Annu Projects IPO

Strengths · 8

• 01FY2026 was a strong year. Total income grew 34% from Rs 182.35 crore to Rs 244.59 crore and profit after tax grew 56% from Rs 21.10 crore to Rs 33.03 crore.
• 02Growth has been consistent. Income rose every year from Rs 155.42 crore in FY2024, and profit from Rs 17.39 crore over the same period.
• 03The order book is large compared to yearly sales. It had 23 ongoing projects worth about Rs 1,959.35 crore as on 30 June 2026, against total income of Rs 244.59 crore in FY2026.
• 04Return ratios are good, with RoCE of 20.59% and RoNW of 17.29%.
• 05The work is spread over three different verticals, telecom, sewerage and gas pipelines, plus one railway signalling project, so it is not dependent on one type of work.
• 06Its customers are large and established, including BSNL, Bharat Broadband Network, GAIL India, Indraprastha Gas, Gujarat Gas and G R Infraprojects.
• 07At the upper band of Rs 99 the P/E is about 19.64 times on an EPS of Rs 5.04, which is moderate for the growth shown.
• 08Net worth more than doubled in two years, from Rs 68.93 crore in FY2024 to Rs 155.26 crore in FY2026.

Risks · 8

• 01Borrowing rose sharply, more than doubling from Rs 22.27 crore in FY2025 to Rs 52.54 crore in FY2026.
• 02The FY2026 figures are on a standalone basis while the earlier years are consolidated, as noted on the offer document, so the three years are not strictly comparable.
• 03Most of the fresh money, Rs 115 crore out of an issue of Rs 175.06 crore, goes into working capital. EPC work blocks a lot of money in unbilled work and retention money.
• 04Most customers are government bodies and public sector companies, where payments are often slow and are decided by budget cycles.
• 05This is a tender driven business. Work has to be won afresh each time on price, so a full order book today does not guarantee the same margin tomorrow.
• 06The order book leans heavily on sewerage work, 14 of the 23 ongoing projects, so it depends on government spending on urban water and sanitation continuing.
• 07EPC contracts carry execution risk. Delays, land or permission problems and cost overruns are common and can turn a profitable contract into a loss.
• 08Promoter holding will come down from 89.11% to 65.05% after the issue.

Annu Projects Limited is an engineering, procurement and construction company, usually called an EPC company. It designs, builds, runs and maintains the utility infrastructure that goes overhead and underground, and works in three main areas.

In telecom infrastructure it surveys, designs and installs cabling and tower infrastructure for communication, automation and electronic security systems. Its customers here include Bharat Sanchar Nigam Limited, A2Z Infra Engineering, Bharat Broadband Network Limited and G R Infraprojects. In sewerage infrastructure it lays pipes and builds manholes, sewerage treatment plants, pumping stations and related structures. In gas pipelines it lays MDPE pipe from 20 mm to 125 mm in diameter and has done 38,300 GI house connections for domestic and commercial gas supply, for customers such as Indraprastha Gas, Gujarat Gas and GAIL India.

As on 30 June 2026 the company had 23 ongoing projects worth about Rs 1,959.35 crore. These were made up of 4 telecom infrastructure projects, 14 sewerage projects, 4 gas pipeline projects and 1 railway signalling project.

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