💰 Financial Performance

Revenue Growth by Segment

The company operates primarily in Structural and BIM Engineering services. For FY26, the company targets a minimum revenue of INR 37 Cr - INR 38 Cr. For FY27, the company expects a 70% to 80% YoY growth, targeting approximately INR 60 Cr in revenue as monthly execution capacity scales to INR 4.5 Cr - INR 5 Cr starting January 2026.

Geographic Revenue Split

Telge Projects operates across 12+ countries. Key regions include the United States (Texas, Oklahoma, Georgia, Virginia), India (Pune, Latur), and emerging presence in Europe, Canada, New Zealand, and Southeast Asia. Specific percentage split per region was not disclosed, but the US is a primary growth driver.

Profitability Margins

H1 FY26 EBITDA margins stood at 18%, lower than the historical 30%+ due to upfront investments in manpower and infrastructure. The company targets a recovery to 30%-35% EBITDA margins for the full year FY26 and FY27 as operating leverage from new capacity kicks in.

EBITDA Margin

EBITDA margin was 18% in H1 FY26, representing a significant temporary dip from the 38% achieved in the previous full year. The management targets a return to 30-35% levels by H2 FY26 and into FY27 through higher ticket-size projects and AI-driven automation.

Capital Expenditure

Total planned expenditure from IPO proceeds is INR 24.29 Cr. This includes INR 8.73 Cr for office premises, INR 2.44 Cr for IT & Software, INR 4.18 Cr for Indian manpower, INR 4.86 Cr for subsidiary hiring, and INR 4.09 Cr for general corporate purposes.

Credit Rating & Borrowing

Not disclosed in available documents. However, the company stated that current IPO proceeds will suffice for planned acquisitions, and they do not anticipate needing additional debt for the next financial year.

⚙️ Operational Drivers

Raw Materials

Not applicable as Telge Projects is a service-based engineering firm. The primary 'raw material' is human capital (engineering talent).

Import Sources

Not applicable. Engineering services are delivered via a global-local hybrid model with a deep engineering backbone in India (Pune, Latur) and project management in the US.

Key Suppliers

Not applicable. The company relies on software providers like Tekla, SDS2, and Revit for its engineering operations.

Capacity Expansion

Current capacity allows for execution of INR 4.5 Cr - INR 5 Cr per month, aiming for a run rate of INR 60 Cr per annum by FY27. The team consists of 200+ engineers, with recent hiring of senior BD leaders and execution teams to support H2 FY26 delivery.

Raw Material Costs

Employee costs are the primary operational expense, currently ranging between 30% to 35% of revenue. This is significantly lower than competitors like Mold-Tek (60-70%), providing a competitive margin advantage.

Manufacturing Efficiency

Revenue per employee is currently ~INR 15 lakhs. The company targets increasing this to INR 25 lakhs through forward and backward integration into architectural and MEP (Mechanical, Electrical, Plumbing) services.

Logistics & Distribution

Not applicable. Services are delivered digitally. The company maintains a 24x7 global delivery model to serve international clients across different time zones.

📈 Strategic Growth

Expected Growth Rate

70-80%

Growth Strategy

Growth will be driven by scaling US operations, partnering with European EPC companies, and expanding into Canada and Southeast Asia. The company is also pursuing inorganic growth through the acquisition of two US-based companies (smaller than Telge) using IPO proceeds. Integration of MEP and architectural services will increase project ticket sizes from the current ~INR 1 Cr level.

Products & Services

Structural and BIM engineering solutions, including steel and precast detailing, BIM coordination, GA drawing, drafting, MTO (Material Take-Off), and connected construction workloads.

Brand Portfolio

Telge Projects, Midwest Detailing (US subsidiary), Draftco Inc. (US subsidiary).

New Products/Services

AI-driven BIM dashboards, internal automation plugins, and a 'one-stop AEC platform' integrating architecture, engineering, and construction services.

Market Expansion

Expansion into Canada, New Zealand, and Southeast Asia is planned for FY27. The company recently hired a senior BD leader with 15 years of US experience to penetrate larger US accounts.

Market Share & Ranking

Not disclosed, but the company positions itself as a global leader in Structural & BIM services with 1,700+ international projects delivered since 2018.

Strategic Alliances

Partnering with a European EPC company for collaborative project execution. The company also utilizes a hybrid model combining Indian engineering excellence with local US project management.

🌍 External Factors

Industry Trends

The global engineering industry is shifting toward BIM (Building Information Modeling) and AI-driven automation. Telge is positioning itself by developing proprietary AI scripts to improve accuracy and turnaround times, aiming for a 2x-3x margin uplift.

Competitive Landscape

Key competitors include Mold-Tek Technologies. Telge differentiates through lower employee costs as a percentage of revenue and a focus on high-end BIM automation rather than just detailing.

Competitive Moat

Moat is built on a cost-efficient Indian engineering backbone (30-35% employee cost vs 60%+ for peers) combined with local US presence. Proprietary IP and AI automation scripts provide a technological moat that improves scalability without linear hiring.

Macro Economic Sensitivity

Highly sensitive to global construction and infrastructure spend, particularly in the US and Europe. A slowdown in the AEC (Architecture, Engineering, Construction) industry would reduce RFQ volumes.

Consumer Behavior

Clients are increasingly demanding 'one-stop' AEC solutions where structural, MEP, and architectural services are integrated to reduce coordination errors in large-scale projects.

Geopolitical Risks

Operating across 12+ countries exposes the company to trade barriers and regulatory changes in the US and Europe. US operations are sensitive to local labor and professional engineering licensing regulations.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with international engineering standards (AISC, Eurocodes) and professional licensing in US states (Texas, Oklahoma, etc.) is mandatory for project delivery.

Environmental Compliance

Not disclosed, but as a service firm, ESG impact is primarily related to office operations and digital infrastructure.

Taxation Policy Impact

Standard corporate tax rates apply. The company is transitioning to quarterly unaudited financial results to improve transparency and align with mainboard standards.

Legal Contingencies

No pending court cases or major legal disputes were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'unpredictable' nature of business cycles in the construction industry, which could impact the 30% margin target. Upfront manpower investments (INR 4.18 Cr in India, INR 4.86 Cr in subsidiaries) may depress short-term PAT if revenue realization is delayed.

Geographic Concentration Risk

Significant revenue concentration in the US market, although the company is diversifying into Europe and Southeast Asia.

Third Party Dependencies

Dependency on specialized engineering software (Tekla, Revit). Any significant increase in licensing costs would impact margins.

Technology Obsolescence Risk

Risk of AI disrupting traditional detailing services. Telge is mitigating this by internally developing AI-driven BIM dashboards and automation tools.

Credit & Counterparty Risk

The company is targeting 'better rate clients' with larger ticket sizes (INR 1 Cr+) to ensure better stability and receivables quality.