LIKHITHA - Likhitha Infra.

📊 NSE: LIKHITHA 🏢 Construction 📅 Last Updated: 12/14/2025 9:16

💰 Financial Performance

Revenue Growth by Segment

Cross-Country Pipelines (CCP) grew 15.8% to INR 326.31 Cr; City Gas Distribution (CGD) grew 17.9% to INR 126.54 Cr; Others (O&M, Tankage) grew 79.8% to INR 59.36 Cr.

Geographic Revenue Split

100% of revenue currently from India; international expansion initiated in Saudi Arabia (JV) and UAE (Abu Dhabi branch) to diversify revenue base.

Profitability Margins

EBITDA margin stood at 19.36% (INR 100.71 Cr); Net Profit margin was 13.35% (INR 69.43 Cr), showing stable profitability despite a 23.3% increase in revenue.

EBITDA Margin

19.36% in FY25, compared to 23.4% in FY24, reflecting a slight compression due to increased contract execution costs.

Capital Expenditure

Not explicitly disclosed as a single figure, but the company prioritizes investments in digital tools, safety enhancement, and skill development.

Credit Rating & Borrowing

CRISIL Ratings; Zero debt status implies minimal borrowing costs with finance costs representing only 0.22% of total expenses.

⚙️ Operational Drivers

Raw Materials

Pipes, valves, and fittings (implied by pipeline infrastructure services) representing 16.81% of total expenses.

Capacity Expansion

Current order book of INR 1,200 Cr as of March 31, 2025, providing revenue visibility for the next 2-3 years.

Raw Material Costs

Cost of materials consumed was 16.81% of total expenses; Contract execution expenses (labor/sub-contracting) were the largest cost driver at 66.16%.

Manufacturing Efficiency

Service-based model focused on domain expertise; ROCE of 27.77% in FY25 indicates high capital efficiency.

📈 Strategic Growth

Expected Growth Rate

23%

Growth Strategy

The company aims to achieve its growth targets through a three-pronged strategy: 1) Penetrating high-growth international markets, specifically Saudi Arabia and the UAE, to capitalize on Vision 2030 infrastructure projects; 2) Expanding its domestic footprint in alignment with the Petroleum and Natural Gas Regulatory Board's (PNGRB) agenda to increase India's gas grid; and 3) Leveraging its INR 1,200 Cr order book (2.3x FY25 revenue) to ensure steady execution and revenue recognition over the next 24-36 months.

Products & Services

Laying of cross-country oil and gas pipelines, City Gas Distribution (CGD) network implementation, tankage and terminal projects, and Operations & Maintenance (O&M) services.

Brand Portfolio

Likhitha Infrastructure.

New Products/Services

Expansion into international markets (Saudi Arabia and UAE) expected to contribute significantly to future revenue as operations commence.

Market Expansion

Establishment of a 60% owned Joint Venture in Saudi Arabia (Likhitha Hak Arabia) and a branch office in Abu Dhabi (UAE) during 2024.

Market Share & Ranking

Leading integrated service provider in India's oil and gas pipeline infrastructure sector with over 27 years of domain expertise.

Strategic Alliances

CPM Likhitha Consortium (80% JV partner) and Likhitha Hak Arabia Contracting Company (60% subsidiary in Saudi Arabia).

🌍 External Factors

Industry Trends

India's gas market expansion under PNGRB and Middle East's Vision 2030 frameworks are driving demand for integrated pipeline infrastructure, with the industry shifting towards more sophisticated safety and digital standards.

Competitive Landscape

Intense competition in tender-based bidding for oil and gas infrastructure projects.

Competitive Moat

27 years of operational excellence in a specialized niche with high entry barriers due to safety and technical requirements; Zero debt and high ROCE of 27.77% provide financial flexibility.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and Petroleum and Natural Gas Regulatory Board (PNGRB) expansion agendas.

Consumer Behavior

Shift towards natural gas as a cleaner fuel in India is driving demand for CGD networks.

Geopolitical Risks

Regional instability in the Middle East could impact the new Saudi JV and Abu Dhabi branch operations.

⚖️ Regulatory & Governance

Industry Regulations

Governed by Petroleum and Natural Gas Regulatory Board (PNGRB) expansion agendas and safety/quality standards in the infrastructure sector.

Environmental Compliance

Not disclosed in absolute INR; company follows 'Green Initiative' for paperless compliance.

Taxation Policy Impact

Effective tax rate of approximately 25.7% based on current tax of INR 24.11 Cr on PBT of INR 93.64 Cr.

⚠️ Risk Analysis

Key Uncertainties

Tender-based revenue (100% impact if bids are lost), commodity price fluctuations (impacts material costs which are 16.8% of expenses), and project execution delays.