RKCPL IPO

Strengths · 6

• 01EBITDA margin rose from 15.46% in FY2023 to 21.56% in FY2025, while PAT margin went from 11.20% to 12.95%.
• 02Return on equity was 28.92% and return on capital employed 25.13% in FY2025, and the document says these were the second highest among its listed peers.
• 03The order book was Rs 2,617.51 crore on 31 July 2025 across 17 projects, and all contracts come from government authorities.
• 04Net worth grew from Rs 245.87 crore in FY2023 to Rs 569.05 crore in FY2025, and profit after tax rose from Rs 96.52 crore to Rs 164.58 crore.
• 05The company owns a fleet of 730 construction equipment and vehicles, which reduces its need to hire for each project.
• 06Work is spread over eight states, with no state above 26.76% of the order book.

Risks · 10

• 01The single largest customer gave 73.65% of construction revenue in FY2025, the top five gave 99.63% and the top ten gave 100%.
• 02Operating cash flow was negative Rs 400.16 crore in FY2025, against positive Rs 82.04 crore in FY2024, as money got locked in ongoing projects.
• 03Total borrowings rose from Rs 116.21 crore in FY2024 to Rs 509.26 crore in FY2025, and net debt to EBITDA moved from negative 0.21 times to 1.66 times.
• 04Net working capital days went up from 11 in FY2024 to 40 in FY2025.
• 05Order book fell from Rs 3,345.47 crore in FY2024 to Rs 2,966.60 crore in FY2025, and book to bill ratio fell from 3.06 times to 2.33 times.
• 06Rs 550 crore of the Rs 1,250 crore offer is an offer for sale by two promoters, so that money does not go to the company.
• 07General corporate purposes amount is not fixed yet and can be up to 25% of gross proceeds.
• 08Contingent liabilities were Rs 342.46 crore on 31 March 2025, mostly bank guarantees and surety bonds against performance obligations.
• 09Attrition of permanent employees was 26.51% in the latest period, with 549 employees leaving.
• 10Nine tax proceedings are pending against the company, and seven of them are reopened assessments under section 148 of the Income Tax Act.

RKCPL Limited, earlier called Ram Kumar Contractor Private Limited, was incorporated on 7 June 2013 and is based in Panchkula, Haryana. It is a civil construction and infrastructure company that does specialised structural work across India. The work includes elevated roads, flyovers, bridges, road over bridges, highways, expressways, drainage systems and canal systems.

The business has two parts. The first is EPC (engineering, procurement and construction) contracts, where the company is paid by the authority to build. The second is hybrid annuity model (HAM) road projects, which the company holds through three subsidiaries: Bathinda Ludhiana Highway Private Limited, Poanta Saheb Highway Private Limited and Ambala Ring Road Highway Private Limited.

All its customers are government bodies, such as central and state governments, governmental organisations and public sector undertakings. As on 31 July 2025 the order book was Rs 2,617.51 crore across 17 projects. Ten are road, highway and bridge EPC contracts worth Rs 1,924.70 crore, four are railway contracts worth Rs 198.41 crore and three are HAM projects worth Rs 494.40 crore. The company says it has completed more than 80 projects.

The company was executing projects in eight states on 31 July 2025. Punjab made up 26.76% of the order book, Telangana 25.68% and Odisha 14.59%. It owns a fleet of 730 construction equipment and vehicles, and also hires equipment when a project needs it. It had 1,655 permanent employees on 31 July 2025. The promoters are Ram Kumar Goyal, Naresh Kumar and Krishan Kumar Goyal.

The industry

As per the CRISIL report quoted in the document, the construction industry in India is expected to grow at 6-8% a year between FY2026 and FY2030. The growth is driven by road and railway spending by the central and state governments. Union Budget 2025-26 sets a capital expenditure outlay of Rs 11.21 lakh crore, up 10% on the previous year, and Rs 3.02 lakh crore for the Ministry of Railways against Rs 2.52 lakh crore in 2024-25.

Customer concentration: The top customer gave 73.65% of construction revenue in FY2025 (86.93% in FY2024), and the top five gave 99.63% (98.04% in FY2024).