Seshaasai Technologies IPO

It is recognized as one of the top two payment card manufacturers in India. Its market share in Indian credit and debit card issuance reached 31.9% in FY25, demonstrating consistent growth from 25.0% in FY23.

Its profitability has improved significantly, with the EBITDA Margin increasing by 7.15% (from 17.98% in FY23 to 25.13% in FY25). Gross Profit Margin stood strong at 41.82% in FY25.

It maintains deep customer loyalty, proven by relationships over five years, contributing to 75.54% of its total revenue in FY25. Its average relationship tenure with banking customers is 7.3 years.

It has significantly improved its financial leverage; the Net Debt to EBITDA ratio improved from 1.18 times in FY23 to 0.64 times in FY25. The Net Debt to Equity ratio is now 0.37 times.

Its profit after tax (PAT) shows strong expansion, growing at a CAGR of 43.41% from ₹108.1 crore in FY23 to ₹222.3 crore in FY25. This growth resulted in the PAT Margin improving to 15.1%.

It operates 24 multi-location manufacturing units with an installed capacity to produce over 4.7 lakh cards daily as of March 31, 2025. It is also one of the few approved vendors for metal, sustainable, and biometric cards.

It relies heavily on a few clients; revenue from its top 10 customers accounted for 65.77% of total revenue in FY25. Loss of its single largest customer, which contributed 17% of revenue, would severely impact results.

Its revenue is heavily concentrated in one sector, with the BFSI industry accounting for 83.78% of its revenue from operations in FY25. A decline in demand or adverse regulatory changes in the BFSI sector would significantly reduce revenue.

It carries outstanding borrowings totaling ₹336.75 crore as of June 30, 2025. An inability to comply with repayment and other debt covenants could increase borrowing costs and negatively affect its financial position and cash flows.

As it handles sensitive end-consumer data, it faces inherent risks from IT system failure or security breaches. Any lapse could result in legal penalties, loss of customer trust, and severe reputational damage.

Operations rely on the timely supply of raw materials like chip modules. The top 10 suppliers contributed 57.63% of the cost of raw materials consumed in FY25, meaning supply failures or price hikes pose a major business risk.