Gabion Technologies India is approaching the market via a BSE SME IPO—a segment where stories travel fast, but cash flows and balance sheets decide outcomes. The company operates in the infrastructure protection ecosystem (gabions, rockfall protection, geosynthetics, and related execution work). The pitch is simple: an integrated manufacturer + contractor that can supply products and also execute projects end-to-end.
If you are analysing Gabion Technologies IPO, don’t start with GMP or listing day excitement. Start with two questions:
- Does the Gabion Technologies business have real operating strength (margins, repeatability, execution edge)?
- Can it grow without choking on working capital and interest costs?
Let’s assess Gabion Technologies IPO review on that framework.
Gabion Technologies IPO Snapshot
| Parameter | Details |
|---|---|
| Issue Type | Fresh Issue only |
| IPO Dates | 6 – 8 January 2026 |
| Price Band | INR 76 – 81 per share |
| Face Value | INR 10 per share |
| Lot Size | 1,600 shares (INR 1,29,600) |
| Minimum Bid | 3,200 shares (INR 2,59,200) |
| Total Issue Size | 36,00,000 shares (INR 27.36 – 29.16 crore) |
| Listing Exchange | BSE |
| Individual Allocation | 35% |
Gabion Technologies Business Model: Integrated Manufacturing + Contracting
Gabion Technologies is not positioning itself as a single-product manufacturer. The company describes three verticals:
- Manufacturing and supply of mechanically woven DT mesh gabions, defence gabions, PP rope gabions, high-tensile rockfall protection nettings, reinforced geomat, and flexible geogrids.
- Design and construction services, including gabion structures and slope stabilization (anchor-mesh and related systems) in geotechnical engineering and ground improvement.
- Trading of auxiliary products required by customers (portfolio listed in the business chapter).
The most investable part of this model is the “manufacturer + contractor” combination: the company uses its own products in work contracts, which can support cost control, quality consistency, and faster delivery—if the operating engine is tight.
The product and application spread is wide—retaining walls, river protection, flood protection, rockfall protection, slope stabilization, and more.
This is a sensible “solutions” positioning rather than a pure commodity pitch. But integrated execution models come with a cost: working capital.
Geography & Revenue Concentration: Diversified, But Still Project-Led
The company’s revenue is primarily domestic—98–99%+ across periods shown (domestic sales were 98.16% for period ended 30 November 2025; 99.23% in FY25).
State-wise, revenue contributions can shift significantly. For the period ended 30 November 2025, for example, Odisha is 19.36% of domestic sales, with meaningful contributions from Himachal Pradesh (~12.96%), Karnataka (~11.37%), Uttar Pradesh (~11.48%), and others.
This pattern looks like a classic execution business—revenues can be lumpy, dependent on project timing and geography-specific order flows. In SME stocks, lumpy revenues can translate into lumpy market sentiment.
Gabion Technology IPO Analysis: Financial Performance
- Revenue from operations: FY23 INR 78.76 crore→ FY24 INR 104.76 crore → FY25 INR 100.36 crore.
- EBITDA: INR 6.39 crore (FY23) → INR 131.58 crore (FY24) → INR 15.06 crore (FY25); EBITDA margin improved from 8.10% → 12.54% → 14.89%.
- RoNW: 35.37% (FY23), 37.40% (FY24), 30.05% (FY25); for period ended 30 November 2025, RoNW is shown at 16.33%.
- Debt-equity ratio improved over time but remains elevated: 3.06 (FY23) → 2.37 (FY24) → 2.12 (FY25).
- Total borrowings are substantial: INR 29.46 crore (FY23) → INR 36.37 crore (FY24) → INR 46.71 crore (FY25) → INR 52.05 crore for period ended 30 November 2025.
Operating profitability has clearly improved, which supports the “platform” narrative. However, the borrowings profile and leverage ratios confirm this is not a low-debt compounding story—it is a scale story that needs cash-cycle control.
Use of proceeds: the IPO is primarily a working-capital fundraise
- Working capital: up to INR 22.11 crore
- Capex: up to INR 1.06 crore (plant and machinery)
- General corporate purposes
When most of the money goes into working capital, the IPO is effectively saying: growth is available, but funding the operating cycle is the constraint.
That can be positive—if funds reduce borrowing dependence and improve liquidity. But it also means that if receivables/inventory remain heavy, the company could still end up relying on debt later.
Gabion Technologies IPO Risks
- Geographic revenue concentration: A large share of revenue comes from Northern + Eastern India—FY25 76.99%, FY24 73.95%, FY23 85.73%; any disruption in these regions can materially hit sales and earnings.
- Dependence on government tenders: As of 30 Nov 2025, 21.70% of revenue depends on government/government-funded projects; bid acceptance is ~22–35% (FY25: 18/61), making order inflows volatile.
- Working-capital stress and negative operating cash flows: Operating cash flow has been negative—FY25 (INR 3.63 Cr), FY24 (INR 1.85 Cr), FY23 (INR 4.31 Cr). Working capital need rose from INR 12.32 Cr to INR 47.24 Cr, pressuring liquidity.
- High leverage: As of 30 Nov 2025, total debt is INR 52.05 Cr with a debt-equity ratio of 1.98; weak cash flows or rising interest rates can strain debt servicing and limit flexibility.
Gabion Technologies IPO Valuation & Peer Comparison
Gabion Technologies IPO valuation screens optically inexpensive on headline multiples: P/E 12.20 versus peer SRM Contractors at 17.8, P/B 3.67 versus 4.12, and a lower P/S of 1.10 versus 1.73. The discount is largely explained by balance-sheet risk and weaker liquidity. Gabion’s debt-equity is 2.12 (FY25) and current ratio 1.27, compared with SRM’s debt-equity of 0.20 and current ratio of 3.88, signalling materially higher leverage and tighter working-capital headroom.
Operating performance has improved for Gabion: FY25 revenue from operations was INR 100.36 cr, EBITDA INR 15.06 cr with a 14.89% margin (up from 8.10% in FY23), and PAT INR 6.62 cr with a 6.60% margin. Net worth rose to INR 22.03 cr and RoNW was 30.05%, but total borrowings were INR 46.71 cr, keeping financial risk elevated. Gabion’s FY25 revenue contracted 4.20% after 33.02% growth in FY24, while SRM grew 54.23% in FY25, highlighting stronger growth visibility.
SRM, at a much larger base, delivered FY25 revenue INR 528.13 cr, EBITDA INR 95.36 crore (17.59% margin) and PAT INR 55.00 crore (10.41% margin), reflecting better operating leverage.
Return metrics are respectable for Gabion (RoCE 19.17% in FY25) but below SRM’s RoCE/ROE profile (ROCE ~31%, ROE 25.6%). Investors should weigh Gabion’s valuation appeal against deleveraging needs and cash-conversion execution.
Gabion Technologies IPO Investment Outlook
Gabion Technologies has improved operating performance—EBITDA margins have expanded and profitability has strengthened—supporting its positioning as an integrated manufacturer + infrastructure execution player. But the market will not reward it like a clean manufacturing compounder. It will value it like a working-capital-driven contractor, where cash conversion matters more than reported margins.
The key swing factor is straightforward: can Gabion convert growth into cash while containing leverage and interest costs? With IPO proceeds largely aimed at working capital, a successful outcome would be tighter receivable/inventory discipline, lower funding stress, and scope for valuation re-rating. If the cash cycle remains stretched and debt stays elevated, returns are likely to remain volatile regardless of operating improvements.
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