Monomark Engineering India Limited IPO

The company is dependent on and derives 33.92%, 35.74%, 42.01% and 47.84% of its revenue for the period ended on September 30, 2025 and for the Fiscal Year ended on March 31, 2025, 2024 and 2023 from the company's single largest customer and further the company derives 90.16%, 87.67%, 86.91% and 91.01% of its revenue from operations from the company's top 10 customers for the period ended September 30, 2025 and Fiscal Year ended on March 31, 2025, 2024 and 2023 respectively The loss of one or more such customers, deterioration of their financial condition, any cancellation or delay in execution of contracts or purchase orders or the company's inability to meet their expectations could adversely affect its business, results of operations and financial condition.

The company depends on metal and cement industry for a significant portion of its revenues.The company derives 93.29%, 90.84%, 89.77% and 89.19% of its revenue from operations for the period ended on September 30, 2025, and for the fiscal year ended on March 31, 2025, 2024 and 2023 from the sale of services and products to metal and cement industry. Any downturn in these sectors or shift in industry dynamics may adversely affect its business, results of operations, financial condition and cash flow.

The company depends on its Industrial Operations and Maintenance ("O&M") services segment for a significant portion of the company's revenues. 77.39%, 65.86%, 64.06% and 65.49% of its revenue from operations for the period ended on September 30, 2025 and for the fiscal year ended on March 31, 2025, 2024 and 2023 is generated from the company's Industrial Operations and Maintenance ("O&M") services segment. Any inability to effectively execute or manage such services may adversely affect its business, results of operations, financial condition and cash flows.

The company coulds be subject to unforeseen costs, liabilities or performance obligations in relation to the company's O&M services, which may adversely affect its business.

The company is significantly dependent on the skilled, semi-skilled and project-specific personnel for its business operations. The employee benefit expenses constitute 61.35%, 68.95%, 61.00% and 58.12% of the company's total expenses for the period ended on September 30, 2025, and for the Fiscal Year ended on March 31, 2025, 2024 and 2023. Any disruption in the availability of a steady and skilled workforce, or the company's inability to effectively manage employee benefit expenses, may adversely impact its operations, profitability and financial condition.

The company's business is exposed to significantly high employee attrition rates. The attrition rate for its Project Specific Employees is 43.55%, 90.93%, 88.82% and 97.19% for the period ended on September 30, 2025 and for the Fiscal Year ended on March 31, 2025, 2024 and 2023. This high attrition rate may adversely impact the company's business operations, continuity and financial performance.

Any workplace accidents, including the fatalities that have occurred in the past, may expose the company to liabilities, regulatory action and reputational risks, which could adversely affect its business, results of operations, financial condition and cash flows.

A significant portion of its inventory involves Consumables, Stores, Spares and others which contributes 75.19%, 74.93%, 57.92% and 40.54% of the company's total inventory. These are deployed at client sites and project locations where the company has limited physical control. Any loss, damage, theft or related disputes could adversely affect its business, results of operations, financial condition and cash flows.

As on February 28, 2026, the company has a running unexecuted order book of Rs.1,09,535.03 lakhs. The company may not be able to realise the amounts, partly or at all, reflected in the company's Order Book which may materially and adversely affect its business, prospects, reputation, profitability, financial condition and results of operation.

The company's contingent liabilities are Rs. 6,523.82 lakhs as on September 30, 2025, which tantamount to 60.63% of its total net worth. If these contingent liabilities materialised, it could adversely affect the company's financial condition and results of operations.