Mehul Telecom IPO Review: A Strong 10% Debut That's Since Faded Below Issue Price

Quick Answer

Mehul Telecom, a Gujarat based multi-brand mobile phone retail chain, listed on 24 April 2026 at Rs 108, a solid gain over its Rs 98 issue price, backed by strong subscription demand across every investor category. Since then, though, the stock has given back its gains and more, now trading around Rs 87, roughly 11% below the original issue price. The underlying business tells a more encouraging story than the current price alone suggests: revenue growth has genuinely accelerated in the most recent reported period, well beyond the pace shown in the full FY25 numbers.

Key Details at a Glance

What Does Mehul Telecom Ltd Do?

Picture walking into a mobile phone shop in a Gujarat town to buy a new Samsung or Vivo phone, whether it's a company-run flagship store or a local franchise carrying the same brand. Mehul Telecom runs exactly that kind of retail network. You can track its live price alongside other IPO GMP data on the IPO GMP Live homepage.

Founded in 2023 by Mehul Vasantbhai Raimagiya, the company operates a multi-brand mobile retail chain across Gujarat, selling smartphones, tablets, and accessories from major names including Samsung, MI, Vivo, and Oppo. Its growth strategy leans on a hybrid model, a small number of Company-Owned, Company-Operated stores (6 as of the prospectus) alongside a much larger network of Franchisee-Owned, Franchisee-Operated stores (74), a structure that lets the company scale its store count quickly without bearing the full capital cost of every location itself.

How Strong Are the Financials, and What's the Recent Acceleration?

FY25 showed revenue of Rs 115 crore and profit of Rs 5.74 crore, reasonable numbers on their own, following a roughly breakeven FY24. But the more recent trend is genuinely more impressive: the nine months to December 2025 already show Rs 152 crore in revenue and Rs 7.07 crore in profit, annualising to something in the region of Rs 202 to 203 crore for the full year, a jump of roughly 76% over FY25 if that pace continues. That's a real, substantial acceleration, likely tied to the franchise-driven store network expansion, and it's a more current, more encouraging picture of the business than the FY25 figures alone convey.

Why Did the Stock Fade Below Issue Price After Such a Strong Listing?

The listing itself reflected genuinely broad-based demand, every investor category subscribed well above its quota, with NII demand running particularly hot at over 79 times. The debut delivered a solid double-digit gain over issue price. What's happened since, a decline back below the original issue price despite that strong start, isn't unusual for SME stocks generally, initial listing enthusiasm can fade as the broader market digests a stock beyond its debut week, but it is worth noting as a real gap between the excitement at listing and where the stock trades today.

Given the strong revenue acceleration shown in the most recent reported period, the current price arguably looks more attractively valued on a forward basis than the stale, FY25-anchored P/E figure on the page suggests, worth factoring in if you're evaluating the stock today rather than assuming the current price reflects the same growth outlook investors had at listing.

Should You Buy Mehul Telecom at Current Levels?

Conservative investors: The pullback below issue price after such a strong listing is worth understanding before applying fresh capital, and the FY24 near-breakeven year is a reminder that retail businesses like this can have thin margins in slower periods. That said, the recent revenue acceleration is a genuine positive worth weighing against the current, lower price.

Moderate investors: A stock trading below issue price despite accelerating revenue growth could represent a reasonable entry point if that growth trend holds through the full FY26 year, worth confirming with the next couple of quarters' results before committing further.

Aggressive investors: A scalable, franchise-leveraged retail model with genuinely fast recent growth offers a credible expansion story, particularly if the company can keep adding FOFO stores efficiently. The current price, meaningfully below both the listing peak and the issue price, could look like a reasonable entry in hindsight if the recent growth pace proves durable.

Honest take. Mehul Telecom delivered a genuinely strong listing on the back of broad investor demand, and the fact that the stock has since faded below issue price sits oddly next to what looks like real, accelerating revenue growth in the most recent reported period. My honest read is the current price may not fully reflect the stronger, more recent growth trajectory the 9-month FY26 numbers suggest, though retail businesses built on rapid franchise expansion carry their own execution risks worth watching closely as the store count grows.

Where Did the IPO Money Go?

The large majority of the fresh issue, Rs 22.95 crore, was earmarked for funding working capital needs, a sensible allocation for a retail chain managing inventory across a fast-growing, franchise-heavy store network. The remainder covered general corporate purposes and issue expenses.

Contact Details

Company: Mehul Telecom Ltd.

Location: Gujarat

Business: Multi-brand mobile phone and accessories retail chain, operating through a hybrid Company-Owned/Company-Operated and Franchisee-Owned/Franchisee-Operated store network

Registrar: KFin Technologies Ltd.

Lead Manager: Cumulative Capital Pvt. Ltd.

Listing: BSE, SME platform

This page is not investment advice. GMP is indicative only and unofficial, and has limited relevance now that the stock is already listed and trading. Please consult a SEBI registered financial advisor before investing.