Steamhouse India Limited

Steamhouse India Limited is a Gujarat-based pioneer in the centralization of industrial steam generation and centralized distribution of industrial gases. Established in 2015, the company introduced the "Steam as a Service" (SaaS) and community boiler system to the Indian market, providing an energy-efficient alternative to process industries that historically operated small, inefficient, and highly polluting captive boilers. The core value proposition of Steamhouse revolves around reducing capital expenditures (CapEx) for individual industries, lowering local pollution levels, minimizing regulatory compliance burdens, and enhancing operational reliability and safety through decentralized networks. The underlying business model is multi-pronged: (i) generation and distribution of steam through dedicated community boiler systems and pipeline networks; (ii) purchase and distribution of excess or waste steam from third-party manufacturers; (iii) extraction, compression, and pipeline supply of purified nitrogen; and (iv) bulk coal trading in the open market.

The company’s key client segments span a wide array of energy-intensive process industries, including pharmaceuticals, chemicals, textiles, agrochemicals, tyres, dyes and pigments, polymers, and paints. Its customer base includes prominent regional players such as Aether Industries Limited, Anupam Rasayan India Limited, Globe Enviro Care Limited, Gujarat Polysol Chemicals Limited, and Subhasri Pigments Limited. Geographically, Steamhouse's operations are highly concentrated in the state of Gujarat, particularly within the state’s key industrial clusters managed by the Gujarat Industrial Development Corporation (GIDC). However, the company is actively expanding its geographic footprint, having entered into steam purchase and distribution agreements with chemical entities in the Dahej Special Economic Zone (SEZ) in Gujarat and Haldia in West Bengal. This geographic expansion aims to support multi-location clients, mitigate regional concentration risks, and scale up bulk procurement efficiencies.

Steamhouse's core physical infrastructure as of July 31, 2026, comprises seven operational community steam boilers (six owned and one leased) situated in major GIDC estates in Gujarat: Vapi Phase 1, Vapi Waste-to-Energy (WTE) unit, Ankleshwar Phase 1 and Phase 2, Sarigam, Nandesari, and Panoli. These facilities feature an aggregate steam generation capacity of 345 tonnes per hour (TPH), which translates to an annual installed capacity of 2,185,920.00 tonnes per annum (TPA). Additionally, the company operates a dedicated nitrogen generation plant in Ankleshwar GIDC with a commercial capacity of 350 NM3/hour. To connect its centralized facilities to customer points of consumption, Steamhouse maintains an extensive, thermally-insulated pipeline distribution system of 60,151 meters (approximately 60.15 kilometers). The company holds exclusive Right of Use (RoU) and pipeline rights-of-ways across GIDC industrial belts, creating a formidable entry barrier for potential competitors due to extreme space limitations.

According to the independent chartered engineer’s certificate, the capacity utilization across Steamhouse's operational facilities for the financial year ended March 31, 2026, varies significantly as plants stabilize and ramp up production:
Vapi Facility Phase 1 (Coal-fired): Out of an annual installed capacity of 380,160.00 TPA (60 TPH boiler), actual production was 110,921.32 TPA, reflecting a capacity utilization of 29.18% (compared to 40.70% in FY25 and 43.38% in FY24).

Vapi WTE Unit (Non-fossil fuel-fired): Operating on municipal solid waste, paper/textile chindi, and refuse-derived fuel (RDF), actual production was 73,700.92 TPA out of an installed capacity of 95,040.00 TPA (15 TPH boiler), representing a high utilization of 77.55% (compared to 40.12% in FY25).

Ankleshwar Facility Phase 1 & 2 (Coal-fired): Operating with two boilers aggregating to 120 TPH, actual production was 398,652.64 TPA out of an installed capacity of 760,320.00 TPA, resulting in a utilization of 52.43% (compared to 55.38% in FY25 and 55.21% in FY24).

Sarigam Facility (Coal-fired): Actual production was 46,095.47 TPA out of an installed capacity of 380,160.00 TPA (60 TPH boiler), showing a utilization of 12.13% (compared to 13.22% in FY25).

Nandesari Facility (Coal-fired): Actual production was 100,478.99 TPA out of an installed capacity of 190,080.00 TPA (30 TPH boiler), reflecting a utilization of 52.86% (compared to 35.24% in FY25 and 16.66% in FY24).

Panoli Facility (Coal-fired): Commenced in June 2025, actual production was 22,864.38 TPA out of an installed capacity of 316,800.00 TPA (60 TPH boiler), showing an initial capacity utilization of 7.22%.

At the operational core, Steamhouse utilizes advanced technological integration to optimize combustion processes and monitor real-time distribution metrics. The company deploys centralized Supervisory Control and Data Acquisition (SCADA) systems and advanced flow meters to track temperature, pressure, and gas quality, alongside an array of Internet of Things (IoT) sensors. To ensure compliance with GPCB norms, the company monitors key air pollutants—such as suspended particulate matter (SPM), nitrogen oxides (NOx), and sulphur oxides (SOx)—directly at the emission source. Except for waste-fired units, the boilers are engineered with Atmospheric Fluidized Bed Combustion (AFBC) designs, achieving maximum thermal efficiencies of 80%–83% compared to typical captive boiler efficiencies of 50%–65%. Furthermore, the company leverages cutting-edge operational tools, including drone technology to map distribution networks and inspect pipeline welds for leakages, alongside automatic handling and closed-system movement of coal and fly ash.

As per financial performance, Steamhouse India Limited has posted total income / net profits of Rs 293.16 Cr / Rs 27.19 Cr (FY24), Rs 398.53 Cr / Rs 31.16 Cr (FY25) and Rs 494.97 Cr / Rs 38.64 Cr (FY26). So as per previous financials data, the company has shown consistent top-line and bottom-line growth with total income rising at a 30.01% CAGR and PAT expanding at a 19.23% CAGR, though total outstanding borrowings have increased from Rs 202.71 Cr in FY24 to Rs 281.62 Cr in FY26. Company has an average EPS of Rs 1.52 and average RoNW of 24.14% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 11.17 as per NAV of Rs 7.25 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 3.95. If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, then the asking price is at a Post-Issue P/E of around 82.65, 71.85, and 57.94 respectively. As per RHP, a comparison between listed peers shows that Linde India Limited trades at a high P/E of 99.17x and an RoNW of 12.87%, while Ellenbarrie Industrial Gases Limited trades at a P/E of 42.74x and an RoNW of 10.68%, making this issue reasonably priced relative to the market leader given its superior Return on Equity of 23.60%.

On BRLM's front, Equirus Capital Limited are associated with this IPO, and Equirus Capital Limited has handled 15 IPOs in the last three fiscal years. (as on 07.09.26)

• 1 Mr. Vishal Sanwarprasad Budhia
• 2 Ms. Ritu Budhia
• 3 VSB Business Trust
• 4 Budhia Business Trust
• 5 VB Business Trust