BLKASHYAP - B.L.Kashyap

📊 NSE: BLKASHYAP 🏢 Construction 📅 Last Updated: 12/13/2025 18:50

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Construction (100% of revenue). Standalone operational revenue decreased by 5.9% to INR 1,165 crore in FY2025 compared to INR 1,238 crore in FY2024 due to delays in the commencement of large-ticket projects. Consolidated revenue for FY2024 was INR 1,245 crore, up 12.16% from INR 1,110 crore in FY2023.

Geographic Revenue Split

The company maintains a pan-India presence across commercial, residential, and industrial segments. Specific regional percentage splits are not disclosed, but the order book is diversified across various Indian states to service infrastructure-owning companies.

Profitability Margins

Profit After Tax (PAT) margin stood at 4.2% in FY2024, improving from 2.0% in FY2023. However, standalone net profits reduced by 36% in FY2025 due to a resource build-up for large projects that had not yet reached the revenue recognition stage under the Percentage of Completion Method.

EBITDA Margin

Operating margins remained largely steady at approximately 8.5% to 10%. EBITDA for FY2025 was INR 107.0 crore compared to INR 89.9 crore in FY2024, representing a 19% increase in absolute EBITDA despite lower revenues, driven by cost management.

Capital Expenditure

The company is investing in its equipment pool to enhance project execution capabilities for the next scale of projects. While specific INR values for planned CAPEX are not disclosed, the focus is on upgrading the equipment base and manpower to support an order book exceeding INR 3,000 crore.

Credit Rating & Borrowing

Assigned [ICRA]BB- (Stable) and [ICRA]A4 ratings as of March 2025. The company has a history of Corporate Debt Restructuring (CDR) from 2014, with term loans entirely repaid by FY2025. Interest coverage ratio was 2.51 times in FY2024.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include steel, cement, and aggregates. The combined cost of materials and contracting-out expenses represented 83.4% of operating revenues in FY2025, up from 82.3% in FY2024.

Import Sources

Not disclosed in available documents; however, procurement is primarily domestic to support pan-India construction sites.

Capacity Expansion

Current capacity is represented by an unexecuted order book of INR 3,090 crore as of December 2024, which is 2.5 times the FY2024 revenue. The company is gearing up for 'the next level of operations' by expanding its equipment base and human resource pool.

Raw Material Costs

Raw material and contracting costs accounted for 83.4% of revenue in FY2025. These costs increased as a percentage of revenue because mobilization for new projects started before significant revenue could be recognized.

Manufacturing Efficiency

The company uses the Percentage of Completion Method for accounting. Efficiency is driven by 'focused execution' and 'optimized deployment of working capital' to manage fixed costs.

📈 Strategic Growth

Expected Growth Rate

23%

Growth Strategy

The company aims to achieve growth by leveraging its INR 3,090 crore order book, focusing on niche segments like transport infrastructure and industrial buildings, and securing repeat orders from long-standing clients like DLF. The strategy involves phased execution and meticulous bidding to ensure profitability over mere revenue growth.

Products & Services

Construction services for commercial office parks, residential complexes, institutional buildings, hospitals, and industrial facilities.

Brand Portfolio

B. L. Kashyap (BLK)

New Products/Services

Expansion into transport infrastructure and specialized industrial buildings to diversify from core commercial and residential segments.

Market Expansion

Focusing on large-scale infrastructure projects and new investment corridors opened by government initiatives in India.

🌍 External Factors

Industry Trends

The residential market has grown at an annualized rate of 23% since 2020. The office market saw record transaction volumes of 71.9 million sq ft in 2024. The industry is shifting toward larger, more complex EPC projects requiring higher technical competency.

Competitive Landscape

Operates in a highly competitive market with intense pressure on margins and bidding, competing with other large-scale civil construction firms in India.

Competitive Moat

The moat is built on a 30-year track record, established client relationships leading to repeat orders, and a significantly de-risked balance sheet with a debt-equity ratio of 0.3.

Macro Economic Sensitivity

Highly sensitive to interest rates and inflation, which affect construction costs and the financial health of infrastructure-owning clients.

Consumer Behavior

Increased demand for premium office spaces and residential units post-COVID is driving the current order book growth.

Geopolitical Risks

Global capital flows for Indian infrastructure are being affected by the war in Ukraine and global tensions, impacting project funding.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Indian Accounting Standards (Ind AS) and Section 133 of the Companies Act, 2013. Operations are subject to RERA and standard construction safety and environmental norms.

Taxation Policy Impact

The effective tax rate is approximately 27-30%, with INR 14.9 crore tax paid on INR 49.8 crore PBT in FY2025.

Legal Contingencies

The company faced a bank guarantee invocation of INR 20.85 crore in January 2025 by a client, which was settled. Total contingent liabilities in the form of BGs were INR 243.13 crore as of March 2024.

⚠️ Risk Analysis

Key Uncertainties

Project execution delays (impacted FY25 revenue by 6%), liquidity constraints (90% limit utilization), and potential invocation of performance bank guarantees.