Shreejikrupa Project IPO

Strengths · 8

• 01Revenue from operations grew 62.52% in FY2026 to Rs 1,385.68 crore, after 57.12% growth in FY2025, from Rs 542.67 crore in FY2024.
• 02Profit after tax rose from Rs 39.42 crore in FY2024 to Rs 66.47 crore in FY2025 and Rs 79.34 crore in FY2026.
• 03The order book stood at Rs 3,690.47 crore as on 30 June 2026 against Rs 2,294.91 crore at the end of FY2024, which is 2.66 times FY2026 revenue from operations.
• 04New orders of Rs 2,195.16 crore were added in FY2026, against Rs 1,483.66 crore in FY2025.
• 05Return on net worth was 30.55% in FY2026 and return on capital employed 21.66%, on a net worth of Rs 299.23 crore.
• 06Customer concentration has eased as the book has grown: the top 5 customers were 44.99% of revenue from operations in FY2026 against 56.92% in FY2024, and the top 10 were 66.24% against 78.45%.
• 07Work is spread wider than before, with 101 ongoing projects across 11 states and 2 union territories as on 30 June 2026, and the three core states down to 67.62% of FY2026 revenue from 95.98% in FY2024.
• 08The restated consolidated financial information carries no auditor qualifications or reservations.

Risks · 10

• 01Cash is going the other way from profit. Operating activities used Rs 94.69 crore of cash in FY2026 and Rs 12.06 crore in FY2025, while profit after tax was Rs 79.34 crore in FY2026.
• 02Borrowings jumped to Rs 259.70 crore in FY2026 from Rs 76.22 crore in FY2025, against a net worth of Rs 299.23 crore, and net debt was 1.62 times EBITDA.
• 03Working capital days stretched to 100 in FY2026 from 63 in FY2025 and 48 in FY2024, which is why Rs 250.00 crore of the fresh money goes into working capital.
• 04Margins are slipping as the business grows. EBITDA margin fell to 8.91% in FY2026 from 10.54% in FY2025, and PAT margin to 5.73% from 7.80%.
• 05Almost all the work comes from one type of customer. Government and public sector customers gave Rs 1,241.82 crore, or 89.62% of FY2026 revenue from operations, and 84.44% of the order book.
• 06Two segments carry the business: academic and healthcare infrastructure plus residential and office buildings were 85.56% of FY2026 revenue from operations.
• 07Geography is still concentrated, with Gujarat, Odisha and Chhattisgarh together 67.62% of FY2026 revenue from operations.
• 08Certain corporate records of the company are untraceable, there have been delays and failures in filings under the Companies Act, and 3 suo motu applications have been made to the RoC for compounding of past non-compliances.
• 09Bank guarantees furnished under project contracts were Rs 170.50 crore as at 31 March 2026, against Rs 116.29 crore as at 31 March 2024, and their invocation would hit cash flow.
• 10The whole offer for sale of Rs 90.00 crore is promoters and the promoter group selling, at a weighted average cost of acquisition between nil and Rs 1.40 per share after the 150 for 1 bonus issue.

Shreejikrupa Project Limited is an infrastructure development company. It takes construction contracts across academic and healthcare infrastructure, residential and office buildings, infrastructure works, and other specialised work such as auditoriums, convention centres, a sports stadium, visitor amenities, electrification and ancillary building works. The registered office is in Rajkot and the corporate office in Ahmedabad, both in Gujarat.

The customer is almost always the government. Revenue from central and state government bodies, government related entities such as public works departments, municipal corporations and public sector undertakings was Rs 1,241.82 crore in FY2026, which is 89.62% of revenue from operations, against 89.80% in FY2025 and 98.05% in FY2024. As at 30 June 2026, government projects were Rs 3,125.03 crore of the order book, or 84.44% of it.

The work mix has moved towards buildings. Academic and healthcare infrastructure gave Rs 797.87 crore, or 57.58% of revenue from operations in FY2026, and residential and office buildings gave Rs 387.71 crore, or 27.98%. Together these two were 85.56% of revenue in FY2026 against 77.50% in FY2024. The older infrastructure works segment shrank to Rs 67.52 crore, or 4.87% of revenue, while other specialised work rose to Rs 120.38 crore. The company reports a single business segment.

As on 30 June 2026 it had 101 ongoing projects at different stages across 11 states and 2 union territories, of which 44 are in Gujarat, 25 in Chhattisgarh, 12 in Odisha, 6 in Maharashtra, 4 in Madhya Pradesh, 2 each in Andhra Pradesh and Assam, and 1 each in Bihar, Delhi, Jammu and Kashmir, Jharkhand, Rajasthan and Uttar Pradesh. The order book was Rs 3,690.47 crore as on 30 June 2026, up from Rs 2,294.91 crore at the end of FY2024, and new orders of Rs 2,195.16 crore were added in FY2026. Most work is won through competitive bidding: the company was awarded 44 projects in FY2026, which was 24.18% of the bids it made. Employee count was 611 at the end of FY2026 against 415 at the end of FY2024.

The promoters are Karsan Bachu Varsani, who is Chairman and Managing Director with around 26 years in construction, Sanjay Kumar Varsani, Kevin Karsan Varsani, Smit Kumanbhai Varsani, Kumanlal Bachubhai Varsani and Girishbhai Bachubhai Varsani. It is a family-run business: the promoters hold 83.66% before the issue and the promoter group holds the remaining 16.34%, so there is no outside shareholder on the register as on the date of the draft red herring prospectus. The company carried out a 150 for 1 bonus issue in November 2025 and split its shares from a face value of Rs 10 each to Rs 5 each.

The industry

The CARE report cited in the document says Gujarat, Chhattisgarh, Odisha, Maharashtra, Rajasthan, Madhya Pradesh, Andhra Pradesh, Assam, Bihar, Jammu and Kashmir and Jharkhand have become key centres of building and construction activity, which are the states the company works in. On construction capital expenditure in FY2026, the report puts Maharashtra first at Rs 1,702.00 billion, driven by urban development, transport and industrial projects, followed by Madhya Pradesh at Rs 1,433.00 billion on roads, housing and logistics, Gujarat at Rs 1,212.00 billion on industrial and port-led growth, and Odisha at Rs 927.00 billion on public sector infrastructure in energy and mining.

Customer concentration: The top 5 customers gave Rs 623.37 crore, or 44.99% of revenue from operations in FY2026, against 50.00% in FY2025 and 56.92% in FY2024. The top 10 customers were Rs 917.82 crore, or 66.24% of FY2026 revenue, against 78.45% in FY2024.