Company Overview

Paluck Technologies Limited was established in 2010 with a vision to provide services in the telecom sector and highways infrastructure field. The company has three promoters: Navin Katiyar (Founder and Managing Director), Sumit Kumar Bajaj (Executive Director and CEO), and Praveen Kumar (Executive Director). Mr. Sunil Arora from the senior finance team also participated.

Business Segments

The company operates two main business verticals:

Telecom and Automobile Engineering Services:

  • Manages approximately 60,000 sites/nodes in the telecom sector
  • Works with top telecom companies including Ericsson, Nokia, ZTE Telecom, Huawei Telecom, Airtel, Vodafone, Idea, and Reliance
  • Provides O&M managed services with pan-India presence (55% South India, 45% North India)
  • Maintains 99.999% network uptime requirement
  • Contracts are typically 4-5 years in duration

Construction Equipment and Rental Segment:

  • Owns 192 equipment assets
  • Serves AAA-rated customers including Tata Projects Limited, L&T Construction, Megha Engineering Limited, HCC, Shivalaya, NKC, and Patel Engineering
  • Works on prestigious projects including Yashobhoomi, Noida International Airport, Parliament project, Bharat Mandapam, and Delhi International Airport T2 terminal
  • Current ongoing projects include RVNL's tunnel project for railways with L&T, dam project in Neemuch with L&T, and dam project near Srinagar with Patel and HCC
  • Contracts are typically 3-5 years in duration

Financial Performance - H1 FY27

Revenue: INR 51.2 crores total

  • Automobile and engineering services: INR 27.15 crores (38% YoY growth)
  • Equipment rental: INR 24 crores (29% YoY growth)
  • Total growth: 34% YoY

Profitability:

  • PAT: INR 5.09 crores (42% YoY growth)
  • Gross margins: Telecom segment 20-23%, Construction equipment rental 35%
  • Blended gross margin: 23-25%

Business Characteristics:

  • Revenue split approximately 50-50 between both segments
  • 85-90% business is recurring annually
  • Customer retention rate over 90%
  • Seasonal pattern: H1 contributes 40% of revenue, H2 contributes 60% of revenue
  • PAT distribution: Approximately one-third in H1, two-thirds in H2 due to fixed expense structure

Historical Context

  • FY26 revenue: INR 110 crores
  • FY26 EBITDA: INR 25 crores
  • FY26 PAT: INR 14 crores
  • Debt reduction: Reduced from INR 50 crores to INR 4.5-5 crores over past 3-4 years
  • Current debt: Approximately INR 4.5-5 crores

Guidance and Outlook

FY27 Expectations:

  • Revenue: INR 130-140 crores (25% organic growth)
  • PAT: INR 17-18 crores (25% growth)
  • H2 FY27 revenue: INR 85-90 crores
  • H2 FY27 PAT: INR 12-13 crores

Future Growth Drivers:

  • IPO funds received in September 2026 will fuel growth in FY28
  • Expected new orders of approximately INR 50 crores in recurring business within 2-3 months
  • FY28 target: INR 190-200 crores revenue (40% growth)
  • 5-year target: 4x growth subject to capital availability

Capital Structure and IPO Impact

  • IPO proceeds received in September 2026
  • Limited utilization of IPO funds in H1 FY27
  • Major impact expected in FY27-28
  • Construction equipment segment is capex heavy
  • Telecom segment is working capital heavy due to inventory requirements across 60,000 sites

Operational Metrics

Working Capital:

  • H1 FY27 operating cash flow: Negative INR 9 crores
  • Working capital absorption: INR 10 crores in H1
  • Inventory higher due to telecom segment requirements
  • Trade receivables increased 80% YoY
  • Normal aging: 90-120 days
  • Receivables increase attributed to one-off delays with large customers

Expected Cash Flow:

  • Negative operating cash flow expected in H2 FY27
  • Additional cash outflows from IPO fund utilization for equipment capex

Business Strengths

  • High entry barriers due to capability requirements in both segments
  • 10+ year relationships with major customers
  • Long-term contracts (3-5 years) provide business stability
  • 90% recurring business reduces need for constant new customer acquisition
  • Inflationary growth of 7-8% annually in existing business

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