Yogiji Digi IPO

Global economic growth is gradually shifting towards emerging markets, increasing their contribution to global industrial and manufacturing activity.  India is positioned as a key beneficiary of the “China + 1” strategy, supported by competitive labour costs, a large domestic market and favourable government policies.  

India’s manufacturing sector recorded an 11.1% CAGR in GVA from FY23 to FY26, highlighting its growing role in the domestic economy.  

The Union Budget 2026 has maintained focus on infrastructure and urban development, with an allocation of around ₹12.2 trillion. Investments in ports, high-speed rail corridors and other infrastructure projects are expected to support demand for flat steel products.  

Growth in infrastructure, power and manufacturing can also support demand for electrical steels such as CRGO and CRNGO, along with downstream steel applications.  

The flat steel value chain covers processes from slab to hot rolling, pickling, cold rolling and metallic or organic coating. Indian flat steel production is projected to reach 107-112 million tonnes per annum by FY31, implying a 7-9% CAGR.  

Construction and infrastructure account for around 50-55% of demand, followed by capital goods and manufacturing at 28-30%, and automotive at 10-15%.  

Domestic demand of Cold Rolled Steel is projected to reach 37-39 million tonnes by FY31, driven by automotive, consumer goods and industrial infrastructure.  

Coated Steel is expected to grow at 8-9% CAGR between FY26 and FY31, supported by pre-engineered buildings and demand for corrosion-resistant products. GI accounts for around 31-34%, while PPGI represents 19-22%.  

Specialised Electrical Steel demand is projected to rise to 3.2-3.3 million tonnes by FY31, driven by transformers, motors and electric vehicles. CRNO is expected to account for 77-82%, while CRGO represents 17-20%.  

The domestic process mills market, covering hot rolling mills, cold rolling mills, galvanising lines and colour coating lines, is projected to increase from ₹90,000-95,000 million during FY22-FY26 to ₹155,000-165,000 million during FY27-FY31.  

Cold Rolling Mills are expected to record the highest growth, at around 175-180%, followed by Galvanising Lines at 140-145%.  

The spares and aftermarket services market is projected to reach ₹70,000-75,000 million by FY31, providing a recurring revenue opportunity alongside new equipment orders.  

Working Capital: ₹140 crore will be used to meet the company’s working capital requirements and support order execution and deliveries.  

Debt Repayment: ₹45 crore will be used to prepay or repay part of the company’s outstanding borrowings. 

General Corporate Purposes: The remaining proceeds will be used for general corporate activities. 

Yogiji Digi provides end-to-end solutions covering mechanical design, heavy fabrication, electrical systems, automation, and software development. This in-house execution capability enables the company to deliver mills within around 9–10 months.  

The company provides domestically manufactured alternatives to equipment supplied by European and Japanese OEMs. In-house manufacturing of components such as mill housings, tension reels and paint coaters helps reduce lead times for customers.  

It has around 53% market share in India's Cold Rolling Mill (CRM) segment. Its share among independent flat steel manufacturers is estimated at 85–90%, reflecting high entry barriers in the segment.  

The company's DIGI-IMPACT AGC system supports precision rolling of thin-gauge steel. Its mills also have a lower reported carbon footprint, with cold rolling operations emitting around 59 kg of CO₂ per tonne of output, according to its EPD.  

The company has supplied equipment to major steel producers, including ArcelorMittal Nippon Steel, JSW Steel and Jindal Steel Odisha. Repeat customers contributed 77.41% of FY2026 revenue, while the order book stood at ₹1,313.04 crore as of May 31, 2026.  

India's target of increasing crude steel capacity to 300 million tonnes per annum by 2030 could create demand for downstream steel-processing equipment and related solutions.  

Steelmakers are increasingly expanding into galvanised, colour-coated and specialised electrical steels, creating opportunities for companies supplying processing and coating lines.  

Growing installed equipment creates recurring demand for spares, refurbishment and modernisation services. Expansion into spares for Hot Rolling Mills could provide an additional revenue stream.  

It has entered the Tandem Cold Rolling Mill segment, which was traditionally dominated by overseas OEMs. Its first order in this segment could help the company target larger steel producers.  

The company has a presence in African markets, including Tanzania, Uganda and Kenya, and is exploring opportunities in the Middle East, Latin America and South-East Asia, which could diversify its geographical revenue base. 

The company depends heavily on a limited number of steel manufacturers. Its top 10 customers contributed 82.10% of revenue from operations in FY2026, increasing the impact of losing a major customer or failing to secure repeat orders.  

Material costs and inventory changes accounted for 69.46% of revenue from operations in FY2026. Since the company largely procures materials on a purchase-order basis, sudden increases in input costs may put pressure on profit margins.  

The company's working capital requirements increased to ₹191.22 crore in FY2026 from ₹66.47 crore in FY2024. Long production cycles, inventory requirements and customer payment milestones can put pressure on cash flows.  

Yogiji Digi reported negative cash flow from operating activities of ₹47.32 crore in FY2025. Delays in customer site readiness or supply disruptions could further extend inventory cycles and affect cash availability.  

Total outstanding borrowings increased from ₹58.70 crore in FY2024 to ₹190.09 crore in FY2026. A higher debt burden could increase financial costs and expose the company to repayment and covenant-related risks.  

Customers in Northern and Eastern India contributed 76.27% of domestic revenue in FY2026. This concentration exposes the company to regional economic and business disruptions.  

Demand for the company's equipment is linked to capital expenditure by steel producers. Weak steel demand, lower steel realisations or industry overcapacity could lead customers to defer or reduce their capex plans.  

The company had unhedged trade receivables of USD 8.54 million and trade payables of USD 5.37 million as of FY2026. Currency movements can affect the value of its overseas receivables, payables and export contracts.  

Following its name change and merger in 2025, the company is required to update certain registrations, property records and contracts. Delays in completing these processes could create operational or compliance-related issues. 

Yogiji Digi IPO DRHP 

Emkay Global Financial Services Limited 

Contact Number: +91 8657578989/8069219065/8069219060 

Email Address: ipo@bigshareonline.com