­Experienced management 
The company is promoted by Mr. P Subba Raju, Mrs. P Yasodha, Mr. P Srinivasa Raju and Mr. P Ramana Kumar Raju. The managing director, Mr. P. Subba Raju has more than three decades of experience in executing civil contract works and defence related projects. His long standing experience has helped the company in establishing comfortable relationships with their key customers and suppliers. 

Acuité believes that SSPL will continue to benefit from the promoter’s established presence in the industry and its improving business risk profile over the medium term.

Stable revenue along with moderate order book position
The revenue of the company stood stable at Rs.100.44 Cr. in FY2025 against Rs.102.05 Cr. in FY2024, however, the projects were timely executed, and timely billing was also done. The revenue for 7MFY2026 stood at Rs.57.50 Cr. The operating profit margin stood at 10.66 percent in FY2025 against 10.97 percent in FY2024. However, the PAT margin improved to 5.38 percent in FY2025 against 4.21 percent in FY2024. As on March 2025, the company maintained a moderate outstanding order book of Rs.121.51 Cr. In addition, it has participated in new bids and currently holds L1 position for orders worth Rs.312 Cr, the outcome of which is awaited. The conversion of these L1 orders into firm contracts remains a key monitorable.

Moderate financial risk profile
The company has a moderate financial risk profile marked by modest net worth, moderate gearing and debt protection metrics. The tangible net worth of the group stood low but improving at Rs.21.37 Cr. as on March 31, 2025, as compared against Rs.15.97 Cr. as on March 31, 2024. The increase in net worth is on account of accretion of profits into reserves. The gearing level of the company stood moderate at 1.71 times as on 31 March 2025 as against 2.42 times as on 31 March 2024. Interest coverage ratio stood at 2.32 times in FY2025 against 2.28 times in FY2024. Debt service coverage ratio moderate to 1.57 times in FY2025 against 2.03 times in FY2024. The total outside liabilities to tangible net worth (TOL/TNW) stood at 2.31 times as of March 31, 2025.

Acuite believes that the financial risk profile is expected to remain at a similar levels over the medium term.

­Intensive working capital operations
The company has intensive working capital operations along with high reliance on the bank limits. The GCA days stood at 165 days in FY2025 against 148 days in FY2024. The inventory days stood at 12 days in FY2025 against 21 days in FY2024. The debtor days stood at 123 days in FY2025 against 106 days in FY2024. The group typically receives 80% of the payments from its customers within an average period of 90 days. The creditor days stood at 81 days in FY2025 against 67 days in FY2024. The utilization of the working capital limits stood high at ~91.62% in the last 6 months ending November 2025.

Highly competitive industry
The infrastructure is a fairly fragmented industry with a presence of few large pan India players where subcontracting & project specific partnerships for technical/financial reasons are fairly common. The company faces stiff competition with its competitors in procuring orders through bidding, immense competition for procuring tenders leads to very competitive pricing which in turn lead to stress on the margins. Moreover, susceptibility of raw material pricing again keeps profit margin vulnerable and is a key sensitivity factor.