💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 reached INR 3,436.73 Cr, a 13.4% increase from INR 3,029.35 Cr in FY24. Road projects remain the dominant segment, contributing over 80% of the total order book. For H1 FY26, consolidated revenue grew 3.1% YoY to INR 1,644.7 Cr, though standalone Q2 FY26 revenue saw a slight decline of 2.8% to INR 787 Cr due to monsoon-related execution delays.

Geographic Revenue Split

The company has expanded its footprint to 12 states as of Q2 FY26, up from 8 states previously. This geographic diversification is intended to reduce regional concentration risks and tap into state-specific infrastructure spending, though specific % splits per state are not disclosed.

Profitability Margins

Consolidated PAT margin for FY25 was 8.34%, down from 10.05% in FY24. For H1 FY26, the consolidated PAT margin further compressed to approximately 6.5% (INR 107.5 Cr PAT on INR 1,644.7 Cr revenue). This compression is driven by increased interest costs and intense bidding competition in the EPC sector.

EBITDA Margin

Consolidated EBITDA margin stood at 15.08% in FY25, a decrease from 17.09% in FY24. In H1 FY26, the consolidated EBITDA margin was 13.5% (INR 222.7 Cr). The company targets maintaining margins between 14-15% by focusing on structure-heavy projects and early completion bonuses.

Capital Expenditure

The company utilized proceeds from its INR 684 Cr IPO (August 2024) to repay INR 413 Cr of debt. Future equity commitments for HAM projects are estimated at INR 870 Cr over the next 2.5 years, to be funded via internal accruals and remaining IPO proceeds.

Credit Rating & Borrowing

The company maintains a 'Positive' outlook from CRISIL. As of March 31, 2025, standalone fund-based borrowings were INR 635.90 Cr and non-fund-based facilities were INR 840.34 Cr. The debt-to-equity ratio improved significantly to 0.76 in FY25 from 1.17 in FY24 following the IPO.

⚙️ Operational Drivers

Raw Materials

Key materials include bitumen, steel, and cement, which typically constitute the bulk of construction costs in road and bridge projects. Specific percentage breakdowns per material are not disclosed.

Import Sources

Not disclosed in available documents; however, procurement is generally domestic given the nature of Indian road construction.

Capacity Expansion

The company is expanding its execution capacity across 11 verticals. The current order book stands at INR 12,598 Cr, comprising 15 EPC projects, 7 HAM projects, 10 O&M projects, and 3 others. This massive order book represents a significant expansion in operational scale compared to previous years.

Raw Material Costs

Operating margins are sensitive to raw material price fluctuations; however, the company mitigates this through economies of scale and focusing on structure-based projects which offer better value-add than simple earthwork.

Manufacturing Efficiency

Efficiency is highlighted by a track record of completing projects ahead of schedule, which improves asset turnover and triggers early completion bonuses from authorities like NHAI.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

Growth will be driven by a robust bidding pipeline of INR 14,000 Cr, with a target of INR 5,000 Cr in new orders for FY26 (INR 3,700 Cr already achieved). The company is diversifying into 11 verticals including Renewables, Metro, Railways, and Airport Runways to capture a wider share of the infrastructure budget.

Products & Services

EPC (Engineering, Procurement, and Construction) services for Roads, Highways, Flyovers, Bridges, Metro projects, Railway tunnels, and Airport runways; HAM (Hybrid Annuity Model) project development; and O&M (Operations and Maintenance) services.

Brand Portfolio

Ceigall India Limited.

New Products/Services

The company is entering the Renewables sector and expanding its presence in specialized underground works for Metro and Railways, which are expected to diversify the revenue mix away from the current 80% road concentration.

Market Expansion

Expansion into 12 Indian states and diversification into high-value technical segments like Metro and specialized bridge structures to improve technical eligibility for larger global-scale tenders.

🌍 External Factors

Industry Trends

The construction industry is seeing a shift toward HAM and DFBOT models. While competition has intensified due to relaxed bidding norms since 2021, the massive national infrastructure pipeline provides a steady growth trajectory for established players with strong execution track records.

Competitive Landscape

Intense competition from both national and regional EPC players. Competition intensified post-2021 following the relaxation of bidding norms by MoRTH.

Competitive Moat

The company's moat is built on its 'Strong Execution Track Record' (completing projects ahead of time) and 'Technical Eligibility' for complex structures. This is sustainable because early completion bonuses provide a financial cushion that competitors lacks.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and budgetary allocations to MoRTH and NHAI. Inflation in commodity prices (steel/cement) directly impacts project profitability.

Consumer Behavior

Not applicable as the primary customers are government entities.

Geopolitical Risks

Minimal direct impact as operations are domestic, but global oil price spikes can increase bitumen and logistics costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by MoRTH and NHAI bidding and execution guidelines, as well as state-specific construction safety and environmental norms.

Taxation Policy Impact

Effective tax rate is approximately 25-26% based on FY25 figures (INR 93.9 Cr current tax on INR 384.5 Cr PBT).

Legal Contingencies

The company was penalized INR 20,000 each by BSE and NSE (Total INR 40,000) for a delay in providing prior intimation of a Board Meeting. No other major pending litigation values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Execution delays due to land acquisition or environmental clearances could impact revenue by 10-15% annually. Segmental concentration in roads (80%+) makes the company vulnerable to policy shifts in a single ministry.

Geographic Concentration Risk

Revenue is concentrated across 12 states, with a historical focus on Northern India (Punjab/Ludhiana).

Third Party Dependencies

High dependency on government authorities (NHAI/MoRTH) for project awards and timely payments.

Technology Obsolescence Risk

Low risk in traditional construction, but the company is adopting newer technologies in Metro and Tunneling to stay competitive.

Credit & Counterparty Risk

Counterparty risk is low as the primary clients are central/state government agencies, though payment cycles can fluctuate as evidenced by the increase in debtor days to 59.