#devsoncatalyst

Devson Catalyst's SME IPO opened on Thursday, July 9 and closes Monday, July 13, in a price band of Rs 112-118 per share. The issue totals 35,88,000 shares aggregating up to Rs 42 crore — a fresh issue of 31,58,000 shares (up to Rs 37 crore) and an offer for sale of 2,50,000 shares (up to Rs 3 crore). The Surendranagar-based company makes catalysts, adsorbents, molecular sieves, activated alumina and ceramic balls for petrochemicals, refineries, fertilisers and industrial gas processing, and proceeds go to expansion and working capital.

The fact sheet's financials are the part worth a subscriber's time. Profit after tax has tripled in two years — Rs 4.08 crore in FY24, Rs 7.67 crore in FY25, Rs 12.52 crore in FY26 — while total income grew far more modestly from Rs 43.75 crore to Rs 56.84 crore.

Why it matters

EBITDA went from Rs 6.69 crore to Rs 16.76 crore, net worth from Rs 13.36 crore to Rs 33.50 crore, and total borrowing, Rs 2.78 crore in FY25, disappears from the FY26 line entirely.

The details

A margin expansion that steep into an IPO window is either genuine operating leverage in a niche catalyst franchise or a peak-earnings base for pricing — the document does not say which, and that open question, flagged for desk-check, is the diligence item for anyone bidding.

Who is affected

Prospective IPO subscribers face a diligence question over whether the steep margin expansion reflects sustainable operating leverage or a peak-earnings base timed for the offering.

Devson Catalyst's petrochemical, refinery and fertiliser customers stand to benefit from the company's expansion and working capital investments once proceeds are deployed.

What's next

Watch the IPO's subscription levels and listing performance as an early indicator of how the market reads the company's tripled PAT against modest revenue growth.

Continued monitoring of the company's post-listing financials will clarify whether the FY26 margin expansion proves durable.