SUPREMEINF - Supreme Infra.

📊 NSE: SUPREMEINF 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/14/2025 13:54

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue for Q2 FY17 was INR 194.05 Cr, representing a 41.8% YoY decline from INR 333.65 Cr. Segmental order book as of Sept 2016 was dominated by Roads/Bridges at INR 2,264 Cr (68%), followed by Buildings at INR 736 Cr (22%), Power at INR 236 Cr (7%), and Railways at INR 64 Cr (2%).

Geographic Revenue Split

The order book as of Sept 2016 shows a heavy concentration in the West region at 72%, followed by the East at 16% and the North at 12%.

Profitability Margins

Consolidated Q2 FY26 income was INR 13.56 Cr against expenses of INR 173.70 Cr, resulting in a loss before tax of INR 160.15 Cr. However, a massive exceptional gain led to a PAT of INR 6,305.92 Cr. Historically, EBITDA margins declined from 21.8% in Q2 FY16 to 15.8% in Q2 FY17.

EBITDA Margin

EBITDA margin for Q2 FY17 was 15.8%, a decrease of 604 bps from 21.8% in Q2 FY16. EBITDA fell 57.9% YoY to INR 30.65 Cr.

Capital Expenditure

Historical project costs for BOT portfolios include INR 1,206 Cr for Panvel Indapur and INR 1,045 Cr for Jaipur Ring Road. Recent specialized piling contracts like One Forest Avenue (INR 71.31 Cr) indicate a shift toward high-margin foundation works.

Credit Rating & Borrowing

Borrowing costs are high, evidenced by a 20% per annum coupon rate on INR 25 Cr of Secured Non-Convertible Debentures (NCDs) issued in Dec 2025. Historical interest costs were INR 67.77 Cr in Q2 FY17, up 7.2% YoY.

⚙️ Operational Drivers

Raw Materials

Key raw materials include aggregates, asphalt, and Ready-Mix Concrete (RMC). The company manages costs through backward integration, owning its own quarries, crushers, and hot mix plants.

Import Sources

Sourced locally across 13 operational states, primarily Maharashtra, Rajasthan, Punjab, and West Bengal, to support regional EPC projects.

Key Suppliers

Not disclosed in available documents; however, the company utilizes its own internal supply chain for aggregates and asphalt.

Capacity Expansion

Current capacity includes 11 BOT projects (4 operational, 7 under construction as of 2016). Specialized piling capacity is demonstrated by the 4,50,000 cubic meter excavation and 300 mm shore piling capability for the One Forest Avenue project.

Raw Material Costs

Raw material costs are managed through backward integration. Total expenses for Q2 FY26 were INR 173.70 Cr, significantly exceeding operational income of INR 13.56 Cr.

Manufacturing Efficiency

Efficiency is driven by the backward integrated model, allowing for better quality control and cost management in complex infrastructure projects.

Logistics & Distribution

Distribution is handled internally through a fleet supporting 13 states, primarily focused on the West region (72% of order book).

📈 Strategic Growth

Expected Growth Rate

5-7%

Growth Strategy

Growth is targeted through high-value specialized foundation and piling contracts (e.g., INR 71.31 Cr One Forest Avenue project) and a focus on high-margin commercial real estate sectors. The company is also undergoing financial and operational restructuring to stabilize its balance sheet, which currently shows negative reserves of INR 6,257.65 Cr.

Products & Services

EPC services for roads, highways, buildings, bridges, railways, power, and water infrastructure; specialized deep-excavation and geotechnical piling works.

Brand Portfolio

Supreme Infrastructure India Limited (SIIL).

New Products/Services

Expansion into high-margin commercial real estate foundation works, expected to contribute significantly to topline growth following the INR 71.31 Cr Brookfield-backed contract win.

Market Expansion

Targeting high-value urban infrastructure projects in Mumbai and specialized IT parks in West Bengal (INR 25.25 Cr) and Kolkata (INR 55.73 Cr).

Strategic Alliances

Strategic JV with 3i, which holds a 49% stake in several BOT projects including Ahmednagar Kopargoan and Ahmednagar Karmala.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized EPC and foundation works. SIIL is positioning itself for high-margin commercial developments to offset the capital-intensive nature of traditional BOT projects.

Competitive Landscape

Competes with major EPC players for NHAI and PWD contracts; specialized competition in piling from geotechnical firms.

Competitive Moat

The primary moat is the backward integrated model (quarries and crushers), which provides a cost advantage over competitors who must source aggregates externally. This is sustainable as long as quarrying rights are maintained.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and NHAI awarding cycles, as Roads/Bridges constitute 68% of the order book.

Consumer Behavior

Increased demand for world-class commercial infrastructure in Mumbai, driving the need for specialized deep-excavation services.

Geopolitical Risks

Primarily domestic risks related to state-level regulatory changes in the 13 states of operation.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI (LODR) Regulations 2015 and state-specific PWD/NHAI construction standards.

Environmental Compliance

Maintains ISO-9001/14001 and OHSAS-18001 certifications for quality and environmental management.

Legal Contingencies

The company is undergoing significant financial and operational restructuring, evidenced by negative reserves of INR 6,257.65 Cr and a massive exceptional gain of ~INR 6,466 Cr in Q2 FY26.

⚠️ Risk Analysis

Key Uncertainties

Financial stability is a major risk, with negative reserves of INR 6,257.65 Cr. Debt servicing at 20% interest rates poses a significant liquidity risk.