Earkart IPO Opens Today: Key Details, Financials, Strengths and Risks from RHP

New Delhi, September 25, 2025: Earkart Limited has launched its IPO (Initial Public Offering) today. The company is one of India’s fastest-growing providers of hearing healthcare solutions. The issue opens from today, September 25, 2025, and will be available for subscription until September 29, 2025. The share is priced at ₹135 per share with a lot size of 1000 shares, amounting to a minimum investment of ₹1,35,000 per application. The company aims to raise ₹49 crore through this offering.

Founded in 2021 by Rohit Misra and Priyadarshi Jha, Earkart Limited is a technology-driven hearing healthcare provider headquartered in Delhi. The company manufactures and distributes hearing aids, diagnostic devices, and mobility solutions, combining affordability with advanced audiology through its remote testing system Earkart OMNI.

Key Details of Earkart IPO Offer

The SME IPO is open for subscription from September 25 to 29, 2025, at a price of ₹135 per share, with a minimum lot size of 1,000 shares. The total issue size is ₹49 crore (36.49 lakh shares), comprising a fresh issue of 33.15 lakh shares (₹44.75 crore) and an offer for sale of 3.34 lakh shares (₹4.51 crore) by promoter Rohit Misra.

The stock is slated to list on the BSE SME exchange on October 3, 2025. Sarthi Capital Advisors Pvt. Ltd. is the lead manager, while Skyline Financial Services Pvt. Ltd. is the registrar. The structure balances growth funding with partial promoter exit.

Earkart IPO Financial Highlights

Earkart has demonstrated consistent financial growth over the past three years. Revenue from operations rose from ₹2,891.63 lakh in FY23 to ₹4,310.62 lakh in FY25, reflecting a strong CAGR, with FY25 showing a 35.7% YoY growth. Profit After Tax more than doubled from ₹305.81 lakh in FY24 to ₹688.17 lakh in FY25, driving EPS up significantly from ₹2.03 to ₹6.59.

Net worth strengthened from ₹656.24 lakh in FY23 to ₹1,991.66 lakh in FY25, indicating robust value creation. However, borrowings have also increased from ₹121.42 lakh to ₹495.93 lakh during the same period, indicating higher leverage despite profitability improvements.

Objects of Earkart IPO Issue

The company plans to utilise the proceeds from the public issue across several areas: ₹21.10 crore for working capital, ₹17.33 crore for capital expenditure on Shop-in-Shop Clinics, and the remaining funds for general corporate purposes.

Key Strengths of Earkart IPO

The company boasts several key strengths that make its IPO attractive to investors. It operates the country’s largest all-brand hearing clinic network, with over 1,500 clinics. Strong government partnerships through GeM (Government e-Marketplace) and ALIMCO (Artificial Limbs Manufacturing Corporation of India) further enhance its credibility. The company has supplied more than 100,000 hearing aids and possesses proprietary technologies. In addition, it maintains a well-diversified product portfolio and is rapidly expanding through its Shop-in-Shop model, with 49 SIS clinics already operational.

Key Risks of Earkart IPO

The company faces several risks, as it heavily depends on government contracts, which contributed approximately 69.30% of the previous financial year’s revenues. The top 3 clients contribute approximately 80.8% of the FY25 revenue, which risks customer concentration. Further, the company is dependent on China for imports (around 60% of the imports are from China). From a financial perspective, the company has posted negative cash flows in FY23 and FY24. The company was incorporated only in 2021, and the promoters will continue to hold a major portion of the company even after the issue (57.3%), thereby retaining significant control of the group.

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