Steamhouse India Ltd

Steamhouse India Limited

Incorporated in June 2015 as Ankleshwar Eco Energy Limited and renamed in September 2021, Steamhouse India runs central boilers, mostly coal-fired, inside Gujarat industrial estates and pipes steam to factories that would otherwise run their own boilers. The customer pays per tonne consumed and avoids the capex, fuel handling and pollution consents of a captive boiler. The company and its promoters introduced this community boiler model in India in 2014. It operates seven boilers of 345 TPH combined, one 350 NM3/hour nitrogen unit at Ankleshwar, and 60,151 metres of pipeline, serving 202 customers. It also trades surplus coal, which was 26.92% of FY26 revenue. Promoter Vishal Sanwarprasad Budhia holds 86.97% directly and 94.99% with three family trusts.

Auditor : Natvarlal Vepari & Co  BRLM : Equirus Capital Limited (sole book running lead manager)  Registrar : KFin Technologies

Delta Partners, the public markets division of Dexter Capital, runs a SEBI registered Category III AIF. This report is prepared for educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Delta Partners, its team members and its directors will not apply to this IPO. Queries: shubham@deltainvest.in

Executive Summary:

Skip at Any Price | GMP: ~25% (10 September 2026)

• Sanjoo Dyeing and Printing Mills (Promoter group company) is the largest customer at ₹90 cr of sales, the fourth largest supplier at ₹31 cr of purchases, a lender that advanced ₹111 cr and took back ₹108 cr over the year, and the owner of the Sachin boilers that Steamhouse operates and sells steam from. One promoter entity occupies four positions in the value chain at once. Related party dealings came to ₹365 cr in FY26, equal to 74.29% of revenue, of which group companies were 99.27%. The RHP calls all of it arm’s length. Nobody outside the group has priced any of it.

• The company holds a DGCA non-scheduled operator licence granted on 21 October 2025 and charters a six-seater single engine aircraft from Sanjoo Dyeing Inc, the US arm of a promoter group company, at USD 240,000 a year, with fuel, crew, maintenance, insurance, parking and landing charges borne on top of that. Neither the promoters nor the management has any experience in the operation and management of aircraft services and six employees now sit in an aviation department. A company running its boilers at 35% and carrying 1.63x net debt to equity is putting capital and management attention into a business nobody on its own board has run before, and paying the rent for it to a promoter entity. 

• Coal trading did ₹0.02 cr of revenue in FY24 and ₹132 cr in FY26. It is pass-through at negligible margin and the buyer is Sanjoo Dyeing. Take it out, together with ₹13.17 cr of construction revenue booked against a municipal subsidy, and the top line grew 9.31% and then 8.52% against reported growth of 35.44% and 24.40%. The two year CAGR falls from 29.80% to 8.92%. The coal arrangement runs to March 2028.

• ₹81 puts the company on 57.9x FY26 earnings and 28.0x EBITDA. Linde India and Ellenbarrie, the two comparables the RHP picks for itself, earn EBITDA margins of 35.92% and 34.02% against Steamhouse at 16.99%. We would leave this one alone across the band.

• The 41.51% utilisation headline counts capacity and tonnage at Sachin, where the boilers belong to a group company, and at Dahej, where the steam is bought in. Across the six plants Steamhouse owns, FY26 output was 752,714 tonnes against 2,122,560 tonnes of installed capacity, or 35.46%. Close to 30% of headline volume comes off assets the company does not own. Vapi Phase 1, commissioned in 2017 and the oldest in the fleet, has slid from 43.38% to 29.18% in two years, and Sarigam has been open three years at 12.13%. Against that record the plan is to take capacity from 345 TPH to 705 TPH.

• ₹0.35 cr went to political parties in FY25, disclosed in a note to other expenses and mentioned nowhere in the risk factors. Every input this business needs comes from a state body: GIDC for the land, the subletting permissions, the plan approvals and the ten year pipeline rights of usage, GPCB for every boiler consent, and Ahmedabad Municipal Corporation for the Pirana tender and its ₹34.75 cr subsidy. One of the three independent directors, Rathod Baldevsinh Yogendrasinh, spent his career at GPCB as a Senior Environment Scientist, the same board that served the company a show cause notice in May 2025.

• Four separate commercial relationships lead back to the same promoter entity and each moves a different line of the accounts. Sales to Sanjoo Dyeing move revenue. Purchases from it move cost. Loans from it move the cash flow statement. The O&M arrangement at Sachin moves reported volume and reported capacity. The share of revenue caught up in related party dealings has gone from 37.74% in FY24 to 70.79% and then 74.29%.

• Through FY24 Steamhouse ran Sanjoo Dyeing’s Sachin boilers under a leave and licence and sold the steam as its own. That arrangement was terminated. From 1 April 2025 the company signed a three year O&M agreement instead, began buying the steam back and began selling Sanjoo the coal. The same physical steam that used to sit in a single revenue line now surfaces as ₹90 cr of coal sales plus part of the ₹87 cr resold steam line, the remainder of which is Dahej GIDC Phase 1, and reported revenue duly rose 24.40%. EBITDA per tonne of gas sold was ₹783, still short of the ₹832 earned in FY24.

• Coal trading shows up in the sector table at ₹28.02 cr against ₹132.33 cr in the offering table. The ₹104 cr difference is coal sold to Sanjoo Dyeing, which lands under Textiles because Sanjoo is a textile processor. That is the entire reason Textiles appears to have gone from 7.40% of revenue in FY24 to 22.18% in FY26. Read that table on its own and you would conclude the customer base had broadened.

• Across FY24 to FY26 free cash flow was negative ₹105 cr, negative ₹16 cr and negative ₹44 cr, against ₹321 cr of capex. Debt and equity have funded every rupee of the expansion so far. Not one project has come in on budget. Nandesari Phase 1 was sanctioned at ₹15.00 cr and cost ₹35.89 cr. Panoli was sanctioned at ₹23.00 cr, cost ₹34.37 cr and opened 27 months late. Of the three under construction, Jhagadia has spent ₹30.85 cr against a proposal of ₹15.00 cr, Vapi Phase 3 ₹54.92 cr against ₹40.00 cr and Nandesari Phase 2 ₹46.28 cr against ₹39.43 cr. Two of the completed delays are put down in the RHP to the company being unable to draw its own sanctioned loans because security creation ran late, which is a telling reason for a borrower to give.

• Commercial operations at Pirana were due by 30 April 2025 under the Ahmedabad Municipal Corporation (AMC) work order. Sixteen months on the plant is not running and the company has asked for time until June 2027. AMC can levy ₹0.10 million a day for the delay, roughly ₹4.91 cr to the date of the RHP, and has chosen not to. Meanwhile ₹13.17 cr of FY26 revenue has been recognised as construction activity under the Ind AS 115 service concession model against the ₹34.75 cr subsidy, so 2.68% of the top line has been booked on an asset that has produced nothing. Once it does run, AMC takes ₹1.75 million a month or 3% of facility revenue, whichever is greater, for ten years to April 2035.

• Vinay Omprakash Sonthalia has been an independent director since September 2022 and also sits on the board of Sachin Infra Environment Limited alongside the promoter. Rathod Baldevsinh Yogendrasinh came out of the Gujarat Pollution Control Board, which regulates every boiler the company owns. That leaves Richa Manoj Goyal as the only one of the three with nothing attached. On the executive side, Yadav Lalankumar Dayanand is charged with corporate governance, financial management and risk management, and the RHP states in terms that he has not received any formal education; he joined from Sanjoo Dyeing.

• Until August 2026 the promoter had 176,947,810 shares pledged, 76.00% of pre-issue capital, split between Catalyst Trusteeship and Axis Trustee against two tranches of debentures. Both trustees released days before the RHP was filed, and both releases are conditional: the shares go back on pledge if the Ascertis Credit debt, formerly BPEA, is not repaid to the agreed timetable. That paper carries a 16.08% IRR and was raised, on the RHP’s own account, because conventional banks were wary of lending to a first-time waste-to-energy project. ₹29.61 cr was still outstanding on 31 July 2026, and personal guarantees from the promoter run across nearly the whole borrowing book.

• Fire NOCs were applied for at all five operating GIDC plants in March and June 2025 and were still outstanding when the RHP was filed fifteen to eighteen months later, on installations that burn coal. GPCB served a show cause notice in May 2025 over haphazard storage of plastic waste, leaks in the exhaust and a screw conveyor that was not working at Vapi. The RHP accepts that the company has run a boiler before final approval came through and has had closure notices from the state board in the past. Penalties of ₹0.35 cr, ₹0.61 cr and ₹0.62 cr have been expensed in each of the last three years.

• Ambika Agarwal, a relative of the promoter and therefore a deemed promoter group member, declined to give the confirmations required of her despite repeated reminders. The company applied under Regulation 300(1)(c) on 8 August 2025 and was refused on 6 October 2025, with a direction to disclose the gap and fill it from public databases. The RHP consequently cannot confirm that disclosures on her and her connected entities, Unimax Logistics LLP among them, are complete.

Business

• Steamhouse puts a boiler on leased land inside a GIDC estate, lays its own pipeline across that estate and connects each factory to it. The customer opens a valve and pays for what the meter records. Shut the valve and the central boiler carries on for everybody else, which a captive boiler cannot do, and that optionality is the pitch. Contracts run anywhere from 12 months to 10 years, many with a minimum consumption commitment and a deficit charge attached. Not every customer signs one; some, the nitrogen customer among them, buy on invoice with no continuing obligation at all. Pricing comes in two parts, a variable component that tracks coal in both directions and a fixed component escalating 3% to 10% a year.

• Every rupee of industrial gas revenue in each of the last three years came from customers in Gujarat. There are no exports and, until Tarapur and Haldia come on, nothing outside the state. The customer count has gone from 125 to 173 to 202. The top ten were 47.87% of FY26 revenue against 59.79% two years earlier, and repeat customers 90.72%. The largest of them, at 18.36%, is Sanjoo Dyeing (Promoter group). Among those willing to be named are Aether Industries, Anupam Rasayan India, Gujarat Polysol Chemicals, Globe Enviro Care and Subhasri Pigments.

• Coal is the primary fuel, mostly Indonesian material in the 3,217 to 5,204 kcal GCV band. The non-fossil alternatives are plastic waste, textile chindi, agro-waste and refuse-derived fuel. Nitrogen needs nothing beyond air. Purchases totalled ₹337.67 cr in FY26, all of it bought inside India against 78.33% in FY24, and 99.98% of it from Gujarat. Moving to domestic traders hands customs and import risk to somebody else and costs a margin to do it. Concentration is high on this side too: the largest supplier took 21.08% of purchases, the top three 41.23% and the top ten 81.71%, and there is not a long-term supply contract in place anywhere.

• Eight new facilities are on the drawing board, taking installed capacity from 345 TPH to 705 TPH. Three of them draw on the fresh issue: Ankleshwar Phase 3 and Panoli Phase 2 at 60 TPH each with ₹37.98 cr apiece, and Dahej GIDC Phase 2 at 60 TPH with ₹38.17 cr. The other five, Jhagadia and Nandesari Phase 2 and Vapi Phase 3 and Pirana at 30 TPH each and Tarapur at 60 TPH, come out of debt, lease finance, internal accruals and the AMC subsidy. Tarapur, in Maharashtra, would be the first plant outside Gujarat.

• Distribution rests on 60,151 metres of pipeline as at 31 July 2026, up from 41,539 metres at the close of FY24, with individual runs of 3,000 to 20,000 metres. The rights of usage come from GIDC, run ten years from the date of the order and can be pulled for breach of the terms. Flow meters feed a SCADA system and drones are flown over the lines to spot leaks. Two instances of meters reading inaccurately were disclosed across the three years, which matters more than it sounds given that the meter is what the invoice is built on.

• There is one subsidiary, Steamhouse Welfare Foundation, a Section 8 company with no commercial operations that exists to run CSR. No holding company, no joint ventures, no financial or strategic partners. Four group companies, all promoter-linked and all carrying the Sanjoo name. The only corporate action in ten years was the fast-track amalgamation of Nandesari, Sarigam and Vapi Eco Energy into the parent in August 2022, effective from 1 April 2021, and that is the transaction now producing the stamp duty demands.

Promoters and Leadership

• Vishal Sanwarprasad Budhia, 49, is Chairman and Managing Director and has been on the board since incorporation. He read science at South Gujarat University and has over 30 years in management, eleven of them in community boilers. He is also Secretary of South Gujarat Textile Processors Welfare and a director of Sachin Textile Processors Welfare Association and Sachin Infra Environment Limited, industry and quasi-public bodies sitting in the same estates the company sells into. 

• Yadav Lalankumar Dayanand, 52, has been an Executive Director since 2018 and came across from Sanjoo Dyeing. The RHP records that he has not received any formal education and, in the same breath, that he is responsible for strategic leadership, corporate governance, financial management, operational oversight and risk management. He also sits on the boards of Sanjoo Filaments, Sanjoo Prints, Sanjoo Dyeing, Steam House Enviro and Aerohouse Aviation.



• Ramprakash B Sharma has been an Executive Director since 2020. He is a commerce graduate of the University of Rajasthan and an associate member of the ICSI, and came from Shilpa Dyeing and Printing Mills. 

Financials