ABINFRA - A B Infrabuild

📊 NSE: ABINFRA 🏢 Construction 📅 Last Updated: 12/13/2025 17:40

💰 Financial Performance

Revenue Growth by Segment

The company operates as a single segment in infrastructure. Total revenue grew by 50.2% YoY to INR 183.61 Cr in FY2024 from INR 122.21 Cr in FY2023. For the half-year ended September 30, 2025 (H1 FY26), the company recorded a total income of INR 99.58 Cr.

Geographic Revenue Split

Revenue is heavily concentrated in the Mumbai region, particularly through projects for the Municipal Corporation of Greater Mumbai (MCGM). Approximately 63% of the current order book is from government sector projects, with a significant focus on the Mumbai location.

Profitability Margins

Operating Profit Margin improved to 14.12% in FY2025 from 11.64% in FY2024, a 21.33% increase. Net Profit Margin rose to 7.74% in FY2025 from 6.21% in FY2024, representing a 24.68% improvement due to better project execution and cost management.

EBITDA Margin

Operating margins are expected to remain in the steady range of 10-11% over the medium term. The recent spike to 14.12% in FY2025 reflects high-margin contract execution, though long-term stability is projected at lower levels.

Capital Expenditure

Property, Plant, and Equipment stood at INR 37.15 Cr as of September 30, 2025, compared to INR 36.02 Cr as of March 31, 2025. Capital Work In Progress was INR 32.94 Cr as of March 31, 2025, but was not reported as a separate line item in the September 2025 unaudited results.

Credit Rating & Borrowing

The company holds a long-term rating of 'ACUITÉ BBB-' and a short-term rating of 'ACUITÉ A3' with a 'Positive' outlook. Interest Coverage Ratio improved to 5.46 times in FY2025 from 4.58 times in FY2024, indicating strong ability to service debt despite an increase in total borrowings.

⚙️ Operational Drivers

Raw Materials

Specific raw material names and their percentage of total cost are not disclosed in available documents, though infrastructure projects typically involve steel, cement, and aggregates.

Capacity Expansion

The company's capacity is measured by its order book, which grew to INR 846.75 Cr as of April 20, 2025, from INR 313 Cr in September 2023, representing a 170% increase in project pipeline capacity.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company manages costs through arm's length related party transactions and ordinary course procurement.

Manufacturing Efficiency

Revenue grew at a CAGR of 69% over the two years ending FY2024, driven by timely execution of projects and rising order book utilization.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be achieved by diversifying the revenue profile into road projects in Gujarat and Uttar Pradesh and entering the private residential sector. The company is leveraging its strong resource mobilization ability, including a recent rights issue in FY2026 and banking limit enhancements, to fund larger projects.

Products & Services

Civil construction services, railway station development, foot over bridges (FOBs), and infrastructure projects for municipal corporations and government bodies.

Brand Portfolio

A B Infrabuild Limited (ABINFRA).

New Products/Services

Expansion into road construction projects in new geographies (Gujarat, UP) and private residential development projects.

Market Expansion

Targeting geographic expansion beyond Maharashtra into Gujarat and Uttar Pradesh to mitigate regional concentration risks.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward large-scale government-funded infrastructure (Railways, Roads). ABINFRA is positioning itself by diversifying from municipal civil works into specialized railway and road developments.

Competitive Landscape

Competes with other civil construction firms for government tenders, primarily in the Mumbai Metropolitan Region.

Competitive Moat

The company's moat is built on its long operational track record and the experience of its promoters in executing complex civil projects for MCGM and Railways. This is sustainable due to the high entry barriers in government contracting and pre-qualification requirements.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and fiscal policies. Large-scale projects require substantial upfront investment, making the company sensitive to credit availability and interest rate fluctuations.

Consumer Behavior

Not applicable as the company primarily serves government and institutional clients.

Geopolitical Risks

Global disruptions are noted as a threat that can impact supply chains and increase material costs, potentially affecting project timelines and profitability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, SEBI (LODR) Regulations 2015, and specific sector regulations for Railways and Road construction. Compliance with Section 188 for Related Party Transactions is strictly monitored.

Environmental Compliance

Environmental compliance is identified as a risk factor that can cause project delays, though specific ESG spending figures are not provided.

Taxation Policy Impact

The company follows Indian Accounting Standards (Ind AS) and relevant provisions of the Companies Act, 2013. Specific tax rate percentages are not disclosed.

Legal Contingencies

The company maintains internal controls to prevent fraud and irregularities. No specific pending court case values in INR were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Key risks include sectoral concentration in Railways (61% of govt orders) and geographic concentration in Mumbai. Any change in state policy could significantly impact operations.

Geographic Concentration Risk

High concentration in Mumbai and Maharashtra, though diversification into Gujarat and UP is underway.

Third Party Dependencies

Dependency on government bodies (MCGM, Railways) for 63% of the order book, making revenue vulnerable to government budget reallocations.

Technology Obsolescence Risk

Low risk as civil construction relies on established engineering practices, though the company is adopting Ind AS 34 for better financial reporting transparency.