💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 29.27% YoY to INR 289.57 Cr in FY25 from INR 224.01 Cr in FY24. Growth was primarily driven by the EPC segment, which offers larger scale and better margins than the traditional fabrication segment. As of July 2025, the unexecuted order book of INR 342.27 Cr is dominated by EPC at 77.8% (INR 266.30 Cr) compared to fabrication at 22.2% (INR 75.97 Cr).

Geographic Revenue Split

The company maintains a diversified geographic presence with operations and project execution across Chhattisgarh, Tamil Nadu, Jammu and Kashmir, and New Delhi. Specific percentage splits per region are not disclosed in available documents.

Profitability Margins

Profitability showed a declining trend in FY25; EBITDA margin fell to 15.01% from 17.33% in FY24, and PAT margin decreased to 6.87% from 7.46% in FY24. This compression was caused by high variable costs incurred during EPC project execution where revenue recognition was delayed due to pending quality clearances from customers.

EBITDA Margin

EBITDA margin stood at 15.01% in FY25, a YoY decrease of 232 basis points from 17.33% in FY24. Despite the margin percentage drop, absolute EBITDA grew 11.95% to INR 43.46 Cr due to the significant increase in the scale of operations.

Capital Expenditure

The company utilized proceeds from capital raised in the market during FY24 to partly repay unsecured loans, which decreased from INR 16.98 Cr to INR 8.65 Cr by March 2025. Specific INR figures for new plant and machinery CAPEX are not disclosed.

Credit Rating & Borrowing

Credit ratings are highly fragmented: Acuité reaffirmed 'ACUITE BBB- | Stable' in August 2025. However, CARE downgraded the company to 'CARE B-; Stable; ISSUER NOT COOPERATING' in June 2025, and Infomerics downgraded it to 'IVR BB-/ Negative; ISSUER NOT COOPERATING' in November 2025 due to lack of management cooperation and information. Borrowing costs are impacted by high bank limit utilization of 96% for fund-based limits.

⚙️ Operational Drivers

Raw Materials

Steel is the primary raw material, accounting for approximately 90% of total procurement requirements for fabrication and structural engineering.

Capacity Expansion

The company operates two manufacturing units in Bhilai and has a presence in Trichy. While specific MTPA capacity is not disclosed, the company is expanding its operational scope by entering the private factory construction contracting business as of FY23.

Raw Material Costs

Raw material costs are managed through a bulk procurement strategy where the company procures up to 90% of its steel requirements in a single cycle to mitigate price volatility. This strategy contributes to high inventory levels of 204 days.

Manufacturing Efficiency

Manufacturing efficiency is currently challenged by pending quality clearances which delayed billing in FY25 despite project execution. However, the successful first-attempt completion of the Performance Guarantee (PG) test for the Vedanta Anode Rodding Shop #3 project in November 2025 demonstrates high technical competency.

📈 Strategic Growth

Expected Growth Rate

310%

Growth Strategy

Growth will be achieved through a massive order book expansion, with new order inflows of INR 900.00 Cr as of July 2025 (representing over 3x FY25 revenue). The strategy involves shifting focus toward high-value EPC contracts (INR 750 Cr of the new pipeline) and diversifying into factory construction for private players, supported by a healthy capital structure with gearing at 0.56x.

Products & Services

Boiler structures, heavy steel columns, beams, assemblies for power plants, high precision mechanical equipment, and specialized heavy structures for steel, energy, railway, and cement sectors.

Brand Portfolio

ATMASTCO

New Products/Services

The company has recently expanded into EPC contracting for setting up factory premises for private players, which is expected to be a major revenue driver in the INR 900 Cr order pipeline.

Market Expansion

Expansion is targeted through the EPC segment and multidisciplinary engineering services in core industrial sectors like water systems and railways.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated EPC solutions rather than standalone fabrication. Atmastco is positioning itself by increasing its EPC order book to INR 266.30 Cr to capture higher revenue visibility and multidisciplinary project requirements.

Competitive Landscape

Competes with other multidisciplinary engineering and fabrication firms in the infrastructure and core industrial sectors.

Competitive Moat

The moat is built on a 20-year track record and 'approved vendor' status with marquee government and private clients. This is sustainable because industrial certifications and proven execution (like the Vedanta PG test success) create high entry barriers for new fabricators.

Macro Economic Sensitivity

Highly sensitive to industrial CAPEX cycles in the steel, power, and infrastructure sectors. A slowdown in these sectors would directly reduce the INR 900 Cr order pipeline conversion rate.

Consumer Behavior

Not applicable as the company is B2B/Industrial.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to stringent quality clearances and Performance Guarantee (PG) tests from industrial customers. Failure to meet these standards results in unrealized revenue and higher variable costs.

Environmental Compliance

Maintains ISO 14001:2015 (Environmental Management System) and ISO 45001:2018 (Occupational Health and Safety).

Taxation Policy Impact

The effective tax rate is approximately 25.5%, based on a PAT of INR 19.89 Cr and PBT implied by financials.

Legal Contingencies

In November 2025, the National Stock Exchange (NSE) returned the company's application for in-principle approval (Application No. 50979). The company has committed to providing complete responses for future compliance.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Issuer Not Cooperating' status with CARE and Infomerics, which could lead to credit tightening or increased borrowing costs despite a healthy standalone financial profile. Potential impact could be a 10-15% increase in finance costs.

Geographic Concentration Risk

Significant concentration in Chhattisgarh, where its primary manufacturing units (Unit-1 and Unit-2) are located in Bhilai.

Third Party Dependencies

High dependency on steel suppliers, with 90% of raw material needs being steel-based.

Technology Obsolescence Risk

Low risk due to the nature of heavy structural fabrication, but the company is mitigating digital risks through compliance with SEBI listing regulations and updated accounting standards (Ind AS 34).

Credit & Counterparty Risk

Counterparty risk is low due to a client base of government entities and large conglomerates like Tata and Vedanta. However, receivables increased to 91 days in FY25, indicating slower collection cycles.