Apsis Aerocom's audited record carries a clean opinion for FY2026, but the company's own DRHP discloses that bank-filed current asset statements did not match its books for two years, and its depreciation policies front-load expenses on assumptions that deserve scrutiny. Revenue has doubled in three years with improving receivables metrics, yet cumulative cash conversion has lagged operating profit. The company is 100% promoter-held with zero pledge, and contingent exposures are small and routine.
Key findings
- Bank-filed statements disagree with books for FY2024-FY2025, despite clean audit opinions
Major- YCRJ & Associates issued an unqualified opinion on FY2026 standalone financials dated 28 May 2026. The company's quarterly current asset statements filed with State Bank of India were not in agreement with books for FY2025 and FY2024, with material discrepancies in book debt and stock, cited as "non Completion of bank & book entries". As at 31 March 2024, the Q4 book debt difference alone was 18.27 crore. - Depreciation policy applies double-shift basis and restated financials note retrospective adjustments
Major- The company's depreciation policy applies double-shift basis on management's estimate, shortening Plant and Machinery lives from 15 to 10 years and Computers from 3 to 2 years. Restated financials for FY2023-FY2025 were compiled from audited financials with adjustments for changes in accounting policies, material errors, and regrouping/reclassifications applied retrospectively. - Revenue doubled in three years with rising customer concentration, while receivables improved on paper
Minor- Revenue grew from ₹10.37 crore in FY23 to ₹30.65 crore in FY26, a 49.56% increase in FY26 alone. The largest customer's share fell from 52% to 35% and top five customers from 94% to 87% between FY25 and FY26. The MD states monopolistic components contribute "close to 40% of our revenue". - Operating cash flow improved sharply in FY26 but cumulative conversion remains weak
Minor- FY26 CFO was ₹7.04 crore against PAT of ₹7.51 crore, a 0.94x ratio, versus FY25's 0.25x. Cumulative CFO/EBITDA over four years stands at 0.57x, with total CFO of ₹16 crore against operating profit of ₹28 crore. FY25 free cash flow was negative at ₹-2.08 crore. - Contingent exposures are small and routine, with no provisions made
Minor- Claims not acknowledged as debt stood at ₹39.00 lakhs as on 31 March 2025. The EPCG scheme carries an export obligation of 2.34 crore, with potential customs duty and interest not determinable. Outstanding tax litigations totalled 9 cases amounting to ₹13.51 lakhs as of the DRHP date. - Promoter group held 100% with zero pledge; board rebuilt around two promoter-directors and family
Minor- Promoter & Promoter Group held 87,99,921 shares, 100% of total shareholding as on the DRHP date, with no shares pledged. Vinod Kumar Mariyappan was re-designated Whole-Time Director and Basavaraju Kanakatte Shivakumar Managing Director, effective 18 March 2025; K S Shashidhar, Shivakumar's brother, was appointed Engineering Head effective 01 April 2025. No ESOP, bonus, or termination-benefit arrangements existed as at the DRHP date.
What to watch
- FY27 pipeline conversion. The "more than 100 crore" pipeline at a stated 30% conversion rate, as disclosed in the Q4 FY26 transcript.
- Order execution. The ₹5 crore order announced 7 Apr 2026 has a 15-month timeline; the ₹7.24 crore defence order announced 7 May 2026 has a 10-month timeline.
- Promoter tax demands. Four direct tax demands against promoter Mihir Kumar Pradhan remain under adjudication as of the DRHP dated 18 Mar 2026.
- EPCG obligation. The 2.34 crore export obligation must be fulfilled within the six-year window disclosed in the FY2025-26 Annual Report.
Bottom line: This is a disclosed and fully audited record with a clean opinion, zero pledge, and small contingent exposures. The risk character is one of reporting and policy conservatism: bank-filed statements diverged from books for two years, and depreciation choices front-load expenses. Watch whether the pipeline converts as stated and how the renewal is resolved.