FALCONTECH - Falcon

📊 NSE: FALCONTECH 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/13/2025 22:03

💰 Financial Performance

Revenue Growth by Segment

Not disclosed in available documents. The company operates as a single segment MEP (Mechanical, Electrical, Plumbing) Consultant & Contractor.

Geographic Revenue Split

Not disclosed in available documents. The company has a presence in Bengaluru, Goa, Hyderabad, Jaipur, Mumbai, Pune, and Surat.

Profitability Margins

Net Profit Ratio declined from 7.58% in FY24 to 4.41% in FY25, representing a 42% decrease in net profitability. Return on Equity (ROE) also dropped from 14.02% to 7%, a 48% decrease.

EBITDA Margin

Not explicitly disclosed, however, Return on Capital Employed (ROCE) decreased from 16.41% in FY24 to 6.77% in FY25, a 59% decline, indicating a significant drop in core operational efficiency.

Capital Expenditure

The company is increasing its Authorized Share Capital from INR 20 Cr to INR 30 Cr (a 50% increase) to support future growth and capital requirements.

Credit Rating & Borrowing

Debt-Equity Ratio improved significantly from 0.85 in FY24 to 0.18 in FY25, a 79% reduction in leverage. Debt Service Coverage Ratio (DSCR) moved from 0.51 to 0.59, a 16% change.

⚙️ Operational Drivers

Raw Materials

Not disclosed in available documents. As an MEP contractor, typical materials include electrical components, plumbing fixtures, and HVAC systems.

Capacity Expansion

Not disclosed in units; however, the company is expanding its financial capacity by increasing authorized share capital by INR 10 Cr (50% increase) as of October 2025.

Manufacturing Efficiency

Not applicable as a service-based MEP contractor. However, Inventory Turnover Ratio improved from 0.61 to 0.79, a 28% increase in efficiency.

📈 Strategic Growth

Growth Strategy

The company is increasing its authorized share capital by 50% (from INR 20 Cr to INR 30 Cr) to facilitate expansion. It maintains a multi-city presence across 7 major Indian hubs to capture regional infrastructure and construction demand.

Products & Services

MEP (Mechanical, Electrical, and Plumbing) consultancy and contracting services for infrastructure and building projects.

Brand Portfolio

Falcon Technoprojects India Limited.

Market Expansion

The company currently operates in Bengaluru, Goa, Hyderabad, Jaipur, Mumbai, Pune, and Surat. Expansion is supported by the INR 10 Cr increase in authorized capital.

🌍 External Factors

Industry Trends

The MEP industry is evolving toward integrated project solutions. Falcon positions itself as providing 'Project Solutions Under One Roof' to address this trend.

Competitive Landscape

Operates in a fragmented MEP contracting market with competition from both local contractors and large-scale engineering firms.

Competitive Moat

The company's moat is based on its multi-city service network and its status as an SME-listed entity, which provides certain regulatory exemptions and local market access.

Macro Economic Sensitivity

Highly sensitive to the construction and infrastructure sector cycles in India.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with MEP standards and construction safety norms. The company is exempt from certain SEBI corporate governance disclosures (Regulations 17-27) due to its listing on the SME Exchange and having a net worth below INR 25 Cr.