ARSSINFRA - ARSS Infra

📊 NSE: ARSSINFRA 🏢 Construction 📅 Last Updated: 12/13/2025 18:31

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Construction Business. Revenue from operations fell 48.46% YoY to INR 165.39 Cr in FY25 from INR 320.87 Cr in FY24.

Geographic Revenue Split

Approximately 67% of the outstanding order book is concentrated in Odisha, with the remaining 33% coming from other Indian states.

Profitability Margins

Net Profit Margin improved from -11.02% in FY24 to -5.74% in FY25 due to lower net losses. Operating Profit Margin also improved from -10.14% to -4.46% YoY. The company has set a long-term target for Net Profit Margin of >8%.

EBITDA Margin

Standalone EBITDA was negative INR 6.93 Cr in FY25, an improvement from negative INR 32.54 Cr in FY24, representing a 78.7% reduction in operating loss.

Credit Rating & Borrowing

CRISIL suspended ratings (previously Rs. 5580.8 Million facility) in 2013 due to non-cooperation. Post-restructuring, the company is debt-free except for INR 250 Cr of debt from promoter entities.

⚙️ Operational Drivers

Raw Materials

Specific materials include ballast, sleepers, rails, and earthwork materials for railway projects, along with general construction materials for roads and bridges.

Capacity Expansion

The company has executed over 80 projects, including 300 km of roads and 200 km of rail tracks. Following restructuring, net worth increased to INR 1,100 Cr, enabling bidding for projects exceeding INR 11,000 Cr.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, the company utilizes joint ventures in large projects to achieve economies on critical resources.

Manufacturing Efficiency

Targeting a project execution efficiency of >95% on-time completion. Employee retention target is >85%.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The strategy focuses on operational excellence, strategic diversification, and aggressive claims settlement. The company secured INR 238.03 Cr in new work orders in FY25 and aims to leverage its increased bidding capacity of >INR 11,000 Cr to reclaim its position in growth sectors.

Products & Services

Construction of railway infrastructure (earthwork, bridges, track linking), roads, highways, flyovers, and irrigation systems.

Brand Portfolio

ARSS Infrastructure Projects Limited.

New Products/Services

Foray into high-potential railway and irrigation infrastructure; expected revenue contribution not specifically quantified.

Market Expansion

Focusing on becoming one of the largest EPC players in Eastern India from 2025 onwards.

Market Share & Ranking

Poised to become one of the largest EPC players in Eastern India.

Strategic Alliances

The company enters into Joint Ventures (JVs) with other companies to tap into mega work orders and critical resources.

🌍 External Factors

Industry Trends

The industry is seeing increased government spending but faces challenges with banks being reluctant to provide credit due to rising NPAs in the sector.

Competitive Landscape

Facing increased competition in the EPC sector, particularly for large-scale government infrastructure projects.

Competitive Moat

Durable advantages include 25+ years of experience, successful execution of 80+ projects, and specialized expertise in railway infrastructure (ballast/sleeper supply and track linking).

Macro Economic Sensitivity

Highly sensitive to Indian government infrastructure spending; the government aims to build 200,000 km of highways in the next 15 years.

Consumer Behavior

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

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Insolvency and Bankruptcy Code (IBC) 2016 during the CIRP period, and NCLT Cuttack bench orders.

Environmental Compliance

The company carries out safety audits and monitors material effluent or pollution problems as part of its internal control reporting.

Taxation Policy Impact

Not disclosed; the company reported a net loss of INR 9.49 Cr in FY25.

Legal Contingencies

The company was under Corporate Insolvency Resolution Process (CIRP) since November 2021. The NCLT Cuttack approved the Resolution Plan on August 29, 2025, which included the extinguishment of 1,06,19,468 promoter shares.

⚠️ Risk Analysis

Key Uncertainties

Liquidity risk remains a concern as banks are reluctant to provide credit to the industry. Reliance on government contracts is a primary business risk.