💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations declined by 27.66% YoY to INR 731.31 Cr in FY25 from INR 1,010.95 Cr in FY24. Consolidated revenue fell 22.54% YoY to INR 1,075.6 Cr from INR 1,388.5 Cr. Q1FY26 standalone revenue was INR 153.53 Cr, a decrease of 23.08% compared to Q1FY25 revenue of INR 199.56 Cr.

Geographic Revenue Split

The company maintains an overseas presence in Saudi Arabia, Bangladesh, Bahrain, UAE, Qatar, Ethiopia, and Sri Lanka. Specific percentage contribution per region is not disclosed in available documents.

Profitability Margins

Standalone Net Profit Margin improved to 1.23% in FY25 from -6.99% in FY24. Consolidated Net Profit Margin for the quarter ended September 30, 2025, was 3.48%, compared to -4.00% in the previous year's corresponding period. The turnaround is primarily driven by debt restructuring and settlement gains.

EBITDA Margin

Standalone EBITDA margin stood at 2.96% in FY25, a slight improvement from 2.76% in FY24. Consolidated operating margin for the half-year ended September 2025 was 6.58%, up from 1.12% YoY, reflecting better operational control despite lower scale.

Capital Expenditure

Historical capital expenditure is reflected in Property, Plant, and Equipment valued at INR 194.38 Cr as of September 30, 2025, down from INR 239.16 Cr in March 2025. Planned CAPEX is not specifically quantified, though the company is focusing on optimizing its existing project portfolio.

Credit Rating & Borrowing

The company is rated 'IVR D, ISSUER NOT COOPERATING' as of September 24, 2025, indicating default status. Borrowing costs are high due to default; however, interest coverage ratio improved to 0.94x in FY25 from 0.26x in FY24 following debt reductions.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include steel, cement, and aggregates required for civil construction and EPC contracts. While specific cost percentages per material are not listed, 'Materials Consumed' is a primary expense line item in the consolidated results.

Import Sources

Not disclosed in available documents; however, the company operates in India and the Middle East, suggesting local sourcing in those regions.

Key Suppliers

Not disclosed in available documents; the company maintains a 'diversified supplier base' to manage material availability.

Capacity Expansion

The company focuses on EPC and turnkey civil construction. Current capacity is measured by its ability to execute large-scale infrastructure projects across various sectors. No specific MT/MW expansion targets are provided.

Raw Material Costs

Raw material costs are managed through strategic sourcing and long-term vendor relationships to mitigate price fluctuations. The company uses a rigorous pre-bid evaluation to factor in material cost risks.

Manufacturing Efficiency

Efficiency is tracked through project execution timelines and resource allocation. The company is upgrading systems and exploring innovative engineering solutions to improve execution speed.

Logistics & Distribution

Not specifically disclosed; however, logistics costs are inherent in the mobilization of heavy equipment and materials to diverse project sites across India and overseas.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be achieved through a preferential issue of equity and warrants aggregating INR 423.69 Cr to improve liquidity, prioritizing debt reduction (total debt reduced from INR 7,184.53 Cr to INR 2,178.76 Cr in one year), and optimizing the project portfolio to focus on high-margin civil construction and EPC contracts.

Products & Services

EPC contracts, turnkey civil construction projects, piling systems (Simplex system), structural design, and architectural services for infrastructure sectors.

Brand Portfolio

Simplex Infrastructures Limited, Simplex Piling System.

New Products/Services

The company is exploring innovation in engineering solutions and upgrading technological systems to enhance project delivery, though specific new product revenue contributions are not quantified.

Market Expansion

The company is targeting the Indian government's $5 trillion economy vision, focusing on domestic infrastructure while maintaining its existing footprint in the Middle East and Africa.

Market Share & Ranking

Identified as one of the leading construction companies in India with a history spanning since 1924.

Strategic Alliances

The Group includes 14 joint operations and various subsidiaries/associates for project execution, though specific new partner names for FY26 are not listed.

🌍 External Factors

Industry Trends

The industry is shifting toward more complex turnkey projects and sustainable infrastructure. Simplex is positioning itself by upgrading technology and focusing on cash flow management to survive the current consolidation phase in the construction sector.

Competitive Landscape

Faces intense competition from other large-scale domestic and international EPC players in the infrastructure and construction industry.

Competitive Moat

The primary moat is the 'Simplex' piling system and a 100-year track record in civil engineering. This technical expertise is sustainable but currently challenged by the company's financial default status.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and GDP growth. A slowdown in public sector CAPEX would directly reduce the tendering pipeline for EPC contracts.

Consumer Behavior

Not applicable as the company is B2B/B2G; demand is driven by government policy and industrial CAPEX cycles.

Geopolitical Risks

Operations in the Middle East (Qatar, UAE, Saudi Arabia) and Africa (Ethiopia) expose the company to regional political instability and potential security threats like vandalism.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to construction safety norms, labor laws, and sector-specific technical standards. Compliance is monitored through internal audits and SOPs.

Environmental Compliance

The company is ISO 9001:2015 certified, indicating adherence to quality management standards which include operational safety and environmental considerations.

Taxation Policy Impact

The company utilizes Deferred Tax Assets, which it expects to adjust against future projected profits. Current tax liabilities are managed as per Indian Accounting Standards.

Legal Contingencies

The company has overdue debts to non-assigned lenders amounting to INR 140.77 Cr as of September 30, 2025. It is also involved in various settlement agreements to resolve unsustainable debt, resulting in a net gain of INR 0.34 Cr in the latest quarter.

⚠️ Risk Analysis

Key Uncertainties

Liquidity constraints and the 'Issuer Not Cooperating' status pose a significant risk to project execution and the ability to secure new bank guarantees for bidding.

Geographic Concentration Risk

While present in 7 countries, the majority of operations and the current financial recovery are centered in India.

Third Party Dependencies

Dependency on sub-contractors for project execution; sub-contractors' charges are a significant expense line item in the consolidated financials.

Technology Obsolescence Risk

Risk of evolving business models and technological changes in construction. The company mitigates this by continuously upgrading its engineering systems.

Credit & Counterparty Risk

Credit risk is managed through a rigorous pre-bid evaluation of clients' financial feasibility. Receivables quality is a key focus for cash flow optimization.