ATALREAL - Atal Realtech

📊 NSE: ATALREAL 🏢 Construction 📅 Last Updated: 12/13/2025 18:40

💰 Financial Performance

Revenue Growth by Segment

The construction segment revenue grew by 134.18% YoY, increasing from INR 40.96 Cr in FY24 to INR 95.92 Cr in FY25.

Geographic Revenue Split

Revenue is heavily concentrated in Maharashtra, specifically within the Nashik region, due to a strong presence in Public Works Department (PWD) projects.

Profitability Margins

Net profit after tax increased 65.4% from INR 2.14 Cr in FY24 to INR 3.54 Cr in FY25, though the PAT margin compressed to approximately 3.69% in FY25 from 5.24% in FY24 due to increased scale and operational costs.

EBITDA Margin

EBITDA margin stood at 12.67% in FY24, an improvement of 79 basis points from 11.88% in FY23.

Capital Expenditure

The company completed an equity rights issue in September 2024, raising INR 25.90 Cr to bolster its net worth and support business expansion.

Credit Rating & Borrowing

Ratings were upgraded in September 2025 to IVR BB+/Stable (Long-term) and IVR A4+ (Short-term). The company utilizes cash credit limits of INR 15 Cr with high average utilization of 78%, peaking at 93-95% in mid-2025.

⚙️ Operational Drivers

Raw Materials

Construction materials including steel, cement, and aggregates; profitability is noted as susceptible to volatile raw material prices which are not disclosed as a specific percentage of total cost.

Import Sources

Sourced domestically, primarily from suppliers within Maharashtra to support regional project execution.

Key Suppliers

Not specifically disclosed in the available documents.

Capacity Expansion

Achieved Class I-A Contractor status in FY25, which significantly expanded bidding capacity for high-value government projects without size restrictions.

Raw Material Costs

Raw material costs are a significant component of the construction services, with margins sensitive to price fluctuations in steel and cement during the long execution cycles of PWD contracts.

Manufacturing Efficiency

Efficiency is driven by the transition to direct bidding for larger projects following the Class I-A upgrade, reducing reliance on sub-contracting for others.

Logistics & Distribution

Distribution costs are integrated into project execution costs for civil and industrial construction sites.

📈 Strategic Growth

Expected Growth Rate

9.90%

Growth Strategy

Growth will be achieved by executing the current unexecuted order book of INR 328 Cr (3.5x FY25 revenue) and leveraging the Class I-A contractor status to bid for larger, high-margin direct government contracts.

Products & Services

Engineering, procurement, and construction (EPC) services for roads, administrative buildings, schools, hostels, and industrial civil works.

Brand Portfolio

Atal Realtech Limited.

New Products/Services

Expansion into larger-scale EPC projects following the migration from the SME platform to the main boards of NSE and BSE.

Market Expansion

Targeting larger PSU and private sector contracts to reduce the current high dependence on the Maharashtra PWD.

Strategic Alliances

Entered a material related party transaction to sub-contract work to ABH Developers Private Limited for a total contract value of INR 49.47 Cr.

🌍 External Factors

Industry Trends

The Indian construction industry is expected to reach INR 66,954.8 billion by 2027, supported by a 9.9% CAGR and increased government spending on commercial projects.

Competitive Landscape

Operates in a highly competitive, tender-driven market against other civil construction firms and sub-contractors.

Competitive Moat

Moat is derived from the Class I-A contractor certification and the promoters' 30+ years of experience, providing a competitive edge in technical qualification for large tenders.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and RBI monetary policy; tight monetary policy is expected to influence developer liquidity and project financing.

Consumer Behavior

Shift toward demand for better public infrastructure and administrative facilities driving government tender volumes.

Geopolitical Risks

Minimal direct impact as operations are localized to Maharashtra, though global commodity price shifts affect raw material costs.

⚖️ Regulatory & Governance

Industry Regulations

Subject to PWD registration norms, Class I-A certification standards, and the Companies Act, 2013.

Taxation Policy Impact

Follows standard corporate tax rates; fiscal policy changes regarding infrastructure incentives directly impact order flow.

Legal Contingencies

No reported instances of equity share suspension or significant penalties from statutory authorities regarding capital markets in the last three years.