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BharatRohan Airborne Innovations

• BharatRohan Airborne Innovations is coming out with an initial public offering (IPO) of 52,99,200 equity shares in a price band of Rs 80-85 per equity share.
• The issue will open on September 23, 2025 and will close on September 25, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 8.00 times of its face value on the lower side and 8.50 times on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance Officer for the issue is Aakansha Singh.

Profile of the company

BharatRohan is engaged in an emerging business model, distinguishing itself as an agritech and agri value chain solutions provider. The company leverages drone/UAV based platforms, with a main focus on Hyperspectral Imaging (HSI) technology. This allows it to offer a comprehensive suite of services and products that address critical challenges across the agricultural value chain, which includes, advisory on the crop production and guidance on the Integrated Crop Management Practices which enables the sale of Agricultural Output and Agricultural Input products by the company. The company is a vertically integrated Agri-tech company focused on enabling farmers to grow profitably using Decision Support System (DSS) based on Hyperspectral Imaging and other imaging technologies.

The company boasts a diversified portfolio of services and products. It delivers a comprehensive range of solutions to its associated farmers, specifically: (a) Providing of Crop Monitoring Services (CMS) via drones, which includes Integrated Crop Management (ICM) Practices; and (b) Sale of various branded agri-inputs, prominently featuring its proprietary brand, Pravir. It also engaged in the sale of agri-output products, for which Integrated Crop Management Practices were provided by the company and whose requirements are met throughout the agricultural value chain. This diversification allows it to cater to a broader spectrum of agricultural needs, offering its clientele a complete suite of solutions. Its primary objective is to empower farmers by generating revenue opportunities through improved farming solutions. This holistic approach underscores a robust business with significant potential for future expansion within the agritech landscape.

The company also have a dedicated team of Research and development, wherein new techniques are developed in-house to improvise on the drone technologies and make the operations more precise and clear to the farmers and also to adapt to new changing technologies as and when required as per the governmental laws and regulations, who are also the engineers. It has a pool of knowledgeable and experienced human resource, some of whom have been working in its organization since its incorporation, determining the agricultural needs for the farmers and providing services as per their requirement. Besides this, they also assist its customers at all stages right from choosing the right agri-input to farming advisory.

Proceed is being used for:

• Funding of capital expenditure requirements for purchase of new Equipment by the company
• Purchase of commercial vehicle
• Funding working capital requirement of the company
• General corporate purposes

Industry Overview

India is recognised as a global agricultural powerhouse owing to its vast argo-ecological diversity. India's agriculture business contributes significantly to the country's economy, accounting for approximately 18% of the GDP and employing 45% of the national workforce. India ranks 8th with a share of 2.33% among the world's top agricultural exporters. According to an Ernst & Young report, agritech firms in India present a $24 billion opportunities, although the market is still largely untapped (with only 1.5% penetration). When fully developed, the agritech ecosystem has the potential to increase the incomes of Indian farmers by 25 to 35% and contribute $95 billion to the country's GDP through lower input costs, increased productivity and price realisation, more affordable finance, additional sources of income (NITI Aayog). Between 2020 and 2027, the global agritech industry is expected to grow at a compound annual growth rate (CAGR) of 12.1%.

Agriculture is anticipated to contribute roughly US$ 600 billion to India's GDP by 2030, a 50% increase over its contribution in 2020. The agribusiness ecosystem includes all business operations from farm to fork, encompassing the complete value chain, from agricultural input supply to agricultural product manufacture and transformation, and distribution to final customers. This ecosystem has developed to include categories such as e-commerce and hyperlocal, driven by causes such as rapid urbanisation, diet diversity, changing consumer preferences, and the expansion of food markets. The market size of agritech is expected to more than double from 2022 to 2027, rising from $4 billion to a whopping $34 billion. The food crop segment alone is predicted to rise from US$ 3 billion to $25 billion by 2027. Fibre crops, cattle and dairy, poultry, and aquaculture are all expected to grow significantly.

As the world's population approaches 7.9 billion in November 2022 and is expected to reach 9.8 billion by 2050, food security has emerged as a major worldwide concern. The urgency for action must also address resource scarcity, distribution and access distortions, and the need to expand agricultural yields. Policymakers around the world are now looking for long-term solutions to the dilemma by leveraging technology in agricultural practices. While 86% of India's small and marginal farmers continue to be the principal sources of food and nutrition, they face challenges such as extremely small landholdings of less than two hectares and restricted access to technology, inputs, financing, money, and markets. To keep up with the rate at which the agricultural sector is evolving globally, the Government of India has been increasingly adjusting to continuing innovations and developments. The digitalization of agriculture and the introduction of an Agriculture Accelerator Fund will open new opportunities for the country's enterprises and individuals, as well as the global community at large.

Pros and strengths

Technology driven service delivery: The company’s strength lies in its deep integration of technology across the agricultural value chain, particularly through its advanced drone-based monitoring and data analytics. It leverages Hyperspectral Imaging (HSI) and other imaging technologies to gather precise, real-time data on crop health, nutrient deficiencies, water stress, and the early onset of pests and diseases. This granular data forms the foundation of its Decision Support System (DSS), which provides farmers with actionable advisories and guides them on Integrated Crop Management (ICM) Practices.

Focus on sustainable farming: The company’s mission is to “Revitalize Indian agriculture by enabling farmers to grow profitably for a sustainable & safe food supply chain.” The company’s technology has the potential to help farmers to improve their yields, reduce their costs, and increase their income. The company places a strong emphasis on sustainability in all aspects of its operations. It is committed to responsible agricultural practices that minimize environmental impact, conserve natural resources, and ensure long-term viability.

Comprehensive and integrated range of offerings: The company’s business model encompasses a comprehensive end to end solutions, ensuring a full spectrum of support for various stakeholders within the agricultural ecosystem. For farmers, its “CropAssure” Solution provides integrated management from seed selection through harvest. This solution leverages drone-based data acquisition and expert advisory to empower farmers with timely, informed decisions regarding crop health, pest and disease management and nutrient deficiencies. This precision approach leads to optimized resource utilization, reduced input costs, and increased yields. Its SourceAssure Solution extends traceability throughout the agricultural supply chain. By providing consumers with access to information on crop practices followed by its associated farmers, it offers complete transparency regarding the origin of their food.

Risks and concerns

Significant revenue comes from limited customers: Over 31.37%, 39.04% and 59.70% of the company’s operating revenue came from its top five customers in the Fiscals 2025, 2024 and 2023. The company’s dependence on its top five/ten customers subjects it to various risks which may include, reduction, delay or cancellation of orders, failure to renegotiate favourable terms or the loss of these customers entirely which could have a material adverse effect on its business, financial condition, cash flows and results of operations.

Geographical constrain: Currently majority of the company’s sales is derived from the state of Rajasthan, Gujarat and Uttar Pradesh. For the Financial years ended March 31, 2025, 2024 and 2023 on the basis of Restated Consolidated Financial Statements, its sales were Rs 2,355.55 lakh, Rs 1,234.77 lakh and Rs 446.33 lakh which constitutes 83.61%, 65.14% and 69.00% respectively of the Revenue from operations from these states. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

Business is subject to weather patterns, seasonal factors and climate change: The company’s business performance is closely linked to weather conditions and seasonal trends that directly affect the agricultural industry. Sometimes, one region receives very heavy rainfall whereas another region receives scant rainfall. Any vagaries of weather and abnormal monsoon may affect crop production, destroy crops and subsequently increase the prices of its Agri Outputs products which can have an adverse effect on its results of operations and profit margins. Moreover, it purchases the Agri Outputs in the harvest season and store them in godown and sale throughout the year during off season.

Outlook

BharatRohan Airborne Innovations is an agritech solutions provider focusing on drone/UAV platforms and Hyperspectral Imaging (HSI) technology. The company has a comprehensive and integrated range of offerings that provide a “One Stop Solution” for Agriculture Business through diversified Service and Product Portfolio. On the concern side, maximum revenue comes from limited customers and the loss of any of its top customers, or the loss of revenue from these top customers could have a material adverse effect on its business, financial condition, results of operations and cash flows. Moreover, the company’s business operations rely significantly on the continuous and timely supply of products from top 5 and top 10 suppliers and any interruptions or discontinuation of same will adversely impact its overall performance and profitability. 

The company is coming out with a maiden IPO of 52,99,200 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 80-85 per equity share. The aggregate size of the offer is around Rs 42.39 crore to Rs 45.04 crore based on lower and upper price band respectively. On performance front, revenue from operations increased by 48.63% from Rs 1,895.49 lakh in Fiscal 2024 to Rs 2,817.23 lakh in Fiscal 2025. Moreover, the company’s Profit After Tax increased by 9.88% from Rs 690.40 lakh in Fiscal 2024 to Rs 758.64 lakh in Fiscal 2025.

The company intends to set up a new Direct to Customer model to facilitate the selling of its agricultural products like spices, pulses, and oilseeds directly to consumers through Quick Commerce Platforms such as Swiggy Instamart, etc., and Modern Retail Chains. The company is establishing a processing unit in Rajasthan with financial support from the International Fund for Agriculture Development (IFAD) through the Access Development Services as Fund Manager. This initiative aims to create a vertically integrated value chain, from advanced agricultural practices to the processing and supply of chemical residue-free produce.