Financial Performance Highlights

  • FY26 Revenue: ₹348.49 crore, up from ₹307 crore in FY25
  • FY26 EBITDA: ₹48.54 crore
  • FY26 PAT: ₹26.23 crore, representing approximately 15% growth YoY
  • FY26 EPS: ₹11.90, showing 17% growth from ₹10.16 in FY25
  • Q4 FY26 Revenue: ₹105 crore
  • Q4 PAT Margin: 10.81%
  • Q4 EBITDA Margin: 18%
  • QoQ Growth: 13% quarter-on-quarter growth in Q4
  • PAT CAGR: 27% over last five years (FY22-FY26)
  • Revenue CAGR: 17% over last five years
  • EBITDA CAGR: 21% over last five years

Business Overview and Market Position

  • Company positions itself as "India's road doctor" providing highway life cycle maintenance
  • Total employee strength: 320 employees
  • Market capitalization: approximately ₹350 crore
  • PAN India operations with expertise in highway operation and maintenance
  • Completed major maintenance of over 5,500 lane kilometers
  • Exclusive experience in 197 kilometers of road recycling (CIPR technology)
  • Unexecuted order book: ₹600+ crore as of 31st March 2026

Merger Update with Markolines Infra

  • Filed merger applications with exchanges, all queries submitted and resolved by March 2026
  • Expected merger completion timeline: approximately 6 months, targeting FY27 completion
  • Markolines Infra FY26 revenue: approximately ₹150 crore
  • Combined entity post-merger: ₹500+ crore company
  • Markolines Infra monthly billing: ₹14-15 crore per month
  • Markolines Infra PAT margins: 9-10% (higher than pavement business)
  • Merger benefits: expanded operational capacities, better bidding eligibility, operational synergies, and balanced business product mix

Growth Guidance and Outlook

  • FY27 revenue growth guidance: 30% on standalone basis
  • Target to become ₹1000 crore company within three years
  • Active project pipeline: ₹2000+ crore
  • Target closing order book by FY27 end: ₹1000 crore
  • Current bidding eligibility: ₹500 crore projects on standalone basis
  • Win ratio: approximately 50% of targeted orders

Business Segments and Order Book

  • Business Verticals: Highway maintenance (preventive & major), specialized maintenance (micro-surfacing, CIPR), specialized construction (soil stabilization, FDR, tunneling, bridges), other infrastructure (schools, sports infrastructure)
  • Revenue Contribution (March 2026): Highway maintenance 65%, specialized construction 35%
  • Order Book Composition: Approximately 50% maintenance orders (executed within 18 months), 50% specialized construction orders (spread over 2-3 years)

Capital Expenditure and Equipment

  • FY26 CAPEX: No major CAPEX done
  • FY27 CAPEX plan: ₹10 crore for new pavers and hot mix plants (HMP)
  • Equipment churning policy: Replace plants every 3-4 years for optimum efficiency
  • Current asset block: approximately ₹30 crore in capital investment/equipment
  • Equipment owned: 3 pavers, 3 plants, and other machinery

Financial Position and Strategy

  • Balance sheet: Equity ₹202 crore, short-term liabilities ₹126 crore
  • Adequate fund and non-fund based limits available for higher value projects
  • Business model: Works on cost-plus basis with clients, ensuring steady bottom line margins
  • PAT margins maintained between 7-8%
  • Disciplined and prudent capital allocation

Market Opportunities and Industry Trends

  • India has world's largest highway network (6.7 million kilometers)
  • Road construction increased from 20 km/day (2014) to 35 km/day (current)
  • Maintenance spending expected to increase from current 15% of road cost to global average of 40%
  • 30% of highway assets already privatized with government targeting more monetization
  • Recent government approval allows international funds to participate in PPP highway projects at construction phase
  • Growing institutional asset ownership driving demand for sophisticated O&M partners

Client Base

  • Includes all major international funds operating in India, InvITs, government agencies, national corporations, and private asset owners
  • Preferred partner for highway O&M for international funds in India

Operational Details

  • Major maintenance work typically starts post-monsoon
  • Monsoon period used for negotiations and closing BOQs/enquiries
  • Business affected by seasonal patterns with slower Q1 and Q2 due to monsoon/environmental conditions
  • Q3 and Q4 typically show higher revenue and profitability
  • Company has learned to maintain work during monsoon through product mix including tunnel projects and bridges

New Business Initiatives

  • Developing business in other infrastructure sectors: schools and sports infrastructure development
  • Received orders for school infrastructure development and sports complex rehabilitation in Andhra Pradesh
  • Strategic plan to leverage construction skills into other infrastructure segments