Sadbhav Futuretech Limited IPO

The company's largest Customer and its top five Customers contributed 86.45% and 99.38% of the company's revenue from operations for the six months period ended September 30, 2025, respectively. Any reduction in orders, loss of business, or adverse change in the relationship with one or more of these key customers could materially and adversely affect its business, financial condition, results of operations and cash flows.

The company's engineering, procurement and commissioning ("EPC") projects for solar water pumping systems constituted 97.73%, 99.69%, 97.78% and 98.14% of its revenue from operations for the six months ended September 30, 2025, Fiscals 2025, 2024 and 2023. A significant portion of the company's revenues is dependent on the continued demand for solar water pumping systems EPC projects, any decline in demand for such projects could materially and adversely affect its business, financial condition, results of operations and cash flows.

The company is entirely dependent on third party suppliers for the procurement of raw materials for its Projects. Any failures on their part to perform their obligations could adversely affect the company's business, results of operations and cash flows.

The company has significant working capital requirements, and if the company's internal cash flows are insufficient to meet these requirements in a timely manner, the company's business, results of operations and financial condition may be adversely affected

The company's inability to collect receivables in a timely manner, or at all from its customers could adversely affect the company's profitability and working capital, result of operations, cash flow and financial condition.

The company's operations are concentrated in the states of Maharashtra and Haryana, and a substantial portion of its Order Book is attributable to projects located in Maharashtra and Andhra Pradesh. As a result, the company's business is exposed to region-specific risks in these states. Any adverse developments in these geographies, including localised labour disruptions, political or regulatory changes, adverse weather conditions, or infrastructural constraints, may disrupt its project execution and could materially and adversely affect the company's business, financial condition and results of operations.

The company has incurred negative net cash flows from operating activities of 16,772.69 lakhs, Rs.11,000.19 lakhs and Rs.1,772.56 lakhs in six months ended September 30, 2025, fiscals 2025 and 2024, respectively, and the company may continue to incur negative cash flows from operating activities in the future. The company cannot assure that its operating cash flows will not remain negative and sustained negative cash flows could adversely affect the company's results of operations and financial condition.

The company's business is concentrated on projects awarded by government customers or empanelment with the Government Agencies. Loss of government customers could adversely affect its business, results of operations and financial condition.

Rapid increases in raw material prices could have an adverse effect on the company's business, results of operations, financial condition and cash flows.

The Company does not own any premises including Corporate Office and Registered Office is occupied by the company on a leave and license. A failures to renew its existing lease arrangements at commercially favourable terms or at all may have a material adverse effect on the company's business, financial condition and results of operations.