Upcoming IPO

Yashhtej Industries IPO: A High-Growth Bet on Soybean Processing & Solar Energy

Yashhtej Industries IPO: A High-Growth Bet on Soybean Processing & Solar Energy

1. Business Profile: The Soybean Value Chain

Incorporated in 2018, Yashhtej Industries (India) Limited specializes in solvent extraction, converting raw soybeans into Crude Soybean Oil and De-Oiled Cake (DOC).

B2B Focus: They currently supply crude oil to major refiners who process it for edible consumption.

Animal Feed: Their DOC (Soya Meal) is a high-protein staple for the poultry and cattle feed industries.

The Pivot: The company is using IPO proceeds to set up its own refining and bottling plant, allowing them to transition from a B2B supplier to a branded B2C edible oil player.

Green Energy: They have recently diversified into solar power, securing a 5 MW project in Maharashtra to support sustainable operations.

2. Key IPO Details & Timelines

As a "Fixed Price" issue, there is no bidding range; the price is set at a flat ₹110 per share.

Event / DetailStatus / Date
Bidding PeriodFeb 18 – Friday, Feb 20, 2026
Issue Price₹110 per share (Fixed)
Lot Size1,200 Shares
Min. Retail Investment₹2,64,000 (2 Lots / 2,400 shares)
Total Issue Size₹88.88 Crore (100% Fresh Issue)
Allotment DateMonday, February 23, 2026
Listing DateWednesday, February 25, 2026
Listing ExchangeBSE SME

3. Financial Performance: Explosive Scaling

The company has shown a "hockey-stick" growth curve over the last three years:

Revenue: Skyrocketed from ₹12 Cr (FY23) to ₹324.96 Cr (FY25).

Profitability: Turned from a loss in FY23 to a Net Profit of ₹11.57 Cr in FY25.

Return Metrics: Reported a very high ROE of 83.61% (FY25), though this is expected to normalize as the equity base expands post-IPO.

Valuation: The issue is priced at a P/E of 14.27x based on FY25 earnings, which is competitive for the food processing sector.

4. Grey Market Premium (GMP) Today (Feb 18, 2026)

GMP Status: ₹0 (Flat).

Market Sentiment: Currently, the grey market is quiet. Since this is a Fixed Price issue in the SME segment, investors often wait for Day 1 and Day 2 subscription figures to gauge demand before activity picks up in the unofficial market.

5. Strategic "Use of Proceeds"

Yashhtej is raising capital primarily for physical expansion:

Capital Expenditure (₹63.88 Cr): To establish the new refining and bottling facility.

Working Capital (₹6.11 Cr): To manage the increased inventory needs of the new branded retail business.

General Corporate Purposes (₹9.50 Cr): Branding, marketing, and operational scaling.

6. Investment Analysis: Strengths vs. Risks

Strengths:

Promoter Expertise: Deep technical knowledge in solvent extraction based in the soybean hub of Latur.

Forward Integration: Moving from low-margin crude oil to higher-margin branded edible oil.

Asset Growth: Total assets grew from ₹25 Cr to ₹75 Cr in just two years.

Risks:

Commodity Price Volatility: Profitability is highly sensitive to the global price of raw soybeans.

High Working Capital: The agro-processing business requires significant cash for seasonal procurement.

Sustainability of Growth: Analysts have noted the "sudden" jump in FY25 revenue; investors should monitor if this pace is maintainable.

7. Conclusion: A Transition Story

Yashhtej Industries is at an inflection point. If they successfully execute their transition into branded edible oils, the current valuation could look very attractive. However, with a minimum entry ticket of ₹2.64 lakh, it is a high-conviction play suited for investors who believe in the "Atmanirbhar" agro-processing story of India.