Shellz India Limited IPO

Shellz India Limited IPO is open till 19 Oct 2026. Price band ₹170–₹179, lot 800 shares, GMP +₹0 (0%). Check dates and allotment, and apply for your whole family on Allotly.

About Shellz India Limited

Shellz manufactures and markets confectionery products and supplies food and bakery ingredients. Its product portfolio includes over 300 stock keeping units (SKUs) across categories such as baked treats, chocolates, jellies, panned confectionery and sugar confectionery. The company markets its consumer products under the brands Hugs and Tosca. It also manufactures products under private labels for third-party customers and exports to markets in the Middle East, South Asia, and Europe. In addition, it supplies non-branded food and bakery ingredients. The company operates through a distribution network of over 300 super stockists, with its products available across retail outlets in around 24 states in India as of March 31, 2026. Its manufacturing facilities are located in Delhi and Sonipat, Haryana. The Sonipat facility is being developed to consolidate and expand existing operations and…

Strengths

• Shellz offers products across categories such as baked treats, choco delights, jellies, panned confectionery and sugar candies. It has developed products such as Dip Sticks, which combine biscuit sticks with chocolate cream, and Push Up, a cone-based cream and biscuit snack. Its Tosca brand also includes Tosca Oat Choco, an oat and cereal-based product.
• A majority of the company’s SKUs are priced at Rs 10 or below. Its products cater to mass-market consumers across different consumption occasions, while the Tosca brand targets the relatively higher-priced mass-premium segment.
• As of March 31, 2026, Shellz had a network of over 300 super stockists, with its products available across retail outlets in around 24 states in India. Its distribution model relies on super stockists and distributors to reach urban, semi-urban and rural markets.
• The company manufactures its consumer products in-house at its production facilities in Delhi and Sonipat, Haryana. It claims that its manufacturing setup supports multiple confectionery categories and formats, with machinery sourced from countries including Turkey, China, and Indonesia. The Sonipat facility is being developed to consolidate existing operations and expand production capacity.
• Shellz claims to have a team of food and packaging technologists involved in product formulation, ingredient selection, product trials, and packaging design. Its product development process includes evaluating taste, stability, manufacturability, and shelf life before commercialisation.
• The company has witnessed a consistent increase in its revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 162.41 crore in FY24 to Rs 186.97 crore in FY25 and Rs 192.61 crore in FY26. PAT increased from Rs 5.25 crore in FY24 to Rs 8.30 crore in FY25 and Rs 13.37 crore in FY26.

Risks

• The company, its subsidiaries, group companies, promoters, directors, key managerial personnel and senior managerial personnel are involved in certain ongoing legal proceedings. Any adverse decisions in these cases could negatively affect the company’s business, results of operations, cash flows and financial condition.
• The company has faced litigation involving vendors and suppliers, including cases related to unpaid dues and cheque dishonour. It does not have long-term supply agreements with most suppliers and sourced raw materials from 132 suppliers in the three months ended June 30, 2026, 249 suppliers in FY26, 218 suppliers in FY25 and 212 suppliers in FY24. Any disruption in supplier relationships or raw material procurement could affect its manufacturing operations and financial performance.
• The company recorded negative cash flows from operating activities of Rs 11.30 crore in FY26 and negative cash flows from investing activities of Rs 12.43 crore in the three months ended June 30, 2026, Rs 7.02 crore in FY26, Rs 30.53 crore in FY25, and Rs 3.93 crore in FY24. Negative operating cash flow in FY26 was primarily due to advance payments of Rs 26.77 crore to suppliers, while negative investing cash flow in the three months ended June 30, 2026, was mainly due to fixed asset purchases of Rs 12.45 crore for the new manufacturing facility at Sonipat. If negative cash flows persist, the company may struggle to fund its operations and implement its growth plans.
• The company’s cost of materials consumed stood at Rs 35.05 crore, Rs 128.25 crore, Rs 156.90 crore, and Rs 141.63 crore in the three months ended June 30, 2026, FY26, FY25, and FY24, respectively. These costs accounted for 84.27%, 73.76%, 89.77%, and 91.47% of total expenses in the respective periods. Any increase in raw material prices that the company cannot pass on to customers could put pressure on its profit margins.
• The company had contingent liabilities of Rs 24.87 crore as of June 30, 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 109.49 crore as of June 30, 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 53.89 crore as of June 30, 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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