The Indian railway infrastructure and engineering sector is set to witness a wave of growth, and to capitalise on this, Laxyo Limited (formerly Laxyo Energy) has submitted its draft papers to the Securities and Exchange Board of India (SEBI). The Indore-based company is looking to capitalise on the government’s aggressive push for railway modernisation and mining efficiency. Laxyo IPO is a totally fresh issue aggregating up to INR 150 crore.

The issue is being managed by Indorient Financial Services, with MUFG Intime India serving as the registrar.

Laxyo IPO: Business Overview

Founded in 2007, Laxyo has evolved into a diversified, integrated EPC (Engineering, Procurement, and Construction) player. The company operates across four high-growth verticals:

• Railway Infrastructure: The cornerstone of the business, accounting for 66.65% of FY25 revenue. It provides end-to-end services from track laying and linking to signalling and station redevelopment.
• Mining & Raise Boring: Laxyo holds a unique position as the 2nd-largest raise-boring operator in India, with a 22% market share. It is the only Indian company that owns its own drilling machinery.
• Dredging & Reclamation: Provides underwater excavation and desilting services for ports and inland waterways.
• O&M Services: Offers mechanical and electrical maintenance for thermal power plants and cement factories.

The company has a strong geographic presence in Madhya Pradesh, Rajasthan, and Gujarat, and has recently expanded internationally with a major raise-boring project in Zambia.

Laxyo IPO: Financial Performance

Laxyo’s Revenue from Operations grew at a CAGR of ~25.6% between FY23 and FY25, while PAT more than doubled in the same period.

Laxyo IPO: Use of Funds

Laxyo intends to use the primary capital to strengthen its balance sheet and expand its fleet of specialized machinery.

• Debt Reduction (INR 70 crore): A significant portion is intended to be used for the prepayment or repayment of outstanding borrowings.
• Capital Expenditure (INR 9.75 crore): Towards the purchase of new equipment to support larger projects.
• Working Capital (INR 23 crore): To fund the execution of its growing order book.
• General Corporate Purposes

Laxyo: Strengths

• Robust Order Book: As of 31 January 2026, the company boasts an order book of INR 632.76 crore, which is nearly 3x its FY25 revenue, providing strong revenue visibility.
• Niche Expertise: Laxyo is one of only ~5 players in India equipped with PQRS machines for Complete Track Renewal (CTR) projects and holds a dominant position in the technically demanding Raise Boring market.
• Government Focus: With 81.72% of its order book coming from Government clients (including Indian Railways), the company is a direct beneficiary of initiatives like PM Gati Shakti.
• Asset Ownership: Owning a fleet of dredging vessels (Laxyo I, II, V) and specialized mining drills allows for better margins compared to players who lease equipment.

Bottomline: Laxyo presents an interesting play for investors looking at the micro-cap infrastructure space. Its unique positioning in the raise boring segment and a massive 3x order book are major positives. However, investors should note the heavy reliance on Government contracts (~82%) and the inherent risks of the EPC business, such as project delays.

Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.