Important Disclaimer: This article is for educational and informational purposes only. It is not a buy, sell, hold, or subscribe recommendation. Investors should read the full DRHP/RHP, check the final price band, valuation, GMP risks, and consult a SEBI-registered financial advisor before making any investment decision.
IPO Snapshot
| Particular | Details |
|---|---|
| Company | S. K. Offset Limited |
| IPO Type | Fresh Issue only |
| Issue Size | Up to 23,25,000 equity shares; amount not finalised in DRHP |
| Face Value | ₹10 per equity share |
| Price Band | Not disclosed in DRHP |
| Offer for Sale | Not applicable |
| Listing Platform | BSE SME |
| Issue Method | 100% Book Built Issue |
| Book Running Lead Manager | Comfort Securities Limited |
| Registrar | Maashitla Securities Private Limited |
| Promoters | Mr. Pradeep Agarwal, Mr. Priyanshu Agarwal and Mr. Ayush Agarwal |
Company Overview
S. K. Offset Limited is a Meerut-based printing and packaging solutions company. The company was originally incorporated as S. K. Offset Private Limited on February 02, 2007 and was converted into a public limited company on August 18, 2025.
The company operates mainly from four facilities in Meerut with an aggregate covered area of around 38,313 square feet. Its business has evolved from traditional offset printing into packaging and labelling solutions. The company now offers printing, packaging, labelling, design, graphics, lithography, book printing, mono cartons, master cartons, labels and related products.
Business Model
S. K. Offset operates mainly on a B2B model. It supplies printing and packaging products to industries such as FMCG, pharmaceuticals, cosmetics, food and beverages, publishing, education and corporate sectors.
The company handles several processes in-house, including design, pre-press, printing, finishing, packaging and dispatch. This gives the company better control over quality, delivery timelines and production coordination.
Product Portfolio
| Segment | Products / Services |
|---|---|
| Printing | Books, pamphlets, brochures, catalogues, stationery, manuals, journals, magazines and other commercial print products |
| Packaging | Mono cartons, rigid boxes, cartons, boxes, folding cartons, customised packaging and display packaging |
| Labelling | Labels, stickers, barcodes, product identification labels, adhesive labels and promotional labels |
| Other Activities | Trading, importing and exporting printing and packaging-related materials such as paper, paperboard, foils and ink |
Revenue Mix by Product Segment
| Segment | 9M FY26 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Printing | ₹2,706.70 lakh 67.82% |
₹3,094.03 lakh 64.19% |
₹1,183.99 lakh 54.99% |
₹1,104.69 lakh 71.81% |
| Packaging | ₹962.94 lakh 24.13% |
₹1,192.10 lakh 24.73% |
₹534.62 lakh 24.83% |
₹306.77 lakh 19.94% |
| Labelling | ₹226.19 lakh 5.67% |
₹397.69 lakh 8.25% |
₹347.58 lakh 16.14% |
₹26.38 lakh 1.71% |
| Other | ₹95.23 lakh 2.39% |
₹136.51 lakh 2.83% |
₹86.90 lakh 4.04% |
₹100.44 lakh 6.53% |
Investor takeaway: Printing is still the largest revenue contributor, but packaging has become a meaningful business vertical. The company is trying to move toward value-added packaging and labelling, which may offer better repeat business opportunities than traditional printing.
Client / Customer Concentration
The DRHP does not disclose the actual names of customers. It identifies them as Customer 1, Customer 2, etc. This is important because investors cannot independently assess the exact client quality from the DRHP.
| Period | Top 10 Customer Revenue | % of Revenue |
|---|---|---|
| 9M FY26 | ₹3,224.69 lakh | 80.80% |
| FY25 | ₹3,789.21 lakh | 78.61% |
| FY24 | ₹1,756.06 lakh | 81.56% |
| FY23 | ₹1,448.14 lakh | 94.14% |
Key point: Customer concentration is high. In 9M FY26, the top 10 customers contributed 80.80% of revenue, while the largest customer alone contributed 42.18%. The company also states that it does not have firm long-term supply agreements with customers and mainly works through purchase orders.
Vendor / Supplier Concentration
The company depends on third-party suppliers for paper, paperboard, inks, adhesives, foils, films and other consumables. Supplier names are also not disclosed in the DRHP and are shown as Supplier 1, Supplier 2, etc.
| Period | Top 10 Supplier Purchase | % of Purchases |
|---|---|---|
| 9M FY26 | ₹3,000.30 lakh | 74.11% |
| FY25 | ₹1,800.26 lakh | 55.47% |
| FY24 | ₹1,599.07 lakh | 89.71% |
| FY23 | ₹772.91 lakh | 83.72% |
Investor takeaway: The company has both customer and supplier concentration risk. Any disruption in raw material supply, pricing, credit terms or quality from major suppliers can affect production and margins.
Manufacturing Facilities and Capacity
S. K. Offset operates from Meerut-based facilities and has equipment for offset printing, label printing, packaging and finishing work. The company has a connected electrical load of around 1,100 kVA and uses backup power systems.
| Unit | FY25 Capacity Utilisation | 9M FY26 Annualised Capacity Utilisation |
|---|---|---|
| Printing Unit | 94.19% | 82.40% |
| Labelling Unit | 85.52% | 48.64% |
| Packaging Unit | 68.79% | 88.12% |
Observation: Printing and packaging utilisation looks reasonably strong, but labelling utilisation declined sharply in 9M FY26 compared with FY25. Investors should track whether this is temporary or a sign of weaker label demand.
Objects of the IPO
The IPO is a fresh issue. Therefore, proceeds will go to the company and not to selling shareholders. The company proposes to use the net proceeds for the following purposes:
| Use of Funds | Amount |
|---|---|
| Purchase of plant and machinery | ₹211.00 lakh |
| Incremental working capital requirements | ₹1,990.00 lakh |
| General corporate purposes | Not finalised in DRHP |
The machinery proposed to be purchased is an Automatic Foil Stamper & Die Cutting Machine, Model TECHNOFOIL 1050 FC, from DGM Automation India Private Limited. This machine is intended to support the company’s packaging expansion at its C-10, Industrial Estate, Partapur, Meerut facility.
Future Goals and Business Strategy
- Expanding value-added packaging solutions such as labels, premium mono cartons and corrugated packaging.
- Improving production efficiency through technology upgradation and process optimisation.
- Expanding customer base across Western and Southern India.
- Increasing focus on organised-sector customers, FMCG, pharmaceuticals and institutional buyers.
- Improving working capital cycle by reducing receivable days and supplier-credit dependence.
Financial Performance
| Particular | 9M FY26 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Revenue from Operations | ₹3,991.06 lakh | ₹4,820.34 lakh | ₹2,153.09 lakh | ₹1,538.27 lakh |
| Total Income | ₹4,017.19 lakh | ₹4,865.15 lakh | ₹2,330.93 lakh | ₹1,539.25 lakh |
| EBITDA | ₹738.85 lakh | ₹561.61 lakh | ₹116.10 lakh | ₹197.70 lakh |
| EBITDA Margin | 18.51% | 11.65% | 5.39% | 12.85% |
| PAT | ₹328.55 lakh | ₹154.41 lakh | ₹72.04 lakh | ₹86.37 lakh |
| PAT Margin | 8.23% | 3.20% | 3.35% | 5.61% |
| Net Worth | ₹1,558.23 lakh | ₹720.15 lakh | ₹457.60 lakh | ₹385.56 lakh |
| Debt-Equity Ratio | 2.04x | 4.49x | 3.21x | 2.88x |
| ROE | 21.09% | 21.44% | 15.74% | 22.40% |
| ROCE | 13.03% | 10.78% | 9.99% | 8.81% |
Financial Analysis for Investors
Revenue growth: Revenue increased from ₹1,538.27 lakh in FY23 to ₹4,820.34 lakh in FY25. This indicates strong scale-up in business over the last two completed financial years.
Profitability: PAT increased from ₹86.37 lakh in FY23 to ₹154.41 lakh in FY25. For 9M FY26, PAT stood at ₹328.55 lakh, already higher than FY25 full-year PAT. EBITDA margin also improved to 18.51% in 9M FY26.
Debt: Debt remains a key monitorable. The debt-equity ratio was 4.49x in FY25 and reduced to 2.04x as of December 31, 2025. Although the reduction is positive, leverage is still meaningful for a small SME company.
Working capital: The business is working-capital intensive. As of December 31, 2025, trade receivables were ₹2,734.59 lakh and inventories were ₹2,268.70 lakh. These are large numbers compared with 9M FY26 revenue of ₹3,991.06 lakh. This shows that cash conversion and receivable collection are important risks to monitor.
Cash Flow Position
| Particular | 9M FY26 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Operating Cash Flow | ₹396.11 lakh | -₹1,079.67 lakh | ₹440.31 lakh | -₹267.66 lakh |
| Investing Cash Flow | -₹567.07 lakh | -₹626.18 lakh | -₹673.41 lakh | -₹275.33 lakh |
| Financing Cash Flow | ₹279.40 lakh | ₹1,675.23 lakh | ₹265.12 lakh | ₹522.13 lakh |
| Closing Cash | ₹116.26 lakh | ₹7.81 lakh | ₹38.43 lakh | ₹6.41 lakh |
Investor takeaway: FY25 operating cash flow was negative despite profit. This was mainly due to working capital pressure, especially trade receivables. 9M FY26 operating cash flow turned positive, but investors should watch whether this improvement continues after listing.
Shareholding Pattern Before IPO
| Shareholder | Shares | Pre-Issue Holding |
|---|---|---|
| Mr. Pradeep Agarwal | 29,00,818 | 53.54% |
| Mr. Ayush Agarwal | 10,58,181 | 19.53% |
| Mr. Priyanshu Agarwal | 11,46,765 | 21.16% |
| Promoter Sub Total | 51,05,764 | 94.23% |
| Promoter Group | 3,12,556 | 5.77% |
| Public | Nil | Nil |
| Total | 54,18,320 | 100.00% |
Key point: The company is fully held by promoters and promoter group before the IPO. Post-issue shareholding will be updated after final price band and allotment details are disclosed.
Management
| Name | Designation |
|---|---|
| Mr. Pradeep Agarwal | Chairman and Managing Director |
| Mr. Priyanshu Agarwal | Whole-time Director |
| Mr. Ayush Agarwal | Whole-time Director |
| Ms. Anuradha Singh | Independent Director |
| Mr. Tanishq Gakhar | Independent Director |
| Mr. Bhanu Pratap Singh | Independent Director |
Litigation and Regulatory Matters
As per the DRHP, there are no criminal proceedings, no material litigation pending against the company, no disciplinary actions by SEBI or stock exchanges against promoters, and no material indirect tax proceedings. The company has disclosed certain income-tax notices under Section 143(1)(a), but also states that currently no outstanding demand is reflecting on the portal for those matters.
As of December 31, 2025, trade payables were ₹2,146.10 lakh. The company had 161 creditor cases, including 9 MSME creditors, 3 material creditors and 149 other creditors.
Key Risks Investors Should Know
- High customer concentration: Top 10 customers contributed 80.80% of 9M FY26 revenue.
- No long-term customer contracts: Business is mainly based on purchase orders.
- Supplier concentration: Top 10 suppliers contributed 74.11% of 9M FY26 purchases.
- Working capital heavy business: Receivables and inventory levels are high.
- Leverage risk: Debt-equity ratio has improved but remains meaningful at 2.04x as of December 31, 2025.
- Raw material volatility: Paper, paperboard, ink, adhesives, foils and films can see price fluctuations.
- Competitive industry: Printing and packaging is fragmented with organised and unorganised players.
- SME listing risk: SME stocks may have lower liquidity and higher volatility compared with mainboard companies.
- Issue details incomplete: Price band, final issue size in rupees, market maker reservation and post-issue shareholding are not yet final in the DRHP.
Pros and Cons
| Pros | Cons |
|---|---|
| Fresh issue; IPO money goes to the company | Price band and valuation not available in DRHP |
| Business has scaled revenue strongly from FY23 to FY25 | High customer concentration |
| Improved profitability in 9M FY26 | No firm long-term customer agreements |
| Integrated printing, packaging and labelling operations | High working capital requirement |
| Packaging segment gives future expansion opportunity | Debt level remains a key monitorable |
| Promoters have long operating involvement in the business | Supplier concentration and raw material price risk |
| IPO proceeds will support machinery and working capital | SME IPO liquidity and volatility risk |
Investor Checklist Before Applying
- Check the final price band and valuation metrics when RHP is filed.
- Compare P/E, market cap and EV/EBITDA with listed packaging and printing peers.
- Track whether customer concentration reduces after IPO.
- Check if receivable days improve as projected by the company.
- Review final debt position and whether working capital pressure reduces.
- Read the final RHP for updated issue size, market maker portion and post-issue shareholding.
- Understand SME IPO liquidity risk before applying.
Conclusion
S. K. Offset Limited is a printing and packaging company with a long operating history, growing revenue base and improving profitability in the latest reported period. The company is moving from conventional offset printing toward packaging and value-added solutions, which may provide a broader business opportunity.
However, investors should carefully study the risks. The company has high customer concentration, supplier concentration, meaningful debt, and a working-capital-heavy business model. Since the DRHP does not disclose the final price band, valuation analysis is incomplete at this stage. The IPO should be evaluated only after the final RHP, price band, market capitalisation and peer comparison are available.
Final Note: This analysis is not investment advice. Investors should make their own decision after reading the complete offer document and consulting a qualified financial advisor.
