Experienced management and established track record of operations
SBEL has a long execution track record of over three decades in the civil construction business with established track record of projects related to building and bridges. The company is managed by Mr. Anil Agrawal and his family. There is a customer-wise demarcation of authorities and responsibilities among the directors, which enables smooth execution of the projects. The timely execution of the projects has helped the company in improving its market presence in Odisha.
  
Reputed clientele
SBEL continues to be a Class 1 contractor for Orissa Public Works Department (PWD), National Highway Authority of India (NHAI), NTPC Limited and different departments of Railways. SBEL is entitled to bid for orders of any size. The company has orders from Govt companies like IOCL and MCL. The company also bid offers for the private parties such as GR Infra projects Limited and TRL Krosaki Refractories ltd. among others. SBEL has diversified in the past few years, with orders inflow from irrigation, riverfront project and bridge construction segments as well.

Improvement in overall operating performance supported by healthy order book position
SBEL’s operating performance improved Y-O-Y, driven by strong execution across railway, irrigation and road projects. The company’s revenue increased to Rs. 914.93 Cr. in FY25 as against Rs. 767.12 Cr. in FY24, reflecting healthy scale-up backed by a sizeable and diversified order book. EBITDA stood at 10.97 per cent in FY25 compared 11.71 per cent in FY24 due to higher execution intensity and elevated site-level costs. PAT margins stood at 4.62 per cent in FY25 compared to 4.69 per cent in FY24. Till 9MFY26, the company reported revenue of Rs. 568.70 Cr. (and till Feb’26 stood at ~Rs. 750 Cr.) with EBITDA margin at ~11.25 per cent and  PAT margin at ~4.68 per cent, indicating steady progress across ongoing projects. SBEL has robust unexecuted order book of ~Rs. 2900 Cr. (as on Feb’26) providing revenue visibility through FY27 and FY28. Acuite believes, that the operating performance of the company would improve steadily on the back of robust order book position.

Healthy financial risk profile
SBEL’s financial risk profile remains healthy, supported by a healthy net worth position, low gearing, and comfortable coverage metrics. The tangible net worth improved to Rs. 354.65 Cr. as on March 31, 2025, up from Rs. 312.28 Cr. in FY24, driven by consistent profit accretion. Total debt increased to Rs. 175.39 Cr. in FY25 as compared to Rs. 98.94 Cr. in FY24 mainly on account of higher short-term borrowings to support the scale-up in execution. However, the gearing remained low at 0.49 times in FY25 as against  0.32 times in FY24. Debt protection metrics remained stable, with interest coverage ratio (ICR) improving to 4.10 times in FY25 from 3.49 times in FY24. Debt service coverage ratio (DSCR) remained stable at 1.65 times in FY25 compared to 1.76 times in FY24. The company’s Debt/EBITDA increased to 1.66 times from 1.07 times due to higher working-capital borrowings. TOL/TNW stood at 1.02 times in FY25 compared 0.85 times in FY24, reflecting increased scale and creditor funding linked to execution. Acuite believes, the financial risk profile of the company would remain healthy supported by steady accruals and lower reliance on external debt.

Working capital intensive operations
SBEL’s working-capital cycle remained intensive, with Gross Current Asset (GCA)  increased to 202 days in FY25 from 183 days in FY24, primarily on account of higher materials-at-site and advances to suppliers. Inventory days increased to 72 days in FY25 from 68 days in FY24, while debtor days remained stable at 77 days, as against 72 days in FY25 and FY24 respectively supported by timely steady collections. Further, the company’s working capital limits remain moderately utilised, with average fund-based utilisation at ~88.7% and non-fund-based utilisation at ~69% for the six-month period ended December 2025. Acuité believes that the ability of SBEL to improve working capital cycle over the medium term will remain a key rating sensitivity factor.

Competitive and fragmented industry amidst tender based operations
SBEL is exposed to the cyclicality inherent in the construction industry and intense competition in the tender based contract award system, along with fluctuations in input costs (steel, cement etc.) likely to result in volatility in revenues and profit margins. However, its long standing promoter’s presence, past track record of timely execution of projects and established relationship with the clients led to healthy repeat order inflow.

• Sustained improvement in scale of operations with revenue consistently above the projected trajectory and stable profitability.
• Sustained improvement in operating margins above11.50 per cent

• Deterioration in the financial risk profile due to debt-funded capex or increased working-capital borrowings.
• Significant increase in Debt/EBITDA beyond 3 times or weakening of coverage indicators.
• Further elongation in the working-capital cycle impacting liquidity and dependence on bank limit utilisation.