Sapphire Foods India Ltd. Share Price

Peshwa Wheat

• Peshwa Wheat is coming out with an initial public offering (IPO) of 52,99,200 shares in a price band of Rs 95-101 per equity share.
• The issue will open for subscription on September 24, 2026 and will close on September 28, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 9.50 times of its face value on the lower side and 10.10 times on the higher side.
• Book running lead manager to the issue is Finaax Capital Advisors.
• Compliance officer for the issue is Ritu Jain.

Profile of the company

The company is engaged in the business of processing of wheat-based products such as Atta - wheat flour, Sortex Wheat, Broken Wheat and processing of other flour products such as Gram Flour (Besan) and Maize Flour. The company has presence in packing product segment (50 kg and 30 kg). It also utilizes the by-products and waste materials, such as wheat bran generated during its manufacturing process for cattle feed. This approach ensures that its processing unit operates with zero waste and zero discharge. It currently operates with a modern, integrated flour processing unit equipped with advanced milling and cleaning technology located at Madhya Pradesh with an installed capacity of 56100 MTPA, where the production of its products is carried out. Its operations are rooted in delivering good quality and hygienically processed flour products, supported by stringent quality control measures.

The company is accredited with State License under Food Safety and Standard Authority of India (FSSAI) and Centre License under Food Safety and Standard Authority of India (FSSAI). To demonstrate food safety commitment, its organization has received ISO 22000-2018, for food safety management. Its in-house processing enables it to minimize production time, bring cost effectiveness, have an effective control over every stage of production process that allows continuous monitoring of its product’s quality. It markets and sells its products in B2B segment majorly in the states of Madhya Pradesh, Maharashtra, Karnataka and Gujarat. Its products are sold to Super Stockists who supplies to wholesalers and further the same is distributed among retailers and to customers who purchase its products in bulk quantity. This model allows it to cater to the needs of large-scale buyers and establish long term business relationships.

The company is also engaged in the business of trading of vegetables such as potatoes and tomatoes. The supply and distribution of vegetables is carried out within the state of Madhya Pradesh. The company sources these vegetables from suppliers, ensuring good quality and consistent supply. Its operations include procurement, quality control and distribution to meet the needs of market.

Proceed is being used for:

• Funding capital expenditure towards purchase of plant and machineries
• Funding capital expenditure towards civil construction
• Funding working capital requirements
• General corporate purposes

Industry overview

India’s agricultural sector has demonstrated remarkable resilience in recent years, marked by consistent growth rates. This stability can be largely attributed to various government initiatives to enhance productivity, promote crop diversification, and increase farmers' income. A crucial factor influencing agricultural performance is the impact of weather conditions. Climate variability can present significant challenges; however, farmers with diverse income streams are better positioned to navigate these uncertainties. Allied activities such as animal husbandry, fisheries or agroforestry, can enable the farmers to mitigate the risks effectively. Various government initiatives are specifically designed to address these challenges.

The food processing industry in India is one of the largest employers within organised manufacturing, accounting for 12.41% of total employment in the organised sector. In the fiscal year FY24, the value of agri-food exports, which includes processed food exports, reached $46.44 billion, constituting roughly 11.7% of India’s total exports. Notably, the share of processed food exports within agri-food exports has risen from 14.9% in FY18 to 23.4% in FY24. To foster growth in the food processing sector, the Indian government has initiated several key programs, including the Pradhan Mantri Kisan Sampada Yojana (PMKSY). This scheme focuses on developing modern infrastructure and optimising supply chains from farm to retail. By minimising post-harvest losses, increasing processing capabilities, and enhancing export levels, PMKSY aims to promote the overall advancement of the food processing industry. As of 31 October 2024, 1,079 PMKSY projects have been completed.

The government also provides insurance for farmers through the Pradhan Mantri Fasal Bima Yojana (PMFBY). This scheme acts as a safety net for farmers against crop losses due to natural calamities, pests, and diseases. As the largest crop insurance program in the world in terms of farmer enrolment and the third-largest by premiums, PMFBY offers comprehensive risk coverage from the pre-sowing to post-harvest stages. By ensuring financial stability, the scheme encourages farmers to adopt modern agricultural practices and technologies, ultimately enhancing agricultural productivity and food security.

Pros and strengths

Integrated processing operations: The company benefits from fully integrated processing operations, which encompass the entire value chain-from procurement of raw material to production, packaging, storage, and dispatch of finished products. This integrated model enhances operational efficiency, ensures consistent product quality, and strengthens cost competitiveness. Its operations are designed to minimize dependence on external intermediaries, thereby reducing supply chain risks and improving production reliability. The integration of procurement, cleaning, grading, milling, quality testing, and packaging within a unified manufacturing ecosystem allows the company to exercise stringent control over process parameters, hygiene standards, and product specifications. Further the consolidation of processes under a single operational framework reduces logistics costs, eliminates third party processing margins and improves energy utilization. This enables the company to maintain competitive pricing while preserving healthy margins.

Strategic procurement relationship and strong supply chain: The company has established long-standing procurement networks that support uninterrupted access to good quality raw materials at competitive prices. These procurement relationships form a critical pillar of its operational efficiency and enable the company to mitigate supply volatility, maintain consistent production, and respond effectively to market fluctuations. Its supply chain has been developed through sustained engagement with farmers, local aggregators, mandis, and regional procurement partners across major wheat-growing belts. This integrated sourcing framework helps ensure timely availability of raw material, enhances input quality reliability, and reduces procurement costs in a competitive market. By sourcing directly from primary growing centers and mandis, the company is able to procure raw material at optimized prices, avoid intermediary margins, and ensure traceability. Direct procurement also enables better control over moisture levels, grain size, and impurity thresholds, contributing to superior end-product quality.

Strong focus on quality and food safety standards and maintaining hygienic processing standards: The company places significant emphasis on maintaining high-quality standards, food safety compliance, and hygienic processing practices across all stages of operations. A robust quality management framework, supported by modern equipment, trained personnel, and strict monitoring protocols, enables the company to deliver products that meet regulatory norms and customer expectations consistently. This commitment to quality not only enhances product reliability but also strengthens customer trust and brand reputation in an industry driven by safety, nutrition, and consistency. It possesses the requisite infrastructure for the testing of raw materials and finished products to ensure they meet the quality specifications mandated by its clients and the Food Safety and Standards Authority of India (FSSAI).

Risks and concerns

Significant portion of revenue is derived from top ten customers: The company depends on certain customers who have contributed a substantial portion of its total revenues. The company’s top ten customers contributed 71.14%, 70.98%, and 25.72% of its total revenue from operations for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively. Till date it has good relation with its customers. It cannot guarantee that it will continue to generate the same volume of business, or any business, from them, and the loss of one or more key customers could adversely affect its revenue and operational results.

Revenue is highly concentrated in the state of Madhya Pradesh: The company derives a large portion of its revenue from the state of Madhya Pradesh. The revenue from operations generated from Madhya Pradesh contributed 97.21%, 93.32%, and 89.73% of the company’s total revenue from operations for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively. The loss of any of its major customer in these States due to any adverse development or significant reduction in business from its major customer may adversely affect its business, financial condition, results of operations and future prospects.

Volatility in raw material prices and availability: Its operations are significantly dependent on the availability and cost of raw materials such as wheat, maize and chana dal. The prices of these raw materials are subject to volatility due to factors beyond its control, including global commodity price trends, changes in supply-demand dynamics, climatic conditions, government policies, trade restrictions, and currency exchange rate fluctuations. The company relies on third-party suppliers for sourcing the raw materials necessary for manufacturing its products. It is exposed to price fluctuations and potential unavailability of these raw materials, particularly as it generally does not enter into long-term supply agreements with its suppliers. A significant portion of its requirements is met through the spot market, leaving it unable to control the factors influencing the cost of raw materials. Additionally, it faces challenges in offsetting or passing on such cost increases to its customers. Rising prices of raw materials may impact its margins and profitability, adversely affecting its business, financial condition, and operational results.

Outlook

Peshwa Wheat is engaged in the business of processing of wheat-based products such as Atta - wheat flour, Sortex Wheat, Broken Wheat and processing of other flour products such as Gram Flour (Besan) and Maize Flour. The company is registered to carry on the business of manufacturing, Processing, grading, sorting, producing, extracting, refining, storing, exporting, importing, buying, selling, transporting or otherwise dealing in flours of all kinds and description whatsoever, dal, besan, flakes, dalia, paddy of wheat and other grains allied Agro commodities. On the concern side, the company procures 100% of its raw material requirements, such as wheat, chana dal, maize kernel from the state of Madhya Pradesh. This geographical concentration exposes it to risks arising from adverse developments specific to the region, including but not limited to changes in state government policies, local supply chain disruptions, natural calamities such as droughts or floods, crop failures, labour strikes, or logistical bottlenecks. Such risks may result in production delays, increased operating costs, reduced margins, or an inability to meet customer demand, which in turn could adversely affect its business operations, financial performance, and growth prospects.

The company is coming out with a maiden IPO of 52,99,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 95-101 per equity share. The aggregate size of the offer is around Rs 50.34 crore to Rs 53.52 crore based on lower and upper price band respectively. On performance front, its Income from revenue from operations increased by 25.88% from Rs 17,153.50 lakh for the financial year ended March 31, 2025, to Rs 21,593.52 lakh for the financial year ended March 31, 2026. Restated profit after tax increased by 33.56% from Rs 1,183.61 lakh for the financial year ended March 31, 2025, to Rs 1,580.82 lakh for the financial year ended March 31, 2026.

Meanwhile, the company is dedicated to enhance operational efficiencies to drive cost reductions and secure a competitive advantage in the marketplace. It is actively pursuing increased operational output through a combination of continuous process enhancements, stringent quality control measures, and the adoption of advanced technologies. Its workforce is consistently encouraged and trained to improve efficiency and ensure error-free operations. Expanding its product offerings and deepening its market presence in existing regions will facilitate entry into new areas and optimize its infrastructure utilization. These initiatives are expected to result in increased market share and enhanced profitability for the company.