SRM Contractors Ltd

Meeting Details

• Date and time: August 25, 2026, 12:00–13:00; Group virtual meeting.

Participants

• Management representatives from SRM Contractors Limited to participate.

Purpose

• General investor interaction with investors/analysts organized by Go India Advisor Ltd.

Rating Action

• Long-term bank facilities ₹60.90 crore reaffirmed; CARE A; Stable; enhanced from ₹20.90 crore.
• Long-term/short-term facilities ₹482.50 crore; CARE A Stable / CARE A1; reaffirmed.

Rationale & Performance

• Rationale based on FY26 audited and Q1FY27 unaudited performance; ratings reaffirmed.

Outlook

• Outlook: Stable for both rating lines.

Material Changes

• Facility enhancement to ₹60.90 crore from ₹20.90 crore; rating unchanged.

Rating Agencies

• Rating agencies: CareEdge Ratings Limited and CARE Ratings Limited.

Business overview

• SRM is a high-altitude EPC contractor focused on roads, tunnels, and slope stabilization.

Key operational highlights

• Backlog as of June 2026 stands at Rs 2,190.20 crore.
• New orders: MSIDC Nashik Rs 483 cr; NHAI landslide Rs 128 cr.
• Three new EPC contracts totaling ~Rs 500 cr, including NF Railway Dimapur-Kohima.
• Rs 210.6 cr from MSIDC for Nashik Darshan Path; Rs 60.4 cr from MORTH for landslide work.
• CARE upgraded long- and short-term ratings to CARE A; HAM expansion planned.

Financial performance

• Q1 FY27: Revenue Rs 196 cr; EBITDA Rs 39 cr; PAT Rs 20 cr; PAT margin 10%.
• FY26: Revenue Rs 1,026 cr; EBITDA Rs 177 cr; Net profit Rs 111 cr.
• YoY Q1 FY27 vs Q1 FY26: Revenue +38%, EBITDA +77%, PAT +54%.

Capital structure & liquidity

• Debt levels reduced post listing; improved capital allocation.
• CARE upgrade to CARE A on 1 July 2026.
• No major debt or equity fund-raising disclosed.

Strategic outlook & priorities

• Expand footprint into Hybrid Annuity Model (HAM) projects; PAN-India growth.
• Acquire MIPL: 51% stake to strengthen geotechnical capabilities.
• FY27 guidance: revenue Rs 1,400-1,750 cr; EBITDA 15-18%; PAT margin 9-11%.
• Order bid-pipeline for FY27: Rs 5,200 cr.

Risks & governance

• Risks include earnings volatility, project overruns, policy shifts, and talent retention.
• Mitigation: in-house capabilities, disciplined EPC execution, selective bidding.
• Strategic acquisition activity enhances governance and execution capabilities.

Governance & leadership

• Strategic acquisition of 51% stake in MIPL to expand reach.
• MD Puneet Pal Singh recognized as ET Young Industry Leader 2025.
• Awards: Rashtriya Ratna Samman 2026 for EPC excellence.

Financial results approved

• Unaudited standalone results for quarter ended 30 June 2026 approved.
• Unaudited consolidated results for quarter ended 30 June 2026 approved.

Audit and disclosures

• Audit Committee reviewed results; Board took on record.
• Independent auditor reviews issued unmodified opinions for standalone and consolidated results.

Scope and notes

• Group includes subsidiaries and a joint venture in consolidated results.
• Company operates in a single operating segment.
• Figures are in lakhs; previous periods regrouped.

Meeting Details

• Date: 13 August 2026.
• Time: Not disclosed.
• Location: Registered office, Sector 3, Near BJP Head Office, Trikuta Nagar, Jammu 180012.

Key Agenda Items

• Consider and take on record unaudited quarterly results for quarter ended June 30, 2026, with Limited Review Report.
• Any other items as may be decided by the Board.

Other Notes

• Trading window closed for insiders since July 1, 2026; reopen after 48 hours of declaration/publication of unaudited results.

Dematerialisation status

• No dematerialisation/rematerialisation requests were received during the period.
• No securities were dematerialised/rematerialised, so listing status is not applicable.
• No physical certificates were received for dematerialisation; none mutilated, cancelled, or substituted.
• No exceptions, delays, or non-compliance were reported.

Rating Action Details

• Enhancement in long-term facilities to INR 20.90 crore; rating upgraded to CARE A; Stable from CARE A-; Stable.
• Long-term/short-term facilities enhanced to INR 409.50 crore; upgraded to CARE A; Stable / CARE A1.
• Second line upgraded to CARE A; Stable / CARE A1 from CARE A-; Stable / CARE A2.
• Rationale cites FY26 audited performance and recent developments.
• Outlook remains Stable for both ratings.
• Rating upgraded from CARE A-; Stable.
• Facilities rated: INR 20.90 crore long-term; INR 409.50 crore long-term/short-term.
• Rating Agency: CARE Ratings Limited (CareEdge Ratings).
• Rating action date: 01 July 2026.