Infrax Renewable IPO

Rising Energy Demand: India’s energy demand is expected to grow faster than that of any other country, potentially reaching 15,820 TWh by 2040.  

Renewable Energy Growth: India had 250.52 GW of installed renewable energy capacity as of December 2025, making it the world’s third-largest renewable energy market.  

Shift Towards Non-Fossil Energy: Non-fossil sources accounted for 51.93% of India’s total installed power capacity as of December 2025, supporting the target of achieving 500 GW of non-fossil capacity by 2030.  

Solar Capacity Expansion: Solar power generation stood at 155,370.47 MU between April 2025 and February 2026, while installed solar capacity reached 143.60 GW by February 2026.  

State-Level Solar Development: Rajasthan, Gujarat and Maharashtra remain key contributors to solar capacity. Maharashtra has also approved 20,000 MW of renewable energy projects.  

Investment Requirement: India may require US$190–215 billion for renewable capacity additions by 2030, along with another US$150–170 billion for transmission, distribution and energy storage infrastructure.  

PM Surya Ghar Scheme: The rooftop solar programme targets installations across 1 crore households by FY27. More than 9.56 GW of rooftop solar capacity had been installed by March 2026.  

Domestic Solar Manufacturing: The PLI Scheme for High-Efficiency Solar PV Modules, including Tranche-II with an outlay of ₹19,500 crore, is supporting domestic manufacturing capacity.  

Policy Support: Measures such as the Electricity (Green Energy Open Access) Rules and the National Electricity Plan 2022–32 are supporting renewable energy adoption and grid integration.  

Decarbonisation: Renewable energy is projected to account for around 44% of power generation by 2030, while thermal power’s share is expected to decline to about 52%.  

Emerging Opportunities: The National Green Hydrogen Mission, targeting annual production of 5 million tonnes by 2030, along with Battery Energy Storage Systems (BESS), is expected to support India’s broader clean-energy transition. 

Turnkey EPC Capabilities: Executed and commissioned 5,708 solar projects worth over ₹8,743.95 lakh across residential rooftop and ground-mounted projects over the last three fiscal years.  

Growing Order Book: As of May 31, 2026, the company had an active order book of 1,756 projects valued at ₹3,582.72 lakh.  

Expanding Dealer Network: Its authorised dealer network increased from 720 in FY24 to 2,830 in FY26, while active customers rose from 670 to 3,134.  

IPP Business: Entered the Independent Power Producer segment in 2026 with a 1.2 MW solar power plant in Rajkot, Gujarat, backed by a long-term PPA with PGVCL.  

Strategic Distribution Network: Operates 3 warehouses in Rajkot, Ahmedabad and Kanpur, supported by branch offices across four states.  

Experienced Promoters: The promoter group has over 17 years of collective experience in the solar power sector.  

Backward Integration: The proposed manufacturing facility in Lodhika, Rajkot, is expected to reduce dependence on third-party suppliers and improve supply chain control.  

Geographical Expansion: With Gujarat contributing 97.41% of FY26 revenue, expansion into Uttar Pradesh, Madhya Pradesh, Rajasthan, Maharashtra and Telangana provides scope for geographic diversification.  

Government Policy Support: Its empanelment under the PM Surya Ghar: Muft Bijli Yojana provides access to opportunities in the growing rooftop solar segment.  

Wider Product Portfolio: Planned manufacturing of solar frames, mounting structures and solar panel recycling components could help the company expand beyond EPC and distribution activities. 

Machinery Orders Not Finalised: The company has only obtained quotations for key machinery for the proposed Lodhika facility and has not yet placed final orders, creating risks of project delays and cost increases.  

Pending Regulatory Approval: The proposed manufacturing facility is awaiting Consent to Establish approval from the Gujarat Pollution Control Board (GPCB).  

Capacity Utilisation Risk: If demand does not grow as expected, the new manufacturing capacities may remain underutilised and affect profitability.  

High Geographical Concentration: Gujarat contributed 97.41% of revenue from operations in FY26, exposing the company to regional economic, regulatory and natural-disaster risks.  

Supplier Concentration: The top 10 suppliers accounted for 65.86% of total purchases in FY26, while the company does not have long-term supply contracts with these suppliers.  

Working Capital Pressure: Solar EPC projects require upfront spending, while delays in customer payments could put pressure on working capital and cash flows. 

Pending SBI NOC: The company had not received the required No Objection Certificate from State Bank of India (SBI) for the proposed public offer and listing as of the draft prospectus date.  

Trademark Risk: The trademark application for the “INFRAX” brand and logo has been objected to by the Trade Marks Registry, creating uncertainty around its intellectual property protection.  

Limited Listed-Company Experience: None of the promoters or directors has prior experience as a director of a listed company, which may create challenges in managing listed-company compliance requirements.  

Government Policy Dependence: Demand is partly linked to government solar schemes and incentives. Changes or withdrawal of subsidies, incentives or net-metering policies could affect the company’s business. 

Infrax Renewable IPO DRHP 

Smart Horizon Capital Advisors Private Limited 

Contact Number: 8657578989/8069219065/8069219060 

Email Address: ipo@bigshareonline.com