The Business

Incorporated in 2005 and headquartered in Bengaluru, Leapfrog Engineering Services Limited (LESL) executes integrated engineering, procurement, construction, and commissioning (EPCC) contracts across electrical, instrumentation, fire safety, modular substation, and automation systems. Its end markets span Oil and Gas, Pharmaceuticals, Metals, Food Processing, Chemicals and Fertilisers, and Renewable Energy, with active project delivery in Kuwait, Bahrain, the UAE, and Nigeria, alongside domestic operations across multiple Indian states

The company's service portfolio is organized into six verticals.

Verticals	Details
Electrical Solutions	design and EPC turnkey installations
Instrumentation and Industrial Automation	industrial process automation using robotics
Fire Protection and Safety Systems	fire detection, alarm, and suppression systems
Building Automation	HVAC, Biometric and Video surveillance
Modular Substation Solution	E-House substations, prefabricated off-site power distribution units
Enterprise Solutions	Operational Efficiency and Process Optimization

Its Electrical Solutions vertical covers design and EPC turnkey installations for electrical networks including substations up to 220 KV, switchgears, MV and LV drives, and cabling. The Instrumentation and Industrial Automation vertical encompasses SCADA, DCS and PLC panels, field instruments, and industrial process automation using robotics. Fire Protection and Safety Systems delivers fire detection, alarm, and suppression systems including water, gas, and portable formats, alongside structural fire protection. The Building Automation vertical covers HVAC controls, access control, biometric systems, and video surveillance. The Modular Substation Solutions vertical focuses on E-House substations, prefabricated off-site power distribution units, encompassing structural design using STAAD Pro and ANSYS, Lifting and Transportation Analysis, and ingress protection across single, split, multi-storey, trailer-mounted, and offshore variants. The Enterprise Solutions vertical delivers operational efficiency and process optimization services for industry-specific requirements

The Export Architecture

The defining feature of LESL's business model is its structural reliance on export revenue. In FY24, exports constituted 88.94% of total revenue from operations, amounting to ₹140.40 crore. By FY25, export revenue had moderated to ₹89.38 crore, representing 66.38% of total revenue, with Kuwait and Bahrain as the dominant international markets. For the nine months ended December 31, 2025, exports at ₹66.44 crore accounted for 65.77% of revenue, with Kuwait contributing ₹38.45 crore and UAE contributing ₹27.99 crore

Revenue bifurcation in domestic and exports sales (amount in ₹ Lakhs)	Dec 31, 2025 Amount	% of Total	Mar 31, 2025 Amount	% of Total
Domestic	3,457.64	34.23%	4,527.93	33.62%
Exports	6,643.64	65.77%	8,938.31	66.38%
Total	10,101.28	100%	13,466.24	100%

Over the last two financial years, the company has executed export orders worth over ₹229 crore, cementing a more than decade-long foothold in the Middle East EPCC market

This export orientation creates both strength and vulnerability. The strength is access to higher-value, longer-duration contracts in hydrocarbon-heavy economies with capital expenditure cycles that remain independent of India's domestic investment calendar.

The vulnerability is currency and geopolitical exposure, and a client base where the top customer alone accounted for 38.06% of revenue in 9MFY26, the top three for 73.99%, and the top ten for 91.37%. Concentration at this level means a single contract delay or client-side capex deferral can materially shift quarterly numbers

Particulars (in Lakhs)	Dec 31, 2025 (Amount)	In %	Mar 31, 2025 (Amount)	In %	Mar 31, 2024 (Amount)	In %	Mar 31, 2023 (Amount)	In %
Top 1 Customer	3,844.97	38.06%	4,485.48	33.31%	11,799.85	74.75%	7,958.49	76.39%
Top 3 Customers	7,474.04	73.99%	7,003.22	52.01%	14,549.00	92.16%	9,077.17	87.12%
Top 5 Customers	8,251.26	81.69%	8,558.93	63.56%	15,089.14	95.59%	9,741.31	93.51%
Top 10 Customers	9,229.57	91.37%	11,512.32	85.49%	15,598.33	98.81%	10,346.96	99.32%

The Margin Inflection

The financial narrative at LESL is one of sharp margin recovery. EBITDA margin went from 0.96% in FY23 to 12.50% in FY24, then 16.01% in FY25, and 19.98% for the nine months ended December 31, 2025. PAT correspondingly moved from ₹28.30 lakhs in FY23 to ₹1,639.27 lakhs in FY24 and ₹1,622.47 lakhs in FY25, with ₹1,418.40 lakhs recorded in just nine months of FY26

Key Performance Indicators (amount in Lakhs)

9MFY26

FY25

FY24

FY23

EBITDA (Operating Profit)	2,018.01	2,156.50	1,973.07	100.51
EBITDA Margin (%)	19.98%	16.01%	12.50%	0.96%
PAT	1,418.40	1,622.47	1,639.27	28.3
PAT Margin (%)	14.04%	12.05%	10.38%	0.27%

Return on Net Worth, at 5.32% in FY23, expanded sharply to 75.51% in FY24 and normalized to 30.47% in FY25 as the equity base enlarged. ROCE moved from 10.95% in FY23 to 68.10% in FY24 and 32.45% in FY25, with 9MFY26 at 23.98%. The compression from FY24 peaks is expected: net worth has grown from ₹531.76 lakhs at March 2023 to ₹6,744.08 lakhs at December 2025, diluting the return ratios arithmetically even as absolute profitability remains stable

Debt-to-equity has moved from a leveraged 2.45x in FY23 to a comfortable 0.48x at December 2025, a direct consequence of profit retention and equity expansion. Total fund-based borrowings stood at ₹3,222.30 lakhs at December 2025.

Revenue Rotation and Sector Mix

What makes LESL's revenue model operationally interesting is its rotation across industrial verticals depending on project cycles and order inflows. In FY24, Oil and Gas accounted for 90.85% of revenue at ₹143.42 crore. By FY25, the composition had diversified significantly, with Metals and Minerals at 48.70% (₹65.58 crore), Infrastructure at 37.23% (₹50.14 crore), and Oil and Gas reduced to 11.29% (₹15.20 crore). For the nine months ended December 31, 2025, Oil and Gas returned to primacy at 65.77%, Infrastructure contributed 17.57%, and Metals and Minerals stood at 11.69%

This rotation is not structural diversification in the conventional sense, it is project-cycle dependence. LESL's revenue recognition is tied to contract completions and formal approvals of engineering designs by customers, a billing structure standard to EPCC delivery. The implication is that large swings in sector mix between periods do not necessarily reflect strategic repositioning but rather the timing of project milestones. Trade receivables at December 31, 2025 stood at ₹9,523.52 lakhs, a direct reflection of this capital-intensive, credit-extended project delivery model

Industry wise bifurcation	Dec 31, 2025 Amount	% of Total	Mar 31, 2025 Amount	% of Total	Mar 31, 2024 Amount	% of Total	Mar 31, 2023 Amount	% of Total
Oil and Gas	6,643.47	65.77%	1,520.48	11.29%	14,341.65	90.85%	9,083.57	87.19%
Metal and Minerals	1,181.27	11.69%	6,557.89	48.70%	721.72	4.57%	20.36	0.20%
Infrastructure	1,775.04	17.57%	5,013.94	37.23%	506.82	3.21%	630.97	6.06%
Chemical & Fertilizers	159.83	1.58%	7.47	0.06%	178.7	1.13%	372.28	3.57%
Pharmaceuticals	27.4	0.27%	11.42	0.08%	36.54	0.23%	310.68	2.98%
IT Solutions	–	–	101.07	0.75%	–	–	–	–
Renewable Energy	314.1	3.11%	253.98	1.89%	–	–	–	–
Total	10,101.28	100%	13,466.24	100%	15,785.42	100%	10,417.86	100%

Orderbook and Forward Visibility

LESL's order book as of March 31, 2026 stood at ₹38,403.09 lakhs, comprising domestic orders of ₹5,689.14 lakhs and export orders of ₹32,713.95 lakhs. Export orders account for approximately 85% of the total backlog, maintaining the company's internationally skewed revenue trajectory. At FY25 revenue run-rate, the order book represents approximately 2.9 years of coverage, providing reasonable near-term revenue visibility

The composition of the order book reflects a client mix of globally recognized corporations, Indian industrial entities, and government-owned enterprises, across the same sectors LESL has historically serviced.

IPO Structure and Proceeds

The IPO is proposed to be listed on the SME Platform of BSE Limited. The total issue comprises up to 3,84,84,000 equity shares of face value ₹1 each, including a fresh issue of up to 3,46,08,000 shares and an offer for sale of up to 38,76,000 shares by the promoter selling shareholder, constituting 27.14% of post-issue paid-up capital. The price band is ₹21 to ₹23 per share, with a lot size of 6,000 shares. Subscription opens June 17, 2026 and closes June 19, 2026, with allotment expected by June 22, 2026

Particulars	Details
Total Issue Size	3,84,84,000 shares (agg. up to ₹89 Cr)
Reserved for Market Maker	19,26,000 shares (agg. up to ₹4 Cr) – Anant Securities
Fresh Issue (Ex Market Maker)	3,26,82,000 shares (agg. up to ₹75 Cr)
Offer for Sale (OFS)	38,76,000 shares (agg. up to ₹9 Cr)
Net Offered to Public	3,65,58,000 shares (agg. up to ₹84 Cr)
Share Holding (Pre Issue)	10,71,84,000 shares
Share Holding (Post Issue)	14,17,92,000 shares

At the upper price band, post-IPO EPS stands at ₹1.33, implying a P/E of 17.24x. Pre-IPO EPS was ₹1.51 at a P/E of 15.19x. Promoter holding will decline from 92.59% pre-issue to 67.27% post-issue.

Particulars	Pre IPO	Post IPO
EPS (₹)	1.51	1.33
P/E (x)	15.19	17.24
Promoter Holding	92.59%	67.27%

IPO proceeds are allocated across two primary uses: up to ₹2,700.36 lakhs for capital expenditure toward establishing a new assembling unit at Site No. 11 and 12, Akshya Nagar, Yelenahalli, Begur, Bengaluru, and up to ₹3,604.82 lakhs toward working capital requirements. The proposed facility is designed to handle integration and assembly of engineering components across all six service verticals, with commercial operations targeted by March 2027, following trial runs planned for February 2027

Summary of Fund Requirement (₹ in Lakhs)
Sr. No.	Particulars	Estimated Amount (in ₹ Lakhs)
A	Funding Capital Expenditure towards setting up Assembling Unit	Up to 2,700.36
B	Working Capital Requirements	Up to 3,604.82
C	General Corporate Expenses*	[●]
	Net Issue Proceeds*	[●]

The strategic rationale for the assembling unit is to reduce dependence on external manufacturers, lower input costs, improve delivery timelines, and strengthen quality controls, objectives that are consistent with LESL's margin expansion trajectory if executed on schedule. A working capital gap of ₹9,410.23 lakhs at December 2025, funded through bank facilities of ₹3,075.00 lakhs, internal accruals, and NBFC borrowings, underscores why a portion of IPO proceeds directed at working capital is operationally necessary rather than opportunistic

Sector Tailwinds

India's engineering sector accounts for 27% of total factories in the industrial sector and represents 63% of overall foreign collaborations. Engineering goods exports stood at US$109.22 billion in FY24, representing a 25.22% share of India's total exports. India's infrastructure sector is estimated to attract US$1.3 trillion in investments under the PM Gati Shakti national master plan, with capital investment outlay increased by 11.1% to ₹11.11 lakh crore in the Interim Budget 2024-25. The electrical equipment market in India is projected to grow from US$52.98 billion in 2022 to US$125 billion by 2027, implying a CAGR of 11.68%, while the domestic electrical equipment market is projected to reach US$72 billion by 2025 at an annual growth rate of 12%.

These macro tailwinds are directionally supportive for an EPCC services provider with LESL's capability set, particularly given the concurrent capex expansion underway across GCC economies where the company has established a track record.