­Long operational track record and experienced management 
Established in 1993, initially operating as partnership concern and later converted into company, Orient Constructions Private Limited (OCPL) has a long operational track record of around four decades in the civil construction industry. Moreover, the key promoter of OCPL, Mr. Ashok Kumar Jalan also has more than four decades of experience in the construction industry.
Acuité believes that the long-standing experience of the promoter and the long track record of operations will aid the company to strengthen its business risk profile over the medium term.

Moderate financial risk profile
The financial risk profile of OCPL is marked by growing networth, low gearing and adequate debt protection metrics. The tangible networth of the company stood at Rs. 42.92 Cr. on March 31, 2025 post profit accretion as against Rs. 40.66 Cr. on March 31, 2024. The gearing continues to remain below unity at 0.48 times on March 31, 2025. Further, the TOL/TNW levels also continue to remain low at 0.63 times in F2025. The Debt-EBITDA levels stood moderate at 2.91 times on March 31, 2025. The debt protection metrics stood adequate with interest coverage ratio (ICR) at 3.96 times and debt service coverage ratio (DSCR) at 1.37 times in FY2025.
The financial risk profile of OCPL is expected to remain on similar levels, on account of no major debt funded capex plans.

­­Declining revenue and modest orderbook position
OCPL has maintained a steady topline over the past few years, typically generating revenue in the range of Rs. 80 –100 Cr. In FY2025, the company reported revenue of Rs. 119.27 Cr, compared to Rs. 147.55 Cr. in FY2024. Moreover, the unexecuted orderbook position of the company stood at Rs. 112.71 Cr. (~0.94 times of FY2025 revenue) as on November 30, 2025 which depicts limited revenue growth over the medium term. Further, the topline of the company stood low at Rs. 39.64 Cr. for 7M FY2026. Furthermore, the operating margins have remained rangebound between 4.5 - 6 percent over the last three years.

Moderately intensive working capital operations
The operations of OCPL are moderately intensive, evident from gross current assets (GCA) of 123 days in FY2025. These GCA days are primarily driven by the inventory and receivable days which stood at 55 days and 25 days respectively in FY2025 as against 48 days and 19 days in FY2024. Th creditor days stood at 34 days in FY2025. However the average bank limit remain moderate with 44.46 percent utilization for fund based and 75.16 percent utilization for non fund based limits for the last eight months ended November 2025.

Competitive and fragmented nature of industry coupled with tender based business
The company is engaged as a civil contractor and the sector is marked by the presence of several mid to big size players. The company faces intense competition from the other players in the sectors. Risk becomes more pronounced as tendering is based on a minimum amount of bidding of contracts and hence the company must make bid for such tenders on competitive prices, which may affect the profitability of the company. However, this risk is mitigated to an extent as the company is operating in this environment for more than three decades.