Paluck Technologies Ltd IPO

Cons

• • The company is dependent on a limited number of customers. The top 5 customers contributed Rs 53.79 crore (52.32%), Rs 53.06 crore (52.68%), and Rs 49.28 crore (53.42%) in FY25, FY24, and FY23, respectively. Any loss of customers, reduction in orders or deterioration in commercial terms could adversely affect its revenues, cash flows, profitability, and growth prospects.
• • The company has experienced delays in repayment of loans in the past, which may adversely affect its credit profile and access to future financing. It had previously delayed repayment of a loan obtained from Equitas Small Finance Bank Limited due to temporary liquidity constraints and operational challenges. Although the overdue amount has been fully repaid and there are currently no outstanding delays, the earlier delay was reflected in the company’s CIBIL records, and a dispute has been raised for its rectification.
• • The company’s projects are exposed to delays, cost overruns and cancellations arising from factors such as land acquisition disputes, statutory or environmental approvals, labour strikes and adverse weather conditions. Such delays may defer revenue recognition, tie up capital in work-in-progress and result in contractual penalties, while increases in material and fuel costs may reduce margins, particularly under fixed-price contracts. Government or customer-driven cancellations could also result in loss of anticipated revenue, disputes, and reputational damage, potentially affecting repeat orders and new contracts.