Axiom Gas Engineering Ltd. IPO

Axiom Gas Engineering

• Axiom Gas Engineering is coming out with an initial public offering (IPO) of 93,98,000 shares in a price band of Rs 51-54 per equity share.
• The issue will open for subscription on September 18, 2026 and will close on September 22 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 5 and is priced 10.20 times of its face value on the lower side and 10.80 times on the higher side.
• Book running lead manager to the issue is SKI Capital Services.
• Compliance officer for the issue is Mahesh Maheshwari.

Profile of the company

Axiom Gas Engineering was started by its promoter Alpeshkumar Naginbhai Patel and was joined by Sadique Abdul Kadar Banani in 2012. The company’s promoters have experience of around 26 years in the realm of Oil and Gas. The company is engaged in the business of distribution and retailing of Auto Liquefied Petroleum Gas. The operations are carried out through a network of Auto LPG Dispensing Stations owned and operated by the company. In addition to retail outlets, the company has developed storage and allied infrastructure facilities to support the distribution and supply of Auto LPG.

The company’s network is presently spread across the states of Telangana, Karnataka, and Maharashtra. The retail operations are structured to cater to the requirements of the transport sector, with Auto LPG being marketed as an alternative automotive fuel. The company’s infrastructure includes storage, handling, and dispensing facilities designed to meet regulatory standards applicable to Auto LPG distribution.

The business model of the company is based on the sale of Auto LPG to end consumers through its ALDS network. The company procures Auto LPG from suppliers and undertakes storage, transportation, and distribution to its dispensing stations. The revenues are primarily derived from the retail sale of Auto LPG at its outlets. The company continues to focus on the operation and expansion of its dispensing network and associated facilities, with an emphasis on maintaining compliance with regulatory requirements applicable to Auto LPG storage and distribution.

Proceed is being used for:

• Capital expenditure
• Prepayment or repayment of a portion of certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

The oil and gas sector is among the eight core industries in India and plays a major role in influencing the decision-making for all the other important sections of the economy. India’s economic growth is closely related to its energy demand, therefore, the need for oil and gas is projected to increase, thereby making the sector quite conducive for investment. India retained its spot as the third-largest consumer of oil in the world as of 2023. Indian refining capacity has increased from 215.1 million metric tonne per annum (MMTPA) to 256.8 MMTPA as of FY24. Domestic consumption of the petroleum products in FY25 was 239.2 MMTPA. India imported 36,699 million standard cubic meters (mmscm) of liquefied natural gas (LNG) during FY25, reflecting a 15.4% increase over FY24. Crude oil imports increased by 4.2% to 242.4 MT in FY25 compared to rise by 9.7 MT from previous year. India’s natural gas consumption is projected to grow by nearly 60% by 2030, reaching 297 million standard cubic metres per day (mmscmd), up from 188 mmscmd in FY24.

India's oil and gas sector has seen substantial investment and exploration success under the New Exploration Licensing Policy (NELP) and Open Acreage Licensing Policy (OALP). Before 2014, nine NELP bid rounds attracted over Rs 3,07,368 crore ($36 billion) in investment, yielding 177 oil and gas discoveries. Indian refining capacity has increased from 215.1 million metric tonne per annum (MMTPA) to 256.8 MMTPA as of FY24. The Union Budget FY26 has allocated Rs 5,597 crore ($640.46 million) to the petroleum and natural gas (PNG) ministry for phase II of the Indian Strategic Petroleum Reserves Ltd (ISPRL) project, aimed at turning two vast underground caverns into petroleum storage facilities. In FY25 petroleum product export stood at 64.7 MMT. According to the International Energy Agency (IEA), consumption of natural gas in India is expected to grow by 25 BCM, registering an average annual growth of 9% until 2024.

Rapid economic growth is leading to greater outputs, which in turn is increasing the demand of oil for production and transportation. Crude oil consumption is expected to grow at a CAGR of 4.59% to 500 million tonnes by FY40 from 223.0 million tonnes in FY23. In terms of barrels, India’s oil consumption is forecast to rise from 4.05 MBPD in FY22 to 7.2 MBPD in 2030 and 9.2 MBPD in 2050. Diesel demand in India is expected to double to 163 MT by 2029-30, with diesel and petrol covering 58% of India’s oil demand by 2045. Demand is not likely to simmer down anytime soon, given strong economic growth and rising urbanisation. Indian refiners would add 56 million tonnes per annum (MTPA) by 2028 to increase domestic capacity to 310 MTPA. India is planning to double its oil refining capacity to 450-500 million tonnes by 2030.

Energy demand of India is anticipated to grow faster than energy demand of all major economies globally on the back of continuous robust economic growth. Moreover, the country’s share in global primary energy consumption is projected to increase to two-fold by 2035.

Pros and strengths

Strong Auto LPG Infrastructure: The company has owned and operated Auto LPG Dispensing Stations network with associated storage infrastructure. It has presence across three states enables geographic diversification of demand and supply. It has potential to infill and densify the ALDS network within existing cities and corridors to improve utilization.

Established compliance framework: The company has established compliance processes for Auto LPG handling, storage, and dispensing under applicable regulations (including PESO permissions and Petroleum Rules), reducing operational interruptions.

Integrated procurement & distribution: The company has integrated activities from procurement to retail sale provide operational control over key value-chain steps. The company has business model which begins with procurement of Auto LPG from suppliers under supply arrangements that may include volume commitments, delivery schedules, quality specifications, and standard commercial terms. Procured product is received at the Company’s storage and allied infrastructure, where it is held, handled, and despatched to ALDS locations using contracted or owned logistics, with dispatch planning based on station throughput, inventory thresholds, and route efficiency.

Risks and concerns

Dependence on limited suppliers: The company is dependent on few suppliers for sourcing liquified petroleum gas. As of March 31, 2026, the company procured liquified petroleum gas from three suppliers which constituted more than 95% of its total quantity purchased. Any disruption or intervention in the supply chain poses significant risks to its business continuity, including but not limited to disruptions in the supply of liquified petroleum gas pose several risks to its business operations. Operational downtime due to logistical issues, geopolitical events, or natural disasters can halt production and delay delivery, directly affecting customer commitments. Interruptions may also force it to source from more expensive suppliers, leading to unplanned cost fluctuations and reduced profitability.

Reliance on related party logistics: The company’s transportation of LPG is majorly done by its related party i.e. “Prime Fuel Logistics Private Limited” its group company. As of March 31, 2026, the company transported LPG from its group company which constituted more than majority of its total transport cost. Any disruption in the transport of such LPG from its group company, or delay or default in timely transportation of the LPG or any mishap happened during transportation could lead to a disruption or failure in the transportation of LPG by it, which could adversely affect its business, reputation, results of operations and cash flows.

Geographic concentration risk: The sale of the company’s products is majorly concentrated in the state of Karnataka, Telangana and Maharashtra. Due to the geographic concentration of the sale of its products and Services in Maharashtra, Telangana and Karnataka, its operations are susceptible to local and regional factors, such as economic and weather conditions, natural disasters, demographic changes, and other unforeseen events and circumstances. Consequently, any significant social, political or economic disruption, or natural calamities or civil disruptions in this region, or changes in policies of the state or local governments or the government of India or adverse developments related to competition in this region, may adversely affect its business, results of operations, financial condition and cash flows.

Outlook

Axiom Gas Engineering specialises in green energy engineering solutions. The company offers Auto LPG, CNG, and LNG solutions, catering to retail and industrial sectors with a commitment to quality, innovation, and environmental sustainability. The company has expertise in executing projects in challenging geographical locations. It has innovation in developing and implementing cost-effective technical solutions. On the concern side, the company is highly dependent on location footfall at its ALDS and site performance may affect sales volumes and profitability. Moreover, the company is dependent on Public Sector Undertakings (PSUs) for cost of Auto LPG supplied. Any updation reflecting shifts in global LPG prices, exchange rates, and local market conditions could adversely affect its business, reputation, operations and cash flows.

The company is coming out with a maiden IPO of 93,98,000 equity shares of face value of Rs 5 each. The issue has been offered in a price band of Rs 51-54 per equity share. The aggregate size of the offer is around Rs 47.93 crore to Rs 50.75 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased by 12.16%, from RS 8,983.83 lakh in Fiscal 2025 to Rs 10,075.82 lakh in Fiscal 2026. Moreover, the company’s profit after tax increased by 21.99%, from Rs 774.94 lakh in Fiscal 2025 to Rs 945.35 lakh in Fiscal 2026.

In a bid to sustain growth and remain competitive, the company has developed a comprehensive business strategy focusing on operational efficiency and market expansion. These strategic objectives aim to optimize product offerings, streamline customer experiences, and extend geographical reach, positioning the company effectively. The company identifies sites near transport hubs, wholesale markets, and high-throughput corridors in Telangana, Karnataka, and Maharashtra. The locations are prioritised based on established Auto LPG vehicle density and accessibility for tankers and retail traffic. Further, a phased roll-out is followed, with clear commissioning milestones, utilisation targets, and post-launch reviews.

According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net sellers of Rs 9728.09 crore in index futures and options segments, as per Wednesday’s data, October 14, 2026.

FIIs were net sellers of index futures to the tune of Rs 1101.00 crore and net sellers of index options worth Rs 8627.09 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 2075.39 crore and they sold stock options worth Rs 749.58 crore.

Futures & Options (F&O) total turnover stood at Rs 1,19,95,035.52 crore on October 14 and the total number of contracts traded on the day were 8,55,22,676.

Of the total turnover, Index Futures contributed Rs 11,992.46 crore, Stock Futures Rs 71,870.04 crore, Index Options Rs 1,14,07,623.22 crore and Stock Options Rs 5,03,549.80 crore.

For the day, the total F&O Put Call ratio stood at 1.00, while the Index Options Put Call ratio was 1.06 and that of Stock Options was 0.58.

The Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that recent RBI measures, including the creation of a special dollar window for oil marketing companies (OMCs), aim to ensure orderly movements in the foreign exchange market and curb undue speculative activity. Recently, the RBI tightened rules governing forex derivative trades to curtail speculative bets against the rupee and asked banks to set aside a 20 per cent reserve for dollar purchases. The special window for three state-owned OMCs, which are among the largest consumers of dollars due to their crude oil import requirements, was introduced following an assessment of prevailing market conditions. The rupee has been appreciating against the US dollar since October 9, 2026.

Malhotra said the RBI is determined to do whatever is necessary to ensure orderly movements in the foreign exchange market. He said the primary objective of these measures is to maintain orderly conditions in the forex market. The reserve requirement was introduced in response to observations of excessive speculative positioning on the buy side. He added that the other major announcement was essentially a re-articulation of existing requirements, largely procedural in nature, concerning the documentation required.

He further said that domestic growth is performing well across all fronts. Banks are well-capitalised, profitable and growing, indicating that the banking sector is in good health. He noted that there are initial signs of corporate investment, with companies remaining profitable and earnings growth improving. Household balance sheets are also resilient and strong. Although household leverage has increased, balance sheets remain robust. Overall, he said India’s macroeconomic fundamentals and financial institutions are robust. He also emphasised the need to closely monitor evolving geopolitical headwinds and their potential impact on the Indian economy.

A decrease of about -31.39% in the sales to Rs. 83.50 millions was observed for the quarter ended September 2026. The sales stood at Rs. 121.70 millions during the similar quarter previous year.Profit after tax improved marginally to Rs. 26.10  millions for the quarter ended September 2026 from Rs. 25.80 millions of corresponding previous quarter.The Operating Profit of the company witnessed a decrease to 30.80 millions from 38.60 millions.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202609	202509	% Var	202609	202509	% Var	202603	202503	% Var
Sales	83.50	121.70	-31.39	169.90	246.30	-31.02	454.20	494.90	-8.22
Other Income	57.10	59.60	-4.19	119.90	117.80	1.78	231.90	248.40	-6.64
PBIDT	30.80	38.60	-20.21	61.40	76.90	-20.16	154.80	129.40	19.63
Interest	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
PBDT	30.80	38.60	-20.21	61.40	76.90	-20.16	154.80	129.40	19.63
Depreciation	3.50	3.50	0.00	6.90	7.10	-2.82	14.00	14.60	-4.11
PBT	27.30	35.10	-22.22	54.50	69.80	-21.92	140.80	114.80	22.65
TAX	1.20	9.30	-87.10	2.70	18.40	-85.33	37.50	16.50	127.27
Deferred Tax	-2.60	4.60	-156.52	-4.90	9.50	-151.58	17.70	1.50	1080.00
PAT	26.10	25.80	1.16	51.80	51.40	0.78	103.30	98.30	5.09
Equity	151.00	151.00	0.00	151.00	151.00	0.00	151.00	151.00	0.00
PBIDTM(%)	31.24	26.88	16.21	36.14	31.22	15.75	28.88	22.16	30.34