💰 Financial Performance

Revenue Growth by Segment

Standalone total income grew 10.46% YoY to INR 203.41 Cr in FY25 from INR 184.15 Cr in FY24. Consolidated total income decreased 2.02% to INR 248.35 Cr in FY25 from INR 253.46 Cr in FY24. Segment-specific growth percentages for Roads, Buildings, and Railways were not disclosed.

Geographic Revenue Split

The company executes projects PAN India, but specific percentage contribution from each region is not disclosed in available documents.

Profitability Margins

Standalone Net Profit Margin improved from 3.62% in FY24 to 4.85% in FY25. Operating Profit Margin declined from 11.54% in FY24 to 9.98% in FY25. Standalone net profit for Q2 FY26 was INR 23.32 Cr, a 687.8% increase from INR 2.96 Cr in Q1 FY26.

EBITDA Margin

Operating Profit Margin was 9.98% in FY25, down from 11.54% in FY24, representing a 13.5% YoY decline in core operational profitability due to non-normal operations during the resolution plan implementation.

Capital Expenditure

Not disclosed in available documents, though the company maintains a large fleet of construction equipment to support its EPC and BOT projects.

Credit Rating & Borrowing

Bank accounts were restored to 'Standard' status on September 4, 2024. Previous credit rating was BWR D (withdrawn in 2019). The company has secured INR 303.63 Cr in non-fund based working capital limits (BGs/LCs) under its approved Resolution Plan.

⚙️ Operational Drivers

Raw Materials

Specific raw materials like bitumen, steel, and cement are required for road and building construction, but their individual percentage of total cost is not disclosed.

Capacity Expansion

Current capacity includes a large fleet of construction equipment. Expansion is focused on order book growth with a target of INR 1,000 Cr in new orders for FY26 and INR 2,800 Cr for FY27.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but operational profit margins of 9.98% reflect the impact of material and execution costs.

Manufacturing Efficiency

Capacity utilization metrics are not disclosed; however, the company was an early mover in NHAI maintenance and corridor projects, indicating high execution efficiency.

📈 Strategic Growth

Expected Growth Rate

180%

Growth Strategy

Growth will be achieved by targeting new orders of INR 1,000 Cr in FY26 and INR 2,800 Cr in FY27. The strategy includes bidding for projects worth INR 1,645 Cr, leveraging debt-free status in 6 of 8 subsidiaries, and utilizing restored bank limits of INR 303.63 Cr to support new project execution.

Products & Services

Civil engineering infrastructure projects including Roads & Highways (Construction, BOT, O&M), Building, Housing & Urban Infrastructure, and Railways/Metro projects.

Brand Portfolio

MBL Infrastructure Ltd (MBL).

New Products/Services

Recent wins include a INR 1.06 Cr NH-62 Change of Scope order. Future revenue will be driven by the identified INR 1,000 Cr order target for FY26.

Market Expansion

The company executes projects PAN India and is actively bidding for new infrastructure tenders across its core segments to expand its order book.

🌍 External Factors

Industry Trends

The industry is shifting toward large-scale integrated infrastructure projects. MBL is positioning itself by resolving legacy debt issues, with 6 of 8 subsidiaries now debt-free, to regain eligibility for major government tenders.

Competitive Landscape

Competes with other national-level EPC and BOT infrastructure companies for NHAI and state PWD contracts.

Competitive Moat

MBL's moat is based on its track record as one of the first contractors for NHAI's North South East West Corridor and its large owned equipment fleet, which provides cost advantages over competitors who lease equipment.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and interest rate fluctuations affecting the cost of debt for BOT projects.

Consumer Behavior

Not applicable as the company serves government and institutional clients.

Geopolitical Risks

Primarily domestic operations; risks are limited to local political and regulatory changes affecting infrastructure contracts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by NHAI standards, PWD specifications, and the Insolvency and Bankruptcy Code (IBC) 2016, under which the company's resolution plan was implemented.

Environmental Compliance

The company maintains ISO 45001:2018 certification for health and safety and environmental management systems.

Legal Contingencies

Pending arbitration claims total INR 3,219.53 Cr. A specific award of INR 177.85 Cr plus interest is due from Uttarakhand PWD. A subsidiary, SBTRCPL, is facing CIRP initiated by SBI for a facility of INR 450 Cr.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful resolution of the remaining two debt-laden subsidiaries and the timing of realization for INR 3,219.53 Cr in contractual claims, which represents a significant portion of potential liquidity.

Geographic Concentration Risk

Not disclosed, though the company operates PAN India.

Third Party Dependencies

Dependent on government bodies for project awards and timely payments/dispute resolutions.

Technology Obsolescence Risk

Low risk in civil construction, but the company monitors technological risks through its risk management framework.

Credit & Counterparty Risk

Exposure to government entities (NHAI, PWD) is high; while credit risk is low, payment delays (receivables) are a significant factor, as evidenced by the high volume of arbitration.