Can Horizon Parks IPO deliver long-term growth for high-risk investors?
Horizon Industrial Parks plans a ₹2,600 crore IPO to reduce its debt burden. The company develops and leases large warehouses and industrial facilities across India. Revenue and EBITDA have shown significant annual growth in recent years. However, the company has not yet achieved profitability, with net losses widening. Investors with a high-risk appetite may consider this long-term opportunity.
Horizon Industrial Parks, India's largest industrial and logistics infrastructure developer, aims to raise ₹2,600 crore through an IPO to repay debt and pursue corporate objectives. The promoter's stake will decrease from 88.7% to 75.4% after the offering. The firm specializes in developing and leasing large warehouses and industrial facilities, with the top four cities accounting for approximately four-fifths of its total revenue. A significant portion of its revenue, about 43%, is generated from its top 10 customers.
Despite not having recorded profits yet, the company's financials show substantial growth. Between FY24 and FY26, revenue from operations increased by 73.8%, and operating profit before interest, tax, depreciation, and amortization (EBITDA) surged by 100.3%. EBITDA margin expanded to 79.2% in FY26 from 61.7% in the previous year.
Cash flow from operations nearly doubled, reaching ₹464.1 crore in FY26 from ₹119.3 crore in FY24. However, the company's profitability is anticipated to improve after debt repayment. Finance costs as a percentage of revenue have decreased from 92.1% in FY24 to 78% in FY26, and interest outgo relative to EBIT has dropped from 139% in FY24 to 89% in FY26.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
