Which Industries Are Producing More IPO-Ready Companies?

A strong IPO market does not mean every industry is equally prepared for public listing. The real difference lies in a company’s ability to demonstrate financial reliability, sound governance, sustainable earnings and readiness for public-market scrutiny.

A comparison of FY25 and FY26 reveals how IPO fundraising shifted across industries, which sectors increased their contribution to public-market capital raising and where issuance momentum weakened. These trends offer a useful starting point for examining sector-level IPO activity, although fundraising totals alone cannot establish how many companies are genuinely ready for public listing.

The Backdrop: Same Market, Different Mood

India remained one of the world's leading IPO markets in FY26, with 109 mainboard IPOs raising approximately ₹1.77 lakh crore. Across the mainboard and SME segments, 366 IPOs raised around ₹1.9 lakh crore, according to Grant Thornton Bharat. In March 2026, India accounted for 14% of global IPO listings, second only to China. In FY26, India’s primary market recorded more mainboard IPOs and higher fundraising than FY25, but investor reception weakened. Average oversubscription fell from 71 times to 39 times, while average listing-day gains declined from 29% to 7%.

Demand also became more selective. Offers for sale accounted for approximately 61% of mainboard IPO proceeds in FY26, while fresh issues contributed 39%, up from 35% in FY25. Companies raising under ₹5 billion averaged listing gains of just 2%, compared with 33% in FY25. Debt repayment accounted for 26% of fresh-issue proceeds, ahead of capital expenditure and expansion at 21%.

Listing-day gains alone do not establish IPO readiness. Average listing-day gains declined from 29% in FY25 to 7% in FY26. Grant Thornton Bharat also reported average annual post-listing performance of approximately −17% for FY26. Nearly 66% of FY26 IPOs were trading below their issue price around the end of the financial year. These figures highlight the difference between initial investor enthusiasm and sustained post-listing performance.

Market timing also influenced issuance. The second half of FY26 recorded 30 IPO deals, compared with 41 in H1 FY26. Geopolitical tensions and market declines in March 2026 contributed to postponements and weaker sentiment. The sector-wise fundraising figures below show how proceeds shifted between FY25 and FY26.

FY27 So Far: Is the Pattern Holding?

The first half of FY27 (April to September 2026) offers an early check on whether the FY25 and FY26 picture still stands. Mainboard IPO fundraising reached a record ₹94,205 crore in H1 FY27, up 35% year-on-year, despite a weak start amid West Asia tensions. The number of IPOs increased to 78 from 65 a year earlier, while average listing gains rose to 19% across 64 IPOs listed by 30 September, compared with 7% in the same period of FY26.

September's IPO activity coincided with regulatory flexibility for eligible companies whose IPO approvals were approaching expiry. However, the extent to which this measure contributed to the fundraising surge cannot be established from the fundraising figures alone. Offers for sale accounted for about 59% of funds raised, indicating that existing shareholders, rather than issuing companies, received a substantial share.

The sector mix also highlights the concentration of FY26 fundraising. Based on the accompanying table, financial services accounted for approximately 33.0% of total proceeds, consumer and retail for 22.9%, and industrials for 12.1%. The corresponding sector shares for April–August FY27 should be compared only after confirming that the underlying data uses consistent sector classifications and the same proceeds denominator.

The key shift is healthcare’s renewed contribution and industrials’ increased share of fundraising. However, five months of sector data is insufficient to establish a lasting trend. The following sections examine the FY25–FY26 evidence across six sectors, excluding hotels, infrastructure and real estate.

1. Financial Services: Built for the Process

Financial services companies often have established regulatory compliance, audited financial reporting and formal risk-management systems, providing a stronger foundation for IPO readiness. According to PwC’s figures, the sector’s share of IPO proceeds rose from approximately 10% in FY25 to 33% in FY26, reflecting its increased contribution to fundraising. Grant Thornton’s data shows that 12 mainboard financial-services IPOs raised ₹59,011 crore in FY26, the highest proceeds among sectors. This reflects strong issuance activity, supported by the sector’s established reporting and regulatory frameworks.

2. Consumer and Retail: The Consistent Performer

Consumer businesses benefit from brand recognition, established distribution networks and repeat-purchase demand, supporting revenue visibility and IPO readiness. The sector’s share of IPO proceeds remained stable at 22% in FY25 and 23% in FY26. Proceeds increased from ₹96.41 billion in FY24 to ₹354.59 billion in FY25 and ₹409.13 billion in FY26, marking three consecutive years of growth.

3. Industrials and Automotive: Steady Core, Lumpy Edge

Industrials benefit from tangible assets, verifiable order books and government-linked demand, although earnings remain exposed to business cycles. Industrial IPO proceeds rose from ₹133.07 billion in FY24 to ₹215.96 billion in FY26, increasing the sector’s share from about 10% to 12%. Automotive’s share of proceeds fell from roughly 21% in FY25 to under 4% in FY26.

4. Healthcare and Pharma: Capable, but Thinner

Healthcare offers defensive demand, while pharma companies benefit from export revenue and R&D capabilities. However, IPO readiness varies between hospital chains with predictable cash flows and drug makers exposed to product cycles. The sector’s share of IPO proceeds declined from about 8.5% in FY25 to 5.6% in FY26.  

5. Technology, Media and Telecom: Strong Model, Cooling Momentum

Technology companies often benefit from asset-light operations, scalable margins, recurring client revenue and global customers, supporting their IPO readiness. In FY25, IT led listing-day gains at 43%, followed by telecommunications and financial services. However, the technology sector’s share of IPO proceeds fell from about 12% in FY25 to about 8% in FY26, reflecting moderating investor appetite after a strong previous year, according to PwC.

6. Energy, Utilities and Resources: Cyclicality and Capital Intensity

Energy, utilities and resource businesses can face substantial capital requirements, long project cycles, commodity-price exposure and regulatory or tariff risks. These factors can affect earnings predictability, although the degree of risk varies significantly between companies and business models. This limits their appeal to IPO investors prioritising earnings visibility, structural growth and reasonable valuations. According to a PwC report, energy, utilities and resources declined from about 11% of IPO proceeds in FY25 to about 7% in FY26, reflecting changes in global energy dynamics and investment cycles.

The Verdict: Which Sectors Led IPO Fundraising?

1. Financial Services: Raised ₹590.11 billion in FY26 according to the accompanying table, approximately 33% of its total proceeds and more than three times the FY25 figure.

2. Consumer and Retail: Raised ₹409.13 billion, up approximately 15.4% year-on-year, maintaining its position as a major contributor to IPO fundraising.

3. Industrials: Raised ₹215.96 billion, an increase of approximately 29.5%, strengthening its contribution to primary-market capital raising.

4. Technology, Media and Telecom: Raised ₹138 billion, down approximately 27.9% from ₹191.35 billion in FY25.

5. Energy, Utilities and Resources: Raised ₹125.50 billion, a decline of approximately 29.4% from FY25.

6. Pharma and Life Sciences: Raised ₹100.09 billion, down approximately 27.7% year-on-year.

7. Automotive and Assembly: Fundraising fell approximately 80.6%, from ₹340.04 billion in FY25 to ₹65.81 billion in FY26, representing the sharpest decline among the sector categories listed.

Conclusion

Behind every successful public offering lies a story of strategic timing, operational rigour, and financial maturity. As India’s primary market continues to evolve into a globally monitored capital magnet, identifying tomorrow’s market leaders requires looking beyond current deal totals to evaluate underlying fundamentals, corporate governance, and sustainable unit economics.

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