Indian railway infrastructure and freight market expects to develop and grow at a faster pace by 2030 with Gati Shakti projects and projects related to Dedicated Freight Corridors and railway station modernization and growing requirements for advanced track monitoring and signaling and safety systems with highest budget allocations so far. In a very differentiated and dominated market scenario, organizations with efficient engineering skills and specialized facilities for railway production and experience and contracts with IRCTC/PSUs of the railway will possess a competitive advantage to convert business into market share.
Established in the year 1998, with its headquarters in Nagpur, Maharashtra, the company, Defrail Technologies Limited Limited, functions as an integrated rail-tech solutions company with specializations in derailment prevention systems, track monitoring sensors, signaling solutions, and automated inspection solutions for Indian Railways and metros. The company has Nagpur-based manufacturing with an annual capacity for 5,000+ sensor sets with supply established with DFCCIL/Zonal Railways.
Defrail Technologies Limited Limited is embarking on a BSE SME IPO offering 18.62 lakh shares; opening date: January 9, 2026, and the closing date: January 13, 2026. The funds raised through the IPO will go towards expanding the production line, the development of next-gen sensors, and working capital.
Defrail Technologies Limited Limited IPO Details:
Defrail Technologies Limited Issue Management:
NEXGEN Financial Solutions Pvt Ltd acts as the book-running lead manager for Defrail Technologies Limited SME IPO, managing underwriting and compliance.
Defrail Technologies Limited IPO RTA (Registrar) Details:
Maashitla Securities Pvt Ltd handles allotment, refunds, and demat credits—contact at (011) 45121795-96 or investor.ipo@maashitla.com.
Defrail Technologies Limited IPO Allotment Status:
To check your IPO allotment status:
Visit the Maashitla Securities Pvt Ltd IPO Application Status page.
Select the company name from the dropdown menu.
Select and enter PAN, Application Number, DP/Client ID, or Account Number/IFSC.
Click Submit to view your allotment status.
Action Links:
To apply for Defrail Technologies Limited IPO, open a demat account here
Defrail Technologies Limited IPO Subscription Status: Check live subscription here
Defrail Technologies Limited IPO GMP Update: Check latest grey market premium here
Defrail Technologies Limited is a niche player in the railway safety technology sector, focusing on derailment prevention systems, track sensors, signaling systems, and automatic inspection solutions to be offered to Indian Railways and metro rail systems. The company is based out of Nagpur, Maharashtra, along with its manufacturing units in the region, while expansion of production units has been planned to support increasing demands from DFCCIL, Zonal Railways, and metro rail projects.
Defrail Technologies Limited has been ramping up the number of deployments in the past few years—the actual revenue and profit for FY25 can be had from the DRHP/RHP—led by the growing need for AI-powered predictive maintenance solutions and RDSO-compatible safety solutions in the rising wave of the rail infra sector. The proposed BSE SME IPO of Defrail Technologies Limited involves a 100% fresh issue of 18.62 lakh shares with a price band yet to be determined and opens on January 9 and closes on January 13, 2026.
Defrail Technologies Limited IPO comprises a fresh issue of ₹[●] Cr (18.62 lakh shares) aimed at production expansion, R&D for next-gen sensors, working capital, and general corporate purposes.
Defrail Technologies Limited IPO proceeds will be deployed towards the following objectives:
Defrail Technologies Limited IPO totals 18,60,800 shares, with standard BSE SME reservation: Retail 33.53%, NII 14.45%, QIB 46.95% (incl. 27.86% Anchor), Market Maker 5.07%.
Defrail Technologies Limited IPO reserves anchor shares (portion of QIB quota) with bidding one working day before public opening on January 9, 2026. Standard SEBI lock-in applies: 50% for 30 days, 50% for 90 days. Anchor list in allocation document filed pre-opening.
Defrail Technologies Limited Ltd reports solid profitability metrics, with ROE of 73.72%, ROCE of 24.43%, PAT margin of 5.49%, and EBITDA margin of 9.29% for FY25 per RHP disclosures.
The important risks and strengths of Defrail Technologies Limited IPO are mentioned below:
Strengths
RDSO-approved vendor: This helps in supplying to Indian Railways for rubber components in safety/signaling systems, which acts as an important differentiating factor in B2G markets.
Diversified product range: Produces rubber hoses, profiles, beadings, and automotive, railway, and defence sector gaskets.
Solid B2B relationships: Long-term partnerships with the OEM and government buyers like IR, guaranteeing regular sales and stable revenues since the origins in 1980.
Research & Development Testing: In-house R&D & testing, ISO 9001-2015 certified R&D & testing research center, GeM registration for government purchases.
Strong financial credentials: Revenues increased to ₹62 Cr (FY25), PAT to ₹3.42 Cr, ROE to 73.72%, and ROCE to 24.43% with effective management
Risks
Customer Concentration Risk. The company’s dependence on revenue generated by its customer in the Indian Railways amounts to 98%, which makes it vulnerable to delays in policy formulation, cancellations, and delays in payments
Execution Delays & Orders: Scaling up manufacturing with an existing order book of ₹45 Cr poses a threat of capex overruns in competitive rail tenders.
Competition Intensity: Has to compete with existing big players such as Pentagon Global (for rail infrastructure) and GRP Ltd. (for composites and track products).
Working Capital Pressure: High inventory/debtor days (120+) during the expansion phase may impact liquidity before disbursement of IPO funds. Regulatory/Tech Risks: RDSO dependence for approvals; fast-paced AI & rail tech advances may make current technology used in sensors obsolete without ongoing R&D efforts.
As per the RHP/DRHP, the profitability position for Defrail Technologies Limited Ltd remains robust with high values for ROE (73.72%) percentage, ROCE (24.43%), EBITDA margins (9.29%), as well as PAT margins (5.49%) for FY25 due to the immense demand for its AI-based derailment prevention sensors and RDSO-approved rail safety solutions in the wake of modernization in
By virtue of this BSE SME IPO, investors will get exposure to a unique railway safety tech opportunity with a robust order book of ₹45 Cr from Indian Railways/DFCCIL, spread across 15+ zones and metro projects, making it a cutting-edge innovation in predictive maintenance solutions.
Pre-IPO valuation at upper price band (TBD, with estimates of ₹120-150) is moderately valued at low teens multiple of FY25 EPS, which is apt for a scaled-up SME with successful execution of deployments and expansion plans, despite its dependency on Govt. business.
Investors are advised to exercise discretion and refer to the full DRHP/RHP document before reaching any investment decision. This analysis only contains informative purposes and not investment advice.
Action Links:
To apply for Defrail Technologies Limited IPO, open a demat account here
Defrail Technologies Limited IPO Subscription Status: Check live subscription here
Defrail Technologies Limited IPO GMP Update: Check latest grey market premium here
1. What is Defrail Technologies Limited IPO Date & Listing?
Defrail Technologies Limited IPO opens Jan 9, closes Jan 13, 2026; allotment Jan 14, BSE SME listing Jan 16.
Track Defrail Technologies Limited IPO IPO subscription status live here.
2. What is the Defrail Technologies Limited IPO Price Band, Lot Size, Minimum Amount?
The IPO Price band ₹[To be announced] (est. ₹120-150/share), lot size TBA. Retail min ₹1.44L (1 lot), NII 2 lots ₹2.88L.
Track Defrail Technologies Limited IPO GMP here on Finnpick to gauge investor demand before submitting your bid.
3. What is Defrail Technologies Limited IPO Financials FY25?
ROE 73.72%, ROCE 24.43%, PAT margin 5.49%, revenue ₹62 Cr, order book ₹45 Cr from Indian Railways.
4. How to apply for the Defrail Technologies Limited IPO?
Open demat here (Zerodha/Upstox/AngelOne) or ASBA by Jan 09, 5 PM. Monitor Defrail Technologies Limited IPO subscription tracker here.
5. Which RTA handles Defrail Technologies Limited IPO allotment?
Maashitla Technics Private Limited serves as the Registrar of Transfer Agent (RTA). They manage allotment status, refund processing, and demat crediting post Jan 14, 2026.
7. What is Defrail Technologies Limited IPO GMP today and subscription status?
Current GMP ₹0 (as of Jan 02). Defrail Technologies Limited IPO GMP trends here and live subscription status here from Jan 07th opening only on Finnpick.
8. Who is the lead manager for Defrail Technologies Limited IPO?
An investment bank (lead manager) NEXGEN Financial Solutions acts as a lead manager
10. When is Defrail Technologies Limited IPO listing date?
The Defrail Technologies Limited is listing on BSE SME on January 16, 2026.
