## Shareholding Structure

Beta Enerji has a highly straightforward and balanced shareholding structure. The company has three partners, with the company’s capital divided equally among them. This equal distribution of capital indicates that decision-making and management power within the organization is not concentrated in the hands of any single shareholder.

## IPO Structure and Use of Proceeds

The company’s free float rate has been set at 15%. Because the secondary offering (shares sold by current partners) within the IPO is highly limited, the vast majority of the proceeds generated will flow directly into the company itself. This shows that rather than being an avenue for existing shareholders to cash out, the IPO is fundamentally aimed at supporting the company’s financial structure and growth capacity.

The bulk of the IPO proceeds is planned to be used for the company’s growth investments. The remaining portion is expected to be retained to strengthen working capital and establish a financial safety cushion within the company. Allocating the funds raised from the IPO primarily toward investments and working capital signals that these resources will be utilized efficiently within the organization.

The limited free float, low level of secondary share sales, and a use-of-proceeds plan heavily focused on growth have left me with a highly positive impression regarding the company’s management and its allocation of financial resources.

## Price Stabilization

Price stabilization operations are planned for 30 days following the commencement of trading on the stock exchange. This stabilization practice can be viewed positively as it helps curb sharp price volatility that often occurs right after an IPO. The fact that this mechanism can bolster investor confidence, particularly during the initial post-IPO period, also reflects positively on the overall offering structure.

## The Company’s Growth Process

Beta Enerji is undergoing an aggressive growth phase. In some years, the company’s capital expenditures (CapEx) have been close to its net profit, while in others, they have significantly exceeded it. This demonstrates that the company is not merely deploying its resources to maintain current operations but is making substantial investments geared toward capacity expansion and long-term growth.

When considering the expansion of the company’s scope of operations, the growth of its organizational structure, the rapid increase in headcount, and ongoing facility investments, it becomes clear that this growth is not confined to financial metrics alone. The company is in the midst of a major operational expansion.

## Ongoing Facility Investment

The company’s ongoing facility investment has progressed significantly. As of March 31, 2026, 84% of the facility construction and 70% of the total investment have been completed. The fact that the construction completion rate is higher than the total investment completion rate indicates that work is still underway on non-construction items, such as machinery, equipment, and other expenditure categories.

These completion rates indicate that the bulk of the investment process is now behind them and the facility is nearing completion. However, because machinery and equipment expenditures within the overall investment are still ongoing, the final stretch of the investment process needs to be closely monitored to ensure the facility successfully reaches full operational capacity.

## Headcount and Operational Growth

The company’s headcount, which previously hovered around the 400s, has surged to the 750s in a very short period. This rapid increase in staff is a key indicator that the company is scaling up both its production capacity and operational footprint.

This rise in headcount runs parallel to the company’s ongoing investments and expanding scope of business. This development shows that the company is not just investing in facilities and equipment, but is also actively building the human capital required to support its growing production and organizational framework.

## Revenue and Profitability

The company’s revenue has followed a generally flat trajectory over the last three years. In contrast, expenses have continued to rise in line with inflation. Despite limited revenue growth, the ongoing increase in costs and expenses is exerting pressure on the company’s profitability.

Financing expenses, on the other hand, have remained flat, mirroring the revenue trend. Excluding financing expenses, the company managed to generate a net profit of around 1 billion TL from approximately 5 billion TL in revenue. Looking at it before financing costs, this result points to a net profit margin of around 20%.

While the company’s core operations have the capacity to generate strong profitability, rising operational and administrative expenses, alongside financing costs, are weighing heavily on net profit. Consequently, controlling expenses will be just as crucial as driving sales growth for the company’s future performance.

## Cost of Sales

Raw materials and consumables account for approximately 90% of the company’s cost of sales. The remaining portion of production costs consists primarily of labor expenses. This breakdown demonstrates that the company’s manufacturing costs are heavily dependent on the prices of the raw materials it utilizes.

Because such a vast majority of costs is tied up in raw materials, the company’s profitability is highly sensitive to fluctuations in commodity prices. If sharp spikes in raw material costs cannot be immediately passed on to customers, profit margins could come under pressure. In comparison to raw materials and supplies, the share of labor expenses within total cost of sales remains quite limited.

## General and Administrative Expenses

Personnel expenses make up roughly half of the company’s general and administrative (G&A) expenses. Over the years, these personnel costs have risen in tandem with minimum wage increases. However, alongside the widening scope of operations and organizational growth, significant increases have also occurred in non-personnel administrative expenses.

In recent years, vehicle and office expenses have roughly doubled, and consulting fees have seen a similar twofold increase. While this aggressive surge in G&A expenses is striking, it moves in parallel with the company’s expansion into new business lines and its corporate restructuring process.

Therefore, it is clear that the rise in G&A expenses stems not just from inflation or cost pressures, but that the company’s growth phase plays a major role in this upturn. Nevertheless, whether these expenses will continue to outpace revenue growth in the coming periods must be closely monitored.

## Inventory Structure

The company has gradually built up its inventory year after year. The fact that this inventory accumulation is concentrated primarily on the raw materials side indicates that the company is gearing up to expand its production activities. This also signals that the business is preparing for current or anticipated manufacturing demand.

Maintaining high raw material inventories can also be seen as a precautionary measure to ensure uninterrupted production. A robust raw material buffer can support production continuity, particularly during times of extended lead times or supply chain disruptions. That said, how quickly this inventory turns over and the extent to which inventory growth translates into sales should be tracked.

## Raw Material Procurement Structure

Beta Enerji sources 96% of its core raw material purchases from domestic suppliers, with only a 4% share coming from international suppliers. This exceptionally high local sourcing rate reduces the company’s direct dependence on imports and foreign vendors.

While this structure enhances the company’s resilience against global supply chain disruptions, it also limits the logistics and delivery risks associated with importing. Relying predominantly on domestic sourcing for raw materials is an extremely positive factor for the company.

A high rate of domestic procurement is a positive not just for the company, but also for the national economy. This structure supports local manufacturing and employment while ensuring that a larger share of the value added generated by the company’s operations remains within the country.

## General Procurement Strategy

The company’s supply chain strategy centers on establishing at least three approved suppliers for each product group. Rather than treating these vendors merely as backups to be called upon in emergencies, the company aims to actively engage them. Actively working with multiple suppliers helps foster a competitive environment among vendors.

This competitive supplier framework allows the company to secure better pricing and terms while preventing reliance on a single source. Should any vendor encounter production, delivery, or logistics issues, the company can seamlessly leverage its other approved suppliers.

This strategy aims to mitigate supply chain risks and maintain strong on-time delivery performance. Overall, the procurement strategy presents a sound model for cost control, supply security, and timely delivery.

## Short-Term Debt and Liquidity

Alongside rising interest rates, the company’s short-term debt has increased steadily year over year. Although the growth in short-term debt has occurred at low rates, it has continued consistently over the years. In contrast, the company’s existing cash assets have fallen to a level where they can no longer cover its short-term obligations on their own.

Cash assets falling below short-term liabilities indicates that the company is facing liquidity pressure. This picture suggests that the business sustains its operations partially by rolling over or refinancing its existing debt.

Sustaining operations through debt rollovers—in other words, refinancing—stands out as a significant financial risk factor. Any deterioration in credit conditions or further hikes in interest rates could place additional strain on the company’s short-term cash flow.

## Trade Payables and Trade Receivables

The company’s trade payables have reached roughly double its trade receivables. This pronounced gap, where trade payables significantly exceed trade receivables, reveals that the company relies heavily on supplier financing.

Utilizing deferred payments to suppliers supports the company’s working capital in the short term. However, the high volume of trade payables is a factor that could exert cash flow pressure on the company as those payment deadlines mature.

The discrepancy between trade payables and trade receivables amplifies the company’s current financial strain. For this reason, the maturity profile of trade payables, payment agreements made with suppliers, and the cash generated from operations must be closely tracked.

## Long-Term Debt

The company’s long-term debt has also climbed gradually over the years. This upward trend indicates that the company is financing its growth investments and operational expansion through leverage alongside its own equity.

The simultaneous rise in both short- and long-term debt increases the company’s overall financial leverage. Should this debt accumulation continue, future interest and principal payments will carry even greater weight within the company’s cash flow.

Utilizing long-term debt with maturities that match the economic life of the investments can be positive. However, if the investments fail to generate the expected revenue and cash flow, debt repayments could turn into a heavy burden for the company.

## Net Financial Debt

The company’s net financial debt stood at approximately 1.32 billion TL at the end of 2023. This figure rose to around 2.37 billion TL in 2024 and reached roughly 3.61 billion TL in 2025. As of March 31, 2026, net financial debt climbed to approximately 4.43 billion TL.

The uninterrupted rise in net financial debt from 2023 through March 31, 2026, clearly shows that the company has significantly scaled up its reliance on debt during its growth phase. This expanding debt matches the company’s ongoing investments and mounting working capital needs.

While using debt to fund investments is understandable from a growth perspective, whether debt levels will recede once these investments are finalized will be the deciding factor for the company’s financial outlook.

## Capital Employed and Financial Leverage

The company’s capital employed stood at around 3.65 billion TL in 2023 and rose to approximately 7.84 billion TL as of March 31, 2026. This expansion in capital employed underscores a substantial scale-up in the company’s operational footprint and investment volume.

However, net financial debt outpaced capital employed during the same period. The net financial debt-to-capital employed ratio escalated from 36% in 2023 to 50% in 2024, and 52% in 2025. This ratio reached 57% as of March 31, 2026.

This rising ratio clearly indicates that debt is taking on a progressively heavier weight within the company’s capital structure. Financing a larger share of capital employed through net financial debt has driven up the company’s financial leverage.

While financial leverage can boost return on equity (ROE) during growth periods, it can heighten financial risk if business operations slow down. Therefore, the upside contribution of debt to growth must be weighed carefully against the financing burden it creates.

## Financing and Interest Expenses

The vast majority of the company’s financing expenses consists of interest costs. Yet, considering the overall debt level, these interest expenses appear relatively low. The limited scale of interest expenses compared to total debt indicates that the company is managing its borrowings at favorable costs.

This suggests that the company secured its financial debt, including bank loans, at relatively attractive interest rates. The fact that financing expenses remained flat in line with revenue demonstrates that interest costs have been contained to a certain extent despite the rising debt load.

Consequently, the company is seen as successfully managing its debt structure and borrowing costs. Nevertheless, if the rapid expansion of debt continues, the total interest burden could escalate in future periods, even if current favorable financing terms are maintained.

## Impact of Inflation Accounting

Due to the company’s highly leveraged capital structure, inflation accounting has had a positive reflection on the financial statements. Because its debts qualify as monetary liabilities, a high-inflation environment has generated a monetary gain in the company’s favor.

Thus, this positive impact from inflation accounting needs to be evaluated separately from the operational performance derived from the company’s core business. The monetary gain resulting from inflation accounting is not a sustainable stream of income generated by manufacturing or sales activities.

## General Assessment of the Financial Structure

The company’s short-term, long-term, and net financial debt figures are increasing steadily. While the inadequacy of cash assets to cover short-term liabilities creates liquidity pressure, trade payables reaching roughly double trade receivables adds further strain on working capital.

The climb in the net financial debt-to-capital employed ratio from 36% to 57% clearly reveals just how much the company has ramped up its debt utilization during this growth phase. On the flip side, the fact that interest expenses remain low relative to total debt indicates that borrowings are managed at reasonably favorable costs.

Although the leverage is high, a significant portion of this debt is deployed to finance growth investments and operational expansion. Therefore, the allocation of debt can be viewed positively. However, it is imperative that these investments are completed on time and generate sufficient cash flow.

While financial debt presents a prominent risk that requires close tracking, the utilization of debt, its maturity structure, and the management of borrowing costs stand out as favorable elements working to the company’s advantage.

## IPO Valuation

The company is going public at an implied market capitalization of approximately 16 billion TL. When evaluating the company’s current financial results alongside its aggressive growth phase and ongoing investments, the 16 billion TL IPO valuation appears reasonable. This offering value aligns generally well with the company’s existing financial and operational footprint.

Should the company finalize its ongoing investments, ramp up production capacity, and sustain its growth momentum, its valuation potential could rise significantly. Given its upside potential and current momentum, it wouldn’t surprise me to see the market value reach roughly three times the current IPO valuation down the road.

Within this framework, a market capitalization of around 48 billion TL seems attainable. However, a 48 billion TL valuation is a forward-looking expectation rather than a reflection of today’s financial results; it hinges entirely on the company successfully wrapping up its investments, efficiently utilizing its new capacity, and translating that growth momentum into financial performance.

Consequently, a valuation at this level should not be viewed as an absolute target, but rather as a potential scenario that could materialize if the company successfully executes its growth plans.

## General Conclusion

Beta Enerji is a company expanding aggressively and pressing forward rapidly with its investments. The substantial completion of its ongoing facility investment bodes well for future manufacturing capacity. The surge in headcount from the 400s to the 750s stands out as another prominent indicator of its operational scaling.

Sourcing 96% of its raw materials domestically minimizes the company’s reliance on imports and cushions it against supply risks. Meanwhile, the strategy of working with at least three approved vendors for every product category bolsters supply security and prevents dependence on any single source.

The fact that the company is accumulating inventory primarily on the raw materials front indicates preparations for expanded production capacity and points to a strong expectation of manufacturing demand. Although the increase in G&A expenses is steep, this rise has largely moved in tandem with the company’s growth and the expansion of its organizational structure.

The company’s core business holds strong profit-generation potential. However, mounting operational expenses, financing costs, and a heavy debt load continue to compress net profitability. Leverage is high and exhibits an upward trajectory. As a result, the company’s cash flow, refinancing requirements, trade payables, and financing expenses must be closely tracked.

On the other hand, managing its debt at relatively favorable interest rates, utilizing the bulk of its IPO funds for growth investments, and keeping secondary share sales limited are among the key positive takeaways.

Overall, the company’s management approach, investment strategy, use-of-proceeds plan, and supply framework have left me with a favorable impression. Nevertheless, the company’s future success will be determined by finishing ongoing investments on schedule, reflecting the new production capacity in sales figures, reining in expense increases, and bringing its mounting debt down to a sustainable level.

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