Swastika Infra — RHP Analysis
Filed with SEBI on
Swastika Infra Limited is an engineering, procurement, and construction (EPC) company specializing in power transmission and distribution infrastructure projects on a turnkey basis, alongside a trading vertical in electrical products. The company primarily executes projects for state electricity distribution utilities and government agencies.
Central question
Can Swastika Infra scale execution across its ₹916.55 crore uncompleted order book and reverse negative operating cash flows while remaining reliant on low-bid government utility contracts?
Swastika Infra has delivered rapid revenue expansion (55.01% CAGR from FY24 to FY26) through an asset-light EPC model with high fixed asset turnover. However, operating cash flows remain negative due to substantial working capital lockup in retention money and receivables, alongside high customer concentration in state DISCOMs under standard L1 competitive bidding terms.
Offer structure
| Total issue size | Not disclosed |
| Fresh issue | ₹129 Cr |
| Offer for sale | — |
| Price band | Not yet announced |
Funding incremental working capital requirements of the company.
₹90.00 crore from Fresh Issue net proceeds earmarked for incremental working capital requirements in Fiscal 2027.
What it sells
Who pays: State electricity distribution companies (DISCOMs) and government utilities, which accounted for 96.87% of revenue in Fiscal 2026.. What it sells: Turnkey power transmission and distribution EPC services (substations, underground cabling, rural/urban electrification, solar park power evacuation) and traded electrical products.. How it delivers: Operates an asset-light model by leasing project-specific equipment, subcontracting on-ground erection works, and centrally managing engineering, procurement, and testing.. How it earns: Receives milestone-based project billing from turnkey EPC contracts and trading margins on electrical goods..
Restated financials
| Period | Revenue | EBITDA | PAT | EPS | ROE |
|---|---|---|---|---|---|
| FY24 | ₹209.58 Cr | ₹13.98 Cr | 5.65 | ||
| FY25 | ₹350.76 Cr | ₹27.45 Cr | 11.09 | ||
| FY26 | ₹503.57 Cr | ₹41.43 Cr | 15.7 |
Business model
Swastika Infra Limited is an engineering, procurement, and construction (EPC) company specializing in power transmission and distribution (T&D) infrastructure projects on a turnkey basis, alongside a smaller business vertical in trading electrical products. The company undertakes underground cabling, substation construction, rural/urban electrification, street lighting, and renewable energy infrastructure projects primarily for state electricity distribution utilities and government-backed agencies across multiple Indian states.
- The company operates across two business verticals: EPC Power Projects and Sale of Products (trading of electrical items). (97% EPC / 3% Sale of Products, Fiscal 2026) — Defines core operational architecture, where EPC contracting delivers the overwhelming majority of operating revenue. [1] [2]
- The company employs an asset-light operating model by leasing project-specific equipment and subcontracting on-ground erection works while centrally procuring core materials. (70.72x Fixed Asset Turnover, Fiscal 2026) — Reduces fixed asset capital intensity and maintenance overheads, reflected in high fixed asset turnover ratios. [1]
- Customer revenue is overwhelmingly derived from government utilities and state DISCOMs. (96.87%, Fiscal 2026) — Demonstrates extreme dependence on public sector budgetary cycles, tender allocations, and state utility procurement frameworks. [1]
Open questions: What is the exact margin differential between autonomous multilateral-funded projects (e.g., World Bank) and state utility budgetary contracts?; What are the specific contractual terms governing raw material price escalation pass-through across the active EPC contracts?
Growth thesis
Swastika Infra's growth thesis rests on expanding execution capacity for larger turnkey power T&D and renewable projects, supported by a ₹91,655 Lakhs balance order book, diversification into solar park evacuation and smart grids, and funding incremental working capital from IPO proceeds. The filing does not provide explicit forward revenue or earnings guidance.
- Uncompleted order book grew to ₹91,655 Lakhs across 18 projects as of July 31, 2026, providing medium-term revenue visibility. (₹91,655 Lakhs, As of July 31, 2026) — Supports continued scale expansion compared to historical order book levels. [1]
- The company is diversifying into renewable energy infrastructure, including power evacuation for the 2,450 MW Solar Park at Pugal Bikaner (tender value ₹15,812.00 Lakhs). (₹15,812.00 Lakhs contract value, Fiscal 2026 / 2027) — Expands addressable market beyond traditional distribution lines into green energy evacuation infrastructure. [1]
- No explicit forward revenue, EBITDA, PAT, or EPS financial guidance is provided in the offer document. (Fiscal 2027 onwards) — Prohibits speculative earnings extrapolation; investors must evaluate execution of the disclosed order book without issuer-provided earnings targets. [1]
Open questions: What is the targeted execution timeline for the ₹22,533.55 Lakhs RDSS Sikar Circle feeder segregation project?; What portion of the uncompleted order book is expected to convert to revenue in Fiscal 2027 versus Fiscal 2028?
Offer & ownership
The Offer comprises a Fresh Issue of up to ₹12,900.00 Lakhs (reduced following a Pre-IPO Placement of ₹4,000.00 Lakhs) and an Offer for Sale (OFS) of up to 1,750,000 Equity Shares by Selling Shareholders. Promoters hold 76.51% of the pre-Offer equity capital.
- The company completed a Pre-IPO Placement of 2,424,242 equity shares at ₹165 per share aggregating ₹4,000.00 lakhs, reducing the Fresh Issue size to ₹12,900.00 lakhs. (₹4,000.00 Lakhs raised at ₹165/share, July 28, 2025) — Establishes pre-IPO benchmark price of ₹165 per share and determines net proceeds available for working capital deployment. [1] [2]
- The Offer for Sale consists of up to 1,750,000 Equity Shares from six selling shareholders. (17,50,000 Equity Shares, Current RHP) — Outlines secondary share sale details and confirms that OFS proceeds will not accrue to the company. [1] [2]
- Pre-issue paid-up equity share capital stands at 27,174,242 shares of ₹10 face value, with Promoters holding 76.51%. (2,71,74,242 shares (76.51% promoter shareholding), As of date of RHP) — Establishes the share count base for post-issue dilution and promoter lock-in calculations. [1] [2]
- Net proceeds of ₹9,000.00 Lakhs from the Fresh Issue are earmarked for incremental working capital in Fiscal 2027. (₹9,000.00 Lakhs, Fiscal 2027) — Directs capital infusion toward bank guarantee margin money, retention money buffer, and vendor payable management. [1] [2]
Open questions: What is the finalized price band and anchor investor allocation schedule?; What will be the final post-issue shareholding percentage of the promoter group after accounting for the Fresh Issue at the Cap Price?
Financials
Swastika Infra has demonstrated strong revenue and profit scaling, with Revenue from Operations growing at a CAGR of 55.01% from ₹20,957.53 Lakhs in FY24 to ₹50,357.32 Lakhs in FY26, and PAT growing at a CAGR of 72.13% from ₹1,398.21 Lakhs to ₹4,142.80 Lakhs. Operating cash flows remained negative in FY25 and FY26 due to substantial working capital absorption across retention money, margin money, and trade receivables.
- Revenue from Operations grew from ₹20,957.53 Lakhs in Fiscal 2024 to ₹50,357.32 Lakhs in Fiscal 2026, while Profit for the Year expanded from ₹1,398.21 Lakhs to ₹4,142.80 Lakhs. (Revenue: ₹50,357.32 Lakhs; PAT: ₹4,142.80 Lakhs, Fiscal 2026) — Demonstrates rapid top-line and bottom-line scaling driven by larger turnkey contract execution. [1] [2] [3]
- Net cash flow from operating activities was negative in Fiscal 2025 (-₹7,653.52 Lakhs) and Fiscal 2026 (-₹965.21 Lakhs). (-₹965.21 Lakhs (FY26) / -₹7,653.52 Lakhs (FY25), Fiscal 2025 - Fiscal 2026) — Highlights substantial working capital lockup in trade receivables and other financial assets (retention and margin money), requiring external financing. [1]
- EBITDA margin improved from 11.31% in Fiscal 2024 to 14.07% in Fiscal 2026, while RoNW stood at 35.44% in Fiscal 2026. (EBITDA margin 14.07%; RoNW 35.44%, Fiscal 2026) — Shows operational margin expansion and high return ratios on the restated net worth base. [1] [2]
- Off-balance sheet contingent liabilities primarily comprise outstanding Bank Guarantees of ₹27,267.93 Lakhs as of March 31, 2026. (₹27,267.93 Lakhs, As of March 31, 2026) — Reflects heavy reliance on non-fund-based credit facilities to support tender participation and contract execution. [1]
- Total assets as at 31 March 2026 were ₹41,223.93 Lakhs. (₹41,223.93 Lakhs, As at 31 March 2026) — Discloses total assets as at 31 March 2026 in the restated statement of assets and liabilities. [1]
- Total assets as at 31 March 2025 were ₹25,853.98 Lakhs. (₹25,853.98 Lakhs, As at 31 March 2025) — Discloses total assets as at 31 March 2025 in the restated statement of assets and liabilities. [1]
- Total assets as at 31 March 2024 were ₹14,325.89 Lakhs. (₹14,325.89 Lakhs, As at 31 March 2024) — Discloses total assets as at 31 March 2024 in the restated statement of assets and liabilities. [1]
- Total equity as at 31 March 2026 was ₹15,677.82 Lakhs. (₹15,677.82 Lakhs, As at 31 March 2026) — Discloses total equity as at 31 March 2026 in the restated statement of assets and liabilities. [1]
- Total equity as at 31 March 2025 was ₹7,701.73 Lakhs. (₹7,701.73 Lakhs, As at 31 March 2025) — Discloses total equity as at 31 March 2025 in the restated statement of assets and liabilities. [1]
- Total equity as at 31 March 2024 was ₹4,956.95 Lakhs. (₹4,956.95 Lakhs, As at 31 March 2024) — Discloses total equity as at 31 March 2024 in the restated statement of assets and liabilities. [1]
- Total borrowings as at 31 March 2026 were ₹11,464.01 Lakhs, comprising ₹254.76 Lakhs of non-current borrowings and ₹11,209.25 Lakhs of current borrowings. (₹11,464.01 Lakhs, As at 31 March 2026) — Reflects the sum of non-current and current borrowings as at 31 March 2026. [1] [2]
- Total borrowings as at 31 March 2025 were ₹11,101.85 Lakhs, comprising ₹22.46 Lakhs of non-current borrowings and ₹11,079.39 Lakhs of current borrowings. (₹11,101.85 Lakhs, As at 31 March 2025) — Reflects the sum of non-current and current borrowings as at 31 March 2025. [1] [2]
Open questions: What is the aging profile of trade receivables older than 180 days as of March 31, 2026?; What portion of the ₹16,002.40 Lakhs retention money is due for release within the next 12 months?
Moat & defensibility
Swastika Infra exhibits competitive advantages rooted in execution track record, pre-qualification bidding credentials for large public tenders, and relationships with multilateral and state utilities. However, switching costs are low due to competitive lowest-bid (L1) tender dynamics, and defensibility is constrained by high customer concentration and standard government contract conditions.
- Pricing power is constrained by competitive public bidding where contracts are awarded primarily to the lowest compliant bidder under standard non-negotiable terms. (Fiscal 2024 - Fiscal 2026) — Limits economic moats and pricing flexibility, leaving margins sensitive to procurement cost overruns and bidding competition. [1] [2]
Open questions: What is the company's historical tender win-rate percentage across various bidding categories over the last three fiscal years?; How easily can peers replicate joint venture structures to meet bidding criteria where Swastika acts as lead partner?
Governance
The Board comprises six directors, including three independent directors, one managing director, one whole-time director, and one non-executive director (Chairman). Key managerial remuneration was substantially revised upward effective April 1, 2025. Related-party transactions include material supplier purchases from promoter-linked entities.
- The Board consists of six directors, of which three are independent directors, satisfying statutory corporate governance requirements. (6 Directors (3 Independent, 2 Executive, 1 Non-Executive), Current RHP) — Meets regulatory standards under Companies Act, 2013 and SEBI Listing Regulations. [1]
- Related-party transactions totaled ₹1,992.25 Lakhs (3.96% of revenue from operations) in Fiscal 2026, including purchases of ₹1,186.31 Lakhs from MG Engineering Services (Prop. Sheela Gupta). (₹1,992.25 Lakhs (FY26), Fiscal 2026) — Demonstrates ongoing operational transactions with entities controlled by relatives of promoters. [1] [2]
Open questions: What specific goods and pricing benchmarks govern procurement from MG Engineering Services?; Are there any pending board approvals for further increases in executive commission or perquisites?
Risks
Key operational and financial risks include 100% order book concentration in government DISCOM projects, large top-project concentration (top 2 orders form 41.83% of order book), pending price-variation and excess material litigations with state utilities, past credit rating downgrades, and negative operating cash flows.
- 100% of the ongoing order book as on July 31, 2026 consists of projects awarded by government utilities. (100% of order book, As on July 31, 2026) — Exposes the company to policy shifts, procedural payment delays, administrative disputes, and project renegotiations by state DISCOMs. [1]
- The company's top two ongoing projects account for 41.83% (₹38,345.55 Lakhs) of the total unexecuted order book. (41.83% of uncompleted order book, As of July 31, 2026) — Execution bottlenecks or payment delays on either project would materially affect revenue recognition and profitability. [1]
- The company is engaged in material litigation with AVVNL (₹188.15 Lakhs disputed price variation) and JVVNL (₹360.47 Lakhs demand for alleged excess cable utilisation). (₹188.15 Lakhs (AVVNL) / ₹360.47 Lakhs (JVVNL), Pending as of 2026) — Threatens cash flow through potential PBG encashment or adverse recovery orders based on government audit objections. [1] [2]
- The company's credit rating was previously downgraded by CARE Ratings in Fiscal 2022 to CARE BB-; Stable, and has historically been tagged 'Issuer Not Cooperating' across agencies. (CRISIL BBB+/Stable (current) vs CARE BB-; Stable (FY22), Fiscal 2022 - Fiscal 2026) — Past credit profile volatility poses refinancing and interest rate risks if ratings deteriorate from the current CRISIL BBB+/Stable level. [1]
Open questions: What is the hearing outcome for the JVVNL stay application listed for November 16, 2026?; How will the company manage liquidity if performance bank guarantees of ₹27,267.93 Lakhs face invocation threats?
Valuation framework
The Red Herring Prospectus has not disclosed the Price Band or Offer Price, leaving relevant valuation multiples blank. Peer comparison metrics disclose Rajesh Power Services Limited trading at 10.1x P/E (FY26 RoNW 35.3%) and Vikran Engineering Limited trading at 14.6x P/E (FY26 RoNW 7.4%). Pre-IPO placement was executed at ₹165 per share.
- The Price Band, Offer Price, and issue price multiples are not disclosed in the Red Herring Prospectus. ([●], RHP stage) — Valuation metrics cannot be deterministically computed until the price band is announced via the statutory pre-bid advertisement. [1] [2]
- Pre-IPO Placement was completed at ₹165.00 per share in July 2025, raising ₹4,000.00 Lakhs. (₹165.00 per share, July 28, 2025) — Provides an immediate historical reference price for primary equity transactions preceding the public offering. [1]
- Restated basic and diluted EPS for Fiscal 2026 is ₹15.70, with a three-year weighted average EPS of ₹12.49. (EPS ₹15.70 (FY26) / Weighted Avg ₹12.49, Fiscal 2026) — Forms the historical earnings base for trailing P/E calculations once the Cap Price is finalized. [1]
- Listed industry peers include Rajesh Power Services Limited (P/E 10.1x, RoNW 35.3%) and Vikran Engineering Limited (P/E 14.6x, RoNW 7.4%). (Rajesh Power P/E 10.1x; Vikran Engineering P/E 14.6x; Industry Average P/E 12.35x, As on August 26, 2026) — Provides comparative market valuation benchmarks for listed power EPC companies in India as of August 26, 2026. [1] [2] [3]
Open questions: What will be the final Floor Price and Cap Price fixed by the company and BRLMs?; What will be the implied post-money market capitalisation and trailing P/E multiple at the Cap Price?
Litigation
- Ajmer Vidyut Vitran Nigam Limited (AVVNL): Disputed price variation contingent liability claim under ongoing litigation (₹1.88 Cr)
- Jaipur Vidyut Vitran Nigam Limited (JVVNL): Demand orders alleging excess cable utilisation with performance bank guarantee encashment risk (₹3.6 Cr)
What the filing leaves open
- This analysis is based solely on the provided Red Herring Prospectus excerpt packet and excludes external market estimates.
- The Price Band and Offer Price are not disclosed in the packet, placing the valuation module in awaiting_price_inputs status.
- No forward financial guidance (Revenue, EBITDA, PAT, EPS) was provided by the issuer, and none has been derived or extrapolated.
- Financial figures are presented on a restated standalone basis in accordance with Ind AS as disclosed in the RHP.