| Established presence with demonstrated execution capabilities and experienced management
GHV Group, established in 1965, has a long and proven track record in infrastructure development, executing a wide range of projects including bridges, dams, irrigation systems and airport runways, with core expertise in road construction through its flagship entity, GHV India. The group currently has six HAM projects, of which three have achieved commercial operation date (COD), two are at mid stage of construction (50–60% completed) and one has been recently awarded. It has demonstrated strong execution capabilities through a diversified project portfolio across domestic and international markets. The group’s execution strength is supported by adequate manpower and timely availability of machinery, enabling efficient delivery of complex projects across new construction segments.
The operations are led by Mr. Jahidmohamed H. Vijapura, who has over three decades of experience in infrastructure development, providing strategic direction and operational stability to the group.
Healthy orderbook supporting revenue visibility and improved profitability
As on March 31, 2026, the group reported a strong unexecuted order book of Rs. 20,726.65 crore, of which Rs. 16,137.79 crore pertains to GHV Infra, and balance attributable to GHV India. Since its incorporation, GHV Infra has secured sizeable contracts, significantly augmenting and diversifying the group’s order book. This has enabled the group to expand beyond its traditional focus on road construction, while also reducing geographic concentration in Maharashtra and Gujarat and enhancing its presence across India and select overseas markets. At present, the group has three international orders—one each in the UAE, Cameroon and USA, which have been awarded on a cost-plus fixed margin basis, further supporting price variations during the order tenure.
The group reported an operating income of Rs. 2,502.45 crore in FY26 (Prov.), as compared to Rs. 2,430.81 crore in FY25. The relatively modest growth was primarily due to delays in key project approvals, namely the CC Road project and Coastal Road project. However, with execution now underway, the group is expected to witness a healthy ramp-up in operations in FY27, supported by its robust order book. Additionally, during FY26, GHV Infra largely executed projects subcontracted from GHV India. Going forward, with direct project awards to GHV Infra, the entity is expected to scale up its execution significantly, thereby driving a notable improvement in the overall scale of operations of the group.
Profitability improved significantly during the year, with operating margins increasing to 14.31 percent in FY26 (Prov.) from 9.74 percent in FY25, driven by higher contribution from GHV Infra, along with some moderation in raw material costs observed across the group. Further, the group has multiple entities that act as backward integration units, enabling timely procurement of raw materials while also supporting the operating margins. Consequently, net profit margins also improved to 6.42 percent in FY26 (Prov.) as against 3.88 percent in FY25.
Strong resource mobilisation capability
In FY26, GHV Infra strengthened its capital structure through effective resource mobilisation, raising approximately Rs. 38.5 crore via warrants and Rs. 163.97 crore through optionally convertible debentures (OCDs). Acuité has treated the outstanding OCDs as quasi-equity, considering their expected conversion into equity in FY27, as indicated by management.
Furthermore, the promoters are planning additional equity infusion along with incremental debt tie-ups in GHV Infra from various lenders to support its increasing working capital requirements and future growth plans.
Healthy financial risk profile
The group’s financial risk profile is supported by a strong net worth base and moderate leverage levels. Net worth increased significantly to Rs. 1,213.34 crore as on March 31, 2026, from Rs. 849.10 crore as on March 31, 2025, driven by accretion of profits to reserves and the treatment of OCDs as quasi-equity in FY26.
The overall gearing improved and remained low at 0.29 times as on March 31, 2026, compared to 0.42 times as on March 31, 2025. The group’s debt levels remained largely stable. However, the same is expected to increase going ahead. Further, the TOL/TNW also improved to 1.10 times as on March 31, 2026, from 2.09 times as on March 31, 2025. Debt protection metrics also remained comfortable, with interest coverage ratio and debt service coverage ratio at 3.27 times and 2.48 times, respectively, in FY26 (Prov.).
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| Intensive working capital operations
The group’s working capital operations remained intensive, as reflected by GCA days of 291 days in FY26, improving from 307 days in FY25. The elevated GCA levels are primarily driven by high other current assets, largely comprising loans and advances to group companies particularly to its HAM SPVs, mobilisation advances and advances to suppliers. However, debtor days and inventory days declined compared to FY25, supported by easing challenges in fund receipts from various government authorities. Meanwhile, creditor days remained largely stable at 99 days in FY26 against 98 days in FY25. Further the bank limit utilizations for the group remained below 90% over the last 12 months ended May 2026.
Significant exposure to group companies
GHV India has a considerable exposure to its wholly owned and step-down subsidiaries through equity investments as well as loans and advances, primarily towards its road HAM special purpose vehicles (SPVs). As on March 31, 2026, nearly 40 percent of the group’s net worth remains invested in these SPVs.
Additionally, the group has committed further funding of approximately Rs. 33 crore towards two ongoing HAM projects and expects to infuse around Rs. 100 crore into a newly awarded HAM project. While there has been partial recovery through upstreaming of funds, supported by refinancing at the SPV level, any incremental support beyond planned commitments, potentially impacting the group’s liquidity—will remain a key rating sensitivity.
Exposure to intense competition and tender-based operations
The infrastructure industry is a fragmented industry with a presence of large players pan India where subcontracting & project specific partnerships for technical/financial reasons are common. The revenue and profitability for tendering-based operations depends entirely on the ability to win tenders wherein entities face intense competition, thus requiring them to bid aggressively to procure contracts. However, high entry barriers in terms of technical qualifications and past track record of the company in execution of similar projects mitigates the risk to a certain extent. Moreover, susceptibility of raw material pricing keeps profitability margins vulnerable, however, it is mitigated to some extent with price escalation clauses in every order. Furthermore, there exists project execution risk inherent in infrastructure projects owing to delays such as timely land acquisition, approvals from regulatory bodies.
Going forward, the company's ability to sustain its order inflow, timely execution and sustaining profitability amid a competitive industry shall remain a key rating monitorable.
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