Steamhouse has received a confirmed work order valued at Rs 311.0 crore from Himachal Pradesh Bulk Drug Park Infrastructure Limited. The contract covers Engineering, Procurement and Construction (EPC), commissioning, and comprehensive Operation & Maintenance (O&M) of Common Steam Plant and Co-generation Power Plant at Bulk Drug Park, Una, Himachal Pradesh.

The order structure comprises a 24-month EPC phase followed by a 25-year O&M period. This is a Type A confirmed order, meaning the value is firm and executable. The disclosure was made to the exchange on 24 Sep 2026.

Order In Financial Context

The Rs 311.0 crore order value represents approximately 62.8% of Steamhouse's FY26 consolidated revenue of Rs 495.00 crore. Since no previous order disclosures were found in the last 3 fiscal quarters, the Total Disclosed Order Book is effectively Rs 311.0 crore (sum of the 1 order disclosed across the last 3 fiscal quarters shown in the table below). Consequently, the book-to-bill ratio is 0.63x based on TTM revenue. The backlog coverage is estimated at 2.5 quarters, assuming linear revenue recognition over the 24-month EPC period.

Company Order Track Record

No previous order disclosures were found for this company in the last 3 fiscal quarters. As such, quarterly order inflow data is unavailable for comparison.

Execution And Revenue Quality

The company reported consolidated revenue of Rs 495.00 crore and net profit of Rs 38.60 crore in FY26, with an Operating Profit Margin (OPM) of 16.99%. Quarterly breakdowns for the last three quarters are not provided in the input data, preventing a granular analysis of recent execution velocity or margin trends within the fiscal year.

Revenue Growth - Order Wins Translating To Revenue

As Steamhouse has sustained order wins, with limited visibility into prior quarter inflows due to lack of disclosure history, its annual revenue has grown from Rs 398.50 crore in FY25 to Rs 495.00 crore in FY26, representing a YoY growth of +24.2% based on the latest annual data. Net profit also increased by +23.7% YoY during the same period.

Working Capital And Execution Capacity

The company's balance sheet indicates potential constraints on execution capacity. The current ratio stands at 0.36x, significantly below the healthy threshold of 1.2x, suggesting limited short-term liquidity to fund immediate working capital needs. Total Liabilities/Equity is 2.93x, which includes trade payables and other non-debt liabilities, indicating elevated leverage levels. Operating cashflow was positive at Rs 100.50 crore in FY26, but free cashflow remained negative at Rs -38.60 crore due to high capital expenditure of Rs 139.10 crore.

What To Watch

• Execution rate: Monitor quarterly revenue run-rate against the Rs 311.0 crore backlog to assess if the 24-month EPC timeline is being met without delays.
• Margin quality: Track OPM on new orders versus the historical average of 16.99%; long-term O&M contracts often have different margin profiles than EPC phases.
• Client concentration: The entire disclosed order book comes from a single client, Himachal Pradesh Bulk Drug Park Infrastructure Limited, accounting for 100% of the total disclosed order book.
• Liquidity management: Watch for improvements in the current ratio or new financing arrangements to support working capital demands during the execution phase.

Key Observations

• Contract structure: This is a confirmed EPC and O&M order. Revenue recognition will follow standard percentage-of-completion methods for the EPC portion and periodic billing for the O&M portion.
• Valuation check (as of 24 Sep 2026): P/E of 79.3x against ROCE of 21.28%. At the time of this article, valuation was pricing in execution improvement not yet visible in return ratios.
• Leverage flag: Total Liabilities/Equity of 2.93x; balance sheet carries elevated liabilities, and ability to fund working capital for the existing backlog should be monitored.
• Client concentration: Single client accounts for 100% of the disclosed order book; diversification risk is high.