Merritronix Bets Big on India’s Defence Electronics Boom with Rs. 70 Cr SME IPO

Building Precision Electronics for Defence and Aerospace

Founded in 1988, Merritronix initially operated in the telecom cable jointing kits business before expanding into electronics manufacturing services (EMS) in 2002. Over the years, the company has established itself as a specialised player in precision electronics catering to defence PSUs, aerospace firms, industrial clients, and global research institutions.

Speaking about the company’s positioning, Amarnath Dovari said the company’s biggest strength lies in its ability to consistently deliver high-quality, mission-critical electronics for defence and aerospace programmes.

“We are focused on precision electronics where quality and reliability are extremely critical. Our ability to deliver products with consistently high yield rates and maintain long-standing customer relationships has helped us build trust with organisations like BEL and HAL,” he said.

The company currently works with major defence PSUs including BEL, BDL, and HAL, along with private defence players such as Apollo Microsystems and multinational customers like Tata Honeywell. Merritronix is also associated with CERN Geneva through projects routed via TIFR, making it one of the few Indian private companies working in highly specialised subatomic particle experiment applications.

According to Mr.Keerthi Kanth, the company’s expertise goes beyond manufacturing and extends into complex engineering capabilities including obsolescence management and reverse engineering for legacy defence systems.

“These are highly niche areas where the margins are significantly higher. We help defence customers keep legacy systems operational by redesigning and replacing obsolete components,” he explained.

IPO Funds to Fuel Expansion and Capacity Building

The company plans to utilise the IPO proceeds towards machinery and equipment purchases, working capital requirements, and repayment of borrowings. Management believes the timing aligns well with the growing order inflow across India’s defence manufacturing ecosystem.

“With defence PSUs witnessing strong order books due to government push towards indigenisation and defence exports, tier-two suppliers like us are naturally seeing strong growth opportunities,” said Mr. Dovari.

Financially, Merritronix has reported robust growth over the last three fiscal years. Revenue from operations rose to ₹155.89 crore in FY26 from ₹85.69 crore in FY24, while EBITDA margins improved sharply from 7.82% to 17.42% during the same period. PAT also climbed to ₹16.10 crore in FY26.

The company is also backed by veteran investor Madhu Kela through Founders Collective Fund, which holds a 3.61% stake.

Commenting on the strategic importance of marquee investors, Mr. Keerthi Kanth noted that long-term investors provide confidence and stability for scaling operations in a sector where execution cycles are long and capital-intensive.

“The defence electronics business requires sustained investments because the order execution cycle is long. Strategic investors help companies like ours invest confidently in R&D, backward integration, and future capabilities,” he said.

Global Expansion Plans and Aerospace Ambitions

Looking ahead, Merritronix is aiming to strengthen its international footprint and enter the commercial aviation supply chain.

The company is currently pursuing NADCAP certification, a globally recognised accreditation required to supply to major aerospace manufacturers such as Boeing, Airbus, and Lockheed Martin.

“Once we achieve NADCAP certification, we will be eligible to approach global commercial aviation companies. That opens up a completely new growth segment for us,” Dovari said.

Domestically, the company plans to expand beyond Telangana into key defence hubs such as Bengaluru and Delhi. Internationally, Merritronix is also exploring opportunities in the Middle East and other emerging defence export markets.

With India’s defence electronics sector witnessing rapid growth driven by localisation, exports, and rising aerospace demand, Merritronix believes the coming years could mark a transformative phase for specialised EMS players operating in high-precision segments.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.