💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 grew 59% YoY to INR 71.94 Cr from INR 45.34 Cr. For the full year FY25, consolidated revenue reached INR 170.31 Cr compared to standalone revenue of INR 90.39 Cr in FY24, representing an 88.4% increase, largely driven by the impact of an acquisition and higher execution of civil construction orders.

Geographic Revenue Split

The company is primarily Gujarat-based, with all operations conducted within India. Specific state-wise percentage splits are not disclosed, though the company is actively pursuing a project worth INR 151 Cr in Madhya Pradesh to diversify its geographic footprint.

Profitability Margins

Net Profit Margin improved significantly from 3.20% in FY24 to 6.50% in FY25, and further to 7.60% in H1 FY26. This trend is attributed to operational leverage and a strategic shift toward high-value infrastructure projects which offer better realizations.

EBITDA Margin

EBITDA Margin stood at 18.73% in H1 FY26, a 131 bps increase from 17.42% in H1 FY25. The margin expansion is driven by cost optimization and the execution of higher-margin contracts like the NHAI project.

Capital Expenditure

Historical capital expenditure is reflected in the increase of average capital employed following a preferential issue in FY25. Specific planned CAPEX figures in INR Cr for future periods are not explicitly disclosed in the provided documents.

Credit Rating & Borrowing

Assigned a long-term rating of IVR BBB-; Stable and a short-term rating of IVR A3 by Infomerics as of May 14, 2025. Total rated bank facilities amount to INR 60.00 Cr. Finance costs increased to INR 5.14 Cr in FY25 from INR 2.69 Cr in FY24 due to increased loan utilization for project execution.

⚙️ Operational Drivers

Raw Materials

Key inputs include construction materials (steel, cement, aggregates) and hiring charges for machinery. Cost of Material Consumed accounted for INR 49.25 Cr (28.9% of revenue) in FY25, while works contract expenses and hiring charges are significant components of 'Other Expenses' which totaled INR 58.35 Cr.

Import Sources

Primarily sourced domestically within India, specifically from Gujarat and neighboring regions to support local project sites in Jamnagar and surrounding areas.

Key Suppliers

Not specifically named in the documents; however, the company relies on a competitive bidding process for procurement of construction materials and machinery hiring.

Capacity Expansion

The company operates in the service-based civil construction sector; capacity is measured by its order book and execution capability. It is currently executing a major INR 157 Cr NHAI project and bidding for a INR 310 Cr Joint Venture project.

Raw Material Costs

Raw material costs (Cost of Material Consumed) were INR 49.25 Cr in FY25. The company faces margin susceptibility to volatile input prices, which is mitigated through cost optimization and shifting toward projects with better pricing structures.

Manufacturing Efficiency

Not applicable as a manufacturing metric; however, the company maintains a workforce of 394 employees as of March 31, 2025, to drive project execution.

Logistics & Distribution

Distribution costs are integrated into project execution costs, particularly in the movement of heavy machinery and materials to construction sites.

📈 Strategic Growth

Expected Growth Rate

30-35%

Growth Strategy

Growth will be achieved through a 30-35% CAGR target over the next three years by focusing on high-value infrastructure projects (e.g., NHAI), pursuing large-scale Joint Ventures (INR 310 Cr), and expanding into new geographies like Madhya Pradesh (INR 151 Cr project bid).

Products & Services

Civil construction services including industrial and commercial buildings, roads, sub-stations, bridges, and allied infrastructure works.

Brand Portfolio

Sonu Infratech Limited (SIL).

New Products/Services

Expansion into high-value NHAI road projects and large-scale industrial sub-stations is expected to be the primary driver of the 30-35% CAGR.

Market Expansion

Targeting expansion beyond Gujarat into Madhya Pradesh and pursuing larger central government infrastructure tenders.

Market Share & Ranking

Not disclosed; however, the company is listed on the NSE Emerge platform and has a 20-year track record in the civil construction industry.

Strategic Alliances

Currently pursuing a Joint Venture (JV) project valued at INR 310 Cr to bid for larger-scale infrastructure contracts.

🌍 External Factors

Industry Trends

The industry is seeing an increased government thrust on infrastructure. The company is positioning itself to move from small-scale civil works to large-scale high-value projects to capitalize on this trend, aiming for a 30-35% growth trajectory.

Competitive Landscape

Operates in a highly competitive and fragmented civil construction industry where contracts are awarded based on competitive bidding (L1 status).

Competitive Moat

Moat is based on a 20-year track record and the technical capability of the promoter, Mr. Ramji Shrinarayan Pandey. This experience provides a 'satisfactory financial risk profile' and project execution credibility required for government tenders.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and the national budget for NHAI and road development.

Consumer Behavior

Not applicable; demand is driven by B2B and B2G (Government) infrastructure requirements.

Geopolitical Risks

Minimal direct impact as operations are domestic, but global commodity price fluctuations (oil, steel) indirectly affect input costs.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Companies Act 2013, SEBI (LODR) Regulations, and specific construction standards for roads and sub-stations. Secretarial audit for FY25 confirmed general compliance with statutory provisions.

Environmental Compliance

Not disclosed as a specific INR value, but construction projects are subject to standard environmental impact assessments and pollution norms.

Taxation Policy Impact

Effective current tax for FY25 was INR 3.43 Cr on a consolidated PBT of INR 14.85 Cr, representing a tax rate of approximately 23%.

Legal Contingencies

The Secretarial Audit Report for the period ending March 31, 2025, did not highlight any major pending litigations or non-compliances that would materially affect financial stability.

⚠️ Risk Analysis

Key Uncertainties

Volatility in input prices (steel/cement) and the 'tender-driven' nature of the business are the primary risks, potentially impacting margins by 2-3% if cost escalations are not managed.

Geographic Concentration Risk

High concentration in Gujarat, though the company is actively bidding for projects in Madhya Pradesh to mitigate this.

Third Party Dependencies

Dependent on government authorities for timely project approvals and payment releases; delays can elongate the working capital cycle.

Technology Obsolescence Risk

Low risk in civil construction, but the company is focusing on 'technical capability' to bid for more complex sub-station and bridge projects.

Credit & Counterparty Risk

Receivables quality is generally stable as clients are government/reputed industrial entities, though the Debtors Turnover Ratio of 2.35 indicates a moderate collection cycle.