Raunaq International Limited returned to profitability in the financial year ended March 31, 2026, reporting a net profit of ₹9.15 lakh. This marks a turnaround from the previous year's performance, as the company navigated a challenging financing environment for the EPC sector. Total revenue increased by 67% to ₹3,689.37 lakh from ₹2,206.43 lakh in the prior year, driven by strategic execution in engineering contracting and alloy steel trading.

The company's operating profit margin stood at 3.01%, while the net profit margin was 0.25% for the year. To support business expansion and working capital requirements, the company availed additional borrowings, resulting in the debt-equity ratio rising to 0.61 from 0.22 in the previous year. Despite tighter banking norms affecting bank guarantees, the company secured a prestigious work order valued at ₹15.40 crore from Mahan Energen Limited for a thermal power plant project in Madhya Pradesh.

Financial Performance

The company’s financial results for the year show significant growth in top-line figures, although margins moderated due to higher operating costs associated with scaling up execution. The board of directors has not recommended any dividend for the year ended March 31, 2026, choosing instead to conserve resources for future contingencies.

Operational Highlights

During the year, the company successfully executed approximately 97% of the work associated with a previous job for Mahan Energen Limited and 70% of a project for Adani Power Limited. In addition to EPC activities, the trading business in alloy steel for auto components emerged as a growth engine, recording a revenue of ₹1,839.33 lakh. The company also secured two orders in the current financial year from Adani Cement Limited aggregating over ₹18 crore for raw water piping systems and erection works.

Corporate Governance

The statutory auditors, M/s B.R. Maheswari & Co. LLP, reported that the company has adequate internal financial controls over financial reporting which were operating effectively during the year. The company also appointed M/s Surya Gupta & Associates as secretarial auditors for the financial year 2025-26 following the vacancy of the previous office. The board has recommended the appointment of M/s Ankita S. Jain & Co. as secretarial auditors for a five-year term starting from financial year 2026-27, subject to shareholder approval.

Raunaq International Limited has secured work orders worth ₹18.10 crore from Ambuja Cements Limited for the supply, erection, testing, and commissioning of raw water pipelines and associated equipment at the ACL Maratha unit in Chandrapur, Maharashtra. The orders, received on July 07, 2026, are to be executed within ten months from the effective date of May 11, 2026, with site commencement scheduled for July 01, 2026.

The company disclosed the order details in a filing to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The aggregate order value is exclusive of taxes, and the projects are classified as domestic orders with no related party transactions involved.

Order Details

The work has been split into two specific orders. The first order, valued at ₹10.85 crore, covers the supply, erection, testing, and commissioning of the raw water pipeline. The second order, valued at ₹7.25 crore, is focused on the erection, testing, and commissioning of the pipeline and associated equipment.

Project Timeline and Terms

The execution period for both orders is ten months from the effective date of May 11, 2026. The delivery schedule indicates that site work will commence on July 01, 2026, following discussions on the terms and conditions of the purchase orders. The defect liability period is set at 12 months from the date of successful commissioning.

Payment terms for the first order include a 10% advance, 85% of the supply value paid on a pro-rata basis, and a 5% retention payment upon project completion. For the second order, the terms comprise a 10% advance, 80% of the erection value paid on a pro-rata basis, 5% against the hydro test, and a 5% retention payment upon completion. Both orders require bank guarantees for advance payment and performance security.