SRM Contractors Posts Strong Q2 Results with 117% Revenue Growth

SRM Contractors Limited, a leading infrastructure company specializing in challenging terrain projects, has reported robust financial results for the second quarter. The company's performance highlights its strong execution capabilities and growing market presence in India's infrastructure sector.

Financial Highlights

SRM Contractors delivered impressive growth in Q2:

Metric	Q2 FY26	Q2 FY25	YoY Growth
Revenue	206.22	95.00	117.07%
EBITDA	31.00	18.00	72.22%
Net Profit	20.00	13.00	53.85%

The company's EBITDA margin stood at 14.88% for the quarter, compared to 18% reported in the same quarter of the previous year. This decrease may be attributed to the rapid scaling of operations and potential cost pressures in the infrastructure sector.

Half-Year Performance

For the first half of the fiscal year (H1), SRM Contractors continued its strong performance:

Revenue reached Rs 348.6 crore, up 132.4% year-over-year
EBITDA increased to Rs 52.6 crore, with a margin of 15.11%
Net profit doubled to Rs 32.82 crore, compared to Rs 15 crore in H1 of the previous year

Order Book and Future Outlook

As of September 30, SRM Contractors maintains a robust order book of Rs 1,552.65 crore, providing strong revenue visibility for the coming quarters. The order book is well-diversified across various infrastructure segments:

Roads and Bridges: 60% (Rs 999.24 crore)
Slope Stabilization: 26% (Rs 411.06 crore)
Tunnels: 9% (Rs 142.34 crore)

The company has set a target of securing Rs 1,000 crore in new orders for the fiscal year, with Rs 330 crore already achieved. This strong pipeline positions SRM Contractors for continued growth, particularly in challenging terrain projects.

Strategic Initiatives

SRM Contractors has undertaken several strategic initiatives to strengthen its market position:

Diversification into HAM (Hybrid Annuity Model) projects to expand its project portfolio
Acquisition of a 51% stake in Maccaferri Infrastructure Pvt. Ltd., enhancing capabilities in geotechnical and environmental solutions
Focus on operational excellence and technology adoption to improve execution efficiency

Management Commentary

Puneet Pal Singh, Managing Director of SRM Contractors, stated, "Our Q2 and H1 results demonstrate the strength of our business model and execution capabilities. We are confident in achieving our targeted topline of approximately Rs 900 crore, with an EBITDA margin guidance in the range of 20%."

The company's board has also approved the appointment of Mr. Sanjay Mehta as Group Chairman (Non-Executive Director), focusing on international business expansion, including development in the GCC and African markets.

Conclusion

SRM Contractors' strong Q2 performance, coupled with its healthy order book and strategic initiatives, indicates a positive outlook for the company. As India continues to invest in infrastructure development, especially in difficult terrains, SRM Contractors is well-positioned to capitalize on these opportunities and deliver sustainable growth.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.35%	+2.42%	+7.38%	+72.80%	+111.56%	+160.00%

SRM Contractors Limited , a company with a market capitalization of ₹1,300 crore, has recently secured a significant contract worth ₹155.02 crore from Maharashtra State Infrastructure Development Corporation Limited (MSIDC). This development marks a notable achievement for the infrastructure company, potentially boosting its project pipeline and revenue prospects.

Contract Details

The newly acquired contract involves the improvement of a crucial road stretch in Maharashtra. Here are the key details of the project:

Aspect	Details
Project Scope	Improvement of Borande - Uprale-Kasa - Saiwan - Udhava -Talasari - Sanjan Road, SH73
Project Location	Km. 45/800 to 99/600, Tal. Dahanu, & Talasari, Dist Palghar
Contract Value	₹155.02 Crore
Execution Mode	EPC (Engineering, Procurement, and Construction)
Project Duration	18 Months from the appointed date

Implications for SRM Contractors

This contract win is significant for SRM Contractors, considering the following factors:

Revenue Boost: The ₹155.02 crore contract value represents a substantial addition to the company's order book, potentially contributing to improved revenue figures in the coming quarters.
Market Position: Securing projects from state-level corporations like MSIDC may enhance SRM Contractors' standing in the infrastructure sector and possibly lead to more such opportunities in the future.
Execution Capability: The 18-month timeline for project completion will test and potentially showcase the company's project execution capabilities, which could be crucial for winning future contracts.

Market Response

While the immediate market response to this news is not available, investors and market analysts will likely be watching closely to see how this contract affects SRM Contractors' financial performance and stock price in the coming months.

It's important to note that the company's current market capitalization of ₹1,300 crore suggests that it has a significant presence in the infrastructure sector. The newly acquired contract, valued at approximately 11.92% of the company's market cap, could be seen as a material development by market participants.

As SRM Contractors moves forward with this project, stakeholders will be keen to observe the company's execution efficiency, potential impact on profitability, and any further contract wins that may follow this success with MSIDC.