Trenzet Infra IPO

Strengths · 7

• 01The order book was Rs 1,566.27 crore on 30 September 2025, against Rs 852.23 crore at the end of FY2025 and Rs 505.15 crore at the end of FY2024.
• 02Revenue from operations rose from Rs 269.47 crore in FY2023 to Rs 333.41 crore in FY2025.
• 03Profit after tax rose from Rs 12.78 crore in FY2023 to Rs 26.95 crore in FY2025.
• 04Operating EBITDA margin was 10.66% in FY2025 and 12.82% on the order book disclosed for 30 September 2025.
• 05Return on equity was 35.57% and ROCE was 24.53% in FY2025. The debt to equity ratio was 0.55.
• 06Current ratio improved from 1.48 in FY2023 to 1.56 in FY2025 and 1.74 on 30 September 2025.
• 07Revenue comes from 10 states, and both promoters have more than 25 years of experience in railway bridge construction.

Risks · 10

• 01Customer concentration is high. The top 5 customers gave 89.03% of revenue and the top customer gave 26.80% in the six months to 30 September 2025.
• 02Government contracts are 67.98% of the order book as at 31 January 2026, mainly Indian Railways and public sector undertakings.
• 03Operating cash flow was negative at Rs -14.69 crore in FY2025 and Rs -0.35 crore in FY2024, while profit after tax was positive in both years.
• 04Net working capital need was Rs 87.54 crore on 30 September 2025. Borrowings were Rs 38.64 crore, compared with Rs 7.32 crore in FY2023.
• 05The company won only 3 to 7 bids a year against 21 to 37 submitted, a bid-to-win ratio of 13.64% to 33.33% by number.
• 06Sub-contractors did a large share of the work. Subcontracting expenses were 52.38% of total expenses in the six months to 30 September 2025.
• 07Revenue is concentrated in a few states. Jharkhand gave 31.77% and Karnataka 28.27% of revenue in the six months to 30 September 2025.
• 08The top 10 suppliers gave 55.90% of material costs in FY2025, and the top supplier gave 16.09%.
• 09The Offer includes an offer for sale of up to 18,00,000 shares by the two promoters. The company gets no money from these shares.
• 10Up to Rs 10.00 crore may be raised in a pre-IPO placement, and general corporate purposes can take up to 25% of gross proceeds with no specific use named.

Trenzet Infra Limited is an EPC contractor based in Vijayawada, Andhra Pradesh. It works mainly on railway projects. Its work covers bridges, earthworks, structural works, track development, and select electrification and signalling. It also does piling, tunnelling, and steel girder fabrication and launching.

The company works mostly for government bodies such as Indian Railways, public sector undertakings and the National Highways Authority of India. Private clients are limited. It executes projects under EPC and BOQ models and says it has strong expertise in BOQ-based railway bridge projects. For the six months ended 30 September 2025, BOQ contracts gave Rs 103.26 crore of revenue (68.33%) and EPC contracts gave Rs 46.59 crore (30.83%).

Revenue comes from 10 states: Jharkhand, Odisha, Karnataka, Andhra Pradesh, Telangana, West Bengal, Uttar Pradesh, Maharashtra, Chhattisgarh and Kerala. In the six months to 30 September 2025, Jharkhand gave 31.77% of revenue and Karnataka gave 28.27%. The company reports a single business segment.

The company does not own manufacturing plants. Its facilities are the registered office in Vijayawada, project site offices, guest houses, and spaces to store materials and equipment. It relies on sub-contractors for a large part of its work. Subcontracting charges were Rs 191.03 crore in FY2025, which is 62.35% of expenses.

The company was started by promoters Kishan Kumar Thotakura and Murali Mohan Cherukuri. Both have more than 25 years of experience in the infrastructure sector, mainly in railway bridge construction. They earlier ran a partnership firm, K. Venkata Raju Engineers & Contractors. The company plans to add railway electrification, signalling and geotechnical works, enter the Northeast, and buy more of its own equipment to depend less on hired machines.

The industry

The industry report is by CareEdge. It says Indian Railways is the fourth-largest railway system in the world, with 69,181 route km and 7,461 stations as of FY24. It carried 6,905 million passengers and 1,591 million tonnes of cargo in FY24, and about 7,319 million passengers and 1,617 million tonnes in FY25. Passenger travel in FY26 is expected at 7,573.6 million. The report notes metro expansion, semi-high-speed trains and station modernisation, and says Indian Railways has set large network expansion and decongestion targets for the next four to five years.

Customer concentration: Top 5 customers gave 89.03% of revenue in the six months to 30 September 2025, 69.00% in FY2025, 70.30% in FY2024 and 85.01% in FY2023.