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.

Garuda Construction & Engineering Limited has announced its unaudited financial results for the third quarter ended December 31, 2025, showcasing exceptional operational performance across key financial metrics. The Board of Directors approved both standalone and consolidated financial results during their meeting held on February 12, 2026, in compliance with Regulation 33 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Board Meeting Outcome and Regulatory Compliance

The company's Board of Directors convened on February 12, 2026, from 9:00 AM to 9:15 AM, approving the unaudited standalone and consolidated financial results for Q3 FY26. The results were prepared in accordance with Indian Accounting Standards (Ind AS 34) and received limited review reports from statutory auditors Agarwal Tibrewal & Co.

Strong Revenue Growth in Q3 FY26

The company delivered impressive revenue performance during the quarter, with standalone revenue from operations reaching ₹14,005.41 lakhs compared to ₹6,221.71 lakhs in Q3 FY25. This represents substantial growth in the company's core construction activities.

Profitability and Operational Efficiency

The company demonstrated strong profitability metrics with net profit for Q3 FY26 reaching ₹3,297.00 lakhs, significantly higher than ₹1,286.93 lakhs recorded in the corresponding quarter of the previous year. Profit before tax stood at ₹4,369.31 lakhs compared to ₹1,719.75 lakhs in Q3 FY25.

Total expenses for the quarter amounted to ₹9,654.18 lakhs, with cost of materials consumed being the largest component at ₹5,608.85 lakhs, followed by construction expenses of ₹3,528.34 lakhs.

Nine-Month Performance Overview

For the nine-month period ended December 31, 2025, the company achieved robust financial performance across all key parameters:

Consolidated Results and Subsidiaries

The consolidated financial results include performance from three subsidiaries: PKH Projects LLP, PKH Ayodhya Private Limited, and UP World Trade Centre Private Limited. Consolidated revenue from operations for Q3 FY26 was ₹14,001.87 lakhs, with net profit after tax and non-controlling interest of ₹3,289.71 lakhs.

The subsidiaries contributed total revenues of ₹3,016.03 lakhs for the quarter and ₹10,103.45 lakhs for the nine-month period, though they recorded a net loss of ₹2.29 lakhs and ₹6.25 lakhs respectively.

Financial Position and Share Capital

The company maintains a strong financial position with paid-up equity share capital of ₹4,652.09 lakhs and face value of ₹5.00 per equity share. Reserves stood at ₹28,529.94 lakhs. Both basic and diluted earnings per share for Q3 FY26 were ₹3.54, compared to ₹1.43 in the corresponding quarter of the previous year.

The company operates primarily in the construction segment within the Indian geographical market, with results available on the company website and stock exchange platforms BSE and NSE.