EPW India IPO Analysis: Should you Apply or Skip?

As sustainability becomes the trend, EPW India stands at the crossroads of e-waste and aspiration, giving discarded machines a second life.

Let’s explore this upcoming IPO further:

EPW India Share Price will be finalised post-allotment, while grey market cues through the EPW India IPO GMP will likely reflect market sentiment closer to listing.

Powered by Froala Editor

Refurbishment is the business of restoring pre-owned or used electronic devices to new working condition and selling them at discounted prices. The newly refurbished laptops and desktops are often priced 40%-60% lower than the new units, providing affordability and alignment with the goal of sustainable development.

The Indian refurbished electronic industry, valued at $5 billion in FY21, is expected to grow at a CAGR of 17% till FY26.

Apart from that, the refurbished electronic industry has its own set of challenges and growth drivers listed below: 

Powered by Froala Editor

Initially established in 2008, as a sole proprietorship under the name “Exclusive PC World”, EPW is now an electronic refurbishing company providing refurbished products to consumers and its business clients. Currently, the company sells used IT products like laptops, desktops, Chromebooks, monitors, and accessories through its own shops and website. 

EPW serves its retail & business clients (B2B) through multiple physical stores and its website. The company provides technology at significantly lower prices than new products.

The company currently employs 84 staff members, including 15 technicians. However, it must be noted that in Fy 24 & Fy25, the company has a high attrition of 222% & 103% respectively. 

Led by promoters with over four decades of collective experience, the company maintains a competitive advantage through its one-year limited warranty and a defined refurbishment process.

Let’s Understand The Business Model.

EPQ operates an asset-light, circular economy business model, centred on an IT hardware refurbishing library.

Procurement: The company buys used/e-waste laptops and desktops from individuals, corporates and other refurbishment intermediates. The purchase made at this stage is treated as raw material.

Inspection & Disassembly: The equipment is inspected and graded at EPW’s Hyderabad facility. They are then broken down into different components and functional parts.

Refurbishing: The company has a team of 15+ technicians responsible for cleaning, testing and repairing the products. 

Packaging & Sales: The refurbished equipment are then graded based on quality and ultimately provided to the clients along with a warranty and after-sales support.

The majority of revenue comes from B2B clients, who are the IT companies seeking to get budget-friendly tech equipment.  

Unlike the unorganised refurbishment players, which constitute majority of the industry, the company, having necessary refurbishment-related certifications, can procure established IT companies as its client base. 

State-wise Revenue

The company has, over the years, reduced its sales concentration in Telangana, but is still heavily dependent on the same. 

It can also be observed that the company has increased its presence across other states like Gujarat, Karnataka and Maharashtra.

EPW currently has negligible business in the northern region of the country and is focused on its regional expansion.

Powered by Froala Editor

In Oct 2024, EPW acquired Revavart Recyclers India Pvt. Ltd, which is primarily focused on electronic waste (e-waste) recycling and management of discarded home appliances. 

The subsidiary maintains a 9,600 sq ft recycling plant in Telangana, equipped with specialized machinery for dismantling complex electric equipment. 

The acquisition was a strategic move to integrate recycling operations with the company’s core refurbishment business, establishing a comprehensive supply chain within the circular economic model.

Management + Promoter Holding

Promoters of EPW India Ltd consist of three individuals: Yousuf Uddin, Mohd. Fasi Uddin & Mohd. Zaki. With the combined experience of over four decades in the manufacturing sector. 

With a 3-digit topline CAGR and sustaining higher margins and return ratios, the management has clearly showcased its expertise in the refurbishment business.

While 3 out of 6 board members are independent directors, the governance ensures quality as the audit and remuneration committees are led by independent directors. 

From a control standpoint, the promoters hold a dominant 100% stake pre-issue. Post-IPO, this stake will dilute to 71.43%, but promoter influence will remain firmly intact, given their high base ownership and board control.

Financial Performance 

Topline has given a strong 183% CAGR from FY23 to FY25, with the growth of However, though the FY26 numbers have not yet been released, on the basis of 6 months of sales, it can be observed that FY26 will give a high double-digit growth.

Margins jumped sharply, with EBITDA margin climbing from 1.7% in FY23 to 11.6% in FY25, and hitting 14.5% in the 6M FY25. That’s a big shift toward higher-value formulations and better cost control.

PAT margin improved by almost 10x in three years — from 0.9% (FY23) to 9.1% (6M FY25) — showing the operating leverage finally kicking in. The CFO has been positive, while the working capital days have risen sharply over the years to 113 days.

Debt-equity, while improved significantly from the past year, is currently at 1.8x in 6MFY25. This signals real balance-sheet repair and improved cash generation.

ROE and ROCE stand at 26% and 19%, respectively. The financials witness a surge in ROE & ROCE, when compared to FY22, placing Phytochem Remedies well above many listed peers. The company has also maintained its current ratio well over the years at around 1.

Peer Analysis

On the basis of peer analysis, it can be said that the company has better financials than its competitors. EPW has higher EBITDA & PAT margins with 14.5% and 9.1%, respectively. The company also has better return ratios than the industry.

In terms of valuation, while the peers are reporting losses, the company has a low P/E ratio at 13.9x, while the EV/EBITDA stands at 21x. However, it must be noted that the company has higher borrowings, with a D/E ratio of 1.8x.

Overall, it can be said that the company is doing extremely well in terms of financial performance compared to other listed peers.

Powered by Froala Editor

The company will be using the proceeds for:

• Funding the working capital requirements of the company.

• Repayment/prepayment, in full or part, of all or certain outstanding borrowings

• General Corporate Purposes

Overall, the issue aims to strengthen EPW’s day-to-day operations while improving its financial flexibility. The combination of expansion and deleveraging positions the company for more sustainable future growth.

Final Words

At Alpha Venture X Fund, we assess opportunities through our LMVT framework — Leadership, Moat, Valuation, and Tailwinds — enabling us to identify scalable businesses with durable fundamentals.

Leadership: Founder-led with strong industrial experience and equity retention, ensuring aligned execution and focus on scaling the refurbishment business.

Moat: Focus on branding as “smart value tech”, standardised 15–20 day turnaround and batch, unlike peers. However, it operates in highly competitive industry where margins are distributed among multiple players. 

Tailwinds: Rise in e-waste pool along with affordability-driven demand and regulatory/ESG support.

Valuation: The valuation is in the fair range in terms of PE at 13.9x; the EV/EBITDA ratio is also better than the industry at 21x. 

Bottom Line: EPW is growing fast with attractive fundamentals and valuation, along with a double-digit industrial growth. However, apart from the relatively slower topline growth for FY25 and unsustainably high margins & return ratios, the company has also not yet disclosed the number from the recycling business, making EPW a risky bet. This is a selective, not automatic, buy.

Powered by Froala Editor