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Core4 Engineers

• Core4 Engineers is coming out with an initial public offering (IPO) of 58,94,400 shares in a price band of Rs 88-93 per equity share.
• The issue will open for subscription on October 23, 2026 and will close on October 27, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 8.80 times of its face value on the lower side and 9.30 times on the higher side.
• Book running lead manager to the issue is Socradamus Capital.
• Compliance officer for the issue is Theja Raju.

Profile of the company

Core4 Engineers is an engineering, procurement, construction and commissioning (EPCC) company engaged in providing integrated infrastructure solutions across multiple domains, with a primary focus on the railway infrastructure, power transmission & distribution, and water & wastewater treatment sectors. Its expertise spans the entire project lifecycle design, engineering, procurement, erection, testing, commissioning, and operation & maintenance (O&M). It also operates an in-house manufacturing facility for High-Tension (HT) and Low-Tension (LT) electrical panels and compact substations, enabling it to offer customized, reliable, and cost-efficient products that complement its EPCC activities. It also undertakes sub-contracting assignments, providing on-ground execution support for a wide range of engineering projects. 

It operates through five interlinked business segments, each contributing to its integrated infrastructure and engineering solutions framework. Its diversified business verticals include Railway Electrification & Infrastructure, Extra High Tension (EHT) Transmission & Distribution Systems, Water & Wastewater Treatment EPCC, Automation & SCADA Systems, and Composite supply of HT/LT Distribution Panels along with related services. Incorporated with the vision of delivering technically robust and cost-effective engineering solutions, it offers end-to-end project execution capabilities covering design, engineering, procurement, project management, construction, installation, testing and commissioning.

It began its operations as a partnership firm in 2014 and was converted into a private limited company in 2022 under the provisions of the Companies Act, 2013. Headquartered in Mysore, Karnataka, it started as an EPC contractor and gradually expanded into a diversified infrastructure and utility solutions provider with integrated capabilities across design, engineering, installation, testing, commissioning, and O&M. Over the years, it has built relationships with government organizations, PSUs, utilities, and private enterprises across India. Its structure allows it to leverage synergies between its EPC and manufacturing divisions, enabling it to deliver end-to-end, technology-driven, and cost optimized infrastructure solutions across sectors.

Proceed is being used for:

• Funding capital expenditure for the acquisition of a property comprising land and an existing building, proposed to be utilized for establishing and operating a new manufacturing facility and corporate office.
• Funding incremental working capital requirements. 
• General corporate purposes.

Industry overview

The Railway EPC Market is defined as the domestic revenue generated from EPC contracting activities related to railway electrification, signaling & telecommunication, and civil works in India. This includes electrification works such as OHE, TSS, and PSI; signaling & telecommunication systems; and civil works including station redevelopment, bridges, and platforms, along with associated O&M services where executed as part of EPC contracts. India’s Railways are largely shaped by government budgets, with the capital outlay crossing Rs 2.6 lakh crore in FY26 Budget Estimates, driving most investments. This sustained funding ensures a robust pipeline of projects in electrification, signaling, and core civil infrastructure works such as stations, depots, and bridges, defining the overall pace and scale of EPC opportunities.

The Indian water and wastewater infrastructure Market is driven by the public domain, accounting for 80% of the market in FY25 at Rs 79.9 thousand crore. This segment majorly includes municipal water infrastructure including drinking water treatment plants, sewage treatment plants, sewage and water piping and more. It is largely funded through government programs like Jal Jeevan Mission, AMRUT, and Smart Cities, and is projected to grow at 11.6% CAGR to Rs 138.2 thousand crore by FY30F, supported by rural water access, sewage expansion, and urban sanitation upgrades. The private and industrial domain comprised the remaining 20% at Rs 20 thousand crore, majorly covering industrial water infrastructure including effluent treatment plants (ETPs), select associated infrastructure, and private sewage and water piping distribution projects. Growth in this segment is driven by regulatory compliance, industrial expansion, and adoption of reuse technologies. It is expected to expand at 9.4% CAGR to Rs 31.4 thousand crore by FY30F.

India’s power sector is transforming rapidly with rising electricity demand and large-scale renewable integration. To strengthen grid reliability, the government has launched major initiatives to expand interregional transmission corridors, modernize distribution networks, and promote smart metering and loss reduction. These efforts, aligned with the target of integrating 500 GW of renewables by 2030, are driving sustained investment across the transmission and distribution sector. As of FY25, India’s transmission and distribution market size stood at Rs 36,000.0 crore, growing at a strong CAGR of 16.2% over FY20-FY25. Growth was fuelled by accelerated grid expansion, post-COVID catch-up investments, and government initiatives to strengthen corridors, modernize distribution, deploy smart metering, and reduce losses, along with increased private participation in transmission. The market is projected to reach Rs 60,063.0 crore by FY30F, at a CAGR of 10.8%, reflecting somewhat moderated growth. Although the government has laid out an Rs 9 lakh crore transmission plan (2023-2032), past under-execution of targets is expected to persist. Still, sustained investment will continue, driven by ambitions to integrate 500 GW of renewables, modernize grid assets, and enhance reliability. The National Electricity Plan envisages addition of 1.91 lakh circuit kilometres of transmission lines by 2032 over the period from 2023 to 2032, expanding the network to around 6.48 lakh ckm.

Pros and strengths

Wide operational reach and multi-disciplinary execution capability: It benefits from a broad operational footprint and a diverse multi-disciplinary execution capability that positions it as a comprehensive engineering solutions provider across critical infrastructure sectors. It operates across a wide range of specialised service verticals, including Railway Electrification and Infrastructure, EHV Transmission and Distribution EPCC, Water and Wastewater EPCC, SCADA and Automation, and the in-house manufacturing of HT/LT distribution panels. This diversified vertical presence enables it to undertake complex, large-scale engineering assignments requiring integrated solutions across electrical, civil, mechanical, and automation domains.

Cost efficiency through in-house panel manufacturing: An in-house manufacturing facility in Karnataka, where it manufactures High Tension (HT) and Low Tension (LT) electrical panels, forms a key component of its cost management and operational strategy. Under LT, it manufactures both 3-phase 415-volt systems (industry standard) as well as 3-phase 750-volt systems, based on specific project requirements. In almost all its service projects, around 20% of the total project value is attributable to electrical panels, making panel manufacturing an integral revenue component of its EPC and electrical infrastructure works. Since its panel production is directly linked to the execution of these projects, its service operations and manufacturing activities remain closely interdependent, providing it with operational leverage, improved margin control, and enhanced project execution efficiency.

Innovation and adoption of advanced technologies: It consistently places innovation at the core of its operational strategy, enabling the company to maintain a competitive edge in the engineering, procurement, and construction domain. The company proactively integrates a spectrum of advanced and emerging technologies such as Internet of Things (IoT)-based monitoring systems and Supervisory Control and Data Acquisition (SCADA) systems, and advanced automation tools across its design, engineering, and execution functions. By leveraging these technologies, it enhances engineering precision, improves system design accuracy, optimizes resource utilization, and supports predictive maintenance and real-time monitoring. The adoption of these digital tools further contributes to reduced project execution timelines, improved energy efficiency, higher reliability, and strengthened safety standards.

Risks and concerns

Significant revenue reliance on private-sector customers: A majority of its revenue from operations comes from private-sector customers, accounting for 88.59%, 67.66%, 43.57% and 30.34% of its revenue from operations for the period ended June 30, 2026, Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Private-sector customers spending on infrastructure, power and electrical projects depends on their own business performance, access to funding, interest rates and the wider economic environment. A slowdown in private sector capital spending, or the postponement, cutting back or cancellation of projects by its private customers, could reduce the number of new orders it wins and slow down its existing order book.

High revenue dependence on operations in Karnataka: Substantial portion of its revenue is derived from operations in Karnataka, where the ‘Core4 Engineers’ brand has established a presence over more than a decade, including through the legacy of the erstwhile partnership firm founded by its Promoters, Agrahara Chamaraje Gowda Abhinandan and Hosahalli Appagigowda Savitha. Its projects are primarily concentrated in Karnataka, accounting for 95.01%, 85.65%, 43.17% and 40.06% of its revenue from operations during the period ended June 30, 2026, Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively, which exposes it to concentration risks, regulatory uncertainties, and potential adverse regional developments.

Revenue concentration in water and wastewater treatment projects: Its revenue has become increasingly concentrated in water and wastewater treatment EPCC projects. Their share of its service revenue rose from 21.79% in Fiscal 2024 to 87.07% in the period ended June 30, 2026. Over the same period, the share of railway electrification and infrastructure projects fell from 60.46% to 10.14%. As a result, its business performance is now significantly influenced by the trends, funding, policies and execution dynamics of the water supply, sewerage and wastewater treatment sector. Any slowdown, disruption or adverse development in this sector could disproportionately affect its revenues, profitability, cash flows and overall financial performance.

Outlook

Core4 Engineers is engaged in providing integrated infrastructure solutions across multiple domains, with a primary focus on the railway infrastructure, power transmission & distribution, and water & wastewater treatment sectors. It conducts testing for every project to ensure that each manufactured product meets stringent safety, reliability, and performance benchmarks. While many regional manufacturers outsource testing or limit it to client-specified requirements, it carries out all eight prescribed type tests approved by the Central Power Research Institute (CPRI), even when such testing is not contractually required. This proactive approach reflects its commitment to zero-defect manufacturing and continuous quality enhancement. On the concern side, a significant portion of its business comprises EPC contracts awarded through competitive bidding processes undertaken by government bodies, public sector undertakings, and large private organisations. To qualify for such projects, it must continually meet prescribed technical and financial eligibility criteria, including past experience, execution capabilities, financial strength, and sector-specific credentials in Railway Electrification & Infrastructure, Extra High Tension (EHT) Transmission, Water and Wastewater Treatment EPCC, Automation and SCADA Systems, and Distribution Systems. There can be no assurance that it will continue to meet such qualification requirements, whether independently or through joint bidding arrangements.

The company is coming out with a maiden IPO of 58,94,400 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 88-93 per equity share. The aggregate size of the offer is around Rs 51.87 crore to Rs 54.82 crore based on lower and upper price band respectively. On performance front, revenue from operations increased 167.41% from Rs 3,415.68 lakh in Fiscal 2025 to Rs 9,133.83 lakh in Fiscal 2026. Profit after tax increased 208.78% from Rs 535.72 lakh in Fiscal 2025 to Rs 1,654.18 lakh in Fiscal 2026.

Meanwhile, it aims to strengthen its presence in the railway electrification and infrastructure segment by executing large-scale Overhead Electrification (OHE), Traction Sub-Stations (TSS), and signaling and traction works, leveraging the opportunities created by Government programs such as the Railway Electrification Mission and the Amrit Bharat Station Scheme. Going forward, it plans to expand its presence in the Extra High Tension (EHT) and High Voltage Transmission & Distribution (T&D) domain by enhancing its EPC services for substation construction, HT/LT panel installations, and system commissioning. With India’s rising energy demand and emphasis on grid modernization, renewable integration, and regional power corridors, significant opportunities are emerging in the EHT sector.