Diversified revenue profile
The company has a diversified business profile as reflected from its three business divisions, namely engineering goods, polymer, and infrastructure with 76%, 9% and 15% contribution to revenue in FY25. However, in Q1FY26, the engineering goods constitute high proportionate of revenues i.e. 81.73%. Moreover, the company has an established customer base which includes reputed construction, power transmission and distribution companies such as Saudi Electricity Company, Tata Projects Limited, Power Grid Corporation of India Limited, UP Power Transmission Corporation Limited, and Bharat Sanchar Nigam Limited (BSNL) among others. The company is a leading player in power transmission and distribution structure manufacturing segment and has more than 3 decades of operational track record. In addition, the company caters to both domestic (83%) and overseas markets (17%) across Middle East, North and South America during FY25. Further, the company has a large distribution channel in polymers division which includes 36900 (earlier 30,000) retail touch points across different states such as West Bengal, Odisha, and North-eastern India states. Acuite believe that the strong relation with customers and diversified revenue profile will help the company in scaling the operations over the medium term.
Healthy scale of operations and stable profitability
The revenue of the company stood healthy at Rs.4624.48 crore in FY2025 as compared to Rs.3282.04 crore in FY2024, registering a growth of 42% during the year mainly driven by strong performance in the engineering division. The strong business profile, together with regular yet calibrated capex undertaken over the years for capacity expansion has helped to scale up its revenues as well as improving operational efficiencies along with volume-driven cost efficiencies. The margin in exports is 2% higher than domestic orders contributing to overall profitability.
Further, the company has achieved revenues of Rs. 1253.90 Cr. in Q1FY26. In Q1FY26, despite subdued demand in the polymer segment, growth is anticipated in the plumbing segment, supported by outreach programs engaging over 20,000 plumbers. The infrastructure segment also experienced slower execution due to the rainy season.
The company has an order book of Rs. 8520.50 Cr. as of June 2025 which includes 90% from the domestic market (of Rs. 7668.45 Cr.) and the remaining 10% from the exports (of Rs. 852.05 Cr.).
The company’s profitability has marginally improved with operating profit margin of 9.80 percent in FY2025 compared to 9.72 per cent in FY2024. In Q1FY26, the operating margin stood at 10.14% compared to 9.59% in Q1FY25. This has been a result of focus on better quality contracts in engineering division and expansion into new markets. Furthermore, in FY2025, the company reported a net profitability margin of 3.15 percent compared to 2.28 percent in FY2024 due to increase in operating margin. Acuite believes that the profitability margin will improve over the medium term, on account of benefits of economies, addition of capacities leading to increase in exports and order inflows.
Healthy Financial Risk Profile
The financial risk profile of the company is marked by healthy net worth, gearing below unity and moderate debt protection metrics. The tangible net worth of the company stood at Rs.1181.71 Cr. as on March 31, 2025, as compared to Rs.890.16 Cr. as on March 31, 2024, due to accretion to reserves and right issue of shares of which proceeds of Rs.147.25 Cr. during FY25. Furthermore, gearing of the company continues to stand below unity at 0.63 times as on 31 March 31, 2025, despite a significant increase in external borrowings in FY2024. Further, the company has plans to undertake external debt for capacity expansion plans. The company has repaid its unsecured loans as it stood at Rs.28.44 Cr. in FY25 as against Rs.45.91 Cr. in FY24. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.87 times as on March 31, 2025, as compared to 2.52 times as on March 31, 2024. The debt protection metrics of the company has marginally improved marked by Interest coverage ratio (ICR) of 2.22 times and debt service coverage ratio (DSCR) of 1.57 times for FY2025 against 2.13 times and 1.33 times for FY24, respectively. The net cash accruals to total debt (NCA/TD) stood healthy at 0.28 times in FY2025. Going forward, Acuite believes that the financial risk profile will remain healthy over the medium term, supported by healthy internal accrual generation, even though the company is expected to incur capex to expand its engineering capacities.
Formation of subsidiaries and board resolution for corporate guarantee
The company has announced strategic plans to strengthen its global footprint by establishing three wholly owned subsidiaries or branch offices in Brazil, Abu Dhabi Mainland, and the United States of America. This initiative is aimed at facilitating business activities related to the export of towers and poles. The Board of Directors have approved and disclosed on a Board Resolution passed on July 31, 2025 for providing corporate guarantees of an aggregate of Rs. 350 Cr. in favour of the aforementioned wholly owned subsidiaries and further corporate guarantee of Rs.150 Cr. in favour of Skipper Metzer India LLP (JV company) under Regulation 30 of the SEBI (listing obligations and disclosure requirements) Regulations, 2015. This is expected to support the subsidiaries’ ability to undertake bank limit requirements, if required, thereby supporting the company’s expansion plan. Acuite believes that the extent of financial support, if any, to the wholly owned subsidiary as well as JV will remain a key monitorable.

Intensive working capital cycle
The working capital cycle of the company has improved but remained intensive marked by high gross current asset days of 172 days for FY2025 as compared to 243 days for FY2024 mainly due to backward and forward integration. Further, the working capital cycle has been improved in Q1FY26. Although there has been marked improvement in inventory cycle and debtor collection, the inventory days are slightly on higher side. The inventory days stood at 105 days in FY2025 as compared to 148 days in FY2024 largely because the capacity utilization has improved leading to reduction in inventory cycle. The debtors stood at 57 days in FY2025 compared to 89 days in FY2024. Against this, the creditor days stood at 140 days as on March 31, 2025, as against 219 days as on March 31, 2025. Acuite believes that the working capital operations of the company will improve over the medium term.

Customer concentration risk in order book and its timely execution
Of the total order book of Rs. 8520.50 Cr. as on June 2025. The company received bigger orders from Power Grid Corporation of India Limited (PGCIL) for execution of 765 and 800 KV transmission line projects across Rajasthan and Andhra Pradesh due to better credit terms and margins. Additionally, secured orders from Bharat Sanchar Nigam Limited (BSNL) for Operation and Maintenance (O&M) of towers. This leads to higher customer concentration risk in the order book and timely execution of the same will remain monitorable. Further, there are multiple orders from other players across the geographies.