Electromech Infraprojects IPO

Electromech Infraprojects Limited IPO is a book-built issue comprising a fresh issue of ₹326.00 crore and an offer for sale (OFS) of up to 18.91 lakh equity shares.

The equity shares are proposed to be listed on the NSE and BSE. Arihant Capital Markets Limited is the book-running lead manager, while Bigshare Services Private Limited is the registrar to the issue.

Key details, including the IPO dates, price band, and lot size, are yet to be announced.

Industry Outlook

• India’s data centre IT load capacity is projected to grow at 30-32% CAGR, from 1,550-1,650 MW in FY26 to 4,800-5,200 MW by FY30.
• Data centre construction capex in India is expected to increase 5x-6x, from ₹778 billion during FY22-FY26 to ₹3,900-4,300 billion during FY27-FY31.
• AI workloads are projected to rise from 5-10% of installed data centre capacity in FY26 to 35-40% by FY30, increasing demand for high-density power and advanced cooling systems.
• AI-ready data centres require 20-50+ kW per rack, compared with 3-7 kW for traditional facilities, with development costs of USD 8-10 million per MW versus USD 5-7 million for traditional data centres.
• MEP systems account for 70-75% of total data centre construction expenditure in India, making them a major component of project costs.
• GCC data centre capacity is projected to grow at 25-28% CAGR, reaching 2,100-2,400 MW by CY30, with construction capex estimated at USD 25-30 billion during CY26-CY30.
• MEP products and services account for 60-70% of GCC data centre project expenditure.
• India’s GCC count is projected to exceed 2,100 by the end of 2026, supporting demand for specialised commercial MEP services.
• MEP systems account for around 35-40% of industrial construction capex, with demand also supported by oil and gas, semiconductor, EV battery, and electronics manufacturing projects.
• India’s electrical control panel market is projected to grow from ₹59.6 billion in FY26 to ₹81-84 billion by FY30, with LV panels accounting for 65-67% of the market.
• Adoption of DfMA modular prefabrication is increasing in hyperscale data centres, with factory-assembled systems helping support faster execution within 12-18-month project timelines.

About Electromech Infraprojects Limited

Electromech Infraprojects Limited is a mission-critical Mechanical, Electrical, and Plumbing (MEP) solutions provider serving India’s digital infrastructure sector, with an expanding presence in international markets. The company provides design, engineering, execution, testing, commissioning, and maintenance services for mission-critical infrastructure.

The company’s capabilities cover electrical, mechanical, civil, and interior fit-out works. Its electrical services include High Voltage (HV), Low Voltage (LV), and Extra-Low Voltage (ELV) systems, while its mechanical services cover Heating, Ventilation, and Air-Conditioning (HVAC), fire protection, and public health engineering. It also undertakes civil and interior fit-outs for data centres and other mission-critical facilities.

Since incorporation, Electromech Infraprojects has completed more than 500 projects across data centres and AI facilities, Global Capability Centres (GCCs), and commercial and industrial establishments. Data centres and AI facilities are its primary focus, with completed projects covering IT loads of 2 MW to 24 MW and ongoing projects of up to 48 MW.

Between Fiscal 2022 and Fiscal 2026, the company executed MEP works for nearly 135 MW of data centre capacity in India. Its industrial and commercial projects include facilities in refining and petrochemicals, pharmaceuticals, cable manufacturing, warehousing, and emerging sectors such as semiconductor and battery manufacturing.

The company has developed in-house capabilities through its subsidiaries to support project execution. Sinerco Power Systems Private Limited assembles and tests electrical panels, while Jika EPC Services Limited provides Design for Manufacturing and Assembly (DfMA) modular prefabrication solutions. Its UAE-based subsidiary, Electromech Global Holdings Ltd, supports expansion into the Middle East and GCC markets.

Financial Performance of Electromech Infraprojects Limited 

Electromech Infraprojects Peer Comparison 

Strengths and Opportunities of Electromech Infraprojects IPO

1. Leadership in Digital Infrastructure MEP: Data centres typically have higher MEP requirements than conventional buildings due to power redundancy, precision cooling, and uptime requirements. Electromech Infraprojects has delivered MEP services for nearly 135 MW of India’s incremental data centre capacity added between Fiscal 2022 and Fiscal 2026.
2. Integrated Turnkey Execution: The company provides electrical, mechanical, fire protection, civil, and interior fit-out services under a single execution model. It has completed more than 500 projects with a track record of zero fatalities and major safety incidents.
3. High Entry Barriers and Repeat Customers: Client pre-qualification, OEM certifications, and technical audits create entry barriers in the mission-critical MEP segment. Repeat customers contributed 95% of the company’s Fiscal 2026 revenue.
4. Backward Integration: Through subsidiaries Sinerco and Jika, the company has in-house capabilities for electrical panel assembly and DfMA modular prefabrication, helping reduce vendor dependence and support project execution.
5. Data Centre and AI Infrastructure Growth
6. Data centre development in India is expected to see substantial capital expenditure growth during Fiscals 2027-2031. The increasing use of AI workloads is also expected to drive demand for specialised cooling and power infrastructure.
7. Expansion into the GCC Market: Through its UAE subsidiary, Electromech Global Holdings Ltd, the company is expanding into the Middle East. The GCC data centre market offers opportunities as investments in data centre infrastructure and associated MEP systems increase.

Risks and Threats of Electromech Infraprojects IPO

1. High Client Concentration: The top 3 clients contributed 63.38% and the top 5 clients contributed 75.03% of revenue from operations in Fiscal 2026. The loss of a key client or a reduction in its capital expenditure could affect the company’s revenue.
2. Single-Project Concentration: A 48 MW data centre project in Telangana for a global AI data centre operator accounts for 68.05% of the total value of the company’s top 10 ongoing projects as of March 31, 2026. Any delay, cancellation, or payment dispute could materially affect project execution and revenue.
3. Working Capital Requirements: MEP projects require upfront spending on mobilisation, materials, and labour before milestone-based payments are received. The company also requires bank guarantee facilities for project-related obligations.
4. Lump-Sum Contract Risk: The company executes contracts on lump-sum or item-rate bases, generally without price escalation clauses. Changes in raw material costs or project delays could put pressure on margins and increase the risk of liquidated damages.
5. Intense Competition: The company faces competition from large EPC companies, specialist MEP contractors, regional players, and prefabrication manufacturers. Competitive bidding may put pressure on pricing and margins.
6. Supply Chain Dependency: The company depends on third-party suppliers for key materials and equipment, with its top 10 suppliers accounting for 32.02% of raw material costs in Fiscal 2026. Procurement delays or supply chain disruptions could affect project timelines.

Electromech Infraprojects IPO Reservation