Financial Performance
RKEC Projects Limited reported a severe deterioration in financial performance for FY2025-26, recording a standalone net loss of ₹34.71 crore compared to a profit of ₹20.03 crore in FY2024-25. Revenue from operations plummeted 54.85% to ₹180.17 crore from ₹399.02 crore in the previous year. The company's EBIDTA turned negative at ₹-13.26 crore (-7.41% margin) from positive ₹58.31 crore (14.37% margin) in FY25.
Balance Sheet & Financial Position
The company's balance sheet shows increased stress with borrowings rising to ₹209.42 crore (current) while trade receivables declined to ₹129.10 crore. Inventories increased to ₹224.27 crore, with significant portion in work-in-progress. Cash and cash equivalents stood at ₹6.07 crore, with additional ₹45.87 crore held as margin money/security with banks. A deferred tax asset of ₹109.70 crore was recognized primarily due to carried forward losses of ₹133.60 crore.
Operational Highlights & Order Book
RKEC maintains an order book of ₹941 crore with major ongoing projects including:
- 4-lane bridge over River Ganga (NHAI, WB) - ₹651.50 crore, 97.55% complete
- 03 Lane Slipway at Port Blair (MES) - ₹320.25 crore, 82.33% complete
- Fishery Harbour at Veraval (GMB) - ₹415.78 crore, 51.32% complete
The company owns significant construction equipment including jack-up barges, crane barges, excavators, and tug boats.
Challenges & Contingencies
The company faces severe financial stress with multiple challenges:
- Maharashtra Maritime Board terminated Radio Jetty Project (₹186.68 crore) and encashed bank guarantees worth ₹29.87 crore
- Legal proceedings initiated by banks and financial institutions before Debt Recovery Tribunal
- Outstanding statutory liabilities of ₹27.37 crore (GST: ₹24.11 crore, TDS/TCS: ₹2.27 crore, PF: ₹0.99 crore) unpaid beyond due dates
- Total contingent liabilities of ₹252.07 lakhs, including disputed taxes and legal cases
Corporate Governance & Changes
The Board met 6 times during FY2025-26 and will hold its 21st Annual General Meeting on September 30, 2026. Smt. Jeevan Jyoti Volla was appointed as Additional Independent Director effective August 10, 2026. The company has 9 directors total (4 Executive, 5 Independent) with appropriate committee structures in place.
Outlook
The company aims to reposition itself and targets 30% revenue growth in FY27 supported by new project acquisitions through joint ventures, execution of existing contracts from the ₹941 crore order book, and improved operational efficiencies through digitization and process optimization.