💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 18.88% YoY, increasing from INR 986.23 Lakh in FY24 to INR 1,172.39 Lakh in FY25. Segment-specific growth is not disclosed as the company operates primarily in a single business segment.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in Gujarat, India.

Profitability Margins

Net Profit Margin improved from a negative margin in FY24 to 0.06% in FY25. The company reported a Profit After Tax (PAT) of INR 0.74 Lakh in FY25 compared to a loss of INR 118.77 Lakh in FY24.

EBITDA Margin

EBITDA margin stood at approximately 0.30% in FY25 (calculated as PBT of INR 0.59 Lakh plus Depreciation of INR 2.91 Lakh over Revenue of INR 1,172.39 Lakh). This represents a significant recovery from the negative EBITDA reported in FY24.

Capital Expenditure

The company spent INR 7.10 Lakh on the purchase of property, plant, and equipment and INR 9.70 Lakh on intangible assets during FY25, totaling INR 16.80 Lakh in capital expenditure.

Credit Rating & Borrowing

The company reported zero long-term and short-term borrowings as of March 31, 2025. Finance costs were INR 0 in FY25 compared to INR 0.90 Lakh in FY24, indicating a 100% reduction in interest-bearing debt costs.

⚙️ Operational Drivers

Raw Materials

Purchase and Direct Expenses (primarily infrastructure-related trading goods or services) represent 99.93% of total revenue, amounting to INR 1,171.54 Lakh.

Capacity Expansion

Not disclosed in available documents; the company operates as a service/trading entity in the infrastructure sector.

Raw Material Costs

Direct purchase costs increased by 9.65% YoY from INR 1,068.40 Lakh in FY24 to INR 1,171.54 Lakh in FY25, representing 96.5% of total income.

Manufacturing Efficiency

Not applicable as the company is primarily involved in infrastructure services and trading.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is utilizing IPO proceeds to scale operations, specifically allocating INR 800.00 Lakh (100% of the planned amount) toward meeting working capital requirements to support higher volume infrastructure projects and trading activities.

Products & Services

Infrastructure-related services and trading of infrastructure goods.

Brand Portfolio

INDIFRA

🌍 External Factors

Industry Trends

The infrastructure sector is evolving with increased government focus on urban development; however, the company's small scale (Net Worth of INR 18.16 Crore) makes it vulnerable to larger competitors and regulatory shifts.

Competitive Landscape

Operates in a fragmented infrastructure services market with high competition from both organized and unorganized players.

Competitive Moat

The company currently lacks a significant moat, as evidenced by its low margins and high dependency on working capital for growth. Its competitive advantage is not clearly defined in the financial disclosures.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending cycles and government policy regarding urban development and construction.

Consumer Behavior

Not applicable as the company is B2B/Government focused.

⚖️ Regulatory & Governance

Industry Regulations

The company is subject to infrastructure and construction standards; however, it is exempt from certain SEBI Corporate Governance regulations (Regulation 27(2)) because its paid-up capital is below INR 10 Crore (currently INR 7.9 Crore) and Net Worth is below INR 25 Crore (currently INR 18.16 Crore).

Taxation Policy Impact

The company reported a deferred tax expense of INR 0.15 Lakh for FY25. Effective tax rate is not standard due to the low profit base.

Legal Contingencies

The company has disclosed the impact of pending litigations on its financial position in its standalone financial statements, though specific case values were not detailed in the summary.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the extremely low net margin (0.06%), which makes the company vulnerable to even minor increases in operating costs or delays in project payments.

Geographic Concentration Risk

High concentration in Gujarat, India, where the corporate and registered offices are located.

Third Party Dependencies

High dependency on suppliers for infrastructure goods, as evidenced by the INR 1,171.54 Lakh spent on purchases.

Technology Obsolescence Risk

Low risk for the current trading/service model, but digital transformation in project management is a potential future requirement.

Credit & Counterparty Risk

Trade receivables stood at INR 30.27 Lakh in FY25, a decrease from the previous year, suggesting active management of credit exposure.