India’s renewable energy sector continues to expand as investments in wind and solar infrastructure increase. Behind every wind turbine is a large steel tower that supports the turbine and allows it to operate safely for decades.
The Anawil IPO offers investors exposure to a company that manufactures these steel wind turbine towers.
Unlike companies that manufacture wind turbines, Anawil focuses on fabricating the steel tower sections that turbine manufacturers assemble at project sites.
The company has delivered exceptional financial growth over the past two years, supported by its strategic shift towards wind energy manufacturing. However, investors should also examine its rising working capital requirements, increasing debt and dependence on a single manufacturing facility before evaluating the IPO.
This review explains Anawil’s business model, financial performance, IPO structure and the key risks investors may wish to consider.
On this page
Anawil IPO: Key Takeaways
Before reviewing the company in detail, here are the major highlights.
- Anawil manufactures steel towers used in wind turbines.
- Around 94% of FY26 revenue comes from wind tower manufacturing.
- FY26 revenue increased 82% year-on-year.
- Profit after tax more than tripled during FY26.
- Most fresh issue proceeds will be used to repay debt.
- The Gujarat manufacturing facility has only recently commenced operations.
What Does Anawil Do?
Anawil manufactures large steel tower sections used in wind turbines.
These towers form the supporting structure beneath wind turbines and are an essential component of wind power projects.
The company does not manufacture turbines themselves.
Instead, it performs specialised fabrication work for wind turbine manufacturers and renewable energy developers.
Its manufacturing activities include:
- Cutting steel plates.
- Rolling steel into cylindrical sections.
- Welding components.
- Surface finishing.
- Fabricating completed wind tower sections.
Once fabrication is complete, customers collect the finished tower sections directly from the company’s manufacturing facilities.
The business operates entirely on a Business-to-Business (B2B) model.
It does not sell products directly to retail customers or government departments.
How Does the Job-Work Model Operate?
One important aspect of Anawil’s business is its job-work manufacturing model.
Rather than purchasing all raw materials independently, customers supply the primary steel and key inputs.
Anawil contributes specialised fabrication expertise and manufacturing capacity to convert these materials into finished wind tower sections.
This model allows the company to focus on manufacturing execution rather than commodity steel procurement.
It may also reduce raw material price risk compared with manufacturers purchasing steel independently.
Why Did the Company Shift Its Business Model?
Until 2023, Anawil operated across businesses such as:
- Wire mesh products.
- Boiler components.
The company subsequently shifted its focus toward wind tower manufacturing.
By FY26, approximately 94% of revenue came from wind tower fabrication.
This strategic shift positions the company within India’s growing renewable energy manufacturing ecosystem.
Where Does Anawil Manufacture Its Products?
The company currently operates manufacturing facilities in:
- Koppal, Karnataka
- Kutch, Gujarat
The Karnataka plant currently contributes the overwhelming majority of production.
The Gujarat facility only commenced commercial operations in March 2026 and is expected to support future capacity expansion.
How Strong Are Anawil’s FY26 Financials?
The company reported exceptionally strong revenue and profit growth during FY26.
Financial Snapshot
| Particulars | FY26 |
| Revenue | Rs. 143 crore |
| Profit After Tax | Rs. 36.6 crore |
| PAT Margin | 25.6% |
| Operating Cash Flow | Rs. 18.4 crore |
| Total Debt | Rs. 128 crore |
Revenue increased approximately 82% compared with FY25.
Profit after tax more than tripled, increasing from approximately Rs. 12.3 crore to Rs. 36.6 crore.
Profit margins also improved significantly.
PAT margin expanded from:
- 8.1% in FY24
- 25.6% in FY26
This suggests the company benefited from operating leverage as production volumes increased.
Why Is Operating Cash Flow Lower Than Profit?
Although profitability improved sharply, operating cash flow remained considerably lower.
During FY26:
- Profit after tax: Rs. 36.6 crore
- Operating cash flow: Rs. 18.4 crore
This difference occurred primarily because more capital became tied up in:
- Inventory.
- Customer receivables.
In other words, the company reported accounting profits before collecting all related cash.
Why Does This Matter?
Accounting profits record revenue once it is earned.
Operating cash flow records when cash is actually received.
If inventory builds up or customers take longer to pay, operating cash flow may lag behind profits.
What many investors assume:
Higher profit automatically means higher cash generation.
What actually happens:
Businesses with increasing inventory or slower customer collections may report healthy profits while generating comparatively lower operating cash flow.
Why this matters:
Cash generation supports debt repayment, expansion and day-to-day operations. Investors should therefore monitor whether cash flow improves as the business matures.
Unsure whether strong profit growth is translating into sustainable cash generation? An investment advisor at inXits can help evaluate earnings quality, cash flow and financial strength before assessing an IPO.
Why Has Debt Increased?
Total borrowings increased from approximately Rs. 55 crore to around Rs. 128 crore.
The increase primarily funded the company’s new Gujarat manufacturing facility.
Borrowing to expand manufacturing capacity is not uncommon in capital-intensive industries.
However, investors should monitor whether the new plant generates sufficient production and cash flow to justify the additional debt.
Invest Smarter.
Grow Confidently.
Your AI-powered SEBI-registered investment advisor — with research you can trust and insights that grow with you.
Download inXits Free
What Are the Main Risks in the Anawil IPO?
Although the company has delivered rapid financial growth, investors should understand the operational and financial risks disclosed in the offer documents.
Why Are Working Capital Requirements Increasing?
One important trend relates to inventory and customer receivables.
According to the disclosed information:
| Ratio | FY25 | FY26 |
| Inventory Days | 175 | 253 |
| Trade Receivable Days | 67 | 82 |
Both inventory holding periods and customer collection periods have increased.
This lengthens the company’s overall working capital cycle.
A longer working capital cycle generally means more money remains tied up inside the business before being converted into cash.
The trend is also consistent with operating cash flow remaining below reported profit.
Investors should therefore monitor whether working capital efficiency improves over future financial years.
Why Does Dependence on One Manufacturing Plant Matter?
Although Anawil now operates two manufacturing facilities, almost the entire business still depends on one location.
According to the disclosed information:
- Approximately 93.87% of FY26 revenue came from the Karnataka facility.
This creates concentration risk.
Any disruption involving:
- Labour.
- Operations.
- Utilities.
- Logistics.
- Natural events.
could significantly affect production.
The Gujarat facility is expected to reduce this dependence over time.
However, it only commenced operations during March 2026 and currently operates at approximately 8% capacity utilisation.
Until utilisation improves, the Karnataka facility remains the primary production centre.
How Will the IPO Proceeds Be Used?
The Anawil IPO consists of both a Fresh Issue and an Offer for Sale.
Issue Structure
| Component | Amount |
| Fresh Issue | Approximately Rs. 143 crore |
| Offer for Sale | Approximately Rs. 35 crore |
| Total Issue Size | Approximately Rs. 178 crore |
Unlike a pure Offer for Sale, the company itself will receive funds through the fresh issue.
Proposed Use of Fresh Issue Proceeds
Approximately:
- 80% of proceeds will be used to repay existing borrowings.
- The remaining amount will be used for general corporate purposes.
Debt repayment should strengthen the balance sheet and reduce future financing costs.
Anawil IPO Details
| Particulars | Details |
| IPO Opening Date | 3 August 2026 |
| IPO Closing Date | 5 August 2026 |
| Price Band | Rs. 257 – Rs. 270 per share |
| Minimum Investment | Approximately Rs. 2,16,000 |
| Total Issue Size | Approximately Rs. 178 crore |
| Issue Structure | Fresh Issue + Offer for Sale |
The relatively high minimum investment means investors should consider portfolio allocation carefully before participating.
How Should Investors Evaluate the Anawil IPO?
Anawil operates within a growing renewable energy manufacturing segment.
The company has demonstrated:
- Strong revenue growth.
- Rapid profit growth.
- Significant improvement in margins.
- A specialised manufacturing business.
- Expansion through a second manufacturing facility.
However, investors should also evaluate:
- Working capital efficiency.
- Cash flow conversion.
- Debt levels.
- Capacity utilisation at the Gujarat plant.
- Manufacturing concentration.
- IPO valuation.
Imagine Neeraj, a long-term investor interested in renewable energy businesses.
He appreciates Anawil’s rapid growth and exposure to India’s expanding wind energy sector.
However, before investing, he also evaluates whether profits are translating into sustainable cash generation and whether the new Gujarat plant can meaningfully diversify production over the coming years.
Understanding both the opportunities and the operational risks provides a more balanced investment perspective.
Understanding Manufacturing IPOs With Professional Guidance
Renewable energy manufacturers should be evaluated using more than revenue growth alone.
Working capital management, manufacturing capacity, cash flow quality, debt levels and operational concentration all influence long-term business performance.
At inXits, SEBI-registered investment advisors help investors evaluate IPOs within the context of their financial goals, portfolio allocation and investment horizon.
If you are assessing the Anawil IPO, professional guidance can help you understand business quality, financial strength and valuation before making an investment decision.
Conclusion
The Anawil IPO offers investors exposure to India’s growing wind energy manufacturing ecosystem through a specialised steel tower fabrication business.
The company has reported exceptional revenue growth, sharply higher profitability and expanding operating margins following its strategic focus on wind tower manufacturing.
However, investors should also consider slower cash conversion, rising working capital requirements, increased debt and the current dependence on a single manufacturing facility.
Most of the fresh issue proceeds will be used to reduce borrowings, which may strengthen the company’s balance sheet over time.
As with any IPO, understanding both business quality and operational risks is essential before evaluating whether the investment aligns with individual financial goals and risk tolerance.
Frequently Asked Questions
What is the Anawil IPO?
The Anawil IPO is the public offering of a company that manufactures steel wind turbine towers through a specialised fabrication process for renewable energy companies.
What does Anawil manufacture?
Anawil manufactures steel tower sections used to support wind turbines. It does not manufacture wind turbines themselves.
What is the company’s job-work business model?
Customers supply the primary steel and raw materials, while Anawil performs fabrication, welding, rolling and finishing before customers collect the completed tower sections.
How strong are Anawil’s FY26 financials?
FY26 revenue increased approximately 82% to Rs. 143 crore, while profit after tax more than tripled to Rs. 36.6 crore.
Why is operating cash flow lower than profit?
More money remained tied up in inventory and customer receivables during FY26, causing operating cash flow to trail reported profit.
Why has debt increased?
Borrowings increased mainly to finance the construction and commissioning of the company’s new Gujarat manufacturing facility.
What are the biggest risks in the Anawil IPO?
Key risks include rising working capital requirements, slower cash conversion, manufacturing concentration at one plant and the relatively low utilisation of the new Gujarat facility.
How will the IPO proceeds be used?
Approximately 80% of the fresh issue proceeds will be used to repay existing borrowings, with the balance allocated toward general corporate purposes.
What is the minimum investment in the Anawil IPO?
Based on the upper price band of Rs. 270, the minimum investment is approximately Rs. 2,16,000.
How should investors evaluate the Anawil IPO?
Investors should assess revenue growth, cash flow quality, working capital efficiency, debt reduction, manufacturing diversification, capacity utilisation and valuation together before making an investment decision.
Disclaimer
Investments in securities markets are subject to market risks. Read all related documents carefully before investing.
inXits is a SEBI-registered Investment Adviser (Registration No. INA000020369). This article is for educational purposes only and does not constitute personalised investment advice.
Registration granted by SEBI, membership of BSE and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Ashish brings a strong foundation in economics, along with CFA Level 3 candidacy and over 2 years of experience across equity research and investment advisory. At inXits, he leads PMS and AIF advisory while overseeing equity product development, turning research-driven insights into practical tools for smarter portfolio decisions.
