The Indian government's ₹2,52,000 crore annual budget for modernising, electrification, and expanding high-speed corridors is helping the country's railway infrastructure sector grow quickly. The Indian railways market is expected to grow from 24.61 billion USD in 2025 to 38.5 billion USD by 2035. This is an annualised growth rate (CAGR) of 4.58%. This growth is being driven by advances in technology, increasing passenger and freight volumes, and huge investments in Vande Bharat trains, metro networks, and safety systems. Service providers that focus on maintaining rolling stock, signing annual maintenance contracts (AMCs), fixing overhead equipment, and installing electrical systems are seeing a lot of business through government contracts and partnerships with original equipment manufacturers (OEMs). Dhara Rail Projects Limited, an ISO 9001:2015-certified company based in Mumbai with a strong track record in railway rolling stock systems and maintenance, is launching its NSE SME IPO (23–26 Dec 2025) to raise 50.20 crore for working capital expansion and debt repayment. The company has a strong order book of 144.10 crore and demand is rising quickly in this high-growth railway infrastructure boom.
Dhara Rail Projects IPO Details:
Dhara Rail Projects Issue Management:
Hem Securities Limited acts as the book-running lead manager for Dhara Rail Projects SME IPO, managing underwriting, investor coordination, and regulatory compliance.
Dhara Rail Projects RTA (Registrar) Details:
Bigshare Services Pvt. Ltd. handles allotment, refunds, and demat credits—contact at +91-22-6263 8200 or ipo@bigshareonline.com.
Dhara Rail Projects IPO Allotment Status:
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Dhara Rail Projects Limited is highly experienced in maintaining railway rolling stock and providing electrical services. The company offers Annual Maintenance Contracts (AMC) and repair services for train lighting systems (including Vande Bharat trains), Overhead Equipment (OHE) maintenance vehicles (Tower Waggons), Power Car equipment, and HVAC systems. They also offer en-route coach troubleshooting services and Supply, Installation, Testing & Commissioning (SITC) of electrical equipment.
Since 2010, Dhara Rail Projects has been an ISO 9001:2015 certified service provider. In FY2025, they made ₹48.00 crores in revenue (40% YoY growth) and ₹6.53 crores in PAT (120% YoY growth). Their ROE was 67.85% and their ROCE was 25.59%, indicating market traction and business efficiency. The company has a diverse order book worth ₹144.09 crores, which gives it an accurate representation of its revenue across all railway divisions. It can also quickly execute projects with little downtime thanks to pre-approved OEM partnerships and railway-certified quality standards.
The Dhara Rail Projects SME IPO comprises a fresh offering of ₹50.20 Cr (39,84,000 shares) to pay off debt, expand working capital, and grow operations to support an order book worth ₹144.09 crore.
Dhara Rail Projects IPO proceeds will be deployed towards the following objectives:
Dhara Rail Projects SME IPO reserves shares across investor categories, with retail at 33.23%, NII (HNI) at 14.23%, QIB (excluding anchors) at 18.98%, anchor investors at 28.44%, and market makers at 5.12%.
The Dhara Rail Projects IPO has 11,33,000 shares reserved for anchor investors, which is 28.44% of the total issue size.
The date for anchor bidding is December 22, 2025, (a day before the IPO opens on December 23, 2025). There is a 30-day lock-in period for 50% of the anchor allotment (ending January 20, 2026) and a 90-day lock-in period for the other 50% (ending March 20, 2026). The lead manager (Hem Securities Limited) will file the anchor allocation document just before the public issue opens. It will list the names of specific anchor investors who successfully bid on December 22, 2025.
Anchor Lock-in Structure:
For FY25, Dhara Rail Projects is highly profitable, with a return on equity (ROE) of 67.85%, an EBITDA margin of 19.32%, and a PAT margin of 14.67%.
At the top price band of ₹126, it has a post-IPO P/E of 9.26x and a P/B of 6.12x, which indicates strong growth with a 40% increase in revenue and a 120% increase in PAT year over year.
The important risks and strengths of Dhara Rail Projects IPO are mentioned below:
Strengths
Strong Company Financials: 67.85% ROE, 25.59% ROCE, 11.88% EBITDA margin, and 14.67% PAT margin demonstrate that the company is very efficient at using its capital deployment.
Strong Order Book and Revenue Visibility: With an order book of ₹144.10 crore across India (3x the annual revenue), revenue visibility is strong.
Rapid Growth Trajectory: Revenue growth of 40% year over year (₹44.48–48 crore in FY25) and PAT growth of 120% year over year (₹6.53 crore in FY25)
Skilled Workforce and OEM Partnerships: More than 800 people are employed in various departments of the railway and have certifications which are approved by the railway.
Recurring Revenue Model: A balanced mix of AMC and SITC projects makes it possible to have recurring revenue.
Risks
Dependency on Government Contracts: 100% of revenue comes from Indian Railways contracts. Any changes to policies, budgets, tender deadlines, or maintenance priorities could have a big effect on order inflows and growth.
Single-Client Concentration Risk: The company is very dependent on the Ministry of Railways as its sole customer. If it loses a big contract, doesn't renew its AMC, or gets less government money for capital projects, its revenues and profits could be impacted significantly.
Commodity and labour costs are unpredictable. If steel, copper, electrical parts, and skilled railway technicians become more expensive, it could compress margins. Wage inflation in the railway sector could also affect profits.
Limited Scale & Competitive Pressure - ₹44-48 crore in revenue is small; railway maintenance work competes with bigger engineering firms, PSUs, and international OEMs; limited scale makes it challenging to handle cost shocks or spend money on R&D and technology upgrades.
The story of Dhara Rail Projects' growth is interesting: in just one year, revenue rose 40% to ₹44–48 crore, and profits more than doubled to ₹6.53 crore. This shows real business growth in India's railway infrastructure sector, which is booming thanks to the government with annual budgets of ₹2.5 lakh crore for modernisation, electrification, and high-speed corridors. The strong order book of ₹144 crore (three times the annual revenue) shows that demand will stay strong and that projects will be visible for many years to come.
This is interesting for IPO applicants: because at the IPO price of ₹126 per share, you're buying into a fast-growing, highly profitable company for just 9.26x its earnings. This is a lot cheaper than established infrastructure companies that trade at 12-15 times their earnings or the broader market, which trades at 18-20 times its earnings. The 6.12x price-to-book ratio also shows that the company is fairly valued based on its assets and high profits, especially since its ROE and ROCE numbers are so good at 67.85% and 25.59%, respectively.
With a 9.26x P/E ratio, Dhara Rail Projects has a lot of room to grow in the maintenance of railway infrastructure. This is because its revenue is increasing at 40% and its profits are growing at 120%. Its return on equity (ROE) is also strong at 67.85%. But investors should keep an eye on the risk of too many government contracts, the problems that come with having a big order book worth ₹144 crore, and the rising costs of goods and labour. This analysis is just for your information.
Action Links:
Apply Dhara Rail Projects IPO by opening a demat account here
Dhara Rail Projects Subscription Status: Check live subscription here
Dhara Rail Projects IPO GMP Update: Check current grey market premium here
1. What is Dhara Rail Projects IPO opening and closing date?
Dhara Rail Projects IPO opens on December 23, 2025 and closes on December 25, 2025. Anchor bidding takes place on December 22, 2025, one day before IPO opens. Allotment happens on December 27, 2025, with listing on December 30, 2025. Track live subscription status here, bid-to-offer ratio, and anchor participation on Finnpick's IPO tracker for real-time updates.
2. What is Dhara Rail Projects IPO price band and issue size?
Dhara Rail Projects IPO price band is ₹120-126 per share with a lot size of 1,600 shares. The company raises ₹50.20 crore through fresh issuance of 39,84,000 shares. Minimum investment for retail is ₹3,51,000 (1 lot), and for HNI is ₹5,67,000 (2 lots).
Track live GMP here on Finnpick to gauge investor demand before submitting your bid.
3. What are Dhara Rail Projects financial highlights and valuation?
Dhara Rail Projects delivered 40% revenue growth to ₹48 crore and 120% PAT growth to ₹6.53 crore in FY2025 with 67.85% ROE and 25.59% ROCE. At upper price band (₹126), the IPO is valued at 9.26x P/E and 6.12x P/B, offering attractive valuation with strong profitability metrics.
4. Who are Dhara Rail Projects promoters?
Dhara Rail Projects promoters are Tejas Lalit Mehta, Jagruti Tejas Mehta, and family members with 14+ years railway sector expertise. They hold 98.33% pre-IPO equity diluting to 72.36% post-IPO, ensuring strong promoter backing and alignment with investors.
5. Does Dhara Rail Projects IPO have anchor investors and lock-in?
Yes, Dhara Rail Projects has 11.33 lakh anchor shares (28.44% allocation) unlike Sundrex Oil. Anchor investors face 30-day lock-in on 50% of shares (unlocking Jan 20, 2026) and 90-day lock-in on 50% (unlocking Mar 20, 2026). Retail/HNI can trade from Day 1 (Dec 30, 2025).
6. What is Dhara Rail Projects order book and revenue visibility?
Dhara Rail Projects maintains ₹144.10 crore order book (3x annual revenue), ensuring strong revenue visibility across railway divisions spanning 2-3 years. This demonstrates market confidence and predictable revenue streams from the Indian Ministry of Railways.
7. What is Dhara Rail Projects order book and revenue visibility?
Apply for Dhara Rail Projects IPO by opening a demat account here (Zerodha, Upstox, AngelOne) or ASBA (bank net banking) by December 25, 2025, 5 PM. Check live subscription status here, bid-to-offer ratio, and GMP trends here. Track allotment on Bigshare Services (ipo.bigshareonline.com) from December 27, 2025.
