INOX Air Products IPO

INOX Air Products Limited IPO is a Book Build Issue consisting entirely of an Offer for Sale of up to 7.72 crore shares.

The equity shares are proposed to be listed on the NSE and BSE. Kotak Mahindra Capital Company Limited is the book running lead manager and MUFG Intime India Private Limited is the registrar of the issue. Key details like IPO dates, IPO price bands, and lot size are yet to be announced.

About INOX Air Products Limited

INOX Air Products Limited was incorporated in 1963 as Industrial Oxygen Company Private Limited and subsequently changed its name to INOX Air Products Limited in 1999 following a strategic alliance with Air Products and Chemicals, Inc. The company has evolved into an integrated industrial gases platform with operations spanning onsite, merchant, and packaged gases, supported by a nationwide operating network.

The company is engaged in the production and supply of industrial, medical, and specialty gases and provides related solutions to customers across a wide range of industries. Its product portfolio includes oxygen, nitrogen, argon, hydrogen, carbon dioxide, specialty gases, and other industrial and medical gases. The company operates through multiple business models, including onsite gas production facilities located at or near customer premises, merchant supply of gases through bulk and packaged formats, and related gas supply and distribution infrastructure.

INOX Air Products has a diversified customer base across key sectors of India's industrial gases value chain, including steel, metals, chemicals, petrochemicals, refining, healthcare, automotive, glass, food and beverage, and other manufacturing industries. The company has established long-standing customer relationships and benefits from contracted and recurring revenue streams, particularly through its onsite gas supply arrangements and long-term customer contracts.

As of Fiscal 2026, the company operated across 57 locations, compared with 53 locations in Fiscal 2025 and 49 locations in Fiscal 2024. Its total operational capacity stood at 16,074 tonnes per day for onsite operations and 5,106 tonnes per day for merchant operations in Fiscal 2026. The company also had 1,679 bulk customer installations and owned 739 transport tankers as of March 31, 2026, supporting its gas production, storage, and distribution capabilities.

INOX Air Products has a strong position across key sectors of India's industrial gases value chain and has highlighted its leading market share as one of its key strengths. The company operates an integrated platform combining gas production, storage, transportation, and supply, enabling it to serve customers through multiple delivery models. Its operational scale and supply infrastructure provide it with the ability to cater to large industrial customers requiring reliable and continuous gas supplies.

The company has demonstrated strong financial and operating performance, with revenue from operations increasing from ₹25,899.35 million in Fiscal 2024 to ₹27,897.81 million in Fiscal 2025 and ₹30,339.28 million in Fiscal 2026. EBITDA increased from ₹13,311.21 million to ₹15,196.47 million and ₹16,477.85 million over the same period, while profit for the year increased from ₹7,656.86 million in Fiscal 2024 to ₹9,138.70 million in Fiscal 2026. Its EBITDA margin also improved from 47.99% in Fiscal 2024 to 51.29% in Fiscal 2026.

The company has established capabilities in project execution, operational excellence, and supply chain management, supported by its extensive network of operating locations, bulk customer installations, and transportation infrastructure. Its strengths also include a contracted revenue base, cost-efficiency initiatives, long-standing customer relationships backed by long-term contracts, and the experience and corporate lineage of the INOX and Air Products groups.

Industry Outlook

• India’s industrial gases market is expected to grow at 9–12% CAGR between Fiscal 2026 and Fiscal 2032, significantly outpacing the estimated 4–6% CAGR for the global market. The overall Indian market is projected to increase from ₹1,60,908 million in Fiscal 2026 to ₹2,68,000–₹3,10,000 million by Fiscal 2032.
• The non-captive industrial gases market is expected to grow even faster at 10–12% CAGR during Fiscal 2026–2032. Its market value is projected to rise from approximately ₹1,35,161 million in Fiscal 2026 to ₹2,40,000–₹2,60,000 million by Fiscal 2032, driven by manufacturing expansion and increasing outsourced gas requirements.
• Industrial gases are closely linked to India's manufacturing and GDP growth, as oxygen, nitrogen, hydrogen, and argon are essential inputs across steel, metals, chemicals, pharmaceuticals, automotive, electronics, and engineering. The DRHP notes that India's industrial gases sector grew at nearly twice the country's GDP growth rate over Fiscals 2021–2025.
• Steel is expected to remain a key demand anchor, supported by India's National Steel Policy target of 300 million tonnes of installed steel capacity by Fiscal 2030. Expansion in steel production is expected to increase demand for oxygen and nitrogen, particularly through large-scale onsite air separation units.
• Hydrogen represents one of the fastest growing opportunities within the industry. India's hydrogen market is projected to grow at 13–15% CAGR by value between Fiscal 2026 and Fiscal 2032, compared with 9–12% for the overall industrial gases market. The National Green Hydrogen Mission's target of 5 million tonnes of annual green hydrogen production by 2030 could create additional demand for electrolysis, oxygen handling, and high-pressure gas infrastructure.
• Emerging high-technology sectors are creating new demand for high-purity and specialty gases. Semiconductor fabrication, outsourced semiconductor assembly and testing, solar cell manufacturing, and advanced electronics require ultra-high-purity nitrogen, argon, and other specialty gases. The DRHP expects these applications to provide significant growth and import-substitution opportunities.
• The healthcare, food processing, and cold-chain sectors provide relatively stable sources of demand. Medical oxygen consumption is expected to remain supported by expanding healthcare infrastructure, while nitrogen and carbon dioxide demand is expected to benefit food processing, refrigeration, carbonation, and cold-chain applications.

INOX Air Products IPO Objectives

The INOX Air Products Limited IPO is a 100% Offer for Sale (OFS), so the company will not receive any funding, and the entire IPO proceeds will go to the selling shareholders.

Financial Performance of INOX Air Products Limited

INOX Air Products Limited Peer Details Comparison 

Strengths and Opportunities of INOX Air Products IPO

1. INOX Air Products is India’s largest integrated industrial, medical, electronic, and specialty gases company by revenue, with a 22.4% market share in Fiscal 2026. It held a 31.0% market share in Merchant gases and approximately 17.8% in On-site gases, providing a strong competitive position.
2. The company serves 20+ industries through On-site, Merchant, and Packaged & Specialty Gas models. In Fiscal 2026, Merchant, On-site, and Packaged & Specialty Gases contributed 58.55%, 28.69%, and 12.76% of revenue, while the top 10 customers accounted for only 31.60% of revenue.
3. On-site contracts generally have initial tenures of 15–20 years, with take-or-pay provisions, minimum purchase requirements, and price-escalation clauses. Revenue from On-site long-term contracts stood at ₹870.30 crore, or 28.69% of Fiscal 2026 revenue, supporting revenue and earnings visibility.
4. The company operated 57 locations, 739 cryogenic tankers, and approximately 140,000 cylinders as of March 31, 2026. Its Merchant business had 5,106 tonnes per day of capacity across 28 dedicated locations, while its geographically diversified network provides supply redundancy and a significant logistics advantage.
5. Revenue from operations increased from ₹2,589.94 crore in Fiscal 2024 to ₹3,033.93 crore in Fiscal 2026, while EBITDA margin improved from 47.99% to 51.29%. Profit after tax reached ₹913.87 crore in Fiscal 2026, with net cash generated from operations of approximately ₹1,264.24 crore.
6. The Indian industrial gases market is projected to grow at 9–12% CAGR between Fiscal 2026 and Fiscal 2032, driven by demand from steel, pharmaceuticals, manufacturing, defence, chemicals, healthcare, energy, and electronics. INOX's established market positions provide a strong platform to capture this industry expansion.

Risks and Threats of INOX Air Products IPO

1. Top 5 customers contributed 25.94% and top 10 customers 31.60% of FY26 revenue. Around 76% of gas production capacity was operated through On-site facilities at customer premises, creating exposure to customer shutdowns, non-renewals, and reduced offtake.
2. Power and fuel expenses were ₹674.15 crore in FY26, equivalent to 22.22% of revenue from operations. Any disruption or increase in power, natural gas, diesel, or water costs that cannot be fully passed on could pressure margins.
3. Steel, healthcare/pharmaceutical, and automotive together contributed 57.26% of FY26 revenue. Steel alone accounted for 40.59%, while 92.56% of On-site gas supply capacity catered to the steel industry, exposing the company to sector-specific downturns.
4. The industrial and medical gases industry is highly competitive, particularly in Merchant supply, tenders, and new On-site projects. Aggressive bids, lower pricing, and limited cost pass-through could reduce margins, market share, and contract wins.
5. Expansion into semiconductors, solar, specialty gases, green hydrogen, and green ammonia requires significant investment and technical capabilities. Delays in customer projects, regulatory approvals, technology performance, or adoption could reduce expected returns from these initiatives.
6. The company operates a specialised fleet of 739 cryogenic tankers, with transportation and outward freight charges of ₹259.12 crore in FY26, or 8.54% of revenue. Accidents, breakdowns, regulatory restrictions, fuel costs, or third-party transporter failures could disrupt deliveries and increase costs.
7. Overall manufacturing capacity utilisation declined from 91.71% in FY24 to 82.90% in FY26, with oxygen utilisation at 80.24% and argon at 73.76%. Delays in new facilities or lower-than-expected demand could further reduce asset utilisation and returns.

INOX Air Products IPO Reservation