LAKSHYA - Lakshya Powertec

📊 NSE: LAKSHYA 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/14/2025 9:10

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 6.23% YoY to INR 160.10 Cr in FY25. Segment contributions were: Oil and Gas (74% share, INR 118.55 Cr), Data Center (18.17% share, INR 29.10 Cr), Power Project (3.1% share, INR 4.96 Cr), and Renewables (3% share, INR 5.51 Cr).

Geographic Revenue Split

Not explicitly disclosed by percentage, but the company is pursuing geographical diversification to support a target revenue of INR 200-210 Cr in fiscal 2026.

Profitability Margins

PAT rose 8.2% to INR 15.80 Cr in FY25, with a stable net margin profile of approximately 10%. FY24 standalone results showed an EBITDA margin of 14.59% and a PAT margin of 9.61%, both significantly improved from 9.72% and 5.66% respectively in FY23.

EBITDA Margin

EBITDA margin was 14.59% in FY24, up from 9.72% in FY23. Management indicates a consistent net margin of approximately 10% across its three major segments (EPCC, O&M, and Special Services).

Capital Expenditure

The company raised INR 49.91 Cr through an IPO in FY25, utilizing the proceeds for working capital and repayment of term loan obligations rather than major new debt-funded capex.

Credit Rating & Borrowing

Assigned a long-term rating of IVR BBB/Stable by Infomerics for INR 30.00 Cr bank facilities. Debt protection is comfortable with an interest coverage ratio of 6.23 times in fiscal 2025.

⚙️ Operational Drivers

Raw Materials

Not specifically named, but the company is susceptible to volatile input prices for equipment and materials used in EPCC and O&M services.

Capacity Expansion

Current capacity is reflected in a healthy order book of INR 388 Cr as of October 2025, to be executed over the next 18-24 months. Revenue is projected to expand to INR 200-210 Cr by fiscal 2026.

Raw Material Costs

Total expenses rose 7.74% to INR 141.85 Cr in FY25, driven by growth-focused investments in stock-in-trade and direct project execution costs.

Manufacturing Efficiency

Operational momentum is driven by effective project execution in the Oil & Gas and O&M segments, maintaining a net margin of ~10% despite competitive bidding.

📈 Strategic Growth

Expected Growth Rate

25-31%

Growth Strategy

Growth will be achieved through geographical diversification, increasing order sizes, and leveraging a healthy order book of INR 388 Cr. The company is transitioning to a better-capitalized structure following its IPO to support larger-scale project execution.

Products & Services

EPCC (Engineering, Procurement, Construction, and Commissioning) services, Integrated Operation and Maintenance (O&M), and Special Services for the Oil & Gas, Power, and Data Center sectors.

Brand Portfolio

Lakshya Powertech Limited.

New Products/Services

The Data Center segment is a significant new contributor, already accounting for 18.17% (INR 29.10 Cr) of total revenue in FY25.

Market Expansion

Targeting geographical diversification to increase revenue from INR 160 Cr in FY25 to over INR 200 Cr in FY26.

Strategic Alliances

The company operates through joint operations in India, as noted in the auditor's responsibility section regarding internal financial controls.

🌍 External Factors

Industry Trends

The industry is evolving toward high-value engineering services and data center infrastructure, with Lakshya positioning itself as a one-stop solution provider to counter domestic and global competition.

Competitive Landscape

Highly fragmented and competitive, featuring both organized domestic players and international service providers in the high-value engineering space.

Competitive Moat

Moat is derived from the promoters' 20+ years of experience and a proven track record of project execution with major PSUs, which is sustainable due to high entry barriers in specialized engineering services.

Macro Economic Sensitivity

Sensitive to infrastructure spending and the cyclicality of the EPC industry; slowdowns in new order inflows from PSUs would directly impact the order book.

Consumer Behavior

Not applicable for B2B/B2G services, but demand is driven by government and private entity capital expenditure in energy and data infrastructure.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI (LODR) Regulations 2015. Technical operations are subject to industry-specific safety and manufacturing standards for Oil & Gas and Power sectors.

Taxation Policy Impact

The company utilizes effective tax planning, which supported an 8.2% rise in PAT in FY25.

Legal Contingencies

Not disclosed in available documents; however, the company noted minor discrepancies in quarterly returns filed with banks (e.g., a difference of INR 1,360.28 lakhs in reported stock for Q2 FY25 due to inadvertent entry errors).

⚠️ Risk Analysis

Key Uncertainties

Tender-based revenue volatility and susceptibility of operating margins to volatile input prices are the primary risks, with potential impact on profitability if price escalation clauses are insufficient.