| Established track record of operations and experienced management
The company has a long track record of almost three decades in the civil construction business with an established track record of project execution related to construction of irrigation, highways & roads projects on EPC basis. The company has successfully executed projects for prominent counterparties National Highway Authority of India (NHAI), Ministry of Road Transport and Highways (MoRTH), Maharashtra State Infrastructure Development Corporation (MSIDC), Public Works Department (PWD), Water Resources Department (WRD), and other government bodies. The promoters, Mr. Bhaskar Mane and Mr. Ganesh Bhaskar Mane Deshmukh, have nearly three decades of experience in the civil construction industry leading to established relationships with key stakeholders.
Growing scale of operations
The operating revenue of the company improved to Rs. 630.37 Cr. in FY26 as compared to Rs. 432.42 Cr. in FY25, reflecting an y-o-y growth of ~46 percent in FY26, on the back of higher execution of contract order during the year. The growth is supported by improving order book position, with unexecuted orders of around Rs. 1181.27 Cr. as of May 31, 2026, providing revenue visibility over the near to medium term. The company’s revenue profile is majorly derived from road projects, which contributed ~78 percent of its revenue in FY26, while irrigation projects accounted for ~20 percent. Further, the operating margins stood healthy at 18 percent in FY26 (19.10 percent in FY25) on account of self-execution of orders and utilising their own construction equipment. Moreover, the company has clocked revenue of Rs. 69.73 Cr. in 2MFY27 (Rs. 22.59 Cr. in 2MFY26). Going forward, the continued growth momentum with steady increase in order book position shall remain monitorable.
Improving financial risk profile on account of continuous equity infusions
The financial risk profile of the company is marked by healthy net worth of Rs. 236.85 Cr. as on March 31, 2026, as compared to Rs. 151.03 Cr. as on March 31, 2025, improved on account of accretion of profits to reserves and equity infusions by the promoters amounting to Rs. 17.55 Cr. in FY25, Rs. 29.52 Cr. in FY26. Also, the promoters have infused equity amounting to ~Rs. 18 Cr. in FY27. Further, the debt profile of the company stood at Rs. 204.79 Cr. as on March 31, 2026 (Rs. 204.27 Cr. as on March 31, 2025), consisting majorly of construction equipment loan and working capital borrowings. Therefore, the gearing (debt/equity) ratio stood moderate at 0.86 times in FY26, though improved from 1.35 times in FY25. Moreover, TOL/TNW stood improved at 1.39 times in FY26 as against 1.91 times in FY25. Furthermore, the debt protection metrics stood comfortable marked by interest coverage ratio of 4.20 times in FY26 and debt service coverage ratio of 1.38 times in FY26.
Going forward, the financial risk profile of the company is expected to improve on the back of improving cash accruals and equity infusions with no major debt funded capex plan envisaged in the medium term.
Moderately intensive working capital operations
While the working capital operations of the company stood moderately intensive, however, gross current assets (GCA) stood improved at 132 days in FY26 (169 days in FY25), primarily driven by debtor levels, inventory levels and higher other current assets (majorly consisting of advances to suppliers). The inventory days stood decreased at 32 days in FY26 from 63 days in FY25 on account of higher order executions in FY26. Further, the receivables also stood reduced at 65 days in FY26 (81 days in FY25). Moreover, the company receives an average credit period of 60-90 days from their suppliers leading to creditor days of 65 days in FY26 (78 days in FY25). Going forward, the working capital operations are expected to remain in similar levels considering the nature of industry.
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| Customer and geographical concentration risk
The company is exposed to customer concentration risk, with its top five clients contributing ~77 percent of total revenue in FY26. This risk is partially offset by the company’s established relationships with these clients. Also, the company faces geographical concentration risk with ~83 percent of the revenue in FY26 contributed from Maharashtra and ~17 percent from Karnataka. Moreover, the current order book continues to reflect a similar regional concentration, however, the company has identified new tenders in different geographies, receipt of which shall diversify concentration risks.
Loans & advances given to group companies
The company has extended interest bearing loans & advances amounting to Rs. 42.46 Cr. (~17.93 percent of its net worth) as of March 31, 2026, in the group companies. While some of the recovery is expected in the medium term, any significant investments to such entities constraining the company’s core operations thereby impacting the liquidity, remains 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 order execution and sustaining profitability amid a competitive industry shall remain a key rating monitorable.
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