Bharat PET IPO Update: DRHP Submitted For ₹760 Crore Public Offering

Bharat PET, which makes Polyethylene Terephthalate (PET) packaging products, filed its draft papers with the Securities and Exchange Board of India (SEBI) on 25 March 2026 for a ₹760 crore initial public offering. The price band and listing dates have not been announced yet.

The filing marks the company’s move towards a market debut, and more details are expected closer to the issue date. So, what does this IPO actually tell us about the company?

How Is Bharat PET Structuring Its IPO?

The IPO is split between a fresh issue of ₹120 crore and an offer for sale of ₹640 crore by existing shareholders. The IPO is expected to follow the book-building route, based on which the price band and the number of shares will be decided.

As usual, the proceeds from the offer for sale will go to the selling shareholders after accounting for related expenses and taxes.

From the fresh issue, around ₹50 crore is planned for repayment of borrowings. Another ₹35.8 crore will go towards capital expenditure, mainly for the purchase of machinery and equipment. The remaining amount is expected to be used for general corporate purposes.

What Is Bharat PET’s Business And Scale?

Bharat PET has been in the packaging business since 1998, making products using Polyethylene Terephthalate (PET) and other materials. Its portfolio includes bottles, jars, containers, and other packaging formats used across industries, along with products made from plastics, metals, paper, and glass.

The business has expanded its manufacturing setup over time by adding new machines and upgrading facilities. It moved to a larger unit in Sonipat, Haryana, in 2016, which is now its main manufacturing base.

More recently, the company has also grown through acquisitions. This includes taking over packaging businesses from related entities and acquiring a majority stake in BPL Lifescience Private Limited.

On the financial side, revenue has moved up in the last two years, growing by about 19% in FY24 and then by another 27% in FY25.

Profit has also been on an upward trend, with the latest year seeing a more noticeable jump. It increased by about 5.5% from FY23 to FY24, and then by 30.6% year-on-year (Y-o-Y) in FY25.

What Are The Key Strengths And Risks Investors Should Watch?

Packaging as a business is fairly straightforward, but it comes with its own set of upsides and challenges.

Key Strengths

A wide product range works in Bharat PET’s favour, as it helps avoid dependence on any single category. The company also supplies to industries like agrochemicals, food, and pharmaceuticals, which provides some diversification, even though demand is still tilted towards certain segments. Besides these, the in-house manufacturing and design setup gives it more control over quality and timelines, while its experience with acquisitions puts the company in a position to expand in a fragmented market.

Key Risks

On the risk side, the business depends quite a bit on a limited set of suppliers, with the top 10 accounting for over half of total expenses in recent years, and there are no long-term contracts in place. Customer concentration is another factor, with around 20–23% of revenue coming from the top clients. PET bottles and jars alone contribute over 60% to the revenue, and while the company caters to multiple industries, a meaningful share of demand is still linked to the agrochemical segment.

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Investors’ Takeaway

At a broader level, packaging demand usually follows consumption across sectors like food, pharma, and chemicals. That said, there is also a gradual shift towards more environment-friendly options, which could start influencing demand over time.

For investors looking at this space, Bharat PET’s recent growth in revenue and profit does stand out. At the same time, raw material dependence and concentration across products, customers, and end segments will remain important to watch.

Source:

DRHP