Supertech EV is launching its INR 29.9 crore IPO on BSE SME. The company is an electric two-wheeler assembler, is hitting the market with a fresh issue of equity shares. Operating in the emerging EV space, Supertech EV shows strong topline growth, but also reveals some promoter dependency and valuation considerations worth evaluating.
🔹 1. Supertech EV IPO Review: Snapshot
- Issue Size: Up to 32,49,600 equity shares (100% fresh issue)
- Price Band: INR 87 – 92 per share
- Lot Size: 1,200 shares (INR 1,10,400)
- Open/Close Dates: 25 June to 27 June 2025
- Exchange: BSE SME
- Promoter Holding (Pre/Post): 94.99% / 70.02% (estimated)
- Lead Manager: Corporate Makers Capital Ltd
🔹 2. What the Business Does
Supertech EV assembles and markets electric two-wheelers — primarily low-speed scooters — under its brand. The company does not manufacture key components (like motors or batteries) but sources them from third-party vendors and handles vehicle assembly at its Haryana units. Customers include retail dealers and institutional clients, suggesting a B2B/B2C hybrid model.
The EV two-wheeler market is competitive yet fast-growing, supported by government incentives and rising fuel costs. Supertech’s reliance on assembling rather than full in-house manufacturing keeps capex low but limits margin expansion. That said, its backward integration is minimal, and value addition remains modest.
🔹 3. Supertech EV IPO Review: Financial & Valuation Overview
| Matrix | FY 2023 | FY 2024 | FY 2025 |
| Revenue | 0.24 | 6.50 | 7.51 |
| Expenses | 0.23 | 5.84 | 6.68 |
| Net income | 0.00 | 0.50 | 0.62 |
| RONW (%) | 5.49 | 51.77 | 36.66 |
| ROCE (%) | 8.55 | 71.79 | 47.95 |
| EBITDA (%) | 3.87 | 11.37 | 12.62 |
| Debt/Equity | 0.00 | 0.57 | 0.73 |
🔍 Analysis:
- Revenue jumped from INR 0.24 Cr in FY23 to INR 6.50 Cr in FY24 — a massive scale-up, followed by steady growth in FY25.
- Net profit surged from INR 0.001 Cr to INR 0.50 Cr, reflecting strong operating leverage, though the absolute PAT remains modest.
- EBITDA margins expanded from 3.87% to 12.62% over two years — a healthy improvement, indicating better cost control and scale efficiency.
- RONW and ROCE peaked at 51.77% and 71.79% in FY24, before normalizing slightly — still excellent by SME standards.
- Debt levels rose from nil to 0.73 D/E in FY25 — still manageable, but shows increased funding dependence.
- The sharp FY24 spike in performance raises questions of sustainability — investors should watch for consistency beyond IPO year.
🔹 4. Supertech EV IPO Review: Strengths
- Diverse Product Portfolio: Offers 12 EV models (8 scooters, 4 rickshaws) including ZAPSTER PRO (110 km/charge) and PILOT DLX, catering to both passenger and cargo segments.
- Pan-India Distribution Network: 445 distributors across 19 states as of 31 May 2025; top 10 contribute 41.43% of revenue, ensuring strong market reach and sales channels.
- Rapid Revenue Growth: Revenue grew from INR 0.24 crore in FY23 to INR 7.51 crore in FY25, with PAT margin improving from 2.68% to 8.25% and EBITDA margin to 12.62%.
- Efficient Manufacturing Model: Hybrid production approach—E-rickshaw parts made in-house; EV scooters assembled using CKD kits imported from China for cost-efficiency and scalability.
- Strategic Plant Locations: Two units in Bahadurgarh, Haryana (58,125 sq. ft. and 17,200 sq. ft.) with highway access and ISO 9001:2015 certification, valid till January 2027.
- Low Capacity Utilization = Growth Headroom: Installed capacity of 10,500 units; FY25 utilization only 32.89%, enabling scale-up without major CapEx.
- Experienced Leadership: Promoters Mr. Jitender & Mr. Yetender Sharma bring over two decades of EV and manufacturing expertise; strong operational and strategic leadership.
- Domestic Procurement Focus: INR 6.35 crore in FY25 raw material sourced domestically, reducing import dependence and FX risk; only INR 0.43 crore imported.
- Strong Client Relationships: Repeat business from distributors; formal distributor selection via market surveys and PDI checks ensures quality and demand alignment.
🔹 5. Supertech EV IPO Review: Risks
- Environmental Litigation: A case (COMA-626-2024) is pending regarding environmental violations; prior penalties of INR 0.08 crore were paid, and any adverse ruling could impact operations and reputation.
- Pricing Pressure: Distributor price pressure may reduce margins; failure to offset via operational efficiency can materially affect profitability due to a working capital–intensive business model.
- Outstanding Litigations: Legal claims including trademark and environmental disputes, involve INR 0.69 crore; unfavorable outcomes may increase liabilities, legal expenses, and damage reputation.
- Low Capacity Utilization: FY25 utilization was only 32.89% (3,454 units vs. 10,500 capacity); underutilization due to market demand or operational issues may hamper growth and profitability.
- Contingent Liabilities: As of 31 March 2025, no disclosed contingent liabilities, but future developments may require provisioning, impacting financials and operational capacity.
- Working Capital Risk: High inventories INR 2.36 crore and trade receivables INR 1.32 crore (FY25) risk liquidity issues if not effectively managed, affecting profitability and cash flow.
- Product Dependency: Revenue relies solely on 12 EV models (8 scooters, 4 E-Rickshaws); a limited model range may hurt sales if not well received by the market.
- Unsecured Loans: INR 0.04 crore in unsecured loans are callable anytime; repayment pressure may arise if not refinanced, affecting financial stability.
🔹 6. Supertech EV IPO Review: Final Verdict
Supertech EV combines a trendy electric vehicle theme with strong recent growth and efficient capital utilization. However, the business model remains assembly-heavy with a minimal moat. If priced modestly, it may attract momentum interest. But for long-term investors, the dependency on external vendors and promoter concentration warrants caution.
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