Why "Service Robots" are the Next Big Theme in Tech IPOs

Nanta Tech’s IPO, which closed today, December 26, has highlighted a fascinating new niche: the "Service Robot" industry. As labor costs rise and automation becomes a necessity in the hospitality and manufacturing sectors, firms like Nanta Tech—which supply AI-driven service robots and AV integration—are finding a massive market. This "Robotics-as-a-Service" (RaaS) model is expected to be a major IPO theme in 2026.\n\n\n\nThe demand for service robots is currently driven by the corporate and education sectors, where automated receptionists and teaching assistants are becoming common. Nanta Tech’s ability to develop customized software for these robots provides them with a high-margin recurring revenue stream. The global service robotics market is projected to grow at a CAGR of 21% through 2030, and India is poised to be a major adoption hub.\n\nFrom an investment perspective, these companies are currently valued as "high-growth tech startups." This means high P/E ratios and high volatility. However, the asset-light nature of a distribution and integration business like Nanta Tech allows for rapid scaling. Their ROCE of 50% is a testament to the profitability of this niche when executed correctly.\n\nAs we look toward 2026, we expect more players in the warehouse automation and drone-tech space to file their DRHPs. These companies offer a way to play the "Industrial 4.0" revolution in India. For retail investors, the key is to look for firms that have actual "In-house Software" capabilities rather than just being pure hardware importers.\n\nIn summary, the Nanta Tech IPO is just the tip of the iceberg for the robotics sector. While the current subscription was modest compared to infra stocks, the long-term thematic shift toward automation is undeniable. Investors should keep a close watch on this sector as it matures into a major part of the Indian tech ecosystem.