| Benefits derived from experienced management
The promoter of EPPL, Mr. Sandeep Mann has and Mr. Kushavjeet Mann have experience of over a decade in the power industry with respect to electrical and contractual work. The experience of the promoter has enabled the company to maintain strong relations with its customers as well as with its supplier. Acuité believes that the promoters' experience and healthy relations with its customers and suppliers will continue to benefit EPPL over the medium term.
Improvement in Scale of operations
EPPL registered modest revenue growth in FY25, reaching Rs.99.15 crore from Rs.92.08 crore in FY 24, supported by timely execution of solar pump and substation projects. In 9MFY26, revenue rose sharply to Rs.141.11 crore from Rs.41.97 crore year-on-year basis, driven by the solar pump segment, which contributed around 68% to total revenue, including major execution for the Haryana Renewable Energy Development Agency. The company holds an outstanding order book of Rs.286 crore as of December 2025, with 68% comprising EPC–electrical substation projects and 32% EPC–solar pump projects. Operating profitability improved to 13.43% in FY25 from 10.68% in FY24 due to favorable raw material prices and high margin projects, while PAT margin also strengthened to 7.68% in FY25 versus 6.56% in FY24. Acuité believes EPPL’s operating performance to strengthen further, supported by visible revenue traction and a healthy order book, although raw material price fluctuations and new order inflows remain key monitorable.
Moderately Healthy Financial Risk Profile:
EPPL’s financial risk profile remains moderately healthy, supported by an improvement in net worth to Rs.38.42 crore in FY25 from Rs.30.84 crore in FY24 due to steady reserve accretion, along with low gearing at 0.24 times in FY 25 despite a rise in total borrowings to Rs.9.23 crore in FY25 from Rs.2.48 crore in FY 24. The increase in short-term borrowings was primarily driven by vendor-financing arrangements with Siemens Financial Services for equipment procurement under the KEC International Ltd & Maruti Suzuki India Limited’s project, availed with a tenure of up to one year to benefit from early payment discounts. Debt protection metrics remain healthy, with ICR at 4.19 times and DSCR at 2.59 times in FY25, while TOL/TNW and Debt/EBITDA stood at comfortable levels of 0.67 times and 0.65 times, respectively in FY 25. Acuité believes EPPL’s financial risk profile will remain healthy in the medium term, supported by absence of any debt-funded capex plans.
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| Intensive Working Capital management:
The company’s working capital cycle marginally stretched in FY2025, with GCA days rising to 180 days from 174 days in FY2024 due to higher cash and bank balances arising from maintenance of surplus fund in the OD account. However, collection efficiency improved sharply, reflected in a significant reduction in debtor days to 63 in FY 25 days from 130 days in FY 24, largely driven by timely realizations in the solar pump segment. Trade receivables comprise amounts due to both solar projects and substation projects. In solar projects, approximately 90% of the invoice value is realized at the time of invoicing, while the balance 10% is released within 60–90 days after commissioning of the pumps. In substation projects, around 90% of the payments are released at the time of invoicing, subject to contractual terms, and the remaining 10% is released upon completion of the project. Inventory levels remained low at 6 days (FY2025) compared to 4 days (FY2024), while other current assets increased to Rs.10.49 crore in FY 25 from Rs.7.23 crore in FY 24 due to higher supplier advances. Accounts payable days improved to 83 days in FY 25 from 110 in FY 24 days, supported by stronger cash flows. Acuité believes that working capital management will continue to improve in the medium term, supported by enhanced collection efficiency however with a potential change in revenue mix, maintaining collection efficiency will remain a key monitorable.
Highly competitive industry:
EPPL is into power projects, wherein the sector is marked by the presence of several mid-to-large sized players. The risk becomes more pronounced as tendering is based on minimum amount of bidding on contracts and susceptibility to inherent cyclicality in the infrastructure segment. Further, it is dependent on State Government's thrust on power infrastructure works.
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