Curis Lifesciences Ltd. IPO

Papadmalji Agro Foods

• Papadmalji Agro Foods is coming out with an initial public offering (IPO) of 28,03,200 shares in a price band of Rs 69-72 per equity share.
• The issue will open for subscription on September 29, 2026 and will close on October 1, 2026.
• The shares will be listed on Emerge Platform of NSE.
• The face value of the share is Rs 10 and is priced 6.90 times of its face value on the lower side and 7.20 times on the higher side.
• Book running lead manager to the issue is Kreo Capital.
• Compliance officer for the issue is Khushboo Tak Singhal.

Profile of the company

The company, headquartered in Bikaner, Rajasthan, is an ISO 22000:2018 certified enterprise engaged in the in-house manufacturing of Hand-Made Papads, Machine-Made Papads, Machine-Made ready to Fry Papads, Rice Papads (Khichiya), Vrat Special Papads, and Moongodi. In addition to in-house manufacturing, it also undertakes white label manufacturing of Handmade Papads for clients, wherein products are produced by the Company and marketed by clients under their respective brand names and packaging, tailored to their target market. This combination of in-house and white label manufacturing enables the company to leverage its production, optimize capacity utilization, diversify revenue streams and maintain consistent demand. At the same time, clients benefit by expanding their product portfolio without investing in manufacturing infrastructure, strengthening brand presence and ensuring product quality and reliability. 

Furthermore, the company is engaged in the trading of Cereal Pellets where these products are sourced and traded by the company under its own brand, complementing its manufacturing operations and providing an additional revenue stream. Its products are marketed under the brands ‘Zhakaas’, ‘Vishal’, ‘Rozana’, ‘Diamond’ and ‘Papadmalji’ and are distributed through a pan-India network of distributors, wholesalers as well as through modern trade channels, quick commerce paltform, including its direct-to-consumer platform. Its products are also supplied to markets in the Middle East through a merchant exporter. 

Proceed is being used for:

• Funding the capital expenditure towards construction of building, mechanical and electrical works and procurement of plant and machinery and installation of 250 kW Rooftop Solar Power System for setting up a new manufacturing facility at Bachhasar, Bikaner. 
• Repayment or prepayment, in full or in part, of borrowings availed by the company from banks
• General corporate purpose

Industry overview

India is the fourth-largest economy in the world and is expected to remain the fastest-growing major G20 economy, with GDP growth projected at around 6.8%-7.2% in FY27. The food processing sector has emerged as one of the key contributors to this growth, supported by progressive policies of the Ministry of Food Processing Industries (MoFPI). Indian food processing market size reached Rs 33,052.5 billion ($382.24 billion) in FY25 and is expected to reach Rs 65,835 billion ($689.02 billion) by FY34. 

Exports remain a strong driver of the sector. In FY26, processed fruits and vegetables exports stood at Rs 25,987.41 crore ($2,940.75 million), animal products at Rs 55,114.51 crore ($6,236.79 million), and other processed foods at Rs 45,014.71 crore ($5,093.89 million). The Grand total export of floriculture, fresh fruits & vegetables, processed fruits and vegetables, animal products, other processed foods, cereals, and cashew stood at Rs 2,55,124.19 crore ($28.87 billion) in FY26.

The food processing industry in India is at the threshold of a major transformation due to a host of reasons: growing urbanization, changing consumer preferences, and above all, a government framework that is supportive of business pursuits. As the domestic processing capacity has reached 20 million metric tonnes since 2014, there are ample opportunities open for innovation as well as investment. The introduction of the PLI Scheme is proving to be a turning point in modernizing the agro-industry ecosystem by incentivizing the manufacturing of ready-to-eat products, processed fruits, and vegetables; and dairy products, among others, thereby creating infrastructure, attracting technology, enhancing exports, and positioning India as a competitive player in the food market globally.

Pros and strengths

Multi-channel presence: The company has established a diversified multi-channel presence that ensures widespread product availability and high brand visibility across domestic and select international markets. In addition to its extensive network of distributors and wholesalers catering to general trade segment, the Company has developed strong business relationships with modern trade channels and quick commerce platform that directly serve end-consumers through formal purchase order arrangement. These established business relationships expand the company’s market reach, enhance product accessibility, and ensure consistent product availability across multiple retail formats.  The company also engages with a merchant exporter to facilitate the distribution of its products to key Middle Eastern markets, specifically the UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain through formal purchase.

Wide range of products with diverse variants: The company has built its reputation on a strong foundation of authenticity and variety, making its extensive product portfolio one of its defining strengths. Over a decade, it has consistently diversified and expanded its offerings to align with evolving consumer tastes, cultural preferences and lifestyle shifts. By blending time-honoured traditions with modern consumer expectations, it has created a range that resonates with households across India and beyond. In addition to its papad portfolio, it offers machine made Moongodi, a versatile lentil-based ingredient, catering to households that prefer flexible cooking and snack options. Its wide-ranging portfolio ensures that it meets the needs of diverse consumer segments - from families rooted in traditional food habits to modern households seeking convenience-driven snacking. 

Extensive and well-established sale and distribution network: It has a broad and expansive distribution network that forms the backbone of its operations, particularly in its core markets within Rajasthan, while also supporting a pan-India presence. As of March 31, 2026, its distribution network comprises 76 distributors and 30 wholesalers, collectively servicing 8,710 retail outlets in the general trade channel through distributors and wholesalers. This network extends across urban, semi-urban, and rural areas, ensuring that its products are consistently accessible to a diverse and widespread customer base across 12 states and 1 Union Territory. This extensive network ensures consistent product availability, strengthens market penetration, and reinforces its presence across key regions and emerging markets.

Risks and concerns

Dependence on limited number of key customers: A significant portion of its revenue is derived from a limited number of customers. For the financial years ended March 31, 2026, 2025, and 2024, revenue from its top 10 customers contributed 45.94%, 69.25%, and 69.65%, respectively, of its total revenue from operations. The loss of any key customer, may significantly affect its revenues, and it may have difficulty securing comparable levels of business from other customers to offset any loss of revenue. If one or more of its customers become insolvent or otherwise unable to pay for the services rendered by the company, this could have an impact on its business as it may not be able to recover its costs.

High reliance on top ten suppliers: Its business depends on a limited number of suppliers for raw materials. For the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, its top 10 suppliers accounted for 61.75%, 54.29%, and 67.44%, respectively, of its total purchases. This concentration exposes it to the risk of supply disruptions, limited bargaining flexibility, and increased dependency on a small set of suppliers. Any disruption in its supply chain, increase in raw material prices, or inability to maintain supplier relationships could adversely affect its production volumes, cost structure, and profitability, and may materially and negatively impact its business operations, financial condition, and results of operations.

Geographic concentration in Rajasthan, Haryana and Assam: Its revenue is primarily derived from a limited number of geographic markets, with a significant concentration in the states of Rajasthan, Haryana, and Assam. For the financial years ended March 31, 2026, 2025, and 2024, revenue from Rajasthan contributed 50.42%, 53.25%, and 49.42%, respectively, to its total revenue from operations, revenue from Haryana contributed 12.15%%, 10.38%, and 8.74%, respectively, and revenue from Assam contributed 9.41%, 7.67%, and 10.45%, respectively. Any significant downturn or disruption in its core markets may adversely affect its business operations, financial condition, and results of operations.

Outlook

Papadmalji Agro Foods is engaged in the manufacturing of a wide range of Handmade Papads, Machine-Made Papads, Rice Papads, Vrat Special Papads and Moongodi as well as in the trading of Cereal Pellets. Its products are marketed under the brands ‘Zhakaas’, ‘Vishal’, ‘Rozana’, ‘Diamond’ and ‘Papadmalji’ and are distributed through a pan-India network of distributors, wholesalers as well as through modern trade channels, quick commerce paltform, including its direct-to-consumer platform. Its products are also supplied to markets in the Middle East through a merchant exporter. On the concern side, its product portfolio is predominantly concentrated in papad products contributed a substantial portion of its total revenue from operations. While it has also diversified into related products such as moongodi and cereal pellets, these products currently account for a limited share of its total sales. Consequently, its performance and profitability remain highly dependent on the continued consumer demand for papads.

The company is coming out with a maiden IPO of 28,03,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 69 - 72 per equity share. The aggregate size of the offer is around Rs 19.34 crore to Rs 20.18 crore based on lower and upper price band respectively. On performance front, total Income for the Financial Year 2025-26 stood at Rs 3,353.52 lakh whereas the same stood at Rs 3,176.00 lakh in financial year 2024-25, representing an increase of 5.59%. The company had reported net profit after tax (PAT) of Rs 521.26 lakh in financial year 2025-26, which marks an increase when compared to the preceding financial year, 2024-25, where the PAT was Rs 472.44 lakh.

Meanwhile, the company is committed to continuously expanding its product portfolio and offering differentiated products that cater to evolving consumer tastes and preferences. Leveraging its extensive industry experience, it aims to strengthen its market position, capture growth opportunities in the papad segment, and deliver value to an increasingly diverse customer base. As part of this strategy, it is expanding its Rice Papad (Khichiya) range. Currently available in 2-inch size, it plans to introduce a larger 5 inch and 7-inch variants under its ‘Zhakaas’ brand to address new usage occasions and evolving consumer preferences. Additionally, it will introduce ‘Mini Papads,’ a convenient bite-sized offering in variants such as Urad Special, Moong Special and Moong Punjabi under its ‘Rozana’ brand, further enhancing its presence in Machine made papads.