union budget has significantly ramped up its allocation toward railway sector. The total outlay provided for Capital Expenditure in Budget Estimate 2025-26 of Rs 2,652 billion. The Gross Budgetary Support for Railways in FY 2025-26 stands at Rs 2,520 billion, which has reduced in compare of previous year, however the budget has significantly rise from the level of Rs 1,122 billion in FY 2021. The railway will continue to utilize the money in essential infrastructure projects like rail track expansion, rolling stock procurement, electrification, signalling improvements, and station modernisation. The Government also provided for Rs 100 billion from extra budgetary resource to meet its expenses & modernize. The total outlay also includes Nirbhaya fund of Rs 2 billion and Rs 30 billion for internal resources.

In India’s evolving railway sector, the furnishing and refurbishing of passenger coaches play a crucial role in updating and maintaining the country’s extensive rail infrastructure. This industry is predominantly led by large, established companies that possess the necessary resources, state-of-the- art technology, and extensive expertise to handle significant contracts. These industry leaders are responsible for transforming outdated coaches into modern, comfortable, and efficient units that meet stringent safety and quality standards. Their work involves not only the renovation of old coaches but also the furnishing of new ones, ensuring that each coach integrates the latest advancements in technology and design to enhance passenger experience and operational performance.

Pros and strengths

Established market presence in Indian railway sector with diversified range of products and services under one roof: The company has established its presence in the Indian railway infrastructure sector, recognized for delivering comprehensive turnkey furnishing and refurbishment solutions for railway coaches. Since 2017, it is successfully completed the turnkey furnishing of 1,610 coaches; refurbished, converted, and upgraded 1,888 coaches and upgraded 10,948 toilet units. These include projects executed under both the proprietorship firm and the company). Its expertise spans 28 variants of coaches across 3 production units, 2 mid-life Rehabilitation unit and 16 zonal railways. With a dedicated workforce serving production units, workshops, and divisions of Indian Railways across India, it has built a consistent reputation within Indian Railways. it offers a diverse range of products tailored for Indian Railways coaches, including braille signage, Epoxy flooring, Decorative glass fabric reinforced plastic, sanitary ware made of aluminum polymer composite, fibre reinforced plastic (FRP), toilet doors, inter communication/compartment doors, seat and berth, fire barrier decorative coating, vacuum circuit breakers and hygiene related products such as Automatic Hygiene and Odur Control (AHOC), Soap dispenser, Automatic Odur Control (AOC).

Multiple global tie ups and representations: Over the years, the company has established tie-ups with several global firms, enabling the introduction of innovative products and services within Indian Railways and reinforcing its position in the overall ecosystem. These collaborations are instrumental in enhancing safety standards, improving passenger experiences, and modernizing railway infrastructure. The company remains committed to seeking further partnerships that align with its vision for innovation and excellence.

Fully integrated manufacturing plant set up at a favorably location: In response to the growing demand for improved product performance, functionality and timely delivery, the company has established its own in-house manufacturing capabilities. These facilities produce a variety of products for Indian Railways. It is regular manufacturer & supplier to IR for multiple products used in toilets & coach interior of passenger coaches. Products like Sidewall, ceiling, Modular Toilet, Toilet Washbasin, dustbins, braille etc. are manufactured in-house. It follows defined manufacturing practices to meet specified quality standards. It is an ISO 9001:2015 certified company from TUV Nord Group, Germany for design, manufacture, supply, trading, installation & commissioning and maintenance of exterior and interior components for passenger coaches and rolling stock. Further, it is also an ISO 15085 certified company from UK Certification & Inspection which certifies that the wielding in the railway sector of the company has been independently assessed and is compliant with the requirements for multiple manufacturing and supply components.

Risks and concerns

Significant dependence on Indian Railways for revenue and business operations: The company’s business operations and revenues are entirely dependent on the Indian Railways. The company has derived a significant portion of its revenues from the Indian Railways and for the Fiscal 2026, 2025 and 2024 the total revenue from Indian Railways was Rs 12,306.45 lakh, Rs 19,222.62 lakh and Rs 18,542.42 lakh respectively, which represents 46.77%, 91.54% and 88.00% respectively its total revenue. Any adverse change in policy of the Ministry of Railways, Government of India, “Ministry of Railways” may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

Dependence on limited number of suppliers for raw materials: The company depends on a limited number of suppliers for raw materials. Purchases from the top 10 suppliers represented 76.95%, 66.88% and 58.15% of the Company’s total purchases for Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. The company is dependent on third-party suppliers for products used in its turnkey solutions; any deviation in the quality, timeliness, or reliability of their deliveries poses a significant risk to its project execution, customer satisfaction, and overall business reputation. It cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.

Intense competition: The market for its products is highly competitive, with both organized and unorganized players. Key differentiators include product quality, sales and distribution network, pricing, and timely delivery. Some competitors possess greater industry experience, financial resources, and technical capabilities, enabling them to adapt more quickly to changing market conditions. Unorganized sector competitors may offer products at highly competitive prices, potentially affecting its sales volume and growth prospects. Increasing competition could lead to a decline in its market share and margins, negatively impacting its business operations and financial condition. The industry is undergoing rapid consolidation, and the combined strength of larger companies could affect its competitive position across all business areas. Additionally, acquisitions of its customers or suppliers by competitors could result in lost business, impacting its operations and financial performance. However, it does not have any direct listed peers of its business.

Outlook

ACME India Industries works in two different models: refurbishment of old coaches and interior furnishing of new coaches. In the refurbishment model, complete restructuring of the existing coaches (Conventional type NON LHB), while in the furnishing model designing entire coach interior and furnish the LHB coaches with the most advanced material and technology in production units namely MCF and ICF. The company has revenue segment includes turnkey furnishing, refurbishment, upgradation & conversion of coaches, toilet upgradation of coaches, supply-electricals and others and other services. On the concern side, a significant portion of its revenue is derived from turnkey furnishing work contracts. Any inability to anticipate or adapt to evolving product upgrades, ensure consistent product quality, or respond to a decline in demand for such products could adversely affect its revenue from operations and hinder its growth prospects.

The company is coming out with a maiden IPO of 62,08,800 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 186-196 per equity share. The aggregate size of the offer is around Rs 115.48 crore to Rs 121.69 crore based on lower and upper price band respectively. On performance front, total income for the financial year 2025-26 stood at Rs 26,788.72 lakh as compared to Rs 21,345.37 lakh in financial year 2024-25 representing an increase of 25.50%. Restated Profit after Tax for the financial year 2025-26 was Rs 2,433.20 lakh as compared to Restated profit after tax of Rs 1,640.03 lakh during the financial year 2024-25.

With its established expertise in turnkey furnishing for Indian Railways, it sees a natural extension of its capabilities into the repair segment. The repair market for Indian Railways is large and steadily growing, driven by the need to extend the life of existing coaches, improve passenger experience, and ensure operational safety. Every year, thousands of coaches undergo mid-life rehabilitation, periodic overhauls, and component replacements, creating a consistent and recurring demand. Leveraging its technical know-how, skilled workforce, and proven project execution strength, it is well positioned to participate in this opportunity. Expanding into this segment not only diversifies its service portfolio but also aligns with Indian Railways’ increasing emphasis on maintaining and upgrading its vast fleet. It secured initial orders worth Rs 2700 lakh, making entry in this segment.