Company Overview

Simplex Infrastructures Limited, established in 1924, is a diversified infrastructure company executing projects in piling, energy and power, building & housing, marine, roads and highways, railways, and urban infrastructures. The company is listed on BSE Limited, National Stock Exchange of India Limited, and Calcutta Stock Exchange Limited.

Financial Performance Highlights FY 2025-26

Standalone Performance: Revenue from operations stood at ₹6,702 million (FY25: ₹7,313 million) with net profit of ₹377 million (FY25: ₹97 million). EBITDA improved to ₹900 million from ₹745 million in FY25.

Consolidated Performance: Revenue from operations reached ₹10,212 million (FY25: ₹10,756 million) with net profit of ₹404 million (FY25: ₹121 million). Profit before tax showed significant improvement at ₹519 million compared to ₹217 million in FY25. Basic EPS stood at ₹5.20 (FY25: ₹2.02).

Debt Restructuring with NARCL

The company executed a Master Restructuring Agreement (MRA) with National Asset Reconstruction Company Limited (NARCL) on January 15, 2025, effective from March 28, 2024. The restructuring involved assignment of 85.44% of debt to NARCL, with sustainable debt of ₹12,500 million to be paid over 7 years and unsustainable debt of ₹45,654.8 million written back as exceptional item. As of March 31, 2026, the company successfully concluded settlement/restructuring arrangements for 99.55% of secured debt, with the balance expected to close by September 2026.

NARCL received 15% equity shareholding on fully diluted basis through conversion of unsustainable debt, with equity shares allotted in multiple tranches totaling approximately ₹800 million. Promoters pledged 11% equity holding in favor of NARCL as additional security.

Capital Structure and Fundraising

The company raised approximately ₹2,815.9 million through preferential allotment of equity shares and warrants during FY26. Paid-up share capital increased to ₹1,586 million comprising 79,095,346 equity shares. The shareholding pattern shows Baba Basuki Distributors Pvt. Ltd. (13.65%), Ajay Merchants Private Limited (6.08%), Rajiv Mundhra (11.86%), and NARCL (16.24%) as major shareholders.

Key Financial Ratios and Position

Significant Ratios Improvement: Current ratio improved to 2.35 (FY25: 1.84), debt-equity ratio significantly improved to 1.76 (FY25: 4.14), return on equity increased to 0.05 (FY25: 0.03), and debt service coverage ratio improved to 0.28 (FY25: 0.20).

Asset Quality: Trade receivables (net) stood at ₹5,225.4 million with allowance for expected credit loss of ₹657.9 million. Contract assets (net) were ₹11,642 million and retention money (net) at ₹1,823.4 million.

Borrowings: Total borrowings reduced to ₹16,416.2 million (FY25: ₹21,744.1 million) comprising secured borrowings of ₹13,677.4 million and unsecured borrowings of ₹1,954.2 million.

Business Operations and Order Book

The company secured new orders worth approximately ₹5,295 million across various verticals, ending FY26 with an order book exceeding ₹12,000 million. Key projects included chimney packages for Nabinagar STPP Stage-II and Gadarwara STPP Stage-II, civil works for residential buildings, and piling work in Saudi Arabia.

Contingent Liabilities and Risk Factors

Contingent liabilities included claims not acknowledged as debts of ₹3,419.1 million (including GST ₹1,800.3 million and sales tax ₹1,242.8 million) and corporate guarantees of ₹7,449 million provided to banks against credit facilities extended to associate Simplex Infrastructures LLC.

Management Changes and Corporate Governance

Key management changes included Mr. Sukumar Dutta retiring as Whole-time Director & CFO, Mr. Samiran Kumar Bhattacharyya appointed as Whole-time Director and CFO, and Mr. Gurumurthy Ramanathan appointed as Nominee Director representing NARCL. The board comprises 8 directors with proper committee structure and governance mechanisms in place.

Auditor's Report and Key Audit Matters

The statutory auditors, M/s. Binayak Dey & Co., provided an unmodified opinion with emphasis on going concern assessment. Key audit matters included:

1. Going Concern Assessment: Management considered MRA implementation, time-bound asset monetization, and OTS with remaining lenders despite previous negative net worth.

2. Project Revenue Recognition: Revenue recognized using percentage-of-completion method requiring significant judgments in estimating total project costs.

3. Recoverability of Contract Assets: Unbilled revenue, trade receivables and retention money aggregating ₹16,867.4 million requiring assessment of collection likelihood.

4. Pending Litigations: Numerous claims and arbitrations with customers and tax authorities requiring judgmental assessment of outcomes.

Regulatory Compliance and Subsequent Events

The company complied with SEBI listing regulations and Companies Act 2013 requirements. The 108th Annual General Meeting was scheduled for September 23, 2026, with no dividend declared during the year to conserve cash and strengthen financial position.