Yashhtej Industries (India) IPO Review

Live Status

This has been one of the weaker SME listings around. A quick snapshot:

• Fixed price IPO at Rs 110, listed on 25 February 2026 at Rs 88, a 20% discount to the issue price.
• The grey market premium faded to zero before listing, and the issue was only lightly subscribed at 1.37x, with the HNI portion actually undersubscribed.
• The stock has since fallen all the way to around Rs 48, roughly 56% below the issue price, having touched a low of Rs 34.74.

In short, IPO investors have taken a heavy loss, and the warning signs were there before listing.

About the Company

What it does. Set up in 2018 and based in Latur, Maharashtra, Yashhtej Industries makes soybean crude oil through the solvent extraction process, along with De Oiled Cake, or DOC, the protein rich residue left after oil is extracted.

Who it sells to. It runs a B2B model. The crude soybean oil goes to refiners who turn it into edible oil, while the DOC is sold as animal feed, mainly to the poultry industry.

The extras. The company also runs a 1142 kWp solar plant for its own power use, and it says it is moving towards forward integration into finished edible soybean oil to capture more of the value chain. You can follow its live price and financial updates on the IPO GMP Live homepage.

The scale. It is a young, small operation. The factory only started production in FY 2023-24, and as of September 2025 it had about 91 employees.

Financial Snapshot

The eye catching part. Revenue exploded from Rs 59 crore in FY24 to Rs 325 crore in FY25, with profit rising from Rs 1.13 crore to Rs 11.57 crore. The first half of FY26 added another Rs 191 crore of revenue and Rs 7.25 crore of profit.

Why that is a red flag, not a green one. A commodity oil business growing more than fivefold in a single year, right before its IPO, is exactly the kind of pattern that deserves suspicion rather than excitement. There is very little history at this size, and the factory itself is only a couple of years old.

The margin problem. Even with that huge revenue, net margin is only around 3.5%. Soybean crushing and solvent extraction is a thin margin, high volume commodity business, where a small move in oilseed or oil prices can wipe out the profit. There is very little cushion here.

On valuation. At the issue price the stock was pitched at about 14 times earnings, but that was on a suspicious peak year. After the crash, the market cap is now around Rs 112 crore at the current price, far below the figure calculated at the issue price. The market has clearly decided the FY25 numbers did not justify the pricing.

Strengths

To be fair, there are a few genuine positives, even if they are outweighed by the risks:

• Solar power for captive use. The 1142 kWp solar plant lowers electricity costs, which matters in an energy heavy process like solvent extraction.
• A useful by product. The DOC animal feed gives it a second revenue stream alongside the crude oil, tied to the steady poultry and cattle feed demand.
• Forward integration plans. Moving into finished edible oil could, in theory, lift margins above the thin levels it earns from crude oil today.
• Headline growth. If even part of the recent revenue scale is sustainable, the business is far larger than it was two years ago.

Risks

This is where the weight sits, and it is heavy:

• It listed at a discount and then collapsed. From a Rs 110 issue price, the stock listed at Rs 88 and has fallen to around Rs 48, less than half the issue price. The market rejected it almost immediately.
• The pre IPO revenue spike looks fragile. Growing revenue more than fivefold in one year, in a low margin commodity business, right before listing, is a classic warning sign and hard to trust.
• Razor thin margins. A net margin around 3.5% leaves almost no protection against swings in soybean and oil prices, which are driven by weather, imports and global markets.
• Very young and unproven. The factory started only in FY 2023-24, the company is small, and it has no track record through a full commodity cycle.
• Weak demand and heavy capex. The IPO was barely subscribed with zero grey market interest, and most of the money is going into big capital expenditure, which carries execution risk.

Should You Buy, Hold, or Sell?

The IPO is done, and it has been a painful one. This is now a call on a beaten down stock around Rs 48.

• Conservative investors: Avoid. A discount listing, a crash to half the issue price, thin margins and a suspicious growth spike are all reasons to stay away.
• Moderate investors: Skip too. There is no clear sign the business has stabilised, and catching a falling commodity SME is rarely worth it.
• Aggressive investors: Only as a deep value, high risk gamble that the forward integration into edible oil actually improves margins, and even then with money you can fully afford to lose.

Honest take. This looks like a classic case of an overpriced SME IPO built on a one year revenue spike. The market saw through it quickly, and until the company proves its margins and growth are real and durable, there is little reason to step in.

IPO Objects of the Issue

This was a fully fresh issue of about Rs 84.43 crore, with no offer for sale, so all the money went to the company. The broad allocation was:

The very large tilt towards capital expenditure reflects the company's plan to expand and integrate forward into edible oil.

Contact Details

• Company: Yashhtej Industries (India) Ltd.
• Location: Plot D-73/1, Additional MIDC, Latur, Maharashtra, 413512
• Business: Soybean crude oil, De Oiled Cake and solar power
• Registrar: MAS Services Ltd. (Phone: +91-11-2638 7281, Email: ipo@masserv.com)
• Lead Manager: Erudore Capital Pvt. Ltd.
• Listing: BSE SME

This page is not investment advice. GMP is indicative only and unofficial. Please consult a SEBI registered financial advisor before investing.