Farm Peace Ltd. IPO

Farm Peace Limited is an integrated contract farming company focused on cultivating and supplying processed-grade potato varieties to food processing companies. The company operates primarily in Gujarat under the Farm Peace brand and works with farmers through a 100% buy-back model.

The company provides farmers with certified seed varieties, agronomic support and technical assistance throughout the crop cycle. Its support covers activities such as land preparation, sowing, irrigation, pest and disease management, harvesting and post-harvest handling. The objective is to help farmers produce potatoes that meet the quality requirements of food-processing companies.

Farm Peace specialises in processing-grade potato varieties including Santana, Frysona, Innovator, Lady Rosetta and Chipsona. These varieties are supplied to processing companies for use in products such as French fries, potato chips, starch, flakes, powders and other value-added potato products.

The company's business model is based on a 100% buy-back arrangement. Under this model, farmers are assured that the company will procure their produce at pre-agreed prices and subject to specified quality parameters. This provides farmers with greater visibility over the market for their crop while allowing Farm Peace to build a predictable supply network for its processing customers.

Farm Peace provides high-yielding hybrid seeds selected for processing suitability, pest resistance and environmental adaptability. Its field officers regularly visit farms to monitor crop development, irrigation, pest incidence, disease symptoms and compliance with recommended agricultural practices. Information and photographs are also recorded through the company's mobile application.

The company does not currently execute formal written contracts with farmers. Instead, its seasonal farming arrangements are communicated through a written one-page circular or note in Gujarati, specifying applicable seed varieties, indicative prices and delivery timelines. Farmers acknowledge the arrangements verbally and participate in seed distribution and harvest collection processes. This is an important factor investors should consider while evaluating the company's contract-farming model.

Farm Peace's operating scale has increased considerably. The agricultural area covered by its farming network increased from approximately 3,200 acres in FY2024 to 5,100 acres in FY2025 and 5,660 acres in FY2026. During FY2026, the company engaged 853 farmers across four districts and recorded potato sales of 61,680 metric tonnes.

The number of farmers associated with the company increased from 498 in FY2024 to 763 in FY2025 and 853 in FY2026. The company has therefore expanded its farmer network while also increasing the acreage cultivated through existing farmer relationships.

Farm Peace operates in four major potato-growing districts of Gujarat. The company's geographical focus enables it to benefit from Gujarat's established potato-growing ecosystem and the agro-climatic conditions suitable for processing-grade potato cultivation.

The company also operates cold-storage arrangements as part of its post-harvest supply chain. Its cold-storage capacity increased to approximately 13,000 metric tonnes in FY2026 from 5,600 metric tonnes in FY2024. Potatoes are graded after harvesting and stored under controlled conditions before being supplied to processing units as required.

The company follows a First-In-First-Out inventory system for dispatch. Transportation from farms to cold-storage facilities or processing units is coordinated by Farm Peace. Quality checks are carried out at different stages to ensure that potatoes supplied to processors meet the agreed specifications.

Farm Peace has also developed a proprietary mobile application to support transparency, traceability and efficiency throughout the crop cycle. The application is used for recording farm visits, crop-related information and field photographs.

The company's business is linked to the growing processed-food market. The prospectus notes that demand for processed potato products is supported by urbanisation, rising disposable incomes, modern retail and the growth of quick-service restaurants. Potato chips and frozen fries have also gained popularity among urban consumers.

Farm Peace's financial performance has shown growth over the reported periods. Revenue from operations increased from ₹62.55 Cr in FY2024 to ₹79.24 Cr in FY2025 and ₹90.83 Cr in FY2026. PAT increased from ₹6.16 Cr in FY2024 to ₹6.66 Cr in FY2025 and ₹7.53 Cr in FY2026.

EBITDA increased from ₹9.30 Cr in FY2024 to ₹9.26 Cr in FY2025 and ₹12.48 Cr in FY2026. The FY2026 EBITDA margin was 13.74%, while PAT margin stood at 8.29%.

The company's net worth increased from ₹9.04 Cr in FY2024 to ₹35.95 Cr in FY2025 and ₹43.48 Cr in FY2026. Total assets increased from ₹31.76 Cr in FY2024 to ₹69.32 Cr in FY2025 and ₹99.84 Cr in FY2026.

Farm Peace's FY2026 debt-to-equity ratio was 0.26. Its FY2026 ROE was 18.96%, ROCE was 26.64% and RoNW was 17.32%. These ratios indicate a profitable business with relatively moderate leverage, although the company's working-capital cycle remains important because of its agricultural inventory and receivables.

The company's working-capital cycle increased to 139 days in FY2026 from 85 days in FY2025 and 41 days in FY2024. Trade receivable days increased to 172 days in FY2026, while inventory days stood at 101 days. This makes working-capital management an important part of the company's future growth strategy.

The IPO is entirely a Fresh Issue of 54,24,000 equity shares at ₹59 per share, aggregating to ₹32.00 Cr. There is no Offer for Sale component. Of the total issue, 2,72,000 shares are reserved for the Market Maker, leaving a Net Issue of 51,52,000 shares.

Farm Peace operates a specialised agricultural supply-chain business based on contract farming of processing-grade potatoes. Its 100% buy-back model, farmer support system and focus on varieties required by food processors provide a differentiated business structure within the agricultural sector.

The company's operating scale has expanded meaningfully. Agricultural area increased from 3,200 acres in FY2024 to 5,660 acres in FY2026, while farmer participation increased from 498 to 853. Potato sales also increased from 32,500 metric tonnes in FY2024 to 61,680 metric tonnes in FY2026.

Financial performance has also improved. Revenue from operations increased to ₹90.83 Cr in FY2026 from ₹62.55 Cr in FY2024, while PAT increased to ₹7.53 Cr from ₹6.16 Cr over the same period. EBITDA reached ₹12.48 Cr in FY2026.

The company's balance sheet has expanded alongside its business. Net worth stood at ₹43.48 Cr and total assets at ₹99.84 Cr as of 31 March 2026. The debt-to-equity ratio remained relatively moderate at 0.26.

At ₹59 per share, Farm Peace is valued at a pre-issue P/E of 11.87x based on FY2026 EPS of ₹4.97. After the issue, the EPS falls to ₹3.66 and the post-issue P/E rises to 16.12x because of the increase in outstanding equity shares.

One of the key positives is the company's increasing agricultural scale. The 100% buy-back model can help create greater supply visibility for processing customers while giving participating farmers an assured outlet for their crop.

However, the model also carries agricultural and execution risks. Farm Peace's arrangements with farmers are not currently formal written contracts, and the company depends on farmer participation, crop quality and timely procurement.

Working capital is another important area to monitor. The company's working-capital cycle increased to 139 days in FY2026, while trade receivable days reached 172 days and inventory days reached 101 days. The IPO's largest use of proceeds is therefore directly linked to supporting the company's working-capital requirements.

The company also faces inventory-related risks because potatoes are perishable and need controlled storage. Longer holding periods can increase storage expenses and expose the company to spoilage, shrinkage and quality degradation.

Overall, Farm Peace offers exposure to an integrated contract-farming business with an expanding farmer network, growing cultivation area, improving revenue and profitability and a specialised focus on processing-grade potatoes. The IPO valuation is moderate on a pre-issue P/E basis, but investors should carefully consider agricultural risks, farmer arrangements, working-capital intensity, customer concentration, inventory risks and the liquidity characteristics of an SME-listed stock before making an investment decision.

Listing Performance

Farm Peace IPO has not yet listed as of 2 September 2026. The shares are scheduled to list on the BSE SME platform on 8 September 2026. Therefore, no actual listing price or listing gain/loss should be reported at this stage.

Farm Peace IPO applications can be made through the ASBA and UPI mechanisms during the IPO bidding period. Individual Investors applying for the minimum application are required to bid for 2 lots, or 4,000 shares, amounting to ₹2,36,000 at the issue price of ₹59.

Through UPI

1. Log in to your stockbroker app or website.
2. Open the IPO section.
3. Select Farm Peace IPO.
4. Enter the required number of lots.
5. Enter your valid UPI ID.
6. Submit the IPO application.
7. Approve the UPI mandate received in your UPI application.
8. Confirm the mandate using your UPI PIN.
9. The application amount remains blocked in your bank account during the allotment process.
10. If shares are allotted, the applicable amount is debited; otherwise, the blocked amount is released according to the IPO process.