Matrix Geo Solutions coming with IPO to raise Rs 40.20 crore

Matrix Geo Solutions

• Matrix Geo Solutions is coming out with an initial public offering (IPO) of 38,65,200 equity shares in a price band of Rs 98-104 per equity share.
• The issue will open on September 23, 2025 and will close on September 25, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 9.8 times of its face value on the lower side and 10.4 times on the higher side.
• Book running lead manager to the issue is Narnolia Financial Services.
• Compliance Officer for the issue is Kirti Hisaria.

Profile of the company

The company is primarily engaged in providing comprehensive geospatial and consulting services with a strong focus on Drone-as-a-Service (DaaS) and Geospatial & Remote Sensing Services. Through Drone as a service, it offers high-resolution drone-based aerial surveys for various applications, including mapping, surveillance, and infrastructure inspection. Its services include the creation of detailed orthophotos, 3D models, digital elevation models, and precise topographical maps. Additionally, it offers geo-referenced video solutions for progress monitoring, surveillance, and incident management across various industries.

In addition to drone services, it offers extensive consultancy in geospatial data analysis, where it utilizes remote sensing technologies like LiDAR, satellite imagery, and drone surveys to provide clients with actionable insights for their projects. It assists its clients in Railways, Roadways, Water, Irrigation, Renewable Energy, Agriculture, Mining, Urban & Rural Planning projects and provides comprehensive reports to guide business decisions. These reports offer both advisory and end-to-end solutions to meet its clients' needs. Further, its web-based platform offers customers real-time access to their project data, simplifying monitoring and decision-making processes.

It also creates detailed maps and performs geospatial analyses to address specific location-based business challenges. Its team processes and interprets data, followed by image interpretation and classification, to accurately identify and categorize land features. By leveraging data-driven insights, it empowers its clients to make smarter decisions, optimizing both cost and time efficiency. Its services are designed to deliver efficient solutions that support planning, monitoring, and management across various sectors.

Proceed is being used for:

• Meeting out the Expenses for Purchase of New drones
• Meeting out the Expenses for Purchase of Survey Equipments and Technologies
• Meeting out the Capital expenditure Requirements
• Meeting the Working Capital Requirements 
• Meeting out the General Corporate Purposes. 

Industry Overview

The Indian geospatial industry is undergoing a transition from data to knowledge, and from being a service to a solutions industry, supported by the significant policy reforms announced by the Government of India in 2021. While India has been at the forefront of the geospatial applications and services globally, the geospatial industry is finally bullish about the possibilities that exist at present with respect to geospatial technology and its adoption across national programs and initiatives and this is very much reflective of the strategic growth happening within the ecosystem, the partnership and mergers and acquisition trends, rise of new geospatial startups, and the gradual expansion of geospatial export services to the world.

India’s total geospatial market forecasted to be Rs 37.16 thousand crore by 2025. India’s total geospatial market (including both domestic and export market) is estimated to be worth around Rs 27.65 thousand crore in 2022, rising from Rs 22.94 thousand crore in 2019, at a CAGR of 6.43 percent. With the enabling policy environment, and the gradual transition of the industry to offer services and solutions to worldwide market, India’s total geospatial market is forecasted to rise to Rs 37.16 thousand crore by 2025, growing at a CAGR of 10.35 percent between 2022 and 2025.

Over the past year, the Indian government has made significant strides in promoting the geospatial industry, particularly through policy reforms, public-private partnerships and the integration of Geographic Information Systems (GIS) in various national and State government driven initiatives. These efforts are aimed at harnessing geospatial technology to drive economic growth, improve governance and address critical challenges such as urbanization, environmental conservation and disaster management.

Pros and strengths

In-house End to End Technology Solution: It offers comprehensive in-house technology solutions that cover every aspect of service delivery, from planning and design to execution and final delivery. Through the use of its own equipment, technologies, and a skilled team, it is able to provide services and solutions that fulfil customer expectations while maintaining low operational costs.

Long-standing relationships with its clients: The company enjoys long-standing relationships with its customers. These long-standing relationships are the result of its commitment to quality, timely delivery of services, etc. Over the period, it has gained experience in assisting its customers by incorporating the latest technologies, efficiently utilizing its capabilities, equipment’s, and materials, and thereby constantly improving its offerings in order to meet their needs.

Experienced and Qualified management team: The company is led by a team of experienced management team, supported by a dedicated group of managers and employees. Its Promoters bring a wealth of experience in field of geo spatial and remote sensing technology, covering drone, manned aircraft, and space-based solutions across various industries.

Risks and concerns

Depends on top ten customers: The company depends on a limited number of customers for a significant portion of its revenues. The company’s revenue from its top 10 customers accounted for 83.79% in FY 2024–25, 83.39% in FY 2023–24, and 65.55% in FY 2022–23. The loss of a major customer or significant reduction in demand from any of its major customers may adversely affect its business, financial condition, results of operations and prospects.

Dependence on top four states: Its top four states contribute its major revenue for the year ended March 31, 2025, 2024, 2023. In March 2025, Delhi, Uttar Pradesh, Telangana, and Rajasthan together contributed 73.38% of total revenue, up from 26.04% in 2024 and 37.41% in 2023.  Any factors relating to political and geographical changes, growing competition and any change in demand may adversely affect its business. It cannot assure that it shall generates the same quantum of business, or any business at all, from these states, or its inability to acquire business from new geographical regions and loss of business from one or more of them may adversely affect its revenues and profitability.

Drones operations shut down during the monsoon season: Its drones are not operational during the monsoon season, due to the increased risk of damage to its equipment and potential safety hazards. Drones, like most electronic devices, are vulnerable to damage from water and moisture. Operating drones in rainy conditions can be risky as water can damage the motors, batteries, and electronics of the drone, which can cause accidents or malfunctions. To avoid these risks, many drone companies choose to operate only during dry seasons when the weather is more predictable and the risk of damage to their equipment is lower. This may mean that the company could use drones to generate revenue only for 9 to 10 months out of the year, depending on the local climate and weather patterns. As a result, extended monsoons can directly impact its revenue from operations.

Outlook

The company is engaged in the services of Survey & Mapping, wherein they are a leading geospatial and engineering consultancy organisation. The company is primarily engaged in providing comprehensive geospatial and consulting services with a strong focus on DaaS and Geospatial & Remote Sensing Services. Through Drone as a service, it offers high-resolution drone-based aerial surveys for various applications, including mapping, surveillance, and infrastructure inspection. On the concern side, it faces competition from other companies offering geospatial and drone services in the same regions. The level of competition varies depending on several factors, including the type of project, contract value, potential profit margins, project location, and the strength of client relationships. Moreover, its business operations rely on the continuous updating of technologies and survey equipment. To stay competitive in the market, it is essential for the company to regularly upgrade its technologies.

The company is coming out with a maiden IPO of 38,65,200 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 98-104 per equity share. The aggregate size of the offer is around Rs 37.88 crore to Rs 40.20 crore based on lower and upper price band respectively. On performance front, the Net revenue from operations for the Financial Year March 31, 2025, stood at Rs 2,209.42 lakh whereas in Financial Year March 31, 2024 it stood at Rs 1,368.75 lakh representing an increase of 61.42%. The restated profit after tax for the Financial Year March 31, 2025, stood at Rs. 586.02 lakh whereas in Financial Year March 31, 2024 it stood at Rs 334.99 lakh representing an increase of 74.94%.

Going forward, the company has recently broadened its offerings by including drone training and education through its brand name, ‘Drone Academy of India’. It offers industry-focused training programs for students and corporations aiming to drive market adoption and build a skilled workforce in the drone industry. This initiative ensures a steady supply of qualified professionals, helping it maintains low operational costs. Its training includes DGCA-certified courses, as well as application-based drone training and customized programs tailored to corporate needs.