SRM Contractors FY26 net profit rises 102% to ₹111 crore

SRM Contractors has reported a 102% year-on-year increase in consolidated net profit to ₹111 crore for the financial year ended March 31, 2026, compared to ₹55 crore in the previous year. Revenue from operations surged 94% to ₹1,026 crore from ₹528 crore in FY25, reflecting robust business momentum and improved execution. EBITDA for the year stood at ₹177 crore, with an EBITDA margin of 17.3%, up from 18.1% in the prior year. The company’s order book as of the date of the earnings call totals approximately ₹3,000 crore, providing strong revenue visibility. The company submitted an intimation to the BSE Limited and The National Stock Exchange of India Limited regarding the newspaper publication of its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, pursuant to Regulations 30 and 47 read with Schedule II of SEBI (Listing Obligations and Disclosures Requirements Regulations), 2015. Additionally, the company submitted the audio recording of its earnings conference call for Q4 and FY26, held on May 27, 2026, to the exchanges.

Q4 and FY26 Financial Performance

For the quarter ended March 31, 2026 (Q4FY26), the company reported a net profit of ₹54 crore, a 125% increase from ₹24 crore in Q4FY25. Revenue for the quarter rose 96% to ₹446 crore from ₹228 crore in the same period last year. EBITDA increased 96% to ₹80 crore, resulting in an EBITDA margin of 17.9%.

The following table summarises SRM Contractors' key financial metrics for FY26 and Q4FY26:

Metric (₹ in crore)	FY26	FY25	YoY %	Q4FY26	Q4FY25	YoY %
Revenue	1,026	528	94%	446	228	96%
EBITDA	177	95	86%	80	41	96%
Net Profit	111	55	102%	54	24	125%
EBITDA Margin	17.3%	18.1%	-4%	17.9%	17.9%	0%

Strategic Acquisition and Business Updates

During the year, SRM Contractors secured a 51% stake in Maccaferri Infrastructure Pvt. Ltd. (MIPL), a wholly owned subsidiary of an Italian multinational brand. This strategic acquisition is expected to expand the company’s footprint PAN-India and abroad, reinforcing its presence in geotechnical and stabilization solutions. The company incurred capital expenditure of ₹152 crore in FY26.

The members of the company, at the 17th Annual General Meeting, approved the appointment of Mr. Sanjay Mehta as Group Chairman and Non-Executive Director, and Mr. Puneet Pal Singh as Managing Director. Mr. Mehta will focus on driving international business expansion, while Mr. Singh will oversee project execution.

Outlook and Guidance

Looking ahead to FY27, SRM Contractors provided revenue guidance of ₹1,400-1,750 crore, with an EBITDA margin guidance of 16-18%+. The company’s order bid pipeline for FY27 stands at ₹6,000 crore. Management intends to expand its footprint into Hybrid Annuity Model (HAM) projects and further diversify its presence across India's markets. The company has also advanced the establishment of its Abu Dhabi branch office in the United Arab Emirates to serve as a gateway to opportunities across GCC and select African markets.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.82%	+1.27%	+2.79%	-12.61%	+11.66%	+118.50%

SRM Contractors Limited has successfully utilized the entire proceeds of its Initial Public Offer (IPO), aggregating to Rs. 130.20 crore, as of March 31, 2026. The Monitoring Agency Report submitted by CARE Ratings Limited confirms that the deployment of funds aligns with the objects specified in the offer document, marking the conclusion of the monitoring period for the IPO proceeds.

The company had raised capital through an IPO conducted between March 26, 2024, and March 28, 2024. The funds were originally allocated across various heads, including capital expenditure for equipment, working capital requirements, repayment of borrowings, and general corporate purposes. Following shareholder approval obtained during the Annual General Meeting on September 29, 2025, the company revised the cost of objects and reallocated a portion of the proceeds from capital expenditure to investments in joint ventures, associates, and subsidiaries.

Utilization of Proceeds

During the quarter ended March 31, 2026 (Q4FY26), the company utilized the remaining balance of funds. A significant portion of the general corporate purpose allocation was directed towards an investment in a Joint Venture project known as the SRM Rajinder Project, based on a board resolution passed on March 2, 2026. The final deployment ensured that the total unutilized amount stood at zero by the end of the quarter.

The following table details the utilization of the IPO proceeds across various object heads:

Item Head	Original Cost (Rs. Crore)	Revised Cost (Rs. Crore)	Amount Utilised (Rs. Crore)
Issue related expenses	6.82	6.82	6.82
Capital expenditure for equipment	31.50	18.49	18.49
Repayment of secured borrowings	10.00	10.00	10.00
Working Capital requirement	46.00	46.00	46.00
Investments in JVs/Associates/Subsidiaries	12.00	25.01	25.01
General corporate purposes	23.88	23.88	23.88
Total	130.20	130.20	130.20

Implementation Status

The Monitoring Agency reported that there were no major deviations from the objects of the issue, nor were there any unfavorable events affecting the viability of the projects. All statutory approvals required for the objects were either obtained or deemed not necessary. The implementation of the objects, such as the purchase of machinery and funding working capital, was completed within the stipulated timelines, with some activities finishing ahead of schedule in earlier quarters.

The Audit Committee of SRM Contractors Limited reviewed the Monitoring Agency Report at its meeting held on May 14, 2026. The company has confirmed that the report is available on its official website.