Bhadora Industries  IPO GMP & Subscription status

Core Business & Overview

• Established in April 1986, Bhadora Industries Limited (BIL) is an industrial cable manufacturer headquartered in Tikamgarh, Madhya Pradesh, operating under the brand name “Vidhut Cables”.
• The company produces a comprehensive portfolio of industrial cables, including PVC, Low‑Voltage (LV), LT Aerial Bunched, and XLPE cables, for use in electricity transmission and distribution across India.
• BIL serves government electricity boards and EPC contractors under key schemes like RECPDCL and RDSS, covering operations in 18+ Indian states.

Strengths

1. Certified Manufacturing & Quality Controls
   The company holds ISO certifications (ISO 9001, 14001, 45001) and adheres to BIS and NABL testing standards. It maintains in‑house production of high‑purity electrolytic copper and aluminium wire, backed by research & development and advanced testing labs.
2. Government & Institutional Clientele with Pan‑India Reach
   The firm is an approved vendor for major state power utilities and has a presence across numerous states, ensuring steady demand from large contracts and established clients.

Potential Risks

1. Customer & Government Tender Dependency
   A significant portion of revenues comes from government contracts and the top‑10 customers. Failure to secure tenders or losing a key client could materially impact the company.
2. Single Manufacturing Facility & Supply‑Base Concentration
   Operating from one plant at Tikamgarh means production disruptions (e.g. breakdowns or natural hazards) could jeopardize operations. Raw material sourcing is limited to a few suppliers, increasing supply‑chain risk.
3. Competitive & Pricing Pressures
   The cable market is fragmented with many moderately sized players. This limits pricing power and can squeeze margins, particularly if raw material costs rise or competition intensifies

Financial Performance Overview (₹ in Crore)

Revenue

• The company’s revenue rose sharply from ₹18.44 Cr in FY23 to ₹110.11 Cr in FY25, showing rapid business expansion.
• This suggests successful acquisition of more government contracts and increased market demand for its cables.

Profitability

• Net profit increased from just ₹0.18 Cr in FY23 to ₹10.79 Cr in FY25, a remarkable jump, reflecting improved operational efficiency and better margin control.
• PAT margin improved from ~1% in FY23 to nearly 10% in FY25, indicating strong financial health.

Asset Base

• Total assets doubled from ₹20.13 Cr to ₹48.76 Cr in just 3 years.
• This could be due to capital investment in manufacturing capacity, infrastructure, or working capital.

✅ Pros

• Strong revenue and profit growth in the last 3 years.
• Certified quality and trusted by government electricity boards.
• Expanding manufacturing capacity with IPO funds.
• Wide client base across 18+ Indian states.

❌ Cons

• Heavy dependence on government contracts and top 10 clients.
• Operates from a single plant — risk of operational disruption.
• Competitive industry with limited pricing power.