💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by 31% to INR 102.29 Cr in FY25, following a 32% growth to INR 77.97 Cr in FY24. The order book of INR 261.67 Cr is segmented into Pipeline and Piping work (INR 129.24 Cr), Composite work (INR 116.64 Cr), and DPNG (INR 15.79 Cr).

Geographic Revenue Split

The company faces high geographic concentration with approximately 71% of the total order book concentrated in Tripura, with the remainder spread across Assam, Jharkhand, Maharashtra, Gujarat, and Bihar.

Profitability Margins

Operating margins have shown significant improvement; absolute EBITDA rose from INR 3.47 Cr in FY23 to INR 9.84 Cr in FY24, and further increased by 83.7% to INR 18.08 Cr in FY25 due to the execution of higher-margin contracts.

EBITDA Margin

The EBITDA margin stood at approximately 17.67% in FY25, up from 12.62% in FY24, reflecting a 505 basis point improvement driven by selective bidding and operational efficiency.

Capital Expenditure

Planned expansion includes enhancing execution capacity to handle multiple complex projects simultaneously and scaling the O&M vertical to build stable annuity-style revenues, though specific INR Cr for future capex is not disclosed.

Credit Rating & Borrowing

Assigned a long-term rating of IVR BBB-/ Stable by Infomerics on November 18, 2025, for bank facilities totaling INR 90.98 Cr. The rating reflects a comfortable capital structure and satisfactory debt protection metrics.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, cement, concrete, and fuel, which constitute the majority of the total cost of sales.

Import Sources

Materials are primarily sourced from large dealers at proximate distances to project sites; however, certain mechanical and electrical equipment are subject to import dependencies, exposing margins to forex fluctuations.

Key Suppliers

While specific supplier names are not listed, the company sources from 'large players' and dealers located near its primary execution hubs in the Northeast and Western India.

Capacity Expansion

The company aims to expand its order book to INR 1,000 Cr within 2-3 years (from the current INR 261.67 Cr) and targets an internal goal of INR 600 Cr in bookings by the end of FY25.

Raw Material Costs

Raw material, labor, and overhead expenses form the bulk of costs; the company utilizes price-variation clauses and bulk procurement to mitigate the impact of input cost swings in steel and cement.

Manufacturing Efficiency

The weighted average execution period for the current order book is 10.43 months, indicating a fast-paced project turnover cycle.

Logistics & Distribution

Logistics are managed through phased mobilization and regional operating leverage to handle the complex terrain of the North-East Gas Grid (IGGL) and other hilly projects.

📈 Strategic Growth

Expected Growth Rate

35-45%

Growth Strategy

Growth will be achieved by expanding the order book to INR 1,000 Cr, diversifying into fertilizer and power-linked EPC, scaling the O&M vertical to 15% of revenue mix, and expanding the pan-India footprint to 12-15 states.

Products & Services

Services include pipeline laying, gas processing plants, city gas distribution (CGD), horizontal directional drilling (HDD), gas terminal stations, O&M of natural gas infrastructure, and urban civil works like schools and markets.

Brand Portfolio

OVAL

New Products/Services

New focus areas include balance-of-plant (BoP) for industrial plants, substation civils for renewable energy evacuation, and selective overseas EPC sub-scope partnerships in the UAE and Saudi Arabia.

Market Expansion

Targeting expansion into Central and Southern India and establishing a measured presence in the Middle East over a 5-10 year horizon.

Market Share & Ranking

Positioned as a disciplined mid-tier EPC company, competing in specific contract bands against larger integrators like Larsen & Toubro and specialists like Likhitha Infrastructure.

Strategic Alliances

Utilizing joint bids and JVs to qualify for larger packages exceeding INR 200 Cr and partnering with established EPC players for international entry.

🌍 External Factors

Industry Trends

Shift toward bundled service partners, increased demand for climate-resilient infrastructure (US$2.4 trillion needed for India's urban infra by 2050), and the rollout of the North East Gas Grid (85.35% physical progress).

Competitive Landscape

Operates alongside large integrators (L&T), pipeline specialists (Likhitha Infrastructure), and PMC leaders (Engineers India Limited), focusing on speed and cost control in specific geographies.

Competitive Moat

Competitive edge derived from 'terrain know-how' in the complex Northeast region, established PSU relationships, and a high order book-to-revenue ratio of 4.82x.

Macro Economic Sensitivity

The EPC sector is expected to slow to 10-12% growth in FY26; OVAL's growth is tied to the National Infrastructure Pipeline (NIP) valued at INR 185 trillion.

Consumer Behavior

Public agencies are increasingly demanding stricter ESG compliance and digital monitoring (BIM/IoT) in tender pre-qualifications.

Geopolitical Risks

Overseas expansion into the Middle East (UAE/Saudi Arabia) introduces geopolitical and international clearance risks, managed through local partnerships.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by stringent environmental clearances (forest, land, water), OHSAS 18001:2007 safety standards, and evolving ESG disclosure norms for PSU tenders.

Environmental Compliance

The company is ISO 14001:2015 certified and is aligning with Science-Based Targets initiative (SBTi) frameworks for emissions and green certifications for civil works.

⚠️ Risk Analysis

Key Uncertainties

Key risks include bid competition, delays in permits/logistics in hilly terrains, and working capital stress due to elongated payment cycles in large EPC contracts.

Geographic Concentration Risk

High risk with 71% of the order book concentrated in a single state (Tripura).

Third Party Dependencies

Uses subcontracting frameworks to manage capacity stretch during peak cycles.

Technology Obsolescence Risk

Risk of falling behind in digital project management; mitigated by investing in BIM, IoT-based monitoring, and digital dashboards.

Credit & Counterparty Risk

Exposure to PSU and multilateral-funded projects (World Bank/ADB) provides payment security, though high non-fund-based exposure remains a rating constraint.