- Kataline's IPO includes up to 43 lakh fresh shares and 43 lakh shares for sale by promoters
- Product sales made up 70.27% of FY26 revenue, with service revenue nearly doubling
- Kataline is India's only paint maker approved for Formula 1 circuits under FIA standards
Kataline, a road-marking paint manufacturer with a Formula 1 connection, projects on some of India's expressways and a healthy project-execution business is heading towards an initial public offering. The Nagpur-based company has expanded into project execution and traffic-safety products, while its DRHP also shows rising working-capital requirements, higher receivables, customer concentration and a promoter-led offer-for-sale.
The IPO will comprise a fresh issue of up to 43 lakh shares and an offer for sale of up to 43 lakh shares as well, taking the total offer to up to 86 lakh shares. The price band has not been disclosed in the DRHP as of October 1.
Here are 10 key things to know from the DRHP.
Still largely a road-marking products business
Kataline began as a road-marking paint manufacturer and has expanded into project execution and other traffic-safety products. But products continue to account for most of its revenue.
In FY26, revenue from operations rose 38.79% to Rs 220.58 crore from Rs 158.93 crore in FY25. Product revenue stood at Rs 155.01 crore, accounting for 70.27% of revenue, while services contributed Rs 65.57 crore, or 29.73%. Service revenue almost doubled from Rs 34.03 crore in FY25. Within products, however, there is another concentration point: hot-applied thermoplastics accounted for 84.82% of total FY26 revenue.
The F1 connection
Kataline says it has developed specialised paint for Formula 1 circuits and that the product has been approved for deployment.
The company says it is currently the only manufacturer from India and one of only two manufacturers from Asia listed by the Fédération Internationale de l'Automobile with paint homologated under FIA Standard 3503-2019 for motor-racing circuits.
The F1 business makes for an unusual part of the company's story, but it is not what drives its financials. The bulk of revenue still comes from road-safety products and services in India.
Move to project execution
Kataline is increasingly doing more than supplying material. It also executes road-marking and traffic-safety projects using its own products and equipment. The company says it has executed more than 60 projects contributing over Rs 50 lakh each during the last three fiscals, across highways, expressways, airports, smart cities and urban infrastructure.
Kataline's track record includes the Samruddhi Mahamarg, Delhi-Vadodara Expressway, Eastern Peripheral Expressway, Ganga Expressway, Bundelkhand Expressway, Raipur-Visakhapatnam Economic Corridor Expressway, Purvanchal Expressway and Chennai Peripheral Ring Road.
Service revenue jumped 92.68% in FY26, compared with 24.11% growth in product revenue.
Partnerships with European specialists
Beyond its F1 homologation, Kataline holds exclusive rights in India to market, distribute and deploy road-marking machines manufactured by Borum A/S of Denmark.
It also has an exclusive long-term supply arrangement with Swarovski Gesellschaft m.b.H., Austria, for reflective glass beads used in road markings. It has a technical collaboration with Tpaint B.V. as well.
Customers concentration
Kataline's top 10 customers accounted for 50.49% of revenue in FY26, up from 45.64% in FY25 and 43.61% in FY24. The largest customer alone contributed 13.29% of FY26 revenue, while the top five accounted for 33.81%.
The company says its top customers include EPC contractors involved in government-funded road and infrastructure projects.
Kataline also says it does not enter into formal long-term agreements with its direct customers and generally operates through purchase orders.
Cash conversion
Kataline reported Rs 26.83 crore of PAT in FY26, up from Rs 16.65 crore in FY25. But operating cash flow was only Rs 19.64 lakh in FY26.
The cash-flow statement shows that operating profit before working-capital changes was Rs 38.25 crore, but Rs 22.60 crore was absorbed by higher trade receivables and another Rs 10.47 crore by higher inventory. After taxes of Rs 8.93 crore, operating cash flow was reduced to Rs 19.64 lakh.
Working capital need is expected to rise sharply
Kataline's net working capital increased from Rs 34.14 crore in FY24 to Rs 51.83 crore in FY25 and Rs 80.13 crore in FY26. The company expects the requirement to rise further to Rs 119.86 crore in FY27 and Rs 166.57 crore in FY28.
Of the fresh IPO proceeds, Rs 70 crore is proposed to be used for working capital.
The company attributes the requirement to higher inventory, receivables, project execution and expansion of its warehouse network. It has opened 15 warehouses across 15 cities and 11 states since FY25 and plans nine more.
Suppliers are concentrated as well
In FY26, its largest supplier accounted for 26.49% of purchases, while the top five accounted for 51.40% and the top 10 for 63.23%.
The company also sources certain inputs internationally, including from China and Austria. This exposes the business to supply-chain disruptions, input costs and currency movements.
Half the IPO is an offer for sale by promoters
The proposed IPO comprises up to 43 lakh fresh shares and 43 lakh shares through an offer for sale. The entire OFS is being sold by promoters: Amit Arvind Thatte is offering up to 37.30 lakh shares and Ketaki Amit Thatte up to 5.70 lakh shares. The company will not receive the proceeds from these shares.
The price band has not yet been disclosed, so the value of the OFS and the implied promoter gains cannot yet be calculated.
Related-party transactions and compliance issues
FY26 related-party disclosures include a Rs 3 crore land purchase from promoter Amit Thatte and a Rs 25 lakh IPR purchase from him. The prospectus also shows Rs 2.29 crore of loans and advances outstanding with Kataline Construction Technologies.
Separately, Kataline has disclosed a CSR compliance issue covering FY18-FY25 and said it filed an application for compounding on Sept 29, 2026.
The DRHP also says a mortgage deed relating to a Rs 48 crore HDFC Bank facility had not been executed and the corresponding charge had not been registered as of the filing date.
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