SALASAR - Salasar Techno

📊 NSE: SALASAR 🏢 Steel - Medium / Small 📅 Last Updated: 12/14/2025 12:41

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 reached INR 727.33 Cr, a 26.38% increase YoY. Steel Structures grew 21.01% YoY to INR 434.87 Cr, while EPC Projects grew 32.19% YoY to INR 307.45 Cr. FY25 consolidated revenue was INR 1,447.43 Cr, up 19.78% from FY24.

Geographic Revenue Split

The company maintains a strong presence in both Indian and international markets. While specific regional percentages are not disclosed, international operations contribute significantly to the EPC and Steel Fabrication segments.

Profitability Margins

Operating Profit Margin declined to 5.82% in FY25 from 10.13% in FY24. Net Profit Margin fell to 1.32% in FY25 from 4.38% in FY24, primarily due to the consolidation of EMC Ltd, which reported a loss of INR 32.44 Cr. H1 FY26 PAT margin improved to 3.61% (INR 26.29 Cr PAT on INR 727.33 Cr revenue).

EBITDA Margin

Operating Profit Margin was 5.82% in FY25, down from 10.13% in FY24. This 425 bps compression was largely driven by a 23.36% increase in total expenses (INR 1,406.1 Cr) following the EMC Ltd acquisition.

Capital Expenditure

Property, Plant and Equipment (PPE) stood at INR 206.20 Cr as of September 30, 2025, compared to INR 204.43 Cr as of March 31, 2025, indicating ongoing maintenance and minor capacity investments.

Credit Rating & Borrowing

Infomerics reaffirmed a long-term rating of IVR A (Stable) and a short-term rating of IVR A1. Total consolidated borrowings as of September 30, 2025, were INR 341.26 Cr, with finance costs for H1 FY26 at INR 26.03 Cr.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include galvanized and non-galvanized steel structures. Cost of revenue from operations accounted for 86.01% of total income in H1 FY26 (INR 625.55 Cr).

Raw Material Costs

Cost of revenue from operations was INR 1,173.36 Cr in FY25, representing 81.06% of total revenue. In H1 FY26, this increased to 86.01% of revenue, reflecting higher input costs or project mix shifts.

📈 Strategic Growth

Expected Growth Rate

26%

Growth Strategy

Growth is driven by the consolidation of EMC Ltd, expansion in power transmission and railway electrification sectors, and increasing international EPC project execution. The company leverages its integrated fabrication and EPC capabilities to secure large-scale infrastructure contracts.

Products & Services

Power transmission towers, railway electrification structures, telecom towers, and steel structures for infrastructure projects.

Brand Portfolio

Salasar

Market Expansion

Targeting growth in international markets and domestic infrastructure sectors including power transmission and railway electrification.

Strategic Alliances

Joint Ventures include Salasar RVNL JV, Salasar REW JV, Salasar Adorus Infra LLP, STEL-ME-JV, and Sikka Salasar JV.

🌍 External Factors

Industry Trends

The infrastructure sector is growing due to increased government focus on power transmission and railway modernization. Salasar is positioning itself as an integrated player to capture this demand.

Competitive Landscape

Operates in a competitive landscape with other EPC and steel fabrication firms, though specific competitors are not named.

Competitive Moat

Moat is built on a diversified product portfolio, established track record in EPC, and integrated manufacturing capabilities, which provide cost and execution advantages.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and industrial development cycles in India and international markets.

Consumer Behavior

Not applicable as the company operates in B2B and B2G infrastructure sectors.

Geopolitical Risks

Exposure to international markets introduces risks related to trade barriers, regional instability, and varying regulatory environments.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013, SEBI regulations, and sector-specific standards for power and railway infrastructure.

Taxation Policy Impact

Tax expenses for FY25 were INR 20.47 Cr on a PBT of INR 39.60 Cr.

Legal Contingencies

The Enforcement Directorate (ED) conducted an investigation against the company/promoters; however, no further orders have been passed, and operations remain undisrupted.