| Established track record of operations and experienced management
APSHPL was incorporated in the year 2003. Mr. Sanjeev Kumar (Director) and Mr. Davendar Singh (Director) have an experience of over two and a half decades each in the aforementioned line of business. The established track record of operations and experience of management have helped the company to secures contracts through competitive tendering processes, with major orders sourced from government agencies such as the National Highways Authority of India (NHAI) and the National Highways & Infrastructure Development Corporation Limited (NHIDCL) Ministry of Road Transport and Highway (MORTH) on individual capacity as well as joint venture capacity. Acuité believes that APSHPL will sustain its existing business risk profile backed by established track record of operations and experienced management.
Steady Scale of operation with improvement in Margin:
The company reported marginal revenue growth to Rs.232.72 crore in FY26 (Prov.) from Rs.228.11 crore in FY25, supported by timely execution of ongoing projects, though growth remained subdued due to execution delays in Jammu & Kashmir arising from political tensions. With stabilization in the region and resumption of work, revenues are expected to improve to around Rs.300–325 crore in FY27. As on May 25, 2026, the outstanding order book stood at Rs.565.36 crore, translating into a healthy OB/OI ratio of 2.42 times, providing moderate medium-term revenue visibility, further supported by a tender pipeline of Rs.667 crore, of which the company expects to secure nearly 30%. Operating profitability improved to 9.39% in FY26 (Prov.) from 8.87% in FY25 due to lower raw material costs, while PAT margin rose to 4.94% from 4.74%, aided by reduced finance costs. Margins are expected to remain in the 9–10% range over the medium term, although initial stabilization costs related to the new project may lead to some moderation. APSHPL’s operations remain geographically concentrated, with around 75% of the order book from Jammu & Kashmir and Arunachal Pradesh. Acuite believes operating performance is expected to improve, supported by the unexecuted order book and relatively higher margins in hilly regions; however, timely execution, order inflows, and sustainability of profitability will remain key monitorable.
Comfortable financial risk profile
The company’s financial risk profile remains comfortable, marked by an improved net worth, low gearing and stable debt protection metrics. The tangible net worth increased to Rs.120.27 crore as on March 31, 2026 (Prov), from Rs. 108.79 crore as on March 31, 2025, supported by accretion to reserves and infusion of quasi equity through USL. Further, The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) improved and stood at 0.90 times as on March 31, 2026 (Prov.) as compared to 1.04 times as on March 31, 2025. Debt protection indicators remain comfortable, with the interest coverage ratio (ICR) at 7.97 times and DSCR stood at 2.82 times for FY26 (Prov). Debt/EBITDA ratio stood at 1.43 times in FY 26 (Prov.) as compared to 1.21 times in FY 25. Acuite believes that financial risk profile of APSHPL will remain adequate in the medium term supported by absence of any significant debt funded capex plan.
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| Intensive Working capital management :
The Working capital management remain intensive marked by the Stech in GCA days to 230 days in FY 26 (Prov.) as against 204 days in FY 25 mainly due to elongated debtor days and high inventory days. Debtor days increased to 125 days in FY 26 (Prov.) as compared to 118 days in FY 25 mainly driven by year end booking. Around 44% revenue has book has been in Mar’26 resulting spike in debtor days in year end. Inventory days marginally increased to 59 days in FY 26 (Prov.) as compared to 52 days in FY 25 mainly due to higher build up of WIP of Rs. 30 crore in FY 26 (Prov.) as compared to Rs.22.29 crore in FY 25. Other Current assets increased mainly due to increase in advance to customer. Creditor days increased to 331 days in FY 26 (Prov.) as compared to 244 days in FY 25 driven by higher subcontractor fees payable included in total trade payable. Acuite believes working capital remain intensive over the medium term supported by nature of the EPC business.
Ongoing litigation with SRK Constructions & Projects Pvt. Ltd:
The company has overdue receivables from SRK Constructions & Projects Pvt. Ltd.(SRK) amounting to Rs. 35.79 crore, which has been disputed for over 10 years and is currently under litigation. Accordingly, the same has been reclassified under non-current assets. In March 2023, the Hyderabad bench of the National Company Law Tribunal (NCLT) dismissed the insolvency petition filed by APSHPL against SRK. The tribunal ruled in favor of SRK, noting there was a pre-existing dispute, as SRK had terminated the contracts in 2019 due to non-performance. Following the NCLT ruling, both companies have been locked in arbitration to resolve their financial disputes. The outcome will remain key monitorable as any adverse outcome could impact the company’s financial position.
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