💰 Financial Performance

Revenue Growth by Segment

Not disclosed in available documents. The company operates in a single segment (Infrastructure/Engineering) and does not provide a breakdown by specific service lines like consultancy vs. construction.

Geographic Revenue Split

Not disclosed in available documents. While the company is headquartered in Bhopal, Madhya Pradesh, and targets new geographies, the exact percentage contribution from different states is not provided.

Profitability Margins

Net Profit Margin was 6.49% in FY25, a significant decrease from 19.08% in FY24. This compression was driven by a 39.4% increase in other expenses (INR 30.22 Cr in FY25 vs INR 21.67 Cr in FY24), which outpaced revenue growth.

EBITDA Margin

EBITDA Margin was 13.16% in FY25, down from 28.81% in FY24. This 1,565 bps drop reflects higher operational costs and potentially lower-margin projects in the current mix compared to the previous fiscal.

Capital Expenditure

Gross block increased from INR 6.07 Cr in FY24 to INR 9.15 Cr in FY25, representing a 50.7% increase to support expanded project execution and equipment fleet ownership.

Credit Rating & Borrowing

CRISIL BB/Stable (Long-term) and CRISIL A4+ (Short-term). The company maintains a healthy financial risk profile with gearing below 0.3 times and term debt obligations of less than INR 0.45 Cr.

⚙️ Operational Drivers

Raw Materials

Steel, bitumen, and diesel. These are critical inputs for civil construction projects, though their specific percentage of total cost is not disclosed.

Import Sources

Not disclosed in available documents. Procurement is likely domestic given the nature of civil construction in India.

Key Suppliers

Not disclosed in available documents. Specific vendor names for steel or bitumen were not provided.

Capacity Expansion

Gross block grew 50.7% to INR 9.15 Cr in FY25. The company focuses on expanding its owned equipment fleet and technical manpower (298 employees as of March 2025) to support its INR 150 Cr+ order book.

Raw Material Costs

Not disclosed as a specific % of revenue, but identified as a key challenge. Volatility in input costs impacts gross margins, especially in fixed-price contracts where cost escalations cannot be passed to clients.

Manufacturing Efficiency

Not applicable. Operational efficiency is influenced by seasonal labor dynamics, particularly during the April to June quarter, which factors into production planning.

📈 Strategic Growth

Expected Growth Rate

10%+

Growth Strategy

Manglam Infra plans to achieve its double-digit revenue growth target through diversification into high-growth verticals such as renewable energy civil works, water EPC, and rail infrastructure; increased bid participation in high-value EPC tenders; and geographic expansion into new regions.

Products & Services

Civil construction projects, infrastructure policy development, strategic consulting, design management of civil projects, and project management services.

Brand Portfolio

Manglam Infra & Engineering Limited (formerly Manglam Associates).

New Products/Services

Expansion into renewable energy civil works, water EPC, and rail infrastructure. These new verticals are expected to support the double-digit revenue growth trajectory over the next 2-3 years.

Market Expansion

Targeting new geographies and high-growth verticals across India to reduce regional and project concentration risk.

🌍 External Factors

Industry Trends

The Indian infrastructure sector is growing, supported by government initiatives. Trends include a shift toward high-value EPC projects and the integration of digital tools for project lifecycle management.

Competitive Landscape

The industry is fragmented with many unorganized players, leading to intense competition. MIEL competes by leveraging its technical expertise and owned equipment fleet.

Competitive Moat

The moat is based on the promoters' 20+ years of experience and established empanelment with key agencies like NHAI. This is sustainable as it creates a barrier for new entrants who lack the required track record.

Macro Economic Sensitivity

Highly sensitive to Indian government infrastructure spending and changes in tax laws or regulations. A slowdown in government project approvals would directly reduce order book inflow.

Consumer Behavior

Not applicable for B2G infrastructure projects.

Geopolitical Risks

Minimal direct impact as operations are domestic, though global commodity price shifts (e.g., oil impacting bitumen/diesel) pose indirect risks to project margins.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with NHAI, MoHUA, and State PWD standards is critical. Any change in bidding eligibility criteria or project execution norms could impact the company's ability to secure new work.

Environmental Compliance

Focus on ESG awareness and safety culture at project sites. Specific ESG spending was not disclosed.

Taxation Policy Impact

Effective tax rate of ~30.6% in FY25 (Current tax of INR 1.22 Cr on PBT of INR 4.00 Cr). Changes in corporate tax laws would directly impact net profitability.

Legal Contingencies

No material pending court cases or disputes were reported in the FY25 secretarial audit. The company complied with statutory provisions, though some forms were filed with late fees.

⚠️ Risk Analysis

Key Uncertainties

Input cost volatility (steel/bitumen/diesel) and project execution delays due to land clearance or approvals are the primary risks, potentially impacting margins by 5-10%.

Geographic Concentration Risk

Headquartered in Madhya Pradesh. While expanding, a significant portion of the current INR 150 Cr+ order book is likely concentrated in central India.

Third Party Dependencies

Dependent on government agencies for project awards and seasonal labor for execution efficiency.

Technology Obsolescence Risk

Risk of losing competitiveness if the company fails to adopt modern construction practices or digital project management tools like ERP and project dashboards.

Credit & Counterparty Risk

Exposure to government agencies (NHAI/PWD). While credit risk is low, the 'intense' working capital management noted by CRISIL suggests potential delays in the payment cycle.