Airfloa Rail Tech IPO Ready to Accelerate in Railways and Defence

Airfloa Rail Technology Limited, a key player in India’s rail revolution, has announced its initial public offering (IPO) amid a promising growth trajectory that goes beyond railways to aerospace, defence, and cutting-edge drone technologies. This SME IPO has already garnered substantial investor attention, aiming to raise ₹91.10 crore to fuel expansion and innovation in multiple high-potential sectors.

 

Driving India’s Rail Modernization

Airfloa has been instrumental in supplying critical components for landmark projects such as the Vande Bharat Express, Agra-Kanpur Metro, RRTS coach, and Sri Lankan DEMU coaches. Over 80% of the company’s revenue currently stems from the railways sector, underscoring its foothold as a major rolling stock component manufacturer and turnkey interior furnishing solutions provider.

 

With Indian Railways planning to introduce over 800 new train sets, including fully aluminum coaches, Airfloa is well poised for a growth runway stretching 15-20 years. The company aims to increase its market share from 40% to 60-70% in coach component value, driven by technology upgrades and capacity expansion.

 

Expanding Into Aerospace and Defence

Recognizing the need to diversify, Airfloa is fast scaling up its presence in defence and aerospace, contributing around 35% of FY25 revenues from these high-margin sectors. The company manufactures highly engineered components for aircraft, drones, and electronic warfare systems.

 

Defence-specific portfolio includes loitering munitions, swarm drones, anti-drone systems, and electronic warfare technologies. On the commercial side, Airfloa is deploying industrial-use drones in firefighting and environmental applications.

 

Strategic Certifications and Approvals

Airfloa holds key certifications such as IRIS and AS9100D, validating its quality standards across production, design, and finance processes. It also has approvals from reputed entities including HAL, DRDO, and Indian Railways, enabling participation in lucrative contracts and reinforcing its reputation as a trusted supplier.

 

IPO Proceeds and Growth Plans

The IPO proceeds will be used for machinery purchases, working capital requirements, and repayment of borrowings. Planned capex investments will enhance precision manufacturing capabilities and support scaling up production to meet growing demand.

 

Revenue targets are ambitious, with ₹192 crore posted last year and expectations to reach ₹350 crore in the current fiscal. By FY26-27, Airfloa aims to touch ₹550 crore in revenue, driven by expanded capacity and new product lines.

 

Market Enthusiasm and Listing Gains

Airfloa Rail Technology’s IPO was oversubscribed over 300 times during the subscription period, reflecting robust market trust. The shares debuted on the BSE SME platform at ₹266, delivering a striking 90% premium over the issue price—a clear indicator of investor confidence in the company’s future.

 

Leadership and Vision

Joint Managing Director Manikandan Dakshinamurthy brings over 20 years of industry experience and emphasizes a balanced growth strategy focusing on railways as the foundation while aggressively tapping defence verticals. Technology Advisor Sudhanshu Mani, credited with India’s Vande Bharat Express design, provides visionary support.

 

Conclusion

Airfloa Rail Technology is not just a railway component manufacturer; it is emerging as a technology-driven, diversified solutions provider poised to shape India’s transportation and defence future. The ₹91.10 crore IPO funds will accelerate this transformation, laying the groundwork for sustained profitability and innovation.

 

Sources: Economic Times, Angel One and IPO Platform, Investor zone