As the Indian equity market continues to present promising IPO opportunities in the SME segment, one name that’s beginning to draw attention is Tankup Engineers, a Lucknow-based manufacturer of specialized vehicle superstructures. With its IPO opening on 23 April 2025 and closing on 25 April 2025, the company is aiming to raise INR 18.55–19.53 crore via a 100% fresh issue of 13.95 lakh shares at a price band of INR 133–140 per share, with a lot size of 1,000 shares (INR 1,40,000). the IPO is scheduled to be listed on 30 April 2025, on the NSE EMERGE platform. In this article, we will present an in-depth Tankup Engineers IPO review, covering financials, business strengths, and risk factors, and other details.

#1 Tankup Engineers IPO Review: Business Overview

Tankup Engineers operates in a specialized domain—designing and fabricating custom mobile storage and transport solutions. Its offerings cater to high-impact sectors such as petroleum, mining, infrastructure, defence, and aviation. These are not just standard tank trucks; the portfolio includes mobile refuellers with IoT-based monitoring, explosive vans, blasting shelters, water sprinklers, service vans, and more.

Such vehicles are engineered to function in remote and logistically challenging environments, making them indispensable for critical infrastructure and energy projects. This niche gives Tankup a unique competitive moat.

#2 Tankup Engineers IPO Analysis: Balanced Industry Exposure

One of Tankup’s biggest strengths is its sectoral diversification. No single industry dominates its revenue, reducing dependence on cyclical trends. For the period ending 30 November 2024, infrastructure contributed 51.90%, petroleum 10.08%, mining 11.85%, and manufacturing 16.88% of the revenue. In comparison, the petroleum vertical accounted for 60.22% just three years ago, indicating a significant strategic pivot toward revenue balancing.

Such diversification ensures that sector-specific slowdowns don’t drastically impact its overall financial health.

#3 Refuellers Lead the Portfolio

Tankup’s flagship product remains the mobile refueller, accounting for 54.69% of revenue as of November 2024, up from 50.58% in FY 2022. These units come equipped with dispensing units, GPS, smart locks, and IoT analytics, offering not only mobility but also pilferage-proof fuel distribution in areas lacking fixed fueling stations.

With the rise in large infrastructure projects, construction zones, and mining operations in remote locations, the demand for such mobile refueling units is likely to scale up.

#4 Strong Pipeline of Future Business

Tankup’s ability to convert orders into revenue has already been proven. But what’s even more encouraging is its robust order book. As of 13 March 2025, the company has pending orders worth INR 22.11 crore (excluding GST). These include:

• INR 10.63 crore from the defence sector
• INR 5.73 crore from infrastructure
• INR 2.71 crore from petroleum
• INR 1.87 crore from aviation
• INR 1.15 crore from manufacturing

These orders, particularly from government bodies like the Ministry of Defence and Indian Air Force, signal strong institutional trust and a stable pipeline for the near term. This kind of visibility is a strong indicator that demand for Tankup’s specialised products is sustainable and sector-wide.

#5 Financial Performance

Tankup has evolved from a small-scale unit into a profit-generating enterprise. In just four years, its revenue from operations grew from INR 1.40 crore in FY 2022 to INR 19.42 crore in FY 2024 (audited), with INR 12.45 crore already recorded for the eight months ending 30 November 2024.

	FY 2022	FY 2023	FY 2024	8M FY 2025
Revenue	1.40	11.81	19.42	12.45
Expenses	1.34	10.91	16.42	11.33
Net income	0.05	0.79	2.57	0.95
Margin (%)	3.29	6.68	13.23	7.61
EBITDA (%)	5.82	10.77	17.84	12.63
RONW (%)	23.44	70.80	69.75	15.35

The spike in Return on Net Worth (RONW) during FY22–FY24 reflects increasing asset efficiency and reinvestment of earnings, making it particularly attractive for growth investors.

#6 Use of IPO Proceeds

The company proposes to utilize the net proceeds from the fresh issue towards funding the following objects:

• Repayment in full or in part, of certain of our outstanding borrowings – INR 3.50 crore
• Funding to meet working capital requirements – INR 10 crore
• The rest for general corporate purposes.

This signals a cleaner balance sheet and improved liquidity, enhancing the company’s ability to scale operations and meet growing demand from defence and aviation sectors.

#7 Tankup Engineers IPO Review: Capacity Expansion and Utilization

With an installed annual capacity of 360 metric tonnes, the company’s production utilization has grown from a meagre 2.67% in FY 2022 to 54.33% in FY 2024 and 38.66% in the current fiscal (as of Nov 2024). This underutilized capacity offers considerable headroom for scalability, even without capex-intensive expansion.

#8 Experienced Leadership and Industry Knowledge

At the helm is Gaurav Lath, an alumnus of Harvard and Oxford leadership programs, with 17 years of domain experience. He also manages Concord Control Systems, a listed peer in railway and oil & gas sectors. Supported by Pankhuri Lath (CFO) and Govind Prasad Lath (Chairman), the management team blends academic pedigree with operational expertise, ensuring strategic agility and execution discipline.

#9 Risk Factors

1. Dependence on Key Product (Refuellers): The company derives a significant portion of its revenue from Refuellers. Any decline in sales due to competition, demand shifts, or pricing pressures could adversely affect financial performance.
2. Negative Cash Flow: The company reported negative cash flows from operating, investing, and financing activities in recent years, which could affect working capital management, loan repayment, and overall financial stability.
3. Legal Proceedings and Litigation: The company faces multiple legal proceedings, including tax disputes and criminal cases involving its promoters and directors. Adverse rulings could negatively impact financial performance and reputation.
4. Unsecured Loans from Promoters: The company has unsecured loans from promoters, which can be recalled at any time. Any demand for repayment may require alternative financing, potentially affecting cash flow and financial position.
5. Contingent Liabilities: The company has contingent liabilities totaling INR 1.13 crore, including guarantees and tax disputes. If these liabilities materialize, they could negatively impact the company’s financial health.

#10 Final Verdict

Tankup Engineers’ IPO offers an opportunity to invest in a small-cap niche player with robust financials, sectoral diversification, institutional clientele, and scalable operations. Its unique product line serving essential and under-served needs in logistics and mobility, especially in defence, infrastructure, and aviation, creates a compelling moat. While SMEs come with inherent liquidity and governance risks, investors with a medium to long-term horizon looking for exposure to India’s infrastructure.

We hope Tankup Engineers IPO review provides you in-depth overview about the company. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.