Sky Alloys and Power IPO

Operates an integrated value chain producing Sponge Iron (1,20,000 MTPA capacity), MS Billets (1,00,000 MTPA capacity), and value-added TMT bars (95,000 MTPA capacity), alongside a 30,000 MTPA Ferro Alloys unit at Raigarh, Chhattisgarh. 

Significant captive power generation via Atmospheric Fluidised Bed Combustion (12 MW) and Waste Heat Recovery Boilers (8 MW), which accounted for 85.88% of net power consumed during the 9 months ended December 31, 2025 (and 43.61% in Fiscal 2025), significantly mitigating external energy dependency. 

Flagship brand "SKY TMT" (launched in 2024) is approved as a preferred brand for public infrastructure projects undertaken by the Madhya Pradesh Public Works Department and Madhya Pradesh Housing & Infrastructure Development Board. 

In Fiscal 2025, manufactured TMT Bars contributed 36.39% (₹298.08 crore) of revenue, MS Billets contributed 21.02% (₹172.19 crore), Sponge Iron contributed 9.09% (₹74.48 crore), and Ferro Alloys accounted for 3.57% (₹29.26 crore). 

Manufacturing operations in Raigarh provide close proximity to primary raw material hubs (iron ore, coal, and dolomite from Chhattisgarh and Odisha), supported by direct Fuel Supply Agreements (FSAs) with South Eastern Coalfields Limited (34.51% of coal purchases in 9M FY26) and Mahanadi Coalfields Limited. 

Rapid scaling of high-margin OEM and Project client sales channels, which grew to ₹23.60 crore and ₹29.75 crore respectively in the 9-month period ended December 31, 2025, compared to nil OEM sales prior to Fiscal 2025. 

Rising domestic consumption of TMT bars, forecasted by CRISIL to expand at a CAGR of 9% to 10% through Fiscal 2030 (reaching over 39.60 MT recorded in FY23), underpinned by residential housing and central infrastructure projects like Bharatmala Pariyojana and PM Gati Shakti. 

Projected scrap supply constraints and higher scrap prices in Fiscal 2026 driven by EU and US tariff-rate quotas, incentivising secondary steel producers to increase solid-state DRI (sponge iron) feedstock consumption. 

The company, its promoters, and erstwhile directors face pending direct tax disputes arising from past Income-tax Department search and seizure operations, including matters contested before the High Court of Chhattisgarh and appellate authorities. 

The top 10 customers accounted for 33.15% of revenue in the 9-month period ended December 31, 2025 (and up to 39.87% in FY23), while the top 10 raw material suppliers contributed 45.62% of purchases. 

Sales of Sponge Iron, Billets, and Ferro Alloys are conducted on an order-to-order B2B basis without long-term commitments, and major raw materials (excluding coal FSAs) are procured on a spot basis, exposing margins to price swings. 

The company’s sole operational manufacturing unit is situated in Raigarh, Chhattisgarh, making overall performance vulnerable to local disruptions, utility failures, or regional policy shifts. 

Time and cost overrun risks remain associated with implementing captive solar plants, particularly the 22 MWp Mopka Solar Power Plant where multiple regulatory approvals and grid connectivity clearances are still pending. 

Working capital days increased to 40 days for the 9 months ended December 31, 2025, driven by higher raw material inventory and trade receivables. 

Steel prices and demand are cyclical and heavily dependent on economic activity in end-use segments such as infrastructure, real estate, and automotive. 

Steel manufacturing operations depend on volatile commodities (iron ore, coking/non-coking coal, scrap, and manganese ore) and high power and water consumption; sustained spikes in input costs cannot always be passed on to customers immediately.