CSM Technologies(CSM) is an IT solutions company that provides technology solutions to both government and private organisations.It specialises in providing Gov-tech solutions and digital transformation services. It provides technology solutions across sectors such as mining, agriculture, trade, education, healthcare and tourism.

With 27 years of experience, CSM develops e-governance platforms and digital systems that help governments work more efficiently, make better decisions using data, and provide better services to citizens.The company also offers consulting, advisory services and self-service technologies that help governments and businesses automate processes and improve customer service.

CSM integrates sectoral knowledge, scalable technology platforms, and analytics to support governments in adopting data-drivenprocesses and improving service delivery. Its experience across multiple sectors enables the company to contribute to theimplementation of technology solutions for public service initiatives.

The company earned 63% of its revenue from government entities, out of total revenue from operations of Rs 165.52 crore for the nine months ended December 2025. Its order book stood at Rs 357.63 crore as of March 31, 2026.

CSM Technologies operates in 14 countries, including India, the United States, and Canada. Its clients include governments, PSUs, development agencies, and businesses.In addition, the company collaborates with donor and development agencies active in key areas like rural development, healthcare, and education, supporting them in the execution and management of critical social impact initiatives and development programs.

Object of the offer

The IPO is entirely a fresh issue of shares worth Rs 145.78 crore at upper price band of Rs 113. The fresh issuance is of 1,29,01,000 shares. There is no offer for sale (OFS) component. At the upper end of the price band, the company is expected to be valued at Rs 572 crore post listing.

The funds raised to the tune of Rs 56.0 crore will be used towards funding working capital requirements, Rs 22.63 crore will be utilised towards repayment of part of the borrowings. A portion will be used towards funding acquisitions and also be used for general corporate purposes.

Strengths

The company has developed deep sectoral expertise in delivering tailored digitalsolutions for the public sector, with a focus on enabling large-scale digital transformation.

CSM has developed a suite of proprietary technology platforms and patented solutions that enhance its ability to deliver scalable, efficient, and compliant digital solutions across sectors. These in-house innovations strengthen its competitive position and support its long-term engagement model with government and enterprise clients.

The company is run by professionally qualified and experienced promoters and management. Priyadarshi Pany, the company's founder and director has over 25 years of experience in the engineering and ITindustry. He is a member of the NASSCOM Council, Confederation of Indian Industry (CII) and other industry bodies.

Weaknesses

Majority orders are received from government organisations. The contract is tender-based and revenues depend on CSM's ability to bid successfully for these tenders. The company's profitability margins may come under pressure because of the industry's competitive nature.

Failure to complete projects within contractual time may affect future business prospects and financial performance.

Despite the long track record in the IT services industry, CSM's scale of operations remains constrained, indicated by revenue of Rs 199.24 crore in fiscal 2025.

Any adverse developments in Odisha could materially affect business and growth prospects of the company as this region contributed more than 60% of the company's revenues.

Delays or a lack of tenders from government entities, along with adverse changes in government policies, could materially impact business.

Loss of one or more of customers or reduction in their demand for offerings could adversely affect business as the company derived around 40%of its revenues from top 3 customers in nine months ended December 2025.

Significant social, political, or economic changes in mining and allied could adversely affect business.

The company is exposed to the risk of disqualification, suspension, or blacklisting by government authorities in India or overseas.

CSM operates in IT industry which faces intense competition due to low entry barriers. The IT industry also faces challengefrom rapid technological changes, which may lead to obsolescence of certain software/services. Availability andretention of a skilled workforce, attrition levels and wage inflation pose a challenge for the company.

Valuation

Net profit stood at Rs 14.25 crore on net sales of Rs 165.52 crore in the nine months ended December 2025.

Consolidated sales were up by 1.3% to Rs 199.24 crore in Fiscal2025. Operating profit margin (OPM) expanded from 12.05% to 14.69%, leading to a 23.5% increase in operating profit to Rs 29.27 crore. Other income declined 28.7% to Rs 1.38 crore. Interest cost inclined 73.5% to Rs 4.11 crore and depreciationcost inclined by12.0% to Rs 6.11crore. PBT stood at Rs 20.44crore up 14.7%.PAT stood at Rs 14.09 crore as against Rs 12.55 crore in FY2024.

At the higher price band of Rs 113, the offer is made at a P/E of 41 times FY2025EPS (of Rs 2.8).

Listed industry peers are Trigyn Technologies, Allied Digital Services, Silver Touch Technologies and Dev Information Technology. Trigyn Technologies trades at 83.6 times its P/ FY2026 EPS, Allied Digital Services trades at 18.9 times its P/FY2026EPS, Silver Touch Technologies trades at 65.7 times P/FY2026 EPS and Dev Information Technology 140 times its P/FY2026 EPS.