Pune-based mechatronics innovator seeks investor confidence amid rising demand for intelligent ECUs in mobility and industrial power systems.
As India’s automotive and power-equipment sectors accelerate toward intelligent and connected systems, SEDEMAC Mechatronics, a Pune-based electronic control solutions company, has filed DRHP with the Securities and Exchange Board of India (SEBI) for an Offer for Sale (OFS) of up to 80.4 lakh shares.
SEDEMAC Mechatronics IPO is being managed by ICICI Securities, Avendus Capital, and Axis Capital. MUFG Intime is the registrar of the issue.
SEDEMAC Mechatronics IPO: Business Overview
Founded in 2007 by a group of IIT Bombay alumni and professors, SEDEMAC has evolved from a research spin-off into a leading manufacturer of control-intensive electronic control units (ECUs). These products power both internal combustion (IC) and electric two- and three-wheelers, as well as industrial generator sets.
The company’s innovation DNA is evident in its sensorless control (SLC) technology, which allows efficient and compact integrated starter-generator (ISG) ECUs — a key differentiator that reduces component count and cost for OEMs. Its product range also includes EFI ECUs, motor control units (MCUs) for EVs, and generator controllers (GCs) that manage genset performance and fuel efficiency.
Dominant Market Share in Niche Segments
SEDEMAC holds a 30% domestic market share in ISG ECUs for two- and three-wheelers, and commands an even stronger 75% share in generator set controllers. Globally, it accounts for around 14% of the genset controller market, shipping over 10 million control-intensive products cumulatively.
The company supplies to top OEMs across mobility and industrial applications, with about 86% of FY25 revenue from mobility and the remainder from the industrial segment. Exports, mainly to the US and Europe, contributed close to 7% of revenues.
SEDEMAC Mechatronics IPO: Financials
SEDEMAC has witnessed a sharp improvement in profitability over the past three years, supported by margin expansion, product mix improvement, and reduced leverage.
| Particulars | FY23 | FY24 | FY25 | Q1 FY26* |
|---|---|---|---|---|
| Revenue from Operations | 423.03 | 530.65 | 658.36 | 217.36 |
| EBITDA | 54.24 | 83.12 | 125.07 | 45.69 |
| EBITDA Margin (%) | 12.8 | 15.7 | 19.0 | 21.0 |
| Profit After Tax | 8.57 | 5.88 | 47.05 | 17.07 |
| PAT Margin (%) | 2.0 | 1.1 | 7.1 | 7.9 |
| ROCE (%) | 17.5 | 28.9 | 33.8 | 13.0 |
| ROE (%) | 7.8 | 4.9 | 22.0 | 5.5 |
| Debt-to-Equity Ratio | 1.16 | 1.37 | 0.21 | 0.18 |
*Q1 FY26 figures are not annualized.
Revenue grew at a CAGR of around 25% between FY23 and FY25, while PAT jumped almost eightfold in FY25. The company also brought down its debt significantly, positioning itself as a debt-light, cash-generating business ahead of its IPO.
R&D-Driven Edge
Research and development remains at the core of SEDEMAC’s operations. The company invested around 6.7% of its FY25 revenue in R&D and employs over 200 engineers, 60% of whom are graduates from IITs, NITs, or BITS.
SEDEMAC holds 12 global patents across India, the US, Europe, and Asia. Its innovations — including SmartIgn and electronic governing (eGov) for gensets — give it a competitive edge in control-intensive systems. The firm operates two manufacturing plants and two technical centres in Pune, with utilization above 75% in FY25.
SEDEMAC Mechatronics IPO: Selling Shareholders & Key Investors
SEDEMAC Mechatronics IPO will enable early investors like A91 Emerging Fund II LLP, Xponentia Opportunities Fund II, and HDFC Life Insurance to partially offload their stakes. Promoters — Prof. Shashikanth Suryanarayanan, Amit Dixit, Manish Sharma, and Anaykumar Joshi — will retain significant shareholding post-issue.
Risks and Outlook
While SEDEMAC enjoys strong positioning in its niche, it faces challenges such as high dependence on semiconductor components (which form over 70% of material cost) and a relatively concentrated customer base. The OFS structure also means no fresh capital inflow into the business.
Still, analysts note that SEDEMAC is well-placed to benefit from the shift toward electrified, software-driven mobility and digital power management. Its established OEM partnerships, patent-backed R&D, and high entry barriers position it as a promising play in India’s mechatronics and electronics manufacturing story.
Final Words
With robust fundamentals, expanding margins, and technology-driven differentiation, SEDEMAC Mechatronics IPO is likely to draw interest from investors seeking exposure to India’s growing automotive electronics and industrial automation markets.
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