Steamhouse India Lists with Strong Demand and Margin Pressure

Steamhouse India is set to list on Indian stock exchanges on Thursday, September 17, following a heavily subscribed initial public offering. The company raised ₹414 crore through a price band of ₹77 to ₹81 per share, with the issue closing at the upper end. Bidding interest reached 30.49 times the available equity, indicating strong investor confidence in the firm’s industrial utility model despite recent margin compression.

According to data from GN stocks/ipo, grey market premiums reached ₹13.5 per share ahead of listing, suggesting a potential debut premium of approximately 17% over the issue price. While such pre-market trading often reflects speculative sentiment rather than fundamental valuation, the level of interest underscores the market’s appetite for infrastructure assets serving key industrial clusters in Gujarat.

Subscription led by institutional investors

The issue was heavily oversubscribed across all investor categories, with qualified institutional buyers (QIBs) accounting for the largest share of demand at 43.91 times. Non-institutional investors (NIIs) subscribed at 44.30 times, while retail investors participated at 16.90 times. This broad-based participation highlights the appeal of Steamhouse’s community boiler infrastructure, which allows industrial units to source steam on demand without maintaining their own equipment.

Revenue growth masks margin erosion

Financial results show robust top-line expansion, with revenue rising to ₹494.97 crore in FY26, up over 50% from ₹293.16 crore in FY24. EBITDA increased to ₹83.49 crore in FY26 from ₹69.32 crore in FY25. However, this growth came at the cost of profitability efficiency, as EBITDA margins declined for the third consecutive year, falling to 16.87% in FY26 from 23.34% in FY24. Profit after tax margins remained stable at 7.81% in FY26, indicating that the company has maintained net profitability despite the widening cost structure.

Valuation compared to industrial peers

Steamhouse India operates without a directly comparable listed peer, though it is often contrasted with industrial gas companies like Linde India. At the upper price band of ₹81, the company’s post-IPO valuation stands at approximately 57.86 times earnings. This multiple is lower than Linde India’s, though direct comparison is limited by differences in business mix, scale, and geographic focus. Steamhouse’s focus on localised steam grids in Gujarat distinguishes it from broader industrial gas providers, offering a niche utility model with high entry barriers.