CHAVDA - Chavda Infra Ltd

📊 NSE: CHAVDA 🏢 Construction 📅 Last Updated: 12/13/2025 20:58

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew 50.59% in FY24 to INR 241.66 Cr from INR 160.48 Cr in FY23. TOI further grew 8.18% to INR 261.42 Cr in FY25. The company operates in residential, commercial, and institutional civil construction segments.

Geographic Revenue Split

100% of revenue is derived from Gujarat, specifically concentrated in the Ahmedabad and Gandhinagar regions.

Profitability Margins

PBILDT margin improved from 17.90% in FY24 to 21.86% in FY25, a 396 bps increase. H1FY25 provisional margins stood at 21.27% compared to 13.98% in H1FY24. PAT grew from INR 12.17 Cr in FY23 to INR 18.76 Cr in FY24.

EBITDA Margin

EBITDA (PBILDT) margin was 21.86% in FY25, up from 17.90% in FY24. This improvement was driven by efficient raw material usage, rate discounts from suppliers, and better absorption of fixed overheads due to economies of scale.

Capital Expenditure

The company deployed funds into asset build-up during FY24, contributing to a negative cash flow from operations of INR 23.17 Cr. Gross Cash Accruals (GCA) are projected in the range of INR 25-38 Cr for FY23-FY26.

Credit Rating & Borrowing

CARE BBB-; Stable (Reaffirmed in October 2025). The outlook was revised from Positive to Stable in late 2025. Short-term rating is CARE A3. Interest coverage stood at 5.99x in FY24.

⚙️ Operational Drivers

Raw Materials

Key raw materials include RCC (Reinforced Cement Concrete), cement, and steel. These are the primary cost components for civil construction projects.

Import Sources

Raw materials are sourced domestically, primarily within the state of Gujarat to support operations in Ahmedabad and Gandhinagar.

Key Suppliers

Not specifically named in the documents; however, the company receives rate discounts from its established supplier network due to its growing scale.

Capacity Expansion

The company's 'capacity' is represented by its orderbook, which grew from INR 585.58 Cr in October 2023 to INR 954.54 Cr as of August 31, 2025, providing revenue visibility of 3.65x of FY25 TOI.

Raw Material Costs

Profitability is insulated by price variation clauses in contracts for major materials like RCC, cement, and steel, protecting against market fluctuations.

Manufacturing Efficiency

Efficiency is marked by the 396 bps improvement in PBILDT margins in FY25, attributed to better fixed overhead absorption and economies of scale.

📈 Strategic Growth

Expected Growth Rate

24%

Growth Strategy

Growth will be achieved through a preferential allotment of up to 80,00,000 equity shares to raise capital for business expansion, increasing authorized share capital to INR 35 Cr, and executing the current INR 954.54 Cr orderbook over an 18-36 month timeline.

Products & Services

Civil construction services for residential buildings, commercial complexes, and institutional structures.

Brand Portfolio

Chavda Infra.

New Products/Services

Expansion into larger-scale civil construction projects and potential diversification within the infrastructure sector funded by the preferential issue proceeds.

Market Expansion

Deepening market penetration within the Ahmedabad and Gandhinagar regions of Gujarat.

Market Share & Ranking

Small-sized player operating in a highly fragmented and competitive civil construction industry.

Strategic Alliances

The company has proposed revising loan/guarantee limits to INR 700 Cr to support subsidiaries, joint ventures, and group companies.

🌍 External Factors

Industry Trends

The industry is seeing a CAGR of 21-24%, driven by urban development in Gujarat. There is a trend toward larger, more complex private real estate projects which Chavda is targeting with its expanded orderbook.

Competitive Landscape

Intensely competitive with numerous small and mid-sized players bidding for private real estate contracts.

Competitive Moat

Moat is based on the 30-year experience of promoter Mahesh Chavda and established relationships with reputed regional developers. This provides a competitive edge in local procurement and project bidding.

Macro Economic Sensitivity

Highly sensitive to the real estate sector's growth and GDP performance in Gujarat.

Consumer Behavior

Increasing demand for high-quality residential and commercial infrastructure in urban Gujarat centers.

Geopolitical Risks

Low, given the localized nature of the business in Gujarat, India.

⚖️ Regulatory & Governance

Industry Regulations

ISO 9001:2015 certified for quality management in the construction of commercial, residential, and institutional buildings.

Taxation Policy Impact

Standard corporate tax applies; however, the company is under scrutiny following an Income Tax department search in December 2024.

Legal Contingencies

The Income Tax department conducted a search at company premises and sites in December 2024. Credit rating agencies are monitoring the findings for any material impact on the company's financial position.