Airfloa Rail Technology Makes Stellar Debut with 90% Premium, Lists at ₹266 Following Exceptional Subscription

Airfloa Rail Technology Limited, the railway rolling stock components manufacturer, made a spectacular debut on the BSE SME on September 18, 2025. After closing its IPO bidding between September 11-15, 2025, the company commenced trading with an outstanding 90% premium at ₹266, significantly exceeding the issue price of ₹140 and reflecting exceptional investor confidence in the railway technology sector.

Airfloa Rail Technology Listing Details

Airfloa Rail Technology Limited launched its IPO at ₹140 per share with a minimum investment of 2,000 shares costing ₹2,80,000. The IPO received a phenomenal response with a subscription of 301.52 times - retail investors at an exceptional 330.31 times, NII at an outstanding 349.88 times, and QIB at a strong 214.65 times, indicating overwhelming investor enthusiasm across all categories with remarkable confidence in the railway components manufacturing business.

First-Day Trading Performance Outlook

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• Listing Price: Airfloa Rail Technology share price opened at ₹266 on BSE SME, representing a premium of 90% from the issue price of ₹140, delivering exceptional gains for investors and reflecting extraordinary market confidence in India's railway infrastructure modernisation story.

Growth Drivers and Challenges

Growth Drivers:

• Strategic Railway Positioning: Key supplier to Indian Railways, manufacturing high-precision rolling stock components and turnkey interior furnishings for prestigious projects, including Vande Bharat Express, Train-18, DEMU coaches, and metro systems.
• Strong Financial Performance: Revenue of ₹192.66 crore in FY25 with robust PAT of ₹25.55 crore, demonstrating strong operational efficiency and successful execution of railway infrastructure projects.
• Exceptional Profitability Metrics: Outstanding ROE of 30.64%, strong ROCE of 26.28%, healthy PAT margin of 13.28%, and robust EBITDA margin of 24.61% indicating superior operational performance and pricing power.
• Diversified Sector Presence: Multi-sector capabilities across railway, aerospace, and defence with ISO 9001:2015, EN 15085-2, and BMS certifications ensuring quality standards and regulatory compliance.

Challenges:

• Railway Sector Dependence: Heavy reliance on Indian Railways projects creates vulnerability to government spending cycles, policy changes, and railway infrastructure budget allocations, affecting order flow sustainability.
• Moderate Debt Levels: Debt-to-equity ratio of 0.54, indicating manageable but notable financial leverage requiring careful capital management and debt servicing obligations.
• Project Execution Risks: Large infrastructure projects are subject to delays, cost overruns, and specification changes, potentially impacting revenue recognition and profitability margins.
• Utilisation of IPO Proceeds
• Capacity Enhancement: ₹13.68 crore for capital expenditure towards the purchase of machinery and equipment, enhancing manufacturing capabilities and production efficiency.
• Debt Reduction: ₹6.00 crore for repayment of certain outstanding borrowings, improving financial flexibility and reducing interest burden.
• Working Capital: ₹59.27 crore for working capital requirements supporting large project execution, inventory management, and operational scaling.

Financial Performance of Airfloa Rail Technology

• Revenue: ₹192.66 crore for FY25, reflecting strong business execution and successful project delivery in the railway rolling stock components sector.
• Net Profit: ₹25.55 crore in FY25, representing solid profitability and operational efficiency in manufacturing high-precision railway components and interior systems.
• Financial Metrics: Outstanding ROE of 30.64%, strong ROCE of 26.28%, moderate debt-to-equity ratio of 0.54, healthy PAT margin of 13.28%, robust EBITDA margin of 24.61%, and estimated market capitalisation of ₹335.58 crore.