Sai Urja Indo Ventures Ltd IPO

Cons

• • The company is highly dependent on its top 10 clients, which contributed Rs 85.09 crore (99.97%), Rs 65.52 crore (100.00%), and Rs 45.62 crore (99.98%) to revenue from operations in FY26, FY25, and FY24, respectively. The largest client alone contributed Rs 63.63 crore (74.77%) in FY26, Rs 46.18 crore (70.49%) in FY25, and Rs 22.80 crore (49.99%) in FY24. Any loss of key clients, reduction in business volumes, or inability to secure orders from them on commercially viable terms could adversely affect the company’s revenue, margins and profitability.
• • The company is heavily dependent on contracts from public sector undertakings (PSUs), which contributed Rs 78.53 crore (92.27%), Rs 59.71 crore (91.13%), and Rs 37.08 crore (81.28%) to revenue from operations in FY26, FY25, and FY24, respectively. Any failure to qualify for PSU tenders, secure new contracts, or retain existing contracts could adversely affect the company’s revenue and profitability. Further, changes in government policies, tender conditions, funding availability, or delays in payments from government entities could affect its cash flows and financial condition.
• • The company’s operations are manpower-intensive, with employee benefit expenses accounting for Rs 74.30 crore (87.31%), Rs 56.57 crore (86.34%), and Rs 37.79 crore (82.84%) of revenue from operations in FY26, FY25, and FY24, respectively. Employee attrition also increased significantly to 45.01% in FY26, with 1,019 employees leaving the company compared with 98 in FY25 and 399 in FY24. Any inability to retain or replace skilled and unskilled personnel, or an increase in employee costs due to recruitment, training, and wage requirements, could adversely affect the company’s operations and profitability.