Farm Peace IPO Financials, Risk Factors, Peers & Objects of Issue
An investor-focused breakdown of the Farm Peace IPO offer document: restated financial performance, key ratios, valuation across the price band, competitive strengths, risk factors, listed peers, objects of the issue and the business model, all drawn from the company's RHP disclosures.
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Farm Peace IPO Financial Performance (Restated)
On a restated consolidated basis, the company revenue increased by 14% and profit after tax (PAT) rose by 13% between the financial year ending with March 31, 2026, a useful one-line read on operating momentum heading into the listing.
Here is how the books have moved over the last three financial years:
31 Mar 2026 to 31 Mar 2024₹ Crore
All figures in ₹ Crore unless stated otherwise. Source: restated financials disclosed in the offer documents.
Profits have scaled from ₹6.16 Cr to ₹7.53 Cr over two years; the borrowings-to-net-worth ratio has eased to about 0.26. For investors, the trend matters more than any single year, steady compounding with contained leverage is what institutional bidders typically reward, while a late spike in borrowings deserves scrutiny against the stated objects of the issue.
Farm Peace IPO Key Performance Indicators (KPI)
ROE18.96%
RoCE26.64%
Return on Net Worth17.32%
Debt / Equity0.26
NAV per share28.69
Price to Book2.06
Reading these numbers. RoE and RoCE measure how efficiently the business turns shareholder capital into profit; anything in double digits is respectable, mid-twenties plus is strong. A debt-to-equity ratio well below 1 signals a balance sheet that does not depend on lenders. NAV per share anchors the book value of your bid, while price-to-book tells you how many rupees the issue is charging for each rupee of that book, compare it with listed peers in the same sector before deciding whether the premium is justified.
Farm Peace IPO Valuation, Pre IPO vs Post IPO
The issue price converts into a different earnings multiple once the fresh shares hit the books. Here is the dilution-adjusted picture:
EPS (₹)4.97→ 3.66 post-IPO
P/E (x)11.87→ 16.12 post-IPO
Market Cap at offer₹89Cr→ ₹121.42 Cr post-IPO
Pre-IPO figures are computed on the pre-issue share count; post-IPO figures assume full subscription at the upper band.
Farm Peace IPO Competitive Strengths (as disclosed in the RHP)
Key strengths
- 100% Buy-Back Assurance with fixed pricing eliminating market volatility for farmers
- Gujarat contributes approximately 4.52 million tonnes annually, accounting for about 7.52% of India's total potato output
- Area under cultivation expanded from 1,400 acres (23,000 MT) in FY 2023 to 5,660 acres (61,680 MT) in FY 2026 with 800+ farmers
- Low reducing sugar content (glucose and fructose) due to optimal soil temperatures 16–20°C during tuber bulking
- Managing Director Sandipkumar Narsinhbhai Patel has around fifteen years experience in agriculture process, contract farming and exports
- Temperature-controlled storage and transportation minimizes post-harvest losses
Farm Peace IPO Risk Factors (per RHP)
- Persistent negative operating cash flows across all three financial years Net cash from operating activities: FY2026: -Rs 717.29 lakhs, FY2025: -Rs 1,757.16 lakhs, FY2024: -Rs 154.20 lakhs
- Sharp increase in trade receivables without commensurate cash collection Trade receivables grew from Rs 1,718.12 lakhs (FY2024) to Rs 5,995.22 lakhs (FY2026), a 3.5x increase while revenue grew only 45%
- Heavy reliance on promoter and related-party unsecured loans for funding Unsecured loans accepted in FY2026: Sudhir Haribhai Patel Rs 425 lakhs, Sandipkumar Narsinhbhai Patel Rs 225 lakhs, Kulin Kiran Patel Rs 25 lakhs; outstanding as of Mar-2026: Rs 215 lakhs, Rs 38.73 lakhs, Rs 25 lakhs respectively
- Significant increase in short-term and long-term borrowings Short-term borrowings rose from Rs 228.73 lakhs (FY2025) to Rs 813.53 lakhs (FY2026); long-term borrowings from Rs 16.89 lakhs to Rs 314.18 lakhs
- Extremely low cash and bank balances relative to operations Cash and bank balances only Rs 10.73 lakhs as of March 31, 2026 against revenue of Rs 9,082.77 lakhs and current liabilities of Rs 5,320.11 lakhs
- High related-party transaction volume with numerous promoter family members 30 related parties listed including 26 promoter relatives; transactions include purchases, salary, rent, loans, and interest across multiple family entities
- Contingent liability for direct tax matters Direct tax contingent liability of Rs 4.33 lakhs as of March 31, 2026 (nil in prior years)
- Young company with limited operating history (incorporated 2021) Company incorporated October 20, 2021; less than 5 years of operations; converted to public company only in October 2024
- Declining earnings per share despite revenue growth Basic EPS: FY2024: Rs 6.11, FY2025: Rs 4.63, FY2026: Rs 4.97 (face value Rs 10); share capital increased from Rs 252 lakhs to Rs 1,515.53 lakhs
- No monitoring agency appointed for IPO proceeds utilization Issue size Rs 3,200.16 lakhs (< Rs 5,000 lakhs threshold); only statutory auditor certification required quarterly
It is essential to read the complete risk factors in the offer document before investing; this list summarises the key disclosures only.
Farm Peace IPO Industry Snapshot
- India's processed potato export value surged from Rs 13 billion in FY2022 to Rs 29 billion in FY2024 (45% YoY growth in FY2024), with FY2025 (Apr-Oct) already at Rs 21 billion per DGFT data.
- Export volume grew 16.43% over two years: 606,674 MT (FY2022) to 706,391 MT (FY2024); FY2025 (Apr-Oct) reached 460,069 MT.
- Key demand drivers: urbanization, rising disposable incomes, modern retail expansion, QSR growth, and shifting consumer preference toward convenience/packaged potato products (chips, frozen fries, flakes).
- Government schemes supporting sector: PMFME (Pradhan Mantri Formalisation of Micro food processing Enterprises), PMKSY (Pradhan Mantri Kisan SAMPADA Yojana), Operation Greens (TOP) for price stabilization, FTP 2023 export facilitation, SAFTA for regional trade.
- Santana variety (French fry grade) exports hit ~30,000 MT in CY2023; major contract farming players in Gujarat include McCain, HyFun Foods (7,500+ farmers), Balaji Wafers, ITC, Amul, Advait Agrotech, Iscon Balaji Foods (targeting 25,000 acres).
- India processes only a small fraction of its total potato output despite being a top global producer, indicating significant headroom; processing varieties (Chipsona, Santana, Innovator) have 22-26% dry matter vs 15-18% for table varieties.
Farm Peace IPO Litigation
- Direct Tax - Income Tax Penalty Proceedings
- Direct Tax - Income Tax Reassessment Notice
- Direct Tax - Income Tax Reassessment Notice
- Direct Tax - Income Tax Reassessment Notice
- Direct Tax - Income Tax Penalty Proceedings
- Direct Tax - Income Tax Adjustment Notice
- Direct Tax - Income Tax Reassessment and Penalty
- Direct Tax - Income Tax Adjustment Notice
- Direct Tax - Income Tax Reassessment Notice
- Direct Tax - Income Tax Reassessment Notice
- Direct Tax - Income Tax Reassessment Notice
- Direct Tax - Income Tax Reassessment Notice
- Direct Tax - Income Tax Defective Return Notice
- Direct Tax - Income Tax Reassessment Notice
- Direct Tax - Income Tax Reassessment Notice
- Direct Tax - Income Tax Reassessment Notice
Disclaimer: The financial data on this page is auto-extracted from the company's offer document (RHP/DRHP) and is provided for education only. DostIpo is not a SEBI-registered investment adviser; verify all figures against the official prospectus before making any investment decision. Investments in the securities market are subject to market risks.
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Last updated: 02 Sep 2026, 22:24 IST