Gallard Steel Limited, incorporated in 2015, manufactures ready-to-use machined and unmachined steel castings, assemblies and subassemblies for railways, defence, power generation and industrial machinery. It earns revenue by supplying critical components such as traction motor parts, bogie components, turbine subassemblies and defence castings to large engineering companies. Its products are used in locomotives, LHB coaches, thermal and hydro turbines, industrial equipment and defence systems.

Key Clients & Manufacturing Facilities

The company supplies to Indian Railways–approved units, defence production units and major heavy-engineering clients. Its main manufacturing facility is located at Pithampur, Dhar (M.P.), spread across 12,195 sq. meters, equipped with melting, molding, machining, heat-treatment and testing capabilities. Through its subsidiary SIPL, it operates CNC machining and rebonded foam divisions at Pithampur, adding precision machining and foam product capabilities.

Product Portfolio & Order Book

Gallard Steel offers traction motor parts, bogie assemblies, turbine guide vanes, bush housings, cradle assemblies, industrial liners and machined steel castings. These components fall in the mid-to-late stage of the client product life cycle, directly affecting performance and durability. SIPL supports finishing and precision machining. While the RHP does not provide a numerical order book breakup, the company continues to execute repeat orders from railway and defence-approved customers, ensuring consistent utilisation.

Mergers, Capex & Expansion

In 2024, the company acquired Sleeploop India Pvt. Ltd. to strengthen CNC machining and foam manufacturing capacity. In 2025, it incorporated Gallard Steel Europe B.V. to expand exports. From IPO proceeds, ₹2,073.01 lakh will be invested in capacity expansion and construction of a new office building, while ₹720 lakh will be used to repay borrowings, improving leverage for future growth.

Employees, Exports, Geography, Bankers

The company operates in India with growing export plans through its newly incorporated European subsidiary. Its banker is Yes Bank. It serves railway, defence and industrial clients across multiple states, with expansion aimed at increasing export reach. (Employee count not disclosed in RHP).

Management & Vision

Gallard Steel is led by Managing Director Zakiuddin Sujauddin, Whole-Time Director & CFO Hakimuddin Ghantawala, and Director Kaid Johar Kalabhai, each with extensive experience in steel castings and engineering components. Management targets growth through capacity expansion, enhanced machining capability, deeper railway and defence penetration and rising export contribution through its European subsidiary. Funding for expansion will primarily come from IPO proceeds, internal accruals and improved leverage capacity after debt repayment, as stated in the RHP.

Industry Overview

India produced 125.32 MT of crude steel and 121.29 MT of finished steel in FY23, ranking as the world’s second-largest producer. Domestic steel demand is expected to grow 9–10% in FY25, supported by infrastructure, railways, and defence spending. India aims to reach 300 MT capacity by FY31 under the National Steel Policy. Global steel consumption is rising with India's per-capita consumption increasing from 57.6 kg to 74.1 kg in five years. The industry outlook remains strong due to railways, automobiles and manufacturing growth.

Key Risk Factors

1. Customer Concentration Risk

The company depends heavily on railway-approved entities and defence units for a significant share of its revenue. Any reduction in orders, delays in tenders or regulatory changes may materially affect operations and annual production levels.

2. Working Capital & Debt Exposure

The business requires high working capital for inventory, machining and casting processes. Outstanding borrowings of ₹720 lakh (proposed to be repaid through IPO) indicate reliance on external funding; delays in receivables can impact liquidity.

3. Regulatory & Approval Dependency

The company’s operations depend on RDSO and defence approvals. Losing certifications, failing audits, or delay in renewals could directly impact its ability to supply key components, affecting revenue continuity.

4. Operational Risks at Single Facility

Most manufacturing operations are concentrated in a single Pithampur facility. Any breakdown, accident, labour issue or local disruption may result in production stoppages, affecting client delivery timelines and financial performance.

5. Legal & Compliance RisksThe company faces ongoing legal matters, including cheque dishonour cases and a compounding application related to Section 185 violations. Penalties or adverse rulings may impact reputation and financials.

6. Subsidiary Integration Risk

Recent acquisition of SIPL and formation of the European subsidiary require smooth integration. Delays in operational alignment, export setup or synergy realization may affect expected growth benefits.

Key Strengths & Opportunities

1. Strong In-house Manufacturing Capabilities

A fully integrated facility with melting, molding, machining, testing and finishing allows control over quality, faster delivery and the ability to produce critical railway, defence and power-sector components with consistency.

2. Approvals from Railways & Defence

Class ‘A’ Foundry Status and RDSO approvals give the company an entry barrier advantage, enabling participation in high-value, long-term railway and locomotive component supplies where few private players hold similar certifications.

3. Improving Financial Performance

Revenue grew from ₹2,059 lakh in FY23 to ₹5,332 lakh in FY25, with EBITDA margins rising from 9.21% to 23.39% and RoE reaching 43.16% in FY25, reflecting operational efficiency and demand strength.

4. Expansion Through Subsidiaries

SIPL strengthens machining capability and foam manufacturing, while the European subsidiary provides a gateway to export markets. These expansions improve diversification and position the company for higher-margin international business.

5. Strong Industry Tailwinds

With India aiming for 300 MT steel capacity by 2030-31, and growing demand in railways, defence and power, the company is positioned to benefit from rising infrastructure and manufacturing investments.

6. Reduced Debt & Improved Leverage Post-IPO

Repayment of ₹720 lakh from IPO proceeds lowers interest burden, strengthens the balance sheet and allows more internal accruals to be allocated toward future expansions and technology upgrades.

Gallard Steel Limited, incorporated in 2015, manufactures ready-to-use machined and unmachined steel castings, assemblies and subassemblies for railways, defence, power generation and industrial machinery. It earns revenue by supplying critical components such as traction motor parts, bogie components, turbine subassemblies and defence castings to large engineering companies. Its products are used in locomotives, LHB coaches, thermal and hydro turbines, industrial equipment and defence systems.

Key Clients & Manufacturing Facilities

The company supplies to Indian Railways–approved units, defence production units and major heavy-engineering clients. Its main manufacturing facility is located at Pithampur, Dhar (M.P.), spread across 12,195 sq. meters, equipped with melting, molding, machining, heat-treatment and testing capabilities. Through its subsidiary SIPL, it operates CNC machining and rebonded foam divisions at Pithampur, adding precision machining and foam product capabilities.

Product Portfolio & Order Book

Gallard Steel offers traction motor parts, bogie assemblies, turbine guide vanes, bush housings, cradle assemblies, industrial liners and machined steel castings. These components fall in the mid-to-late stage of the client product life cycle, directly affecting performance and durability. SIPL supports finishing and precision machining. While the RHP does not provide a numerical order book breakup, the company continues to execute repeat orders from railway and defence-approved customers, ensuring consistent utilisation.

Mergers, Capex & Expansion

In 2024, the company acquired Sleeploop India Pvt. Ltd. to strengthen CNC machining and foam manufacturing capacity. In 2025, it incorporated Gallard Steel Europe B.V. to expand exports. From IPO proceeds, ₹2,073.01 lakh will be invested in capacity expansion and construction of a new office building, while ₹720 lakh will be used to repay borrowings, improving leverage for future growth.

Employees, Exports, Geography, Bankers

The company operates in India with growing export plans through its newly incorporated European subsidiary. Its banker is Yes Bank. It serves railway, defence and industrial clients across multiple states, with expansion aimed at increasing export reach. (Employee count not disclosed in RHP).

Management & Vision

Gallard Steel is led by Managing Director Zakiuddin Sujauddin, Whole-Time Director & CFO Hakimuddin Ghantawala, and Director Kaid Johar Kalabhai, each with extensive experience in steel castings and engineering components. Management targets growth through capacity expansion, enhanced machining capability, deeper railway and defence penetration and rising export contribution through its European subsidiary. Funding for expansion will primarily come from IPO proceeds, internal accruals and improved leverage capacity after debt repayment, as stated in the RHP.

Industry Overview

India produced 125.32 MT of crude steel and 121.29 MT of finished steel in FY23, ranking as the world’s second-largest producer. Domestic steel demand is expected to grow 9–10% in FY25, supported by infrastructure, railways, and defence spending. India aims to reach 300 MT capacity by FY31 under the National Steel Policy. Global steel consumption is rising with India's per-capita consumption increasing from 57.6 kg to 74.1 kg in five years. The industry outlook remains strong due to railways, automobiles and manufacturing growth.

Key Risk Factors

1. Customer Concentration Risk

The company depends heavily on railway-approved entities and defence units for a significant share of its revenue. Any reduction in orders, delays in tenders or regulatory changes may materially affect operations and annual production levels.

2. Working Capital & Debt Exposure

The business requires high working capital for inventory, machining and casting processes. Outstanding borrowings of ₹720 lakh (proposed to be repaid through IPO) indicate reliance on external funding; delays in receivables can impact liquidity.

3. Regulatory & Approval Dependency

The company’s operations depend on RDSO and defence approvals. Losing certifications, failing audits, or delay in renewals could directly impact its ability to supply key components, affecting revenue continuity.

4. Operational Risks at Single Facility

Most manufacturing operations are concentrated in a single Pithampur facility. Any breakdown, accident, labour issue or local disruption may result in production stoppages, affecting client delivery timelines and financial performance.

5. Legal & Compliance RisksThe company faces ongoing legal matters, including cheque dishonour cases and a compounding application related to Section 185 violations. Penalties or adverse rulings may impact reputation and financials.

6. Subsidiary Integration Risk

Recent acquisition of SIPL and formation of the European subsidiary require smooth integration. Delays in operational alignment, export setup or synergy realization may affect expected growth benefits.

Key Strengths & Opportunities

1. Strong In-house Manufacturing Capabilities

A fully integrated facility with melting, molding, machining, testing and finishing allows control over quality, faster delivery and the ability to produce critical railway, defence and power-sector components with consistency.

2. Approvals from Railways & Defence

Class ‘A’ Foundry Status and RDSO approvals give the company an entry barrier advantage, enabling participation in high-value, long-term railway and locomotive component supplies where few private players hold similar certifications.

3. Improving Financial Performance

Revenue grew from ₹2,059 lakh in FY23 to ₹5,332 lakh in FY25, with EBITDA margins rising from 9.21% to 23.39% and RoE reaching 43.16% in FY25, reflecting operational efficiency and demand strength.

4. Expansion Through Subsidiaries

SIPL strengthens machining capability and foam manufacturing, while the European subsidiary provides a gateway to export markets. These expansions improve diversification and position the company for higher-margin international business.

5. Strong Industry Tailwinds

With India aiming for 300 MT steel capacity by 2030-31, and growing demand in railways, defence and power, the company is positioned to benefit from rising infrastructure and manufacturing investments.

6. Reduced Debt & Improved Leverage Post-IPO

Repayment of ₹720 lakh from IPO proceeds lowers interest burden, strengthens the balance sheet and allows more internal accruals to be allocated toward future expansions and technology upgrades.