| Benefitted from Experienced Partners:
The firm is supported by its partners, Mr. Nilesh Agarwal and Mr. Ajay Kumar Jain, who possess over two decades of experience in the civil construction sector. Their extensive experience has enabled the firm to secure orders from reputed government bodies in the North-East region through a competitive tendering process. Going forward, Acuite believes the firm will continue to get benefited from partners’ experience in the industry.
Improvement in Scale of operation:
The scale of operations witnessed significant growth of 72.28% in FY25, with revenues increasing to Rs. 102.08 crore from Rs. 59.25 crore in FY24. This growth was primarily driven by the acquisition of new orders and their timely execution. The firm sustained this momentum in FY26 (Estd.), recording revenues of Rs. 107.52 crore, indicating stable operating performance. The firm has an unexecuted order book of Rs. 238.53 crore, including an L1 order of Rs. 63.43 crore, which provides moderate medium-term revenue visibility. Despite the strong topline growth, the EBITDA margin moderated to 10.94% in FY25 from 12.02% in FY24, primarily due to higher raw material costs and elevated initial expenses related to the setup and stabilization of newly executed projects. However, with the stabilization of these projects, the EBITDA margin improved to 12.44% in FY26 (Estd.), supported by better operational efficiency. The PAT margin declined marginally to 7.10% in FY25 from 7.34% in FY24, mainly due to an increase in finance costs. Acuite believes that the firm’s operating performance is expected to improve over the medium term; however, the ability to secure new orders and sustain profitability will remain key monitorable.
Moderate Financial Risk Profile:
Financial risk profile marked by average net worth, low gearing, and moderate coverage indicators. Total adjusted Tangible Net Worth (TNW) increased to Rs. 33.05 crore in FY26 (Est.) from Rs. 27.65 crore in FY25, driven by internal accruals. Total borrowings rose to Rs. 31.56 crore in FY26 (Est.) from Rs. 26.94 crore in FY25, mainly due to higher short-term borrowings. Despite increased debt, gearing remained low at 0.97x in FY26 (Estd) as compared to 0.33 times in FY 25. Debt protection metrics stood comfortable with Interest coverage ratio and Debt service coverage ratio stood at 5.33 times and 1.95 times in FY 26 (estd) as compared to 7.66 times and 3.28 times in FY 25. ToL/TNW and Debt/EBITDA stood at 1.66 Times and 2.26 times in FY 26 (Estd) as against 1.97 times and 2.26 times in FY 25. Acuite believes financial risk profile expected to improve going forward, supported by absence of debt-funded capex, however due to inherent nature of partnership concern any significant capital withdrawal will remain key monitorable.
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| Intensive Working Capital Management:
Working capital management remains intensive, with GCA days at 189 days in FY26 (Est.) compared to 192 days in FY25. High GCA days mainly driven by higher debtor days and inventory days. Debtor days increased to 77 days in FY26 (Est.) from 73 days in FY25, due to high year-end revenue booking around 50% of total revenue booked in Q4-Nearly 24% booked in March 2026 alone. However, debtor position improved post year-end, declining to Rs. 11.25 crore in May 2026 from Rs. 22.76 crore as on March 31, 2026. Their average collection period is around 90 days. Inventory days stood at 71 days in FY26 (Est.) vs 75 days in FY25, aligned with the company’s average holding period of 2–2.5 months. Creditor days improved to 100 days in FY26 (Est.) from 122 days in FY25. Other current assets stood at Rs. 9.85 crore in FY26 (Est.), primarily comprising retention money of Rs. 8.48 crore which further led to stretch in working capital cycle. Acuite believes working capital management will remain broadly at similar levels over the medium term, given the inherent nature of operations.
High Geographical and customer concentration:
The firm exhibits high geographic concentration, with 100% of its total order book concentrated in the North-East region. Any adverse developments in this region could impact its operations. However, this risk is partially mitigated by the firm’s established track record of consistently executing projects in the region, demonstrating stable operating performance. Furthermore, the firm undertakes projects for government agencies in north east region, 70% of their total orderbook concentrated to single customer-indicating high customer risk. However, this concentration risk is partially mitigated through the continuous securing of new orders and the timely execution of existing projects, which supports revenue visibility and business continuity.
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