Papadmalji Agro Foods Limited IPO

Papadmalji Agro Foods Limited IPO closed on 1 Oct 2026. Allotment 5 Oct 2026, listing 7 Oct 2026. Price band ₹69–₹72, lot 1600 shares, GMP +₹0 (0%). Track allotment on Allotly.

About Papadmalji Agro Foods Limited

Papadmalji Agro Foods is a food products company headquartered in Bikaner, Rajasthan, engaged in the in-house manufacturing of hand-made and machine-made papads, ready-to-fry papads, rice papads (khichiya), vrat-special papads, and moongodi. The company also undertakes white-label manufacturing of hand-made papads for clients, who sell the products under their own brands and packaging. In addition, it trades in cereal pellets under its own brand. Its manufacturing facilities use semi-automated and automated machinery for dough preparation, sheeting, rolling, cutting, drying, and packaging. The company operates under five brands: Zhakaas, Vishal, Rozana, Diamond, and Papadmalji, covering different product categories and distribution channels. Its products are sold through general trade, modern trade, quick commerce platforms, and its direct-to-consumer website. Exports are done through…

Strengths

• The company had 76 distributors and 30 wholesalers as of March 31, 2026, covering 8,710 retail outlets across multiple states. Its distributor network covered 7,470 outlets, while wholesalers covered another 1,240 outlets across regions including Rajasthan, Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, and others.
• The company sells its products through multiple channels, including general trade, modern trade, quick commerce, its direct-to-consumer platform, and a merchant exporter. As of March 31, 2026, it was associated with seven modern trade channels, one quick commerce platform, and one merchant exporter serving the UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain.
• The company has a broad product portfolio covering different types of papads and related food products. Its offerings include handmade and machine-made papads, ready-to-fry papads, rice papads, vrat-special papads, cereal pellets, and moongodi, with multiple variants under each category.
• Handmade and machine-made papads together accounted for 69.19% of revenue from operations in FY26. Handmade papads contributed 41.33%, while machine-made papads contributed 27.86%. Rice papads (khichiya) contributed another 24.09% of revenue during the same period.
• The company claims to use semi-automated and automated machinery for several stages of machine-made papad production. Its processes include dough preparation, sheeting, rolling, cutting, drying, and packaging, while handmade papads are produced through a network of nine Bataras who coordinate home-based papad makers.
• The company has established a multi-brand portfolio covering different product categories and sales channels. Its brands include Zhakaas, Vishal, Rozana, Diamond, and Papadmalji, with products distributed through general trade, modern trade, quick commerce, merchant exporters, and its own direct-to-consumer platform.
• The company has a structured model for its handmade papad production involving women working through a network of Bataras. As of the prospectus date, nine Bataras managed the distribution of raw materials, collection of finished products, and quality control among home-based papad makers.
• The company has witnessed a consistent increase in its revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 26.27 crore in FY24 to Rs 31.75 crore in FY25 and Rs 33.53 crore in FY26. PAT increased from Rs 2.11 crore in FY24 to Rs 4.72 crore in FY25 and Rs 5.21 crore in FY26.

Risks

• The company is dependent on a limited number of customers, with its top 10 customers contributing Rs 15.41 crore (45.94%), Rs 21.99 crore (69.25%), and Rs 18.30 crore (69.65%) of revenue from operations in FY26, FY25, and FY24, respectively. Any loss, reduction, delay, or cancellation of orders from key customers could adversely affect the company’s revenue, cash flows, working capital cycle, and financial condition.
• The company depends on a limited number of suppliers for its raw materials, with its top 10 suppliers accounting for Rs 13.76 crore (61.02%), Rs 11.66 crore (54.29%), and Rs 14.58 crore (67.44%) of total purchases in FY26, FY25, and FY24, respectively. The company does not have long-term supply agreements with these suppliers and purchases key raw materials based on prevailing market prices and demand. Any disruption in supply or increase in raw material prices could affect its production volumes, cost structure, profitability, and financial performance.
• The company’s manufacturing units are concentrated in Bikaner, Rajasthan, exposing its operations to risks specific to the region. Extreme climatic conditions, water scarcity, natural disasters, infrastructure failures, transportation disruptions, regulatory changes, or socio-political disturbances in the area could disrupt production, delay deliveries, increase operating costs, and adversely affect the company’s business and financial condition.
• The company recorded negative cash flow from operating activities of Rs 2.75 crore in FY24, compared with positive cash flows of Rs 2.42 crore and Rs 0.56 crore in FY25 and FY26, respectively. The negative cash flow in FY24 was mainly due to an increase in inventory, short-term loans and advances, other current assets, and overdue trade receivables, which the company attributes largely to business growth during the year. Sustained positive operating cash flows are important to fund the company’s day-to-day operations and growth plans without having to borrow.
• The company had contingent liabilities of Rs 2.77 crore as of March 31, 2026. Any adverse outcome or materialisation of these liabilities could affect the company’s financial position, results of operations and cash flows.
• The company had outstanding financial indebtedness of Rs 13.79 crore as of August 31, 2026. Any failure to service or repay its borrowings on time could adversely affect the company’s business, financial condition, and cash flows.
• The company had trade receivables of Rs 3.44 crore as of March 31, 2026. Any delay or failure in collecting these receivables could increase working capital requirements and adversely affect the company’s cash flows and financial condition.

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