Powerica Ltd IPO

Established position in the generator set market.

Collaborations and alliances with established industry players.

Strong technical and execution capabilities.

Experienced and proven management team.

Balanced business portfolio with strong financial performance.

The company is significantly dependent on its Generator Set Business, which contributed 85.00%, 86.30%, and 82.79% of the companys revenue from operations in Fiscals 2025, 2024 and 2023, respectively. Any negative developments affecting the companys Generator Set Business could have a material adverse impact on its business, financial condition, results of operations and prospects.

The company relies on its business collaborations, including with Cummins for engines and alternators for the companys DG sets. Revenue from sale of DG sets powered by Cummins engines accounted for 70.39%, 71.04% and 56.77% of its revenue from operations for Fiscals 2025, 2024 and 2023, respectively. Similarly, the company relies on Hyundai for the supply of MSLG sets. Any supply disruption from such partners could adversely impact the companys business and results of operations.

The independent power producer (IPP) operations in our Wind Power Business which contributed 7.56%, 9.90% and 8.76% of the companys total revenue from operations for Fiscals 2025, 2024 and 2023, respectively, rely on key relationships with OEMs to facilitate supply of components and effective O&M services across most of its Operational Wind Power Projects, as well as for future IPP developments. Any deterioration in these relationships, or performance or financial failure of our OEMs, could adversely affect the companys business, results of operations, and financial condition.

The company has historically relied, and may continue to relies, on Cummins India and the companys top five suppliers for a significant portion of its materials and components. If these key suppliers fails to deliver the required quantities, meet delivery schedules, or adhere to specified quality standards or technical specifications, the companys business operations and financial condition could be adversely affected.

The company is dependents on its power purchase agreements (PPAs) to sell power and generate the companys revenue from operations. Furthermore, the terms of our PPAs may expose us to certain risks that may affect its future results of operations and cash flows.

Some of the land lease agreements for the companys wind power projects have shorter terms than the corresponding power purchase agreements (PPAs) entered into for the respective projects. The expiry and non-renewal of such land lease agreements prior to the end of the relevant PPA could potentially result in the premature termination of the corresponding PPA, which may have a material adverse effect on its business, cash flows, financial condition and results of operations.

The performance of the companys Operational Wind Power Projects is significantly affected by seasonality, regulatory requirements, and environmental and physical conditions, all of which are subject to variability and unpredictability. Any adverse changes to these may negatively impact its business, financial condition, results of operations, and cash flows.

The company is exposed to credit risk from its customers and the recoverability of the companys trade receivables is subject to uncertainties. Delays or defaults in payment by the customers could adversely affect its business, results of operations, financial condition and cash flows.

The companys Generator Set Business is heavily dependent on the performance of the diesel generator set market in southern India and western India, particularly the markets in the states of Maharashtra, Karnataka, Tamil Nadu and Kerala, and any adverse changes in the conditions affecting these markets could adversely affect its business, results of operations and financial condition.

If power evacuation facilities are not made available by the time the companys IPP power projects are ready to commence operations, the company may incur significant transmission costs or may be forced to back down from the grid, and its operations could be adversely affected.