Karamtara Engineering, promoted by Tanveer Sing, Rajiv Sing and Inderjeet Singh, is the largest integrated manufacturer (in terms of installed capacity) of solar mounting structures and tracker components in India. It offers structures and fasteners in the solar energy and transmission sectors, and overhead transmission line (“OHTL”) hardware fittings and accessories.

Its extensive product portfolio includes structures in the solar energy sector (such as solar module mounting structures (“Solar MMS”), solar tracker piles and piers and solar torque tubes) and the transmission sector (such as lattice towers for transmission line). Further, the company has commenced production of angular towers for wind turbines and tubular towers for wind turbines in March 2025 and June 2025, respectively. In addition, it manufactures fasteners (such as bolts, nuts, studs and washers), structural steel profiles (such as angles, channels and beams) and OHTL hardware fittings and accessories (such as insulator string fittings, jumper tubes, suspension clamps and vibration dampers). Its diverse product portfolio makes it as a one-stop show for solar structures (fixed-tilt and trackers).

Of the FY26 revenue from operations, about 78.99% is from solar energy products, 6.35% from lattice towers for transmission line, 2.05% for angular towers for wind turbines, 1.08% for tubular tower for wind turbines, 5.42% for fasteners and 6.11% for others (including OHTL hardware fittings & accessories, job work etc). Of the FY26 revenue, 82.12% is from sale of renewable products.

The company has a wide geographical footprint with a global delivery model, with exports to over 50 countries cumulatively as of March 31, 2026, across North America, Europe, Asia, Africa, Australia and Latin America. It have built a strong customer base of international customers, including original equipment manufacturers (“OEMs”) and engineering, procurement and construction (“EPC”) companies and independent power producers (“IPPs”). It serves 16 of the top 24 EPC companies in the United States (in terms of installed capacity totaling to approximately 233 GW) as of March 31, 2026. The company is one of the largest exporters of solar products from India to North America in Fiscal 2025. Of the FY26 revenue from operations, 59.48% is from domestic market and 40.52% is from exports. Of the 40.52% revenue share of exports 34.48% is from United States of America, 3.88% from Europe, 2.16% from rest of the world.

The company operates 13 manufacturing units (eight in the state of Maharashtra, 4 in Gujarat and one in Italy). The aggregate capacity of 12 manufacturing units in India excluding its galvanizing capacity is 889,200 MTPA (including 492,000 MTPA for solar products equivalent to approximately 16.81 GW) and its Italy manufacturing unit has a capacity to products OHTL hardware fitting and accessories of 480,000 pieces as of March 31, 2026.

The manufacturing operations of the company are well backward integrated. It is one of the few product manufacturers to operate in-house galvanizing facilities, which is also the largest installed capacity in the solar energy sector in India with a capacity of 276,800 MTPA as of March 31, 2026. The company also has two in-house rolling mill furnaces to manufacture various grades of structural steel for a wide range of products, including angles, channels and beams used across the solar energy and transmission industries.

The company is an approved supplier and critical partner to many of the leading solar energy companies in the world and have also been successful in getting repeat business from certain customers, including domestic customers such as Gamechange Solar Services India Pvt Ltd and Waaree Renewable Technologies Limited, and international customers such as Soltec Energias Renovables, SLU, Elecnor Servicios Y Proyectos S.A.U. and Al Babtain Power & Telecommunication Co.

The company is currently in the process of undertaking or intends to undertake capacity expansion of its manufacturing and galvanizing facilities to enhance its production capabilities and product offerings.

At an capital outlay of Rs 35 crore it is in the process of setting up a new structural steel profile manufacturing facility in Taluka Bhachau, Kutch, Gujarat, in addition to its existing structural steel profile manufacturing capacity at Unit Profiles, located at Palghar, Maharashtra and the new manufacturing facility will be operations during FY27. Additionally it intends to set up a new manufacturing facility in Tarapur, Palghar, Maharashtra to produce solar stamping parts at a capital outlay of Rs 44.18 crore and the new facility is expected to commence operations during FY27. Further, it intends to enter into the business of battery energy storage systems (“BESS”) through its wholly owned subsidiary (being Karamtara Green Energy Limited (“KGEL”)) that was incorporated in May 2025. In addition, it intends to set up manufacturing facilities for prefabricated engineered building (“PEB”) structures in Taluka Bhachau in Kutch, Gujarat by Fiscal 2028.

The company has entered into a share purchase agreement dated November 18, 2024 with Clean Max Enviro Energy Solutions Private Limited to acquire a 26.00% shareholding in a special purpose vehicle, namely, Clean Max Ame Private Limited (“Clean Max SPV”) to set up wind and solar power plants in India. One solar project has commenced operations as of the date of this Red Herring Prospectus, and the power generated from such plants is being used for its captive consumption under an energy supply agreement dated December 13, 2024 executed between the company and Clean Max SPV. The supply of solar electricity under such agreement commenced in April 2026.

The issue, Objects of the issue

The offer comprises fresh issue of equity shares of Rs 10 each aggregating to Rs 675 crore and an offer for sale of equity shares aggregating to Rs 200 crore by promoters [Rs 100 crore each by Tanveer Singh and Rajiv Singh].

Of the net proceeds from fresh issue, the company intends to use Rs 600 crore towards prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by the company; and balance towards general corporate purposes.

Outstanding borrowings as of end of July 31, 2026, stood at Rs 1344.496 crore.

Strengths

Largest integrated manufacturer in India for solar mounting structures and tracker components

Diverse product offerings acting as a one-stop shop for solar structures (fixed-tilt and trackers)

Extensive global footprint with a track record of exports to over 50 countries

Established relationships with global customers and high customer retention. Top ten customers for solar energy products as of March 31, 2026 have been associated with the company for an average term of approximately three years.

The company is an approved supplier and critical partner to many of the leading solar energy companies in the world

Weaknesses

Derive a substantial portion of its revenue from the sale of products to the solar industry and thus any adverse trend in the solar energy industry could have a material adverse effect on the business.

Of the FY26 revenue, top ten customers accounted for 48.63%, top 3 accounted for 21.01% and the largest customer 7.98% thus signaling significant customer concentration.

Manufacturing activities of the company is concentrated in both Maharashtra and Gujarat.

Changes in international trade policies, geopolitics and trade tariffs, export controls, economic or trade sanctions may materially and adversely affect the business. USA accounted for 34.48% of revenue in FY26 and thus any change in EXIM policy of that country will impact the business of the company.

Have certain instances of delays in payment of statutory dues by the company in the past.

Have limited experience in the manufacturing of tubular towers for wind turbines, angular towers, solar stamping parts, prefabricated engineered building structures and battery energy storage systems.

Several complaints have been received in relation to a sub-judice dispute relating to the property underlying one of its manufacturing facilities, Unit OHTL Fittings.

Valuation

Consolidated re-stated revenue in FY2026 stood higher by 37% to Rs 4311.98 crore. With OPM expanding by 60 bps to 11.6%, the growth of OP was 44% to Rs 498.12 crore. Finally, net profit after MI was higher by 64% to Rs 228.75 crore.

On the expanded equity, the EPS for FY2026 was Rs 7.1. On the upper price band, the PE works out to 35.8 times of its FY26 EPS. P/BV stood at 4.3 times and EV/Sales stood 2.1 times. ROE stands at 8.98%.

Repayment of Rs 600 crore from net proceeds will bring the borrowings down by about 44.63%, resulting in lower interest outgo. EPS for FY26 works out to Rs 9.1 if 44.63% of its interest cost is removed, keeping all other items, including tax rate, same. The reworked PE stood at 27.9 times.

In comparison, though not comparable of its size, KP Green Engineering that is into manufacturing of solar module mounted structures and trackers as well as transmission-line/telecom/windmill towers quotes at a PE of 10.3 times. It ROE and OPM for FY26 was 29.68% and 19.7%. Pennar Industries and Goodluck India that also have presence in solar support structures quotes at a PE of 17.2 times and 26.4 times respectively. The ROE and OPM of FY26 for Pennar Industries was 11.93% and 9.8%, for Goodluck it was 12.01% and 9.7%.