ENS Enterprises Ltd IPO

Cons

• • The company’s revenue is significantly dependent on a limited number of customers. Its top 10 customers contributed Rs 35.54 crore (69.17%), Rs 17.03 crore (60.12%), and Rs 8.80 crore (87.09%) to revenue from operations in FY26, FY25, and FY24, respectively. Any loss of these customers, reduction or cancellation of orders, or inability to negotiate favourable terms with them could adversely affect the company’s business, financial condition, results of operations and cash flows.
• • The company and its promoters are involved in certain ongoing legal proceedings before various courts, tribunals, and appellate authorities. Any adverse ruling in these proceedings, or any future legal proceedings involving the company or its promoters, could adversely affect its reputation, business, financial condition, results of operations, and cash flows.
• • The company has reported negative cash flows in certain financial years. Net cash used in operating activities stood at Rs 1.10 crore in FY26, compared with positive cash flows of Rs 2.50 crore and Rs 0.11 crore in FY25 and FY24, respectively, while net cash used in investing activities stood at Rs 4.02 crore, Rs 5.65 crore and Rs 0.23 crore in FY26, FY25 and FY24, respectively. The negative operating cash flow in FY26 was primarily due to an increase in trade receivables of Rs 5.81 crore, an increase in other current assets of Rs 3.65 crore and a decrease in trade payables of Rs 5.06 crore, while the negative investing cash flows were mainly due to investments in shares of Rs 6.05 crore in FY26, an increase in inter-corporate deposits (ICDs) of Rs 2.50 crore and payment of security deposits of Rs 2.00 crore in FY25. Sustained negative cash flows could adversely affect the company’s financial condition and results of operations.