TGL - Teerth

📊 NSE: TGL 🏢 Construction 📅 Last Updated: 12/14/2025 14:16

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew by ~168% from INR 39.08 Cr in FY23 to INR 104.92 Cr in FY24, primarily driven by the water infrastructure segment. In FY25, TOI reached INR 118.27 Cr, representing a 12.7% YoY increase. The company has achieved a 3-year CAGR of ~31% from FY22 to FY24.

Geographic Revenue Split

Revenue is heavily concentrated in Madhya Pradesh and Rajasthan, with the order book majorly skewed towards these two states. Specific percentage split per region is not disclosed, but the company is expanding its renewable energy footprint PAN India.

Profitability Margins

PAT margin significantly improved from 4.34% in FY23 to 11.00% in FY24 due to better absorption of fixed overheads and high-margin contract execution. However, PAT margin slightly moderated to 10.83% in FY25 due to increased interest and finance costs.

EBITDA Margin

EBITDA margins have seen growth driven by the execution of high-margin contracts and scaling of operations. Specific EBITDA percentage was not disclosed, but the improvement is linked to the reduction in interest outgo and lower bank borrowing utilization.

Capital Expenditure

Not disclosed in available documents; however, the company maintains a machinery fleet and is investing in renewable energy projects including a 1.2 GW ISTS solar project.

Credit Rating & Borrowing

Assigned IVR BBB-/Stable for Long Term and IVR A3 for Short Term bank facilities as of March 2025. The company utilizes fund-based limits at a moderate rate of ~75% over the past 12 months.

⚙️ Operational Drivers

Raw Materials

Pipes, steel, and cement are the primary raw materials, collectively forming the majority chunk of the total cost of sales. Specific percentage breakdown per material is not disclosed.

Import Sources

Sourced from large players and dealers at proximate distances to project sites in Madhya Pradesh and Rajasthan to optimize logistics.

Key Suppliers

Not disclosed in available documents, referred to generally as large players and dealers.

Capacity Expansion

Current focus is on executing an unexecuted order book of ~INR 2,035 Cr. Planned expansion includes the execution of 1,200 MW (1.2 GW) ISTS Connected Solar Power Projects for NHPC Ltd and Rooftop Solar projects for RRECL.

Raw Material Costs

Raw material and labor costs are volatile; however, the company utilizes escalation clauses in most contracts to protect margins from price fluctuations.

Manufacturing Efficiency

Efficiency is driven by higher absorption of fixed overheads as operations scale, evidenced by the jump in TOI from INR 39.08 Cr to INR 104.92 Cr in one year.

Logistics & Distribution

Not disclosed in available documents; however, proximity to dealers is used to manage costs.

📈 Strategic Growth

Expected Growth Rate

50-60%

Growth Strategy

The company aims to achieve growth through diversification into renewable energy (solar, wind, and hybrid), expanding its order book which currently stands at 17.21x its FY25 revenue, and leveraging its new status as a 1.2 GW solar project developer for NHPC.

Products & Services

Water supply systems, sewerage networks, smart road development, lake rejuvenation, and renewable energy infrastructure (Solar/Wind/Hybrid).

Brand Portfolio

Teerth Gopicon Limited (TGL).

New Products/Services

Entry into the renewable energy sector with 1.2 GW ISTS solar projects and Rooftop Solar (RTS) projects.

Market Expansion

Expanding from civil construction in MP and Rajasthan to PAN India renewable energy projects.

Strategic Alliances

Partnerships with government bodies such as NHPC Ltd, Madhya Pradesh Jal Nigam, and Rajasthan Renewable Energy Corporation Limited (RRECL).

🌍 External Factors

Industry Trends

The industry is shifting toward renewable energy and integrated water management. TGL is positioning itself by diversifying into solar and wind energy to align with India's clean energy goals.

Competitive Landscape

Highly crowded and competitive with many players; work is primarily secured through aggressive tender-based bidding.

Competitive Moat

Competitive advantage stems from a proven track record of timely project execution, experienced promoters with 20+ years in the field, and a massive order book of INR 2,035 Cr providing medium-term visibility.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and budgetary allocations for water and road sectors.

Consumer Behavior

Not applicable as the primary customers are government entities.

Geopolitical Risks

Minimal direct impact as operations are domestic, but global commodity price shifts affect raw material costs like steel.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to state government tender norms and technical qualification requirements for infrastructure projects.

Environmental Compliance

The company is aligning with clean energy goals through its renewable energy division.

Taxation Policy Impact

Current tax provision of INR 4.98 Cr and deferred tax of INR 0.24 Cr reported for the period ending March 2025.

Legal Contingencies

The company faced a Bank Guarantee (BG) related issue in 2025 which caused market confusion, though specific case values were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Project execution risk is high as ~90% of the order book was in nascent stages as of January 2025. Delays in government fund disbursements pose a liquidity risk.