Can LEAP India IPO deliver long-term growth for high risk investors?

ET Intelligence Group: LEAP India, a supply chain and asset-pooling company, plans to raise ₹480 crore through a fresh issue to repay debt. It will also seek to raise ₹2,000 crore through an offer for sale. The promoter group's stake will fall to 60.4% after the IPO from 95.4%.

LEAP India offers equipment pooling, returnable packaging, inventory management, transportation, and repair and maintenance services across industries such as e-commerce, FMCG, automotive, and consumer durables.

The company generates about a fifth of its revenue from its top five customers. With its recent acquisition of CHEP India, the company has expanded its business and is the largest on-demand asset-pooling provider in the country. It aims to benefit from increasing adoption of supply-chain automation.


Read more: GIC subsidiary and promoter Sunu Mathew lead LEAP India’s pre-IPO placement round

While the IPO valuation appears to be on a higher side, it reflects future growth potential due to the addition of CHEP's capabilities to its core activities.

Given these factors, investors with a high-risk appetite may consider the IPO for long term.

Business

Incorporated in 2013, LEAP India operates on a "share and reuse" model that helps customers reduce logistics costs, improve supply-chain efficiency and avoid owning these assets.

Following the acquisition of CHEP India in January 2025, the company expanded its asset-pooling network and container-pooling portfolio, and broadened its customer reach.

It has 29 fulfilment centres to facilitate the storage, maintenance, repair, and rapid deployment of assets to customers. TARON, its subsidiary, is the leading forklift-pooling company and a leader in the lithium-ion segment of material-handling equipment (MHE), according to Frost & Sullivan.

Financials

Revenue from operations jumped 41.4% year-on-year to ₹729.5 crore and net profit grew 29.5% year-on-year to ₹62.3 crore between FY24 and FY26. Operating profit before interest, tax, depreciation and amortisation (Ebitda) increased 34.3% to ₹378.8 crore during the period. On a year-on-year basis, revenue grew 56.4%, Ebitda rose 38.4%, while net profit surged 66% in FY26.

Ebitda margin dropped to 50.7% in FY26 from 56.4% in FY24.

Valuation

The company does not have any direct peers listed in India. Considering the post-IPO equity and net profit for FY26, it demands a price-to-earnings (P/E) multiple of up to 113. The enterprise value (EV)-to-Ebitda multiple moderated to 21.6 times in FY26 from 36.1 times in FY24, though net debt more than doubled to ₹1,143.8 crore in FY26 from ₹551.4 crore in FY24.

The softening in the EV/Ebitda ratio implies that higher borrowings resulted in incremental operating profit during the said reported period.