Avience Biomedicals Ltd IPO

Cons

• • The company’s top 10 customers contributed Rs 13.35 crore (46.44%), Rs 16.35 crore (56.82%), Rs 11.23 crore (69.12%), and Rs 8.17 crore (74.79%) of revenue from operations during the period ended January 31, 2026, FY25, FY24, and FY23, respectively. Any loss of these key customers, a reduction in orders, or failure to maintain relationships with them could adversely affect the company’s business, cash flows, and financial performance.
• • The company depends on third-party suppliers for traded medical devices, diagnostic equipment, laboratory reagents, consumables, surgical instruments, and raw materials used in its manufacturing operations. Since orders are generally placed on a requirement basis and the company does not typically have long-term or exclusive supply agreements with its suppliers, any disruption in the supply chain could adversely affect its business operations and financial condition. Any delays or failures by suppliers due to regulatory issues, financial difficulties, facility disruptions, labour unrest, power outages, or geopolitical events could result in higher procurement costs, production delays, and operational disruptions. If the company is required to source materials from alternative suppliers, it may face additional costs and delays, which could negatively impact its profitability and cash flows.
• • The company derives a significant portion of its revenue from trading activities, which contributed Rs 19.67 crore (68.44%), Rs 20.89 crore (72.31%), Rs 12.94 crore (79.60%), and Rs 9.15 crore (83.81%) of revenue from operations during the period ended January 31, 2026, FY25, FY24, and FY23, respectively. This indicates a substantial dependence on the trading segment despite the company’s efforts to expand its manufacturing operations. Any slowdown in demand for traded products, disruption in the procurement of traded goods, pricing pressure, or loss of key trading relationships could adversely affect the company’s revenue and profitability.