Markolines Pavement Technologies Ltd

Business Overview

• Specialist highway maintenance and construction firm; end-to-end O&M lifecycle platform.
• Expanding into marine and sports infra post-merger.

Key Operational Highlights

• Q1 FY27 revenue Rs 75.86 Cr; YoY +4.33%.
• EBITDA Rs 9.44 Cr; margin 12.10%.
• PAT Rs 4.36 Cr; margin 5.75%.
• Outstanding orders book Rs 550+ Cr as on 30-Jun-2026.
• Highway MMR order book Rs 105.69 Cr; Specialized Maint Rs 64.31 Cr; Specialized Construction Rs 380.17 Cr.
• MIL merger with MPTL approved; 1:1.05 share exchange.
• Unexecuted order book ~Rs 550 Cr; bidding pipeline ~Rs 2,000 Cr.

Financial Performance

• FY26 consolidated revenue Rs 348.49 Cr; EBITDA Rs 48.54 Cr; PAT Rs 26.23 Cr.
• FY26 EBITDA Margin 13.93%; PAT Margin 7.53%.
• Q1 FY27: revenue Rs 75.86 Cr; EBITDA Rs 9.44 Cr; PAT Rs 4.36 Cr; margins 12.10% / 5.75%.

Capital Structure & Liquidity

• Promoter holding 55% as on 30-Jun-2026.
• Short-term borrowings Rs 76.09 Cr; long-term borrowings Rs 10.06 Cr.
• Cash & equivalents Rs 1.83 Cr.

Strategic Priorities & Outlook

• Merger creates unified highway lifecycle O&M platform; cost synergies.
• Target Rs 1,000 Cr revenue and Rs 2,000 Cr bidding pipeline.
• Expand into marine and other infra segments; sustain lifecycle cost optimization.
• Pan-India presence; technology-driven maintenance; strong client network.

Risks & Mitigation

• Risks: project delays and policy shifts; mitigated by diversified orders and pipeline.
• Merger integration risks; mitigated by consolidation and unified platform.

Governance & Leadership

• Board approved merger; SEBI clearance obtained; 1:1.05 share exchange.
• Founder & CMD: Sanjay Patil; Co-Founder & CFO: Vijay Oswal.

Overview

• Proposed amalgamation between transferor and transferee entities to consolidate assets and liabilities.

Purpose & Rationale

• Consolidation through restructuring to streamline asset and liability transfer.

Key Terms & Structure

• Transaction type: amalgamation of the transferor into the transferee.
• NCLT sanction required; regulatory clearances to file with the tribunal.
• Stock exchanges issued No Objection to filing with NCLT.
• Creditor consent may be required where applicable.
• Listing to be completed within 60 days of NCLT order.

Financial Impact

• Assets and liabilities from transferor will transfer to transferee.
• Post-merger balance sheet will reflect the combined entity.
• Shareholding/capital structure details to be disclosed in scheme materials.

Stakeholders

• Shareholders and creditors will be impacted by asset/liability transfer.
• Public disclosures and creditor approvals required as part of approval process.

Status & Next Steps

• Observation letters indicate no adverse observations, enabling NCLT filing.
• Observation letters valid for six months; scheme to be filed within period.
• Next steps: file with NCLT and pursue listing within 60 days of order.

Financial highlights

• Q1FY27 revenue from operations Rs 75.86 crore, up 4.33% YoY.
• EBITDA Rs 9.18 crore, up 8.68% YoY.
• PBT Rs 5.57 crore, up 5.02% YoY.
• PAT Rs 4.36 crore, up 15.06% YoY.
• EBITDA margin expanded 49 bps YoY.
• Unexecuted order book remains robust at Rs 550+ crore as of 30 June 2026.

Strategic and governance developments

• Amalgamation of Markolines Infra Limited progressing; scheme submitted to stock exchanges.
• Sobhagya Capital Options appointed as Merchant Banker.
• NSE and BSE approved listing and trading of 1,62,800 equity shares on warrant conversion.

Outlook and expansion

• Entry into Marine Infrastructure Construction & Maintenance segment being pursued.
• Exploring jetty construction and repair/maintenance opportunities for marine facilities.
• Project pipeline remains robust; technology-led solutions like Micro Surfacing, CIPR and FDR support growth.
• FY27 opening shows positive momentum in revenue and profitability.

Re-appointment of Anjali Vikas Sapkal (Non-Executive Independent Director)

• Re-appointment for five years from 17 August 2026, subject to member approval.
• Profile: 26+ years across government, logistics, manufacturing; QMS Lead Auditor.
• Not related to any Directors or KMP; not debarred by SEBI.

Appointment of Rahul Ramkrishna Modak (Independent Director) - Additional

• Appointed as Non-Executive Independent Director (Additional) with effect 14 August 2026.
• Term of five years, subject to member approval.
• Profile: 30+ years across Tata International, Bajaj Auto Finance, L&T Finance.
• Not related to any Directors or KMP; not debarred by SEBI.

Board actions

• Board approved unaudited standalone and consolidated results for quarter ended 30 June 2026, with a limited review report.
• Re-appointment of Anjali Sapkal as Non-Executive Independent Director for five years from 17 August 2026, subject to approval.
• Appointment of Rahul Ramkrishna Modak as Non-Executive Independent Director from 14 August 2026, subject to approval.
• Trading window closed for 48 hours from results publication.

JV disclosures

• Uniqueuhpc Markolines LLP revenue 323.41 lakhs; PAT -100.98.
• Markolines Evrascon JV revenue 1426.63 lakhs; PAT 101.93.

Meeting Details

• Date of meeting: Friday, 14 August 2026.
• Venue: Registered office, 502, Wing A, Shree Nand Dham, Sector 11, CBD Belapur, Navi Mumbai.
• Time: Not disclosed.

Key Agenda Items

• Consider and approve unaudited financial results for quarter ended 30 June 2026 and Limited Review Report.
• Any other matter with the chair's permission.

Other Notes

• Trading window closed for 48 hours post-meeting and results release.

Resignation details

• Name and designation: Akash Manohar Phatak, Independent Director.
• Type of directorship: Independent Director.
• Resignation effective from close of business on August 1, 2026.
• Reason for resignation: due to other commitments.
• Confirmed there are no other material reasons beyond the stated reason.
• Resigns from all Board committees.
• No other listed entities with directorships or committee roles disclosed.
• No regulatory or shareholder approval requirement mentioned.
• No information on immediate replacements or composition changes provided.

Listing approval

• NSE and BSE approved listing and trading for 1,62,800 equity shares.
• Listing effective on 20 July 2026.

Preferential issue and lock-in

• 22,800 shares issued on conversion of warrants; lock-in to 20-Jan-2027.
• 140,000 shares issued on conversion of warrants; lock-in to 20-Jan-2027.
• Issue price includes Rs 155 premium per share.

Demat status and rematerialisation

• RTA confirms Regulation 74(5) not applicable as all shares are in demat form.
• RTA has not received any rematerialisation requests during the quarter.

Strategic expansion into marine infrastructure

• Intends to explore opportunities in marine infrastructure construction and maintenance.
• Areas include jetty construction/repair, jetty revamping, and marine fire protection systems.
• Will participate in bids and projects as part of growth strategy.
• Disclosures will follow upon securing material orders or business developments.