Established track record of operations and experienced management
SC has an operational track record of nearly two decades. The firm is promoted by Mr. Hemant Shah, who has an extensive experience spanning over two decades in the water and irrigation contracting segment. He is supported by his son, Mr. Parth Shah. The extensive experience of the management has helped SC in maintaining a stable order flow from key government organisations like Nagpur Municipal Corporation (NMC), City and Industrial Development Corporation of Maharashtra (CIDCO), Public Works Department (PWD) of Maharashtra & Karnataka, amongst others.
Acuité believes that SC will continue to benefit from its experienced management and established track record of operations.

Improving scale of operations supported by healthy outstanding order book
The operating revenue of the firm marked an improvement of ~56 percent y-o-y in FY25 which stood at Rs. 393.63 Cr. in FY25 (Rs. 252.23 Cr. in FY24) on account of higher execution of orders in FY25. The operating margin stood stable at 6.71 percent in FY25 (6.52 percent in FY24). Further, the firm has clocked gross revenue of Rs. 276.03 Cr. in 8MFY26 (Rs. 195.28 Cr. in 8MFY25) on account of timely execution of the contracts. Generally, the firm books majority of its revenue in second half of the financial year and has an outstanding order book of ~Rs. 1136.52 Cr. (2.89 times of FY25 revenue) (excluding Rs. 78.77 Cr. of L1 tenders in process as of Dec 2025) to be executed in the medium term.
Going forward, improvement in the profitability margins while maintaining revenue growth shall remain a key monitorable.

Moderate financial risk profile
While the total debt increased at Rs. 21.16 Cr. in FY25 (Rs. 13.23 Cr. in FY24), majorly constituting incremental working capital borrowings and long-term debt (majorly vehicle loans), however, the financial risk profile of the firm stood moderate marked by below unity gearing (debt-equity) at 0.50 times in FY25 along with comfortable coverage ratios wherein interest coverage ratio stood at 11.13 times and debt service coverage ratio stood at 4.15 times for FY25. However, the net worth stood moderate at Rs. 42.35 Cr. as on March 31, 2025 (Rs. 42.34 Cr. as on March 31, 2024) after accounting for withdrawal of funds by the partners during FY25.

Moderately intensive working capital operations
The working capital operations of the firm stood moderately intensive marked by gross current assets (GCA) of 106 days in FY25 increased from 39 days in FY24, that is majorly driven by higher other current assets consisting of retention money (Rs. 26.55 Cr. as of March 31, 2025) and debtor levels. The debtor’s collection period stood efficient although increased to 22 days in FY25 (7 days in FY24). Further, the inventory days stood at 5 days in FY25 (16 days in FY24) and the creditor days stood at 157 days in FY25 (154 days in FY24).

Inherent risk of capital withdrawal by partners
SC's constitution as a partnership firm is exposed to discrete risks, including the possibility of withdrawal of capital by the partners, instance of which has been observed in FY25 wherein the partners have withdrawn nearly Rs. 13.32 Cr. Moreover, the partnership nature partially limits the flexibility to raise the funds vis-a-vis a limited company.

Exposure to intense competition and tender-based operations
The infrastructure is a fragmented industry with a presence of large players pan India where subcontracting & project specific partnerships for technical/financial reasons are common. The firm 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. Also, the firm majorly executes work orders in the state of Maharashtra and Karnataka, resulting into geographical concentration of revenue. Moreover, susceptibility of raw material pricing again keeps profit margin vulnerable and is a key sensitivity factor.