| Experienced management and long track record of operations
SCIPL was incorporated by Mr. Deepak Saraf and his family in 2006. The company operates majorly across three segments viz catering & housekeeping, painting services and EPC contracts (involving fabrication and painting works). Historically, the catering segment was the primary revenue source of SCIPL. However, in FY2026 the company has forayed into the EPC segment involving painting and fabrication of offshore rigs and platforms, which involve high value and high margin work contracts. With this, SCIPL plans to focus more towards procurement of such EPC work contracts. The extensive experience of the promoters and established clientele base will support the company to expand their operations?.
Growing scale of operations
SCIPL’s operations have been growing steadily, with revenue increasing to Rs. 92.19 Cr. in FY2025 from Rs. 84.12 Cr. in FY2024. The scale has expanded significantly in the current year, with the company achieving turnover of Rs. 184.23 Cr. during 11M FY2026, compared to Rs. 84.82 Cr. in the corresponding period last year. The sharp growth is primarily driven by the company’s entry into offshore EPC projects involving painting, fabrication and maintenance, which are more technical and higher-value compared to the earlier catering-focused operations. This shift has resulted in significant improvement of profitability margins, which stood at ~36 percent for 11M FY2026 as compared to ~13 percent for 11M FY2025. Moreover, company has a moderate orderbook position of which ~59 percent pertains to a single EPC order, which provides medium term revenue visibility. Therefore, going forward, the regular inflow of new work orders, timely execution at sustained profitability levels will be a key monitorable.
Moderate financial risk profile
The financial risk profile of SCIPL is characterized by growing networth, low gearing and healthy debt protection metrics. The tangible networth, increased to Rs. 36.08 Cr. in FY2025 on account of equity infusion of Rs. 8.71 Cr. and accretion of profits. The gearing stood below unity at 0.62 Cr. on March 31, 2025. Further, the TOL/TNW levels and Debt-EBITDA levels stood moderate at 0.96 times and 1.83 times respectively on March 31, 2025.
However, in the current financial year (FY2026), the company had undertaken capex to purchase a vessel of Rs. 113.87 Cr. This capex was funded through a mix of debt (Rs. 97.00 Cr.) and equity/ internal accruals. Therefore, while this is expected to moderate the financial risk profile to some extent, however, considering the strong growth in cash accruals, the debt protection metrics are expected to remain comfortable in FY2026.
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| Intensive working capital operations
The operations of SCIPL are intensive, evident from gross current assets (GCA) of 141 days in FY2025. The GCA are driven by the inventory (37 days), receivable (61 days) and other current assets. Further, the creditor days stood at 66 days in FY2025. However, the average bank limit utilization stands moderate at ~61 percent for last six months ended December 2025.
Going forward, improvement in the working capital cycle will be a key rating sensitivity.
Customer concentration risk and tender based nature of operations
SCIPL’s operations are mainly tender based with competitive pricings, most of work orders coming from ONGC. As a result, the company’s revenue depends heavily on tenders floated by ONGC , leading to high customer concentration risk. Further, considering the tenor of the orders ranges from 3-5 yrs, timely execution at sustained profitability remains a challenge. However, SCIPL has a long-standing relationship of around two decades, which mitigates the risk to some extent. Further, for execution of EPC works, charter vessel hiring is crucial, increase in freight rates may have an impact on the margins.
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