Garuda Construction & Engineering Limited has announced the resignation of Independent Director Mr. Krishnakumar Laxman Bangera, effective 01st April, 2026. The company informed BSE Limited and National Stock Exchange of India Limited about this development pursuant to Regulation 30 of SEBI Listing Regulations.

Director Resignation Details

Mr. Krishnakumar Laxman Bangera (DIN: 02082675) submitted his resignation letter dated 01st April, 2026, stepping down from his position as Independent Director and from various committees of the company. The resignation became effective from 01st April, 2026.

Reason for Resignation

According to the resignation letter, Mr. Bangera cited pre-occupation with other professional assignments and inability to devote adequate time for attending company meetings as the primary reason for his decision. The company has confirmed that there are no other material reasons for the resignation beyond those mentioned in the resignation letter.

Other Directorships

The disclosure reveals that Mr. Bangera also holds directorship in other listed entities. He serves as Non-Executive Independent Director at Electro Force (India) Limited, where he is a member of multiple committees including Audit Committee, Corporate Social Responsibility Committee, Nomination and Remuneration Committee, and Stakeholder Relationship Committee.

Board Meeting Information

The Board of Directors meeting to address this matter commenced at 06:30 PM and concluded at 07:30 PM. The announcement was signed by Pravin Kumar Brijendra Kumar Agarwal, Managing Director and Chairman (DIN: 00845482), on behalf of the company.

Regulatory Compliance

The company has provided all required information under Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The resignation letter and detailed annexures have been submitted to ensure full regulatory compliance and transparency with stakeholders.

Garuda Construction & Engineering Limited has received credit ratings of IVR BBB+/Stable and IVR A2 from Infomerics Valuation and Rating Private Limited for its bank facilities worth Rs. 75.00 crore. The rating assignment was communicated to stock exchanges on April 1, 2026, in compliance with SEBI listing regulations.

Credit Rating Details

The rating agency assigned the following ratings to the company's banking facilities:

Strong Financial Performance and Order Book

The ratings derive strength from the company's robust order book and healthy financial metrics. As of December 31, 2025, Garuda Construction maintains a strong and diversified order book of Rs. 4,336.72 crore, which represents 19.27 times its total operating revenue for FY25. Out of this total order book, Rs. 2,452.11 crore is expected to be completed by FY28, providing significant revenue visibility for the medium term.

The company's financial performance showed steady growth with total operating income increasing to Rs. 225.03 crore in FY25 from Rs. 154.18 crore in FY24. Key financial metrics demonstrate the company's operational efficiency:

Robust Capital Structure

The company maintains a virtually debt-free balance sheet with total debt of only Rs. 0.11 crore as on March 31, 2025, resulting in an overall gearing ratio of 0.00. During FY25, Garuda Construction strengthened its financial position through an equity raise of Rs. 173.85 crore via an initial public offering. The proceeds were utilized for working capital requirements across ongoing projects, completely eliminating reliance on external borrowings from October 2024 to August 2025.

Rating Strengths and Challenges

The rating agency highlighted several key strengths supporting the credit assessment:

• Strong and diversified order book providing medium-term revenue visibility
• Healthy EBITDA margins expected to remain in the 27%-30% range
• Negligible debt levels and robust capital structure
• Established track record with over 14 years of execution experience
• Experienced promoter leadership under Managing Director Pravinkumar Brijendra Kumar Agarwal

However, the ratings also face certain constraints including potential project delays due to statutory clearance issues, with projects worth Rs. 1,537.00 crore yet to commence due to pending approvals. The company's operating cycle has lengthened from 107 days in FY24 to 204 days in FY25, primarily due to higher debtor days.

Business Operations and Outlook

Incorporated in 2010, Garuda Construction provides end-to-end EPC solutions covering design, engineering, construction, MEP, finishing, and operations & maintenance services. The company has experience executing residential, hospitality, and commercial construction projects across multiple regions including Mumbai Metropolitan Region, Karnataka, and Tamil Nadu.

The stable outlook reflects the company's strong order book position and expectation to sustain EBITDA margins above 25% over the medium term while maintaining negligible debt levels. The rating agency expects the company to fund incremental working capital requirements primarily through internal cash accruals, preserving its strong financial risk profile.