- IPO opens September 23: Ahmedabad-based ArMee Infotech fixes price band at ₹350–375 a share; issue entirely comprises fresh equity.
- ₹1,396.63-crore topline: Consolidated revenue rises from ₹1,020.57 crore in FY2024 to ₹1,396.63 crore in FY2026, while PAT stands at ₹45.47 crore.
- ₹155-crore PBG thrust: Majority of fresh proceeds earmarked for performance bank guarantees to strengthen bidding capacity for larger Government and renewable-energy projects.
- Technology meets talent: Management says continued investment in emerging technologies and industry-best compensation will remain central to staying competitive.
- Government-led growth engine: Government and PSU clients accounted for about 83.84% of FY2026 revenue, while renewable energy constituted 88.38% of the June 2026 order book.
NE BUSINESS BUREAU
AHMEDABAD, SEPT 18
Can an Ahmedabad-born technology company convert its deep Government and PSU project base into the launchpad for its next phase of growth—while simultaneously moving into renewable energy, BESS and other emerging technologies? ArMee Infotech Limited is taking that proposition to the capital market with a ₹300-crore fresh issue that opens for subscription on September 23.
The company on Friday announced a price band of ₹350–₹375 per equity share, with the IPO closing on September 25. The anchor investor bidding will open on September 22. The issue comprises entirely of fresh equity, with no offer-for-sale component. At the upper end of the price band, the company is seeking a valuation of about ₹1,190 crore.
For ArMee, however, the IPO is more than a fund-raising exercise. The company is seeking to strengthen its ability to bid for larger Government and renewable-energy contracts by deploying a substantial portion of the proceeds towards performance bank guarantees (PBGs).
₹155 crore for bidding firepower
Of the fresh issue proceeds, ₹155 crore is proposed to be used for securing PBGs to support business expansion, while ₹60 crore is earmarked for working capital. Another ₹6.50 crore will be utilised towards prepayment or repayment of certain outstanding borrowings, with the balance intended for general corporate purposes and issue expenses.
The strategy comes against the backdrop of a substantial project pipeline. As of June 30, 2026, ArMee had an order book of about ₹2,663.44 crore, with 88.38% attributed to renewable-energy projects. The company had 99 ongoing projects and had completed 116 Government/PSU projects during FY2026.
Revenue scale-up, but margins remain a watchpoint
ArMee’s consolidated revenue from operations increased from ₹1,020.57 crore in FY2024 to ₹1,396.63 crore in FY2026. PAT, however, moved from ₹50.13 crore in FY2024 to ₹41.67 crore in FY2025, before recovering to ₹45.47 crore in FY2026.
The company has attributed the margin pressure to a shift towards lower-margin traded goods. Its FY2026 revenue nevertheless grew to ₹1,396.63 crore, while PAT increased from ₹41.67 crore in FY2025 to ₹45.47 crore.
The business remains diversified across IT infrastructure, IT managed services, renewable-energy EPC, solar projects under power purchase agreements, Battery Energy Storage Systems (BESS) and retail Experience Zones.
Technology investment amid AI disruption
With AI, automation and cloud-led transformation rapidly reshaping the technology landscape, ArMee’s ability to retain a technology edge will be closely watched.
Asked where the company sees a defensible technology or domain advantage and how much it is investing in emerging technologies, Chairman and Managing Director Ridhish Patel said: “We have been constantly investing in emerging technologies to stay ahead of competitive curve in the business.”
The company’s IT infrastructure business covers hardware and software, including computers, servers, interactive panels and peripherals, along with installation, integration and maintenance services. Its managed-services business includes technical manpower, skill-development training and annual maintenance services.
Talent remains central to execution
The company’s manpower model also combines its own technical workforce with project-linked contractual personnel. As of June 30, 2026, ArMee had 263 employees, including 219 skilled and semi-skilled technical personnel, besides 1,648 contractual employees engaged through third-party service providers.
Asked about employee attrition and the challenge of attracting and retaining specialised talent without allowing employee costs to escalate, Patel said: “Employees are backbone of our business. We pay the industry best compensation packages to both the existing staff and new recruits.”
ArMee has a presence across 14 states, while more than 86% of FY2026 revenue came from Gujarat, Maharashtra and Tamil Nadu.
From IT backbone to energy transition
The company’s renewable-energy portfolio includes solar EPC, development of solar assets under long-term PPAs and BESS projects involving long-term energy-supply contracts and operation and maintenance responsibilities.
Government and PSU customers remain its principal revenue engine, accounting for about 83.84% of FY2026 revenue. The company’s sectoral exposure spans education, healthcare, public distribution, rural development and science and technology.
The IPO therefore comes at an inflection point: ArMee is seeking capital not merely to expand its technology footprint, but also to strengthen the financial capacity required to participate in increasingly large Government and renewable-energy opportunities.
