Dhariwal Buildtech IPO

Strengths · 6

• 01Revenue from operations grew from Rs 618.51 crore in FY2023 to Rs 1,152.98 crore in FY2025, a CAGR of 36.53% as stated in the document.
• 02Profit after tax rose from Rs 64.39 crore in FY2023 to Rs 110.15 crore in FY2024 and Rs 160.59 crore in FY2025.
• 03The order book was Rs 4,767.00 crore on 31 March 2025, which is 4.13 times FY2025 revenue (book-to-bill ratio).
• 04Net worth grew from Rs 137.60 crore on 31 March 2023 to Rs 416.52 crore on 31 March 2025.
• 05The company owns more than 1,307 major construction machines with a net block value of Rs 120.27 crore, so it does not depend only on leased equipment.
• 06It has completed over 29 projects across 8 states since 2017 and now works in 13 states.

Risks · 9

• 01Net cash from operations was negative at Rs 301.84 crore in FY2025, against a positive Rs 31.11 crore in FY2024, even as profit rose.
• 02Government-owned entities account for 98.89% of the Rs 4,767.00 crore order book, so budgets and policy shifts matter a lot.
• 03Bihar gave 50.06% of FY2025 revenue, up from 24.23% in FY2023, and Assam fell from 50.89% to 8.76% in one year.
• 04Total borrowings rose from Rs 75.68 crore in March 2023 to Rs 484.09 crore in March 2025, and finance costs were Rs 39.80 crore in FY2025.
• 0598.86% of FY2025 revenue came from competitive bidding, so the company must keep winning new contracts.
• 06The company began HAM projects in 2023, has 5 ongoing and has completed none, while HAM is 34.54% of the order book.
• 07Rs 300.00 crore of the issue goes to repay debt at subsidiaries and Rs 174.23 crore to repay the company's own debt. The general corporate purposes amount is not yet fixed.
• 08Trade receivables were Rs 76.30 crore on 31 March 2025, and the company has faced negative operating cash flow before.
• 09The company and some directors received two RoC show cause notices in September 2025 over share allotment filings in 2017, with penalties totalling Rs 0.026 crore.

Dhariwal Buildtech Limited builds roads, highways, bridges, railway over bridges and tunnels on an engineering, procurement and construction (EPC) basis. It also builds roads under the hybrid annuity model (HAM). Its customers are government bodies such as the BRO, state highway departments, PMGSY and municipal corporations. The company is based in Hisar, Haryana.

The company was incorporated in 2016 as SKC Infra Projects Limited. It took the name Dhariwal Buildtech Limited in 2018. It started business in 2017. By 31 March 2025 it had completed over 29 projects across 8 states, with a combined contract value of around Rs 2,117.62 crore. It works in 13 states today.

The order book stood at Rs 4,767.00 crore on 31 March 2025, against Rs 2,487.95 crore a year earlier. Government-owned entities account for 98.89% of it. The HAM order book rose from Rs 944.62 crore in FY2023 to Rs 1,646.71 crore in FY2025. The company began HAM projects in 2023 and has not yet completed one.

The company owns more than 1,307 major construction machines, such as loaders, pavers and excavators. Their net block value was Rs 120.27 crore on 31 March 2025. It leases more equipment project by project. Bihar gave 50.06% of FY2025 revenue, followed by Madhya Pradesh at 22.15% and Mizoram at 12.42%.

The promoters are Chet Ram Dhariwal, Aditya Dhariwal, Chet Ram Dhariwal HUF, Saroj Dhariwal, Navita, Deepak Dhariwal and Mohinder Singh Dhariwal. Chet Ram Dhariwal is the Chairman and Managing Director. The company also says it plans to move into airport runway construction.

The industry

The CRISIL report in the document says the share of four-lane and wider highways in national highway construction rose from 28% in FY2019 to 44% in FY2025, while the share of two-lane highways fell from 56% to 36%. The government planned Rs 111 trillion of investment under the National Infrastructure Pipeline for FY2020 to FY2025. The construction industry is expected to grow 6-8% a year between FY2026 and FY2030. The company describes itself, citing CRISIL, as one of the fastest growing road construction companies, with a revenue CAGR of 36.53% between FY2023 and FY2025.

Customer concentration: Government-owned entities and departments make up 98.89% of the order book on 31 March 2025. Bihar gave 50.06% of FY2025 revenue.