Sawaliya Food Products is shaping up to be one of the most talked-about small-cap IPOs of the season

As India’s food processing industry accelerates toward trillion-dollar territory, one small but fast-expanding company is drawing increasing attention ahead of its public debut: Sawaliya Food Products Limited.

Founded in 2014 in Madhya Pradesh, Sawaliya has quietly built a strong presence in the dehydrated vegetables segment, supplying high-grade carrots, cabbage, ring beans, garlic, and onion to FMCG manufacturers, instant-food brands, traders, and global importers. Notably, ITC is one of our clients, underscoring the company’s credibility and acceptance among leading Indian corporates. Its biggest credential U.S. FDA approval places it in a rare league among emerging Indian processors.

The company’s numbers tell an equally compelling story. Between FY23 and FY25, Sawaliya posted a 50.5% revenue CAGR, but what stands out is profitability:

• EBITDA surged 169% CAGR • PAT jumped 242% CAGR • FY25 EBITDA margin hit 35.7%, and PAT margin crossed 20%

These are margin levels that many mid-scale manufacturers struggle to achieve.

A big part of the company’s operational strength comes from direct raw-material sourcing from local farmers, expanded automated facilities, in-house cold storage, and a newly built processing line. With the upcoming installation of a rooftop solar plant, Sawaliya signals a clear shift toward sustainable manufacturing, an increasingly important factor for global buyers.

The company’s revenue mix remains diversified, led by A-grade carrots and beans, while its export gateway to the U.S. gives it room to scale overseas. And with India’s vegetable processing levels still at only 2.7%, the runway for growth in this space remains long.

Sawaliya’s IPO, comprising a fresh issue and a small offer for sale, aims to fund machinery upgrades, solar capacity, working capital, and partial debt repayment. For a company that has moved from a small semi-automatic unit to a 1,500 MT FDA-approved operation in just a decade, the listing marks another major step in its evolution.

With strong financial momentum, expanding capacity, and rising demand for dehydrated ingredients in convenience foods, Sawaliya Food Products emerges as one of the more noteworthy small-cap entrants to watch in the upcoming IPO season.