NAVKARURB - Navkar Urban.

📊 NSE: NAVKARURB 🏢 Construction 📅 Last Updated: 12/14/2025 10:23

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (Infrastructure/Construction). Revenue from operations (Job Charges) for H1 FY26 was INR 365.05 Lakhs, representing a decrease of 7.94% compared to INR 396.53 Lakhs in H1 FY25. Total income for H1 FY26 was INR 367.65 Lakhs, down 7.3% YoY.

Geographic Revenue Split

Not disclosed in available documents, though the company is headquartered in Ahmedabad, Gujarat, and executes projects in 'risky geographical areas' across the nation.

Profitability Margins

Operating Profit Margin for FY25 was 19.31%, a slight decrease from 19.74% in FY24. Net Profit Margin for FY25 was 0.02%, down from 0.05% in FY24. For H1 FY26, the company reported a Net Profit of INR 5.01 Lakhs, a significant 78.5% decrease from INR 23.36 Lakhs in H1 FY25.

EBITDA Margin

Operating Profit Margin stood at 19.31% in FY25. The decrease of 43 basis points YoY was attributed to an increase in purchases and expenses during the financial year.

Capital Expenditure

As of September 30, 2025, Property, Plant and Equipment (PPE) was valued at INR 6,114.25 Lakhs, compared to INR 6,095.10 Lakhs as of March 31, 2025. Capital Work In Progress (CWIP) remained stable at INR 126.98 Lakhs.

Credit Rating & Borrowing

Not disclosed in available documents; however, the Debt-Equity ratio improved from 0.09 in FY24 to 0.04 in FY25 due to the repayment of loans.

⚙️ Operational Drivers

Raw Materials

Construction materials for road and bridge projects; the company aims for in-house raw material production to optimize costs.

Capacity Expansion

Not disclosed in units; however, the company is launching new growth initiatives for existing and emerging construction businesses supported by increased liquidity.

Raw Material Costs

Purchases of stock-in-trade for H1 FY26 amounted to INR 102.29 Lakhs. In FY25, the inventory turnover ratio improved significantly to 0.61 from 0.06 in FY24 due to changes in procurement strategy.

Manufacturing Efficiency

Operational excellence programs designed with external consultants have been implemented to optimize cost and delivery commitments.

Logistics & Distribution

The company notes the Indian logistics market is estimated to reach US$ 320 billion by 2025, which supports its infrastructure growth strategy.

📈 Strategic Growth

Expected Growth Rate

11.40%

Growth Strategy

Growth will be achieved through operational excellence programs, cost optimization, and leveraging a strong cash flow position to launch new initiatives in road and bridge construction. The company aims to be a premier infrastructure player by executing vertical construction activities with in-house raw material production.

Products & Services

Road and bridge construction, urban infrastructure development, and job charges for infrastructure projects.

Brand Portfolio

Navkar Urbanstructure Limited (formerly Navkar Builders Limited).

New Products/Services

Emerging businesses of construction and new growth initiatives supported by increased liquidity.

Market Expansion

Targeting the 'National Infrastructure Pipeline' with a planned spend of US$ 1.4 trillion over five years.

🌍 External Factors

Industry Trends

The infrastructure sector is a key driver for the Indian economy, with overall infrastructure capex estimated to grow at a CAGR of 11.4% (2021-26) driven by transport and urban infrastructure.

Competitive Landscape

The industry is highly dependent on government policy and road/bridge project awards.

Competitive Moat

Competitive advantage is derived from in-house raw material production and the ability to execute prestigious nation-building projects in difficult or risky terrains.

Macro Economic Sensitivity

Infrastructure investment contributes approximately 5% of India's GDP; the company is highly sensitive to government infrastructure spending and fiscal policies.

Consumer Behavior

Not applicable as the company primarily serves government and institutional clients.

Geopolitical Risks

Exposure to risks and threats to life, liberty, and property while operating in risky geographical areas for nation-building tasks.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by government policies on road and bridge projects and the SARFAESI Act for financial security interests.

Taxation Policy Impact

Current tax for H1 FY26 was INR 0.38 Lakhs. The company follows Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013.