Millworks Technologies Limited is a precision engineering company engaged in the manufacture of machined components, sheet metal parts, and integrated assemblies used in mission-critical applications across the railways, aerospace, defence, and semiconductor sectors. The company's underlying business model relies on both Build-to-Print (BTP) and Build-to-Spec (BTS) engagements, covering full-scope manufacturing and job-work arrangements. Under the BTP model, manufacturing strictly follows customer-provided drawings and technical specifications, whereas the BTS model allows the company to develop and manufacture components based on functional and performance requirements specified by the customer. The company caters to a highly regulated target demographic, primarily supplying to Original Equipment Manufacturers (OEMs), Tier-1, and Tier-2 suppliers. Its geographic reach spans a strong domestic and international footprint. Domestically, it serves major hubs across Karnataka, Uttar Pradesh, Tamil Nadu, and Maharashtra. On the international front, its export-oriented operations serve the aerospace and semiconductor machinery segments, accounting for 27.47% of its revenue from operations in Fiscal 2026. The company exports its precision products to nine countries, including the United States of America, Israel, Germany, France, Canada, Italy, the United Kingdom, North Macedonia, and the Czech Republic. The manufacturing infrastructure of the company is robust, comprising four dedicated production facilities located in Bengaluru, Karnataka. These facilities are thoroughly equipped with advanced technology, including 3-axis, 4-axis, and 5-axis CNC machining centres, CNC turning and turn-mill centres, wire EDM machines, fibre laser cutting systems, CNC press brakes, and specialized welding equipment. Unit 1 focuses on core precision machining, tooling, and prototype development; Unit 2 is dedicated to medium to high-volume CNC machining; Unit 3 handles sheet metal fabrication, laser cutting, and welding; and Unit 4 manages heavy structural fabrication, large-format CNC machining, and is currently commissioning a precision spring manufacturing section. The company demonstrates strong operational execution and capacity utilization across its facilities. In Fiscal 2026, Unit 1 utilized 90,231 hours out of an installed capacity of 1,21,296 hours (74.46% utilization). Unit 2 achieved an actual production of 74,466 hours against an installed 1,02,144 hours (72.90% utilization). Unit 3, which commenced operations recently, utilized 3,632 hours of its 4,800-hour capacity (75.67% utilization). The newly established Unit 4 machining division utilized 73,066 hours out of an installed capacity of 94,698 hours (77.16% utilization). A critical operational highlight is the company's structured in-house Research and Development (R&D) function, which drives process improvement, innovation, and technological advancement aligned with Industry 4.0 applications. The R&D team has successfully developed in-house capabilities for designing and building electronic boards used in battery management systems and auto-pilot applications. This is backed by stringent Quality Management Systems, with Unit I and Unit II certified under AS9100D and ISO 9001:2015 for aerospace and defence applications, supported by an advanced quality assurance infrastructure featuring coordinate measuring machines (CMMs) and video measuring systems. As per financial performance, Millworks Technologies Limited has posted total income / net profits of Rs 9.40 Cr / Rs 1.95 Cr (FY24), Rs 22.42 Cr / Rs 5.25 Cr (FY25) and Rs 153.40 Cr / Rs 37.06 Cr (FY26). So as per previous financials data, the company has shown exponential top-line and bottom-line growth driven by a massive surge in defense and railway orders, while simultaneously improving its leverage status with a debt-to-equity ratio dropping from 1.96x in FY24 to a highly comfortable 0.21x in FY26. But the egregious working capital cycle (178 days DSO), highly negative operating cash flows, and past corporate governance lapses present legitimate forensic risks. Company has an average EPS of Rs 17.34 and average RoNW of 43.90% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 5.11 as per NAV of Rs 64.73 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 2.40. If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, then the asking price is at a Post-Issue P/E of around 298.20, 111.07, and 15.73 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, GYR Capital Advisors Private Limited are associated with this IPO, and GYR Capital Advisors Private Limited has handled 44 IPOs in the last three fiscal years. (as on 09.07.26) As per financials, Millworks Technologies Limited has shown an exceptional PAT CAGR of over 335% over the last three years, RoNW is 44.83% and the Post-Issue P/E is 298.20, 111.07, and 15.73 respectively as per FY24, FY25, and FY26 earnings. So the issue looks attractively priced, but the egregious working capital cycle (178 days DSO), highly negative operating cash flows, and past corporate governance lapses present legitimate forensic risks. The company is a precision engineering enterprise offering products starting from machined components and sheet metal parts to integrated assemblies for mission-critical aerospace and defence applications. So, we give a SUBSCRIBE rating for this IPO for listing gains only. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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