Elfin Agro India Ltd. IPO

Elfin Agro India

• Elfin Agro India is coming out with an initial public offering (IPO) of 53,25,000 equity shares of face value of Rs 5 each for cash at a fixed price of Rs 47 per equity share.
• The issue will open on March 05, 2026 and will close on March 09, 2026.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 9.4 times higher to its face value of Rs 5.
• Book running lead manager to the issue is Finshore Management Services.
• Compliance Officer for the issue is Khushbu Sethi.

Profile of the company

Elfin Agro India is primarily engaged in the business of manufacturing of Chakki Atta (High fibre whole wheat flour), R Atta (Refined whole wheat flour), Tandoori Atta (Specialized flour), Sooji (Semolina flour), Maida (Refined Flour) and yellow mustard oil. The company has two manufacturing units that are situated at Bhilwara, Rajasthan: Flour Processing Unit that houses two divisions viz., Chakki Atta (High fibre whole wheat flour) division and a separate division, i.e., Refined Flour division for manufacturing and processing of R Atta (Refined whole wheat flour), Tandoori Atta (Specialized flour), Maida (Refined Flour) and Sooji (Semolina flour); and Mustard oil Processing Unit for manufacturing and processing of Mustard Oil. It sells processed wheat flour under its brand ‘Shiv Nandi’ and ‘ELFIN’S Shri Shyam BHOG’ to wholesalers and retailers across Rajasthan, Uttar Pradesh, Gujarat, etc. It meticulously selects premium quality wheat as its raw material in its Flour Processing unit. The company is also engaged in the extraction, filtering and manufacturing of Edible mustard oil from raw mustard seeds, being the raw material used for its production. Edible mustard oil is sold under its brand ‘Shiv Nandi’.

It also engages in the trading of certain agro-products, including Chana, Maize, Soyabean Refined Oil, Rice Bran Refined Oil, Wheat, cattle feed, groundnut oil, etc based on the prevailing market conditions. This not only allows it to augment its revenues and minimize product and inventory wastage but also enables it to capitalize on market opportunities by selling goods for which certain consumers are willing to pay premium prices. It aims at achieving minimal wastage in its manufacturing units, wherein waste material/ or the by-products viz., wheat bran generated during the manufacturing process from its flour processing unit is sold as cattle feed and Mustard Seed Oil Cake is sold to nearby De-Oiled Cake (DOC) plants. Wheat Bran generated at its Flour Processing Unit is primarily sold in the states of Uttar Pradesh, Uttarakhand, Haryana, Rajasthan, Gujarat and Punjab and the Union Territory of Chandigarh while mustard oil cakes generated at its Mustard oil Processing Unit are sold to de-oiled plants located in the states of Rajasthan and Gujarat.

It offers products which are quality tested as per industrial standards. All its manufacturing facilities are registered with FSSAI and also ISO 22000:2018 certified. Its aim is to provide quality products at a competitive price therefore; it has invested in suitable manufacturing techniques for its products. Owing to the allied support of industry recognized vendors it is able to source the inventory of raw material and produce quality products that augment its brand image. Its quality laboratories present at its manufacturing units carry out the required tests on the mustard seeds for assessing the oil content in mustard seeds and mustard oil cakes and also to check finished products to ensure that its products are compliant with the specifications of FSSAI. Furthermore, to ensure the delivery of high-quality products to its customers, it conducts periodic quality checks of its finished products through external laboratories on a sample basis.

Proceed is being used for:

• Meeting working capital requirements 
• General corporate purposes

Industry Overview

India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for around 55% of India’s population. India has the world's largest cattle herd (buffaloes), the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world. It is the second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton, and sugar. The agriculture sector in India holds the record for second- largest agricultural land in the world generating employment for about half of the country’s population. Thus, farmers become an integral part of the sector to provide its with a means of sustenance. The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

The agriculture sector in India is expected to generate better momentum in the next few years due to increased investment in agricultural infrastructure such as irrigation facilities, warehousing, and cold storage. Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers. India is expected to be self-sufficient in pulses in the coming few years due to the concerted effort of scientists to get early maturing varieties of pulses and the increase in minimum support price. In the next 5 years, the central government will aim $9 billion in investments in the fisheries sector under PM Matsya Sampada Yojana. The government is targeting to raise fish production to 220 lakh tonnes by 2024-25. Going forward, the adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP), and Good Hygienic Practices (GHP) by the food processing industry will offer several benefits. Through the Ministry of Food Processing Industries (MoFPI), the Government of India is taking all necessary steps to boost investments in the food processing industry in India. Government of India has continued the umbrella PMKSY scheme with an allocation of Rs. 4,600 crore ($559.4 million) till March 2026.

Food and grocery market in India is the sixth largest in the world Food processing industry contributes 32% to this food market and is also one of the largest industries in the country, contributing 13 to total export and 6 of industrial investment; The Indian food processing industry is expected to reach $535 billion by 2025-26 on the back of government initiatives such as planned infrastructure worth $1 trillion and Pradhan Mantri Kisan Sampada Yojana (PMKSY). PMKSY has been formulated amalgamating ongoing schemes viz Accelerated Irrigation Benefit Programme (AIBP) of the Ministry of Water Resources, River Development Ganga Rejuvenation (MoWR, RD&GR), Integrated Watershed Management Programme (IWMP) of Department of Land Resources (DoLR) and the On Farm Water Management (OFWM) of Department of Agriculture and Cooperation (DAC). Under PMKSY-Per Drop More Crop, from FY16 to FY25 (end of December 2024), Rs 21,968.75 crore ($2.56 billion) was released to states for the implementation of the PDMC scheme, covering an area of 95.58 lakh hectares. Under PMKSY-HKKP- Repair, Renovation and Restoration of water bodies (RRR of water bodies), a total of 395 water bodies have been taken up during 2018-2021. Of the wide variety of crops in India, rice and wheat are the most irrigated.

Pros and strengths

Existing client relationships: It believes in constantly addressing the customer needs for variety of its products. Its existing relationships help it to get repeat business from its customers. This has helped it to maintain a long-term working relationship with its customers and improve its customer retention strategy. It has strong existing client relationships which generates multiple repeat orders. Its existing relationship with its clients represents a competitive advantage in gaining new clients and increasing its business. Further being a small and medium size organisation, it relies on personal relationships with its customers. 

Location of its processing units: The company’s processing units are situated in Bhilwara, Rajasthan, providing access to robust infrastructure and a readily available workforce of both skilled and unskilled labour at cost-effective rates. The strategic location of its processing units in proximity to agricultural land producing wheat and mustard seeds minimizes procurement delays and ensures timely and speedy availability of raw materials, thereby facilitating the swift commencement of processing activities. It also gives it competitive cost advantage in terms of raw material sourcing, transportation costs, manufacturing and labour costs and enables it to address market efficiently.

Customization and flexibility: One of the key competitive strengths of the company is its ability to offer customization and flexibility in product packaging and order fulfilment, which allows it to cater to a diverse and dynamic customer base. It understands that different customers-ranging from wholesalers and institutional buyers to retailers-have varying requirements in terms of product quantity and packaging. Accordingly, it offers its products in a variety of packaging sizes other than its regular product packages, such as Chakki Atta in 26 kg BOPP Woven Fabric Bags, Maida in 43 kg and 46 kg BOPP /HDPE Woven Fabric Bags, Sooji in 45 kg HDPE Woven Fabric Bags, Tandoori Atta in 26 kg HDPE Woven Fabric Bags and other weight configurations as per customer preference. It also supplies loose mustard oil in tankers as per requirements of its customers. This flexibility not only enhances customer satisfaction but also strengthens its relationships by providing tailored solutions that meet their specific operational or retail needs. Its processing and packaging systems are equipped to handle such varied demands efficiently without compromising on quality or timelines. This capability positions it as a reliable partner for bulk buyers and allows it to tap into niche market segments, giving it a competitive edge in the agro-processing industry.

Risks and concerns

Revenue concentration risk from key customers: Substantial portion of its revenues has been dependent upon a few customers. For nine months ended on December 31, 2025 and for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023, its top ten customers accounted for around 31.29%, 34.27%, 30.87% and 24.50% of its revenue from operations. However, the loss of any significant customer would have a material effect on its financial results. Its business from customers is dependent on its continuing relationship with such customers, the quality of its products and its ability to deliver on their orders, and there can be no assurance that such customers will continue to do business with it in the future on commercially acceptable terms or at all. However, in case of any change in the buying pattern of its end users or disassociation of major customers can adversely affect its business or if its customers do not continue to purchase products from it, or reduce the volume of products purchased from it, its business prospects, results of operations and financial condition may be adversely affected. Further, loss of or interruption of work by, a significant customer or a number of significant customers or the inability to procure new orders on a regular basis or at all may have an adverse effect on its revenues, cash flows and operations.

Supply risk due to geographic concentration of key raw material: The company procures a substantial portion of its major raw material, i.e., mustard seeds, from the state of Rajasthan. Any disruption in the supply of mustard seeds in this region, whether due to adverse climatic conditions, droughts, floods, pest attacks, crop diseases, labour unrest, local regulations, restrictions on procurement or transportation, or any other unforeseen events, could adversely affect the availability, cost, and quality of mustard seeds. Since its procurement is regionally concentrated, any such adverse developments in Rajasthan could materially affect its operations, increase its raw material costs, and impact its production schedules. Further, if it is unable to procure adequate quantities of mustard seeds at competitive prices or of the required quality from Rajasthan, it may not be able to source such raw material easily from other states, which may adversely affect its business, financial condition, and results of operations.

Inadequacy or delay in arranging working capital may adversely affect operations: It has not made any alternate arrangements for meeting its working capital requirements, other than the existing sanctioned limits. Its business requires a significant amount of working capital to finance the purchase of raw materials before payments are received from customers. It cannot assure that the budgeting of its working capital requirements for a particular year will be accurate. There may be situations where it may under budget for its working capital requirements, in which case there may be delays in arranging the additional working capital requirements, which may delay the execution of projects leading to loss of reputation, levy of liquidated damages, and an adverse effect on the cash flows. If it experiences insufficient cash flows or are unable to borrow funds on a timely basis or at all to meet the working capital requirements, there may be an adverse effect on its results of operations. It may also be subject to fluctuations of interest rates for its financing. If it is unable to secure financing at favourable rates for this purpose, its ability to secure larger-scale projects will be impeded and its growth and expansion plans will be materially and adversely affected which in turn will materially and adversely affect its future financial performance.

Outlook

Elfin Agro India is primarily engaged in the business of manufacturing of Chakki Atta (High fibre whole wheat flour), R Atta (Refined whole wheat flour), Tandoori Atta (Specialized flour), Sooji (Semolina flour), Maida (Refined Flour) and yellow mustard oil. It has two manufacturing units that are situated at Bhilwara, Rajasthan, viz., Flour Processing Unit and Mustard oil Processing Unit. It also engages in the trading of certain agro products, including Chana, Maize, Soyabean Refined Oil, Wheat, Groundnut Oil, etc based on the prevailing market conditions. It has a well-diversified customer base catering to various segments like B2B Clients, Wholesalers, Traders, Retailers and Individual consumers. On the concern side, it derives significant portion of its revenue from sale of limited variety of its products. An inability to adapt to evolving consumer preferences, anticipate regulatory requirements, and industry trends and demand for particular products, or ensure product quality may adversely impact demand for its products and consequently its business, results of operations, financial condition and cash flows and competitive position in the agro-processing industry. Moreover, its godowns are located on rental premises. If it is unable to renew such rent agreements or relocate on commercially suitable terms, it may have a material adverse effect on its business, results of operation and financial condition.

The company is coming out with an IPO of 53,25,000 equity shares of face value of Rs 5 each for cash at a fixed price of Rs 47 per equity share to mobilize Rs 25.03 crore. On performance front, the revenue from operations for FY25 stood at Rs 14,586.34 lakh whereas in FY24 it was Rs 12,445.92 lakh representing an increase of 17.20%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 507.79 lakh and for the year ended March 31, 2024 it was Rs 367.66 lakh representing an increase of 38.11%.

The company intends to diversify its portfolio of products which could cater to customers across segments and geographies and to address varying needs of its consumers at various price points based on its market research and understanding of consumer tastes and trends. Understanding its target demographic of the consumer market and its customer’s preferences is important in introducing new product within its existing product portfolio, hence it typically evaluates new products based on a set of criteria, including its ability to create a differentiated offering, industry trends, competitive intensity, acceptability of its products, category, scale and profitability of the new products. Going forward, it aims to significantly expand its geographical footprint across India, with a strong focus on deepening market penetration through its branded offerings. This expansion will involve entering new regional markets while also strengthening its presence in existing territories. It seeks to leverage its reputation and experience in the wheat and mustard oil industry and thereby enhance the addressable market for its products. Further, it intends to significantly expand its business-to-consumer (B2C) sales channels for its products. This initiative aims to enhance its brand visibility, improve customer engagement, and improve profitability by reducing dependency on intermediaries and enabling direct access to end consumers.

The Sales for the quarter ended March 2026 of Rs. 107.86 millions rose by 27.75% from Rs. 84.43 millions.Handsome Net Profit growth of 64.42% reported above the corresponding previous quarter figure of Rs. 19.04 millions to Rs. 11.58 millions.Operating profit for the quarter ended March 2026 rose to 32.65 millions as compared to 19.64 millions of corresponding quarter ended March 2025.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202603	202503	% Var	202603	202503	% Var	202603	202503	% Var
Sales	107.86	84.43	27.75	410.23	371.58	10.40	410.23	371.58	10.40
Other Income	0.01	0.49	-97.96	0.01	0.50	-98.00	0.01	0.50	-98.00
PBIDT	32.65	19.64	66.24	158.35	146.44	8.13	158.35	146.44	8.13
Interest	3.44	2.33	47.64	14.02	8.38	67.30	14.02	8.38	67.30
PBDT	29.21	17.31	68.75	144.33	138.06	4.54	144.33	138.06	4.54
Depreciation	1.42	1.32	7.58	5.70	5.23	8.99	5.70	5.23	8.99
PBT	27.79	15.99	73.80	138.63	132.83	4.37	138.63	132.83	4.37
TAX	8.75	4.41	98.41	35.16	32.93	6.77	35.16	32.93	6.77
Deferred Tax	-2.19	-1.45	51.03	-0.57	2.44	-123.36	-0.57	2.44	-123.36
PAT	19.04	11.58	64.42	103.47	99.90	3.57	103.47	99.90	3.57
Equity	68.09	68.09	0.00	68.09	68.09	0.00	68.09	68.09	0.00
PBIDTM(%)	30.27	23.26	30.13	38.60	39.41	-2.05	38.60	39.41	-2.05

The company witnessed a 19.09% growth in the revenue at Rs. 83.86 millions for the quarter ended March 2026 as compared to Rs. 70.42 millions during the year-ago period.The Net proft of the company remain more or less same to Rs. 6.78  millions from Rs. 7.11 millions ,decline by -4.64%.Operating Profit saw a handsome growth to 13.65 millions from 11.25 millions in the quarter ended March 2026.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202603	202503	% Var	202603	202503	% Var	202603	202503	% Var
Sales	83.86	70.42	19.09	190.66	225.02	-15.27	190.66	225.02	-15.27
Other Income	0.43	3.30	-86.97	0.90	6.56	-86.28	0.90	6.56	-86.28
PBIDT	13.65	11.25	21.33	26.89	37.37	-28.04	26.89	37.37	-28.04
Interest	0.82	0.01	8100.00	0.83	0.01	8200.00	0.83	0.01	8200.00
PBDT	12.83	11.24	14.15	26.06	37.36	-30.25	26.06	37.36	-30.25
Depreciation	2.60	1.52	71.05	6.86	5.93	15.68	6.86	5.93	15.68
PBT	10.23	9.72	5.25	19.20	31.43	-38.91	19.20	31.43	-38.91
TAX	3.45	2.61	32.18	5.74	7.97	-27.98	5.74	7.97	-27.98
Deferred Tax	-0.45	0.59	-176.27	-0.62	0.24	-358.33	-0.62	0.24	-358.33
PAT	6.78	7.11	-4.64	13.46	23.46	-42.63	13.46	23.46	-42.63
Equity	45.42	45.42	0.00	45.42	45.42	0.00	45.42	45.42	0.00
PBIDTM(%)	16.28	15.98	1.89	14.10	16.61	-15.08	14.10	16.61	-15.08

Revenue reduced marginally to stand at Rs. 0.00 millions during the quarter ended March 2026. The figure stood at Rs. 0.00 millions during the year-ago period.The Net Loss for the quarter ended March 2026 is Rs. -1.60 millions as compared to Net Profit of Rs. 3.40 millions of corresponding quarter ended March 2025 Operating profit Margin for the quarter ended March 2026 improved to -1.40% as compared to -1.80% of corresponding quarter ended March 2025

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202603	202503	% Var	202603	202503	% Var	202603	202503	% Var
Sales	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Other Income	0.50	0.10	400.00	0.80	0.40	100.00	0.80	0.40	100.00
PBIDT	-1.40	-1.80	-22.22	-8.80	-8.60	2.33	-8.80	-8.60	2.33
Interest	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
PBDT	-1.40	3.30	-142.42	122.10	5.70	2042.11	122.10	5.70	2042.11
Depreciation	0.00	-0.10	0.00	0.30	2.10	-85.71	0.30	2.10	-85.71
PBT	-1.40	3.40	-141.18	121.80	3.60	3283.33	121.80	3.60	3283.33
TAX	0.20	0.00	0.00	0.20	0.00	0.00	0.20	0.00	0.00
Deferred Tax	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
PAT	-1.60	3.40	-147.06	121.60	3.60	3277.78	121.60	3.60	3277.78
Equity	88.63	88.63	0.00	88.63	88.63	0.00	88.63	88.63	0.00
PBIDTM(%)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00