Freshly IPO-minted in June 2025, Prostarm is the kid in the electrical equipment playground who shows up with his own batteries, UPS, solar panels, and a dream to conquer Bangladesh next. Revenue grew 35% in FY25, ROE is hotter than a Mumbai transformer in May at 30%, and the company somehow convinced the market it deserves a 39.7x PE — basically saying “trust me bro” to investors.
2. Introduction
Let’s be clear — Prostarm didn’t start as a born-and-raised manufacturer. Back in 2008, it was just reselling other people’s UPS systems and batteries like your friendly neighbourhood electronics shop with slightly better margins.
Fast forward to 2018 — they went full Swadeshi and decided to make their own stuff: UPS systems, inverters, lift inverters, lithium-ion battery packs, voltage stabilisers, transformers — basically everything your apartment society electrician can misinstall.
Then they smelled the green energy hype and jumped into rooftop solar EPC. Three manufacturing plants later, they’re still operating at 23% to 66% utilisation, meaning two-thirds of the machines spend their time gossiping.
The IPO dropped ₹168 Cr into their pockets — officially for working capital, debt repayment, and inorganic growth, which is corporate for “we’ll figure it out later.”
3. Business Model (WTF Do They Even Do?)
Four main buckets:
Manufactured Power Solution Products (55.93% of revenue) – UPS systems, inverters, transformers, lithium battery packs. Some made in-house, some contract-manufactured.
Third-Party Products & Reverse Logistics (30.37%) – Trading in batteries/components + buying back old junk for resale/disposal. Reverse logistics = making money off your customers twice.
Solar EPC (9.18%) – Design, supply, install, maintain rooftop solar systems.
Value-Added Services (4.51%) – Installation, AMC contracts, rentals. Basically making sure customers keep paying you after the first sale.
Geographic sales? North India leads (36.41%), followed by West (24.84%) and South (19.26%). East India still wonders if voltage stabilisers are edible.
4. Financials Overview
Quarterly Comparison (₹ Cr) – Jun 2025 vs Mar 2025 vs Jun 2024
Metric
Jun 2025
Jun 2024
Mar 2025
YoY %
QoQ %
Revenue
50.98
37.75*
77.97
35.1%*
-34.6%
EBITDA
3.42
5.29*
11.16
-35.3%*
-69.3%
PAT
1.56
2.29*
6.84
-31.9%*
-77.2%
EPS (₹)
0.26
0.39*
1.60
-33.3%*
-83.8%
*Jun 2024 approximated from FY growth data. Annualised EPS (Jun 2025) = ₹0.26 × 4 = ₹1.04 → P/E on CMP ₹206 = 198x. Yes, Q1’s performance makes the PE look like a SaaS stock.
Commentary: Q1FY26 was like Monday mornings — slow, uninspired, and leaving you questioning life choices. Revenue fell 35% QoQ, margins shrank, PAT dropped 77%. Either seasonality hit, or someone forgot to plug the UPS in.
5. Valuation (Fair Value RANGE only)
P/E Method: FY25 EPS ₹7.12 × industry range PE (30–40) → ₹213.6 – ₹284.8
EV/EBITDA Method: FY25 EBITDA ₹47 Cr; EV ₹1,277 Cr → EV/EBITDA 27. FV if industry EV/EBITDA normalises to 20 → EV ₹940 Cr → Equity Value ≈ ₹875 Cr → ₹148/share.
