Lalbaba Engineering Limited IPO

The company derives a significant portion of the company's revenue from operations from its tubular solutions vertical (representing 41.38%, 43.13% and 70.37% of the company's revenue from operations in Fiscal 2025, 2024 and 2023, respectively) and the company's rail systems vertical (representing 45.19%, 44.78% and 29.18% of its revenue from operations in Fiscal 2025, 2024 and 2023, respectively). A decrease in demand for the products which we manufacture and supply under these verticals, increased competition or pricing pressures may have an adverse impact on the company's business, results of operations, financial condition and cash flows.

Any downturn in the railway (representing 62.96%, 59.33% and 32.77% of the company's revenue from operations in Fiscals 2025, 2024 and 2023, respectively), energy, industrial infrastructure, and automotive sectors could have an adverse impact on the company's business, results of operations, financial condition and cash flows.

The company's business is significantly dependent on contracts awarded by the Indian railways and its associated entities (representing 23.18%, 18.99% and 6.08% of its revenue from operations in Fiscals 2025, 2024 and 2023, respectively). Any adverse changes in the government policies including reduction in government spending towards railway infrastructure or budgetary cuts may lead to the company's existing contracts being foreclosed, terminated, restructured or renegotiated, or reduce opportunities which may have an adverse impact on the company's business, cash flows, financial condition and results of operations.

A substantial portion of the company's revenue from operations is dependent on its top 10 customers (41.92%, 37.06% and 37.03% of the company's revenue from operations from its top 10 customers in Fiscals 2025, 2024 and 2023, respectively). Loss of any of these customers or a significant reduction in revenue from such customers, could have an adverse effect the company's business, results of operations and cash flows.

Any unscheduled, unplanned or prolonged disruption, slowdown or shutdown of the company's manufacturing operations could adversely affect its business, financial condition, cash flows and results of operations.

The company is measureds against high quality standards and stringent performance requirements by its customers. Any failures by the company to comply with these standards or performance requirements may lead to the cancellation of existing and future orders, recalls, liquidated damages, invocation of performance bank guarantees or warranty and indemnity or liability claims, which could adversely affect the company's reputation, business, results of operations, financial conditions and cash flows.

The company's manufacturing facilities are concentrated in the state of West Bengal in India. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in West Bengal could have an adverse effect on the company's business, results of operations, financial condition and cash flows.

The company depends on a limited number of suppliers for raw materials for its operations. Purchases from the company's largest supplier accounted for 31.29%, 27.37% and 25.67% and top 10 suppliers accounted for 69.83%, 72.03% and 87.85% of its total purchase on raw materials in Fiscals 2025, 2024 and 2023, respectively. Any loss of these suppliers could adversely affect the company's business, results of operations and financial condition.

The company does not have long term agreements with suppliers for the company's raw materials and an increase in the cost of or a shortfall in the availability, or deterioration in the quality of such raw materials could have an adverse effect on the company's business, results of operations, financial condition and cash flows.

The company has had in the past, instances of secretarial non-compliance, incorrect and/ or delayed regulatory filings and discrepancies in the company's corporate records, which may subject us to regulatory action or penalties.