| Experienced promoters with moderate operational track record
EEPPL was incorporated in the year 2009 and is promoted by Mr. Alur. Chakrapani, Mr. N K Gopinath, Mr. Aravinth Kondalraj who have been engaged in EPC projects for over two decades. Mr. Aravinth Kondalraj With over three decades of experience in creating proposals and detailing out engineering aspects for EPC projects, he has undertaken special training in CFBC Boiler Design from Foster Wheeler Energia Oy, Finland and is a BEE Certified Energy Auditor. Mr. N K Gopinath has more than 14 years of hands-on experience on Babcock and Wilcox (B&W) power boilers and Andritz Chemical recovery boilers of various capacities. With over two decades of experience in engineering, procurement and construction (EPC) for thermal, biomass and sustainable power solutions, the group has developed a moderate yet improved operational track record, reflected through its execution of projects. Their extensive overall business experience is expected to support the business in future. Acuité believes in the experience of the promoters and will benefit the group’s in maintaining its business profile.
Substantial improvement in operating revenue and healthy order book position
Group has achieved revenue of Rs. 115.84 Cr. in FY2025 against Rs. 62.83 Cr. in FY2024 and Rs. 57.68 Cr. in FY2023. Revenue marked a y-o-y growth for the last 2 years with a substantial growth of 85 percent in FY 2025 on account of increase in order book position. The management has expanded its revenue from export engineering services segment. As per the segment wise revenue break up, the contribution from engineering services has marked a significant increase from 46 percent in FY 2024 to 81 percent in FY2025 thereby marking a change in revenue pattern. The domestic sales accounted for 55 percent of the total revenue in FY 2024 which has reduced to 37 percent in FY 2025 on account of increase in revenue contribution from UK based companies thereby increasing the overall exports to 58 percent in FY 2025.The group reported revenues of ~Rs. 98.04 Cr. in 9MFY2026. The group is having an unexecuted order book position of Rs.631.47 Cr. as on January 01, 2026 which provides revenue visibility for the medium term. EBITDA margin of the group stood at 43.04 percent in FY2025 as compared to 28.01 percent in FY2024 and 17.35 percent in FY2023. The improvement in EBIDTA margin is mainly on account of increase in contribution margins for engineering services and high-end margin projects delivered. The PAT margin for FY2025 stood at 30.71 per cent as compared to negative PAT margin in FY2024. In FY2024, the company incurred loss at PAT level of Rs. 14.35 Cr. due to an exceptional item attributed to loss on sale of investment of Rs. 26.20 Cr. . Acuité believes that the group’s operating performance is expected to improve on account of healthy order book position and envisaged backward integration.
Healthy financial risk profile
Group’s financial risk profile is healthy, marked by moderate net worth along with minimal gearing and healthy debt protection metrics. The net worth of the group stood at Rs.48.56 Cr. as on March 31st, 2025, against Rs.13.25 Cr. as on March 31, 2024, and Rs. 27.79 Cr. as on March 31st, 2023, respectively. The net worth improved on account of accretion of profits in reserves in FY2025. The decrease in net worth in FY2024 was on account of losses reported in during the year. The gearing (debt to equity) of the group stood at 0.02 times as on March 31,2025, as against 0.13 times as on March 31, 2024, and 0.03 times as on March 31st, 2023. Company’s debt protection metrics is healthy marked by– Interest coverage ratio (ICR) and debt service coverage ratio (DSCR) stood at 315.68 times and 39.29 times as on March 31, 2025 due to negligible debt availed till Fy2025. TOL/TNW stood at 0.35 times as on March 31st, 2025, against 2.65 times as on March 31st , 2024 and 1.21 times as on March 31st, 2023, respectively. The debt to EBITDA of the company stood at 0.02 times in March 2025. The company is undertaking a capital expenditure of Rs. 50.00 Cr. towards acquisition of Chennai plant (backward integration) which is expected to be capitalised by Q4 FY2026. Acuité believes, despite debt funded capex, the the financial risk profile is expected to remain healthy in near to medium term on account of steady net cash accruals.
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Intensive working capital operations
Group's working capital operations are intensive in nature as reflected through the gross current assets (GCA) of 185 days in FY2025 against 174 days in FY2024 and 140 days in FY2023. Inventory days stood at 36 days in FY2025 compared to 36 days in FY2024, 29 days in FY2023. Debtor days stood at 73 days in FY2025 against 45 days in FY2024 and 0 days in FY2023. The Company generally provides credit period of 90 days to its customers. The creditor days improved and stood at 24 days in FY2025 as against 87 days in FY2024, creditor days have marked a substantial reduction during FY 2025 on account of swift repayment. Acuite believes, the working capital operations are expected to remain intensive due to nature of the operations.
Susceptibility of profitability to volatility in input prices in an intensely competitive and tender based EPC business
EPC companies operating under a tender-driven business model face heightened exposure to multiple risks due to the competitive, fixed-price, and schedule-bound nature of such contracts. The bidding phase often requires contractors to commit to cost and time estimates before full project complexities are known, making them vulnerable to cost overruns, schedule delays, and contractual penalties. EPC projects typically involve long lead times for specialized equipment, global sourcing dependencies, and multi-stakeholder coordination, all of which amplify the financial and operational uncertainties embedded within tenders.
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