Leapfrog Engineering Services Ltd. IPO

Leapfrog Engineering Services

• Leapfrog Engineering Services is coming out with an initial public offering (IPO) of 3,84,84,000 shares in a price band of Rs 21-23 per equity share.
• The issue will open on April 23, 2026 and will close on April 27, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 1 and is priced 21 times of its face value on the lower side and 23 times on the higher side.
• Book running lead manager to the issue is Finshore Management Services.
• Compliance Officer for the issue is Sneha Hegde.

Profile of the company

Leapfrog Engineering Services (LESL) is engaged in engineering, procurement, construction, and commissioning (EPCC) with a specialized focus on electrical, instrumentation, fire safety, modular substation and automation systems. It is an integrated Engineering Services Company that provides EPCC services for a wide range of industries, including Oil and Gas, Food processing, Pharma, Metals among others. With over 20 years of a strong, customer -focused approach and a continuous quest for outstanding quality, it has unmatched capabilities across Electrical, Instrumentation, Automation, Fire Protection, Modular Substation and Project Execution. 

It has built a reputation for its expertise in developing large - scale projects including refineries, early productions facilities, gas sweetening facilities, petrochemical plants, pharma, food processing, metals, chemicals and fertilizers. Its expertise spans a wide range of engineering solutions, making it a versatile and comprehensive service provider in the industry. It caters to a highly diversified client base, delivering tailored solutions across numerous sectors. Its operations extend across multiple states within India and reach internationally, serving clients in many countries around the globe. 

This extensive geographical reach, combined with its broad spectrum of services, enables it to address complex engineering challenges with precision and efficiency. Whether domestically or internationally, its commitment to quality and innovation has allowed it to build strong, lasting relationships with clients from various industries, reinforcing its reputation as a trusted partner in delivering cutting-edge engineering solutions. It aims to leverage the strength of its brands to offer a diverse range of services tailored to its customers' needs. By continuing to grow its brands, deepening its understanding of customer requirements, and fostering strong client relationships, it is well-positioned to expand its footprint in the engineering solutions market.

Proceed is being used for:

• Funding capital expenditure for setting up of assembling unit 
• Meeting working capital requirements 
• Meeting the issue expenses 
• General corporate purposes 

Industry Overview

The engineering goods export of India had a share of 25.22% out of the total exports during the financial year 2023-24 from the country, as the exports jumped to $109.22 billion as compared to $106.93 billion during the last financial year 2022-23. In FY25 (until June 2024), the exports of engineering goods stood at $27.66 billion. The impressive growth in Engineering Goods exports in recent years has largely been due to the zero-duty Export Promotion Capital Goods (EPCG) scheme of the Ministry of Commerce & Industry which forms part of the Foreign Trade Policy (FTP) of the Government of India. Exports of capital goods contributed about half of the total engineering exports from India. Primary iron, steel, and its products exports accounted for 21.63%, while non-ferrous metals and products exports contributed 12.61% of India's engineering goods exports in 2022-23. 17.53% was composed of exports of industrial machinery, 10.24% of exports of electrical machinery, 20.31% of auto and auto parts, and the remaining 17.68% by miscellaneous items, including exports of aircraft, spacecraft and parts and ships, boats, and floating structures. The iron, steel, and products exports of India were valued at $23.16 billion in 2022-23, witnessing a decline in growth of 27% over the previous year. Among the key products exported from non-ferrous metals and products made of non-ferrous metals, aluminum and products exports were the highest at $8.87 billion in 2022-23 declining by 17.5% over the previous year. Industrial machinery recorded exports of $18.77 billion, while electrical machinery exports were valued at $10.97 billion in 2022-23. 

India exports engineering products to the following regions: ASEAN, North-East Asia, Africa, EU, North America, CIS, Latin America, South Asia, Africa, Middle East, West Asia, etc. The top five Indian engineering goods importing countries were the USA, the UAE, Germany, Italy, and Singapore with a share of 17.44%, 4.61%, 3.68%, 3.67%, and 3.42%, respectively, in 2022-23 out of the 25 countries recorded positive cumulative growth in engineering exports during April-March 2022. India's engineering exports continued their year-on-year growth for the second consecutive month into January 2024 with a 4.20% increase. The expansion in January 2024 was attributed to increased shipments of Iron & Steel, Aircrafts, spacecraft and parts, Copper and copper products, and Electric machinery. Additionally, heightened demand from South Asia, the European Union, and North America contributed to this growth. The share of the top 25 importing nations of India's engineering goods accounted for 75.9% of India's total engineering exports in 2022-23. This significant share is evidence of the dependence of India's engineering exports on the traditional markets. Italy, the UAE, and the USA were the top three importers of Indian Iron and Steel during 2022-23, whereas the USA, Germany, and the UAE were the top three importers of India's 'Products of Iron and Steel' during the same period as compared to 2021-22. 

The government of India has implemented various export promotion schemes, such as the Zero Duty Export Promotion Capital Goods (EPCG) scheme, Towns of Export Excellence (TEE), Market Access Initiative (MAI), etc. These schemes are aimed at encouraging the exporter and to help increase the revenue from international markets. Also, schemes such as duty exemption, advance authorization, duty-free import, rebate on service tax, etc. have been implemented to ease raw material imports. The Indian Engineering Exposition (INDEE), a brand of EEPC India, is one of the largest engineering expositions in the world. Apart from the specific schemes mentioned above, the Government of India has taken several initiatives to support and enhance the competitiveness of the domestic engineering goods manufacturing firms such as the ‘Make in India’ initiative, PLI scheme for Automobile, and Auto components, PLI scheme for National Programme on Advanced chemistry cell (ACC) Battery Storage, FAME INDIA II scheme, Capital goods scheme, Industry 4.0. The Government of India, along with the Engineering Export Promotion Council, frequently organizes the International Engineering Sourcing Show (IESS) with the main objective of promoting India's image and providing a platform for Indian exporters to showcase their strengths and capabilities in an emerging market. This has become a unique platform between Indian and overseas engineering firms with B2B meets, thematic seminars and exclusive country and state sessions, bilateral forums. 

Pros and strengths

Strong order book: In its industry, the Order Book serves as a key indicator of future performance, as it reflects a portion of its anticipated revenue streams. It has consistently achieved and maintained a robust Order Book by focusing on its core competencies and successfully securing new projects across diverse segments. Its order book includes a diverse range of projects across multiple states in India and international markets. As of December 31, 2025, the company has an outstanding order book of Rs 40,026.96 lakh, comprising domestic orders worth 2,656.06 lakh and export orders worth Rs 37,370.90 lakh. Further January 01, 2026 onwards, the company has received orders of Rs 2,028.04 lakh comprising domestic order worth Rs 1,987.99 lakh and export orders worth Rs 40.05 lakh totalling to outstanding order book of Rs 42,055.00 lakh. This clientele includes a mix of globally recognized corporations, renowned Indian industrial entities, and government-owned enterprises, reflecting the company’s strong market presence and credibility. 

Its strong global presence: Over the past decade, the company has successfully delivered over 14 projects in Kuwait, further establishing its strong reputation within the industry. These projects showcasing its expertise and ability to provide tailored, reliable solutions to meet the unique demands of client. The completion of these projects has not only demonstrated its technical proficiency but also underscored its commitment to delivering excellence and ensuring client satisfaction in every aspect of its work. Throughout this period, it has actively expanded its presence in international markets, with a particular focus on the Middle East. Its operations in this region have been a pivotal driver of its growth, contributing significantly to its overall revenue and positioning us as a trusted partner for large-scale engineering, procurement, construction, and commissioning projects. The Middle East’s dynamic and evolving market offers vast opportunities, and its strategic focus in this region has allowed it to capitalize on these opportunities, fostering long-term business relationships and achieving sustained success. 

Diversified Portfolio across various market segment: Its business operates with remarkable stability, unaffected by seasonal fluctuations, due to its highly diversified portfolio. It serves a wide array of market segments, including Oil & Gas, Metals & Minerals, Mining, Pharmaceuticals, Power, Telecommunications, and Food Processing. This extensive diversification ensures that downturns in one sector are offset by stability and growth in others, thereby maintaining consistent revenue streams and overall business performance. Additionally, its strong presence in both domestic and international markets further enhances its resilience. By operating across multiple geographical regions, it mitigates the risks associated with political instability, socio economic changes, and geographical uncertainties. This global footprint allows it to leverage opportunities in various markets, adapt to different regulatory environments, and balance regional economic cycles. As a result, its business remains robust and less susceptible to localized disruptions. 

Risks and concerns

Risk associated with competitive bidding and dependence on joint venture partnerships: EPCC projects are typically awarded to it through a competitive bidding process, where it must meet stringent technical and financial criteria. Factors such as project experience, technical expertise, service quality, and financial resources significantly influence its ability to secure contracts. However, it cannot guarantee that it will consistently meet these qualifications, either independently or with joint venture partners. Even when it does qualify, projects are often awarded based on bid competitiveness, and preparing and submitting bids involves non-reimbursable costs. There is no certainty that projects for which it is prequalified will result in awards, nor that it submitted bids will be selected. In instances where it does not meet qualification standards independently, it partners with third parties, although forming such alliances comes with its own risks. It may face challenges in finding suitable joint venture partners or may be unable to attract partners who view it as their partner of choice, potentially limiting its opportunities to bid on large-scale projects. Additionally, the failure or disqualification of a partner could affect its bids and project success, possibly leading to unforeseen expenses or even losses. 

Dependence on Middle Eastern markets for export revenue: The company’s export revenue is significantly concentrated in Middle Eastern markets, with Kuwait being a primary contributor. This reliance exposes it to regional economic fluctuations, political instability, and regulatory changes that could disrupt its revenue flow from these key markets. Any downturn or unexpected policy shift in these countries such as new import restrictions, currency instability, or trade barriers could immediately impact its financial stability. Additionally, regional geopolitical tensions or economic sanctions could affect its ability to trade or increase the cost and complexity of doing business in these markets, further impacting profitability.

Dependence on major customers: Its business is dependent on a few customers and the loss of, or a significant reduction in orders by such customers could adversely affect its business. For the nine months period ended December 31, 2025 and for the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023, its top ten customers accounted for approximately 91.37%, 85.49%, 98.81% and 99.32% of its revenue from operations. Revenues from any of its particular customers may vary significantly from reporting period to reporting period, depending on the nature of ongoing orders and the implementation schedule for such orders. The efficiency of the sales and marketing network is critical to success of the company. 

Outlook

Leapfrog Engineering Services is engaged in engineering, procurement, construction, and commissioning (EPCC) with a specialized focus on electrical, instrumentation, fire safety, modular substation and automation systems. It is an integrated Engineering Services Company that provides EPCC services for a wide range of industries, including Oil and Gas, Food processing, Pharma, Metals among others. Its expertise spans a wide range of engineering solutions, making it a versatile and comprehensive service provider in the industry. On the concern side, its projects are exposed to various implementation and other risks, including risks of time and cost overruns, and uncertainties, which may adversely affect it business, financial condition, results of operations, and prospects. Further, the company’s clientele comes from various Industrial Segments, such as, Power and Telecommunication, Oil and Gas, Food processing, Pharma, Metals, Minerals, Railways, Refineries, Mining etc. and therefore any downturn in these industries may adversely affect the revenue and operating profit of the company.

The company is coming out with a maiden IPO of 3,84,84,000 equity shares of face value of Rs 1 each. The issue has been offered in a price band of Rs 21-23 per equity share. The aggregate size of the offer is around Rs 80.81 crore to Rs 88.51 crore based on lower and upper price band respectively. On performance front, the revenue from operations for FY25 stood at Rs 13,466.24 lakh whereas in FY24 it was Rs 15,785.42 lakh representing a decrease of 14.69%. Moreover, profit after tax for the year ended March 31, 2025, stood at Rs 1,622.47 lakh and for the year ended March 31, 2024 it was Rs 1,639.27 lakh representing a marginal decline of 1.02%.

Having successfully expanded beyond the domestic boundaries of India and established a strong presence in international markets, particularly in the Middle East, it is now focused on deepening its global reach. While its core focus remains on the domestic market, it recognizes the immense potential in expanding its international footprint. As part of its growth strategy, it is actively exploring opportunities to penetrate other key markets worldwide. Going forward, in line with its commitment to scaling its brand and business, it is planning to establish a state-of-the-art assembling unit at Site No. 11 & 12, Akshya Nagar, Yelenahalli, Begur, Bengaluru, Karnataka with an estimated project cost of Rs 2,710.36 lakh. The proposed facility is a strategic move to strengthen its operational capabilities, expand its service offerings, and enhance its ability to deliver innovative engineering solutions to its customers. By setting up this facility, it aims to not only drive business growth and brand recognition but also create new business opportunities, fostering long-term prospects for its organization in the highly competitive engineering industry. Further, it recognizes the critical importance of staying at the forefront of technological innovation within its industry. Embracing cutting-edge technologies and innovative solutions is integral to its business strategy, allowing it to maintain a competitive edge and deliver superior services to its clients. To this end, it makes regular investments to upgrade its infrastructural facilities and processes, ensuring that it remains aligned with the latest industry advancements. Its commitment to modernization involves continuous research and the adoption of new technologies that are well-suited to its project requirements and client expectations.