Swastika Infra Limited, a Jaipur-based Engineering, Procurement and Construction (EPC) firm specializing in power transmission and distribution infrastructure, has filed its Draft Red Herring Prospectus (DRHP) for a ₹129 crore fresh issue. The company plans to open the IPO on September 23, 2026, and close it on September 25, 2026.

About the Company

Incorporated in August 2019, Swastika Infra traces its operational roots back to 1969, bringing over five decades of legacy experience to the sector. The company provides end-to-end turnkey solutions for power transmission and distribution (T&D) projects, including underground cabling, substation construction (GIS/AIS/GSS), rural and urban electrification, street lighting, and renewable energy works. As of July 31, 2026, the firm has completed 36 EPC projects worth ₹76,467 Lakhs and has 18 ongoing projects valued at ₹2,03,665 Lakhs. Operations span nine Indian states, serving major government utilities such as WBSEDCL, MGVCL, AVVNL, RRVPNL, and MSEDCL. The current order book stands at ₹91,655 Lakhs (₹916.55 Crore), with 100% of these orders awarded by government utilities.

Financial Performance

The company has demonstrated strong top-line and bottom-line growth over the last three fiscal years. Revenue from operations grew at a compound annual growth rate (CAGR) of approximately 55%, rising from ₹209.58 crore in FY2024 to ₹503.57 crore in FY2026. Net profit (PAT) grew at a CAGR of 72.13%, increasing from ₹13.98 crore in FY2024 to ₹41.43 crore in FY2026. Profitability margins have also improved, with PAT margin expanding from 6.61% in FY2024 to 8.22% in FY2026. The company reported an ROCE of 25.76% in FY2026.

Despite strong accrual-based profits, the company reported negative operating cash flows across all three fiscal years: ₹-3.34 crore in FY2024, ₹-76.54 crore in FY2025, and ₹-9.65 crore in FY2026. This reflects the working-capital-intensive nature of its EPC business model. Total assets grew to ₹412.24 crore in FY2026, with current assets comprising 94.90% of the total, driven by trade receivables and work-in-progress.

Why the Company Is Raising Funds

The gross proceeds from the fresh issue amount to ₹129.00 crore. The company intends to utilize ₹90.00 crore specifically for funding incremental working capital requirements in FY2027. The balance net proceeds will be utilized for general corporate purposes, including strategic initiatives, growth, marketing, capital expenditure, and business development, subject to regulatory caps. The Offer for Sale portion, if any, will benefit selling shareholders, and the company will not receive any proceeds from this component.

Business Strengths

• Strong Execution Track Record: 36 completed projects worth ₹76,467 Lakhs and 18 ongoing projects, demonstrating capability in large-scale government utility contracts.
• Robust Order Book: An order book of ₹91,655 Lakhs as of July 31, 2026, provides an order book-to-revenue ratio of 1.41x for FY2026, ensuring near-term revenue visibility.
• Asset-Light Model: The company leases project-specific assets rather than owning heavy machinery, resulting in a high fixed asset turnover of 70.72x in FY2026 and improved capital efficiency.
• Experienced Leadership: The promoter group and management team bring over 50 years of collective EPC industry experience, supported by a technical workforce of 65 engineers and technicians.
• Financial Growth: Consistent improvement in revenue (55% CAGR) and net profit (72% CAGR) alongside expanding PAT margins from 6.61% to 8.22%.

Key Risks

• Revenue and Client Concentration: Approximately 96.87% of FY2026 revenue was derived from government utility projects, with the top five clients accounting for the same share. The entire order book consists of government utility projects, exposing the company to policy changes, budget reallocations, and payment delays.
• Negative Operating Cash Flows: The company has reported negative operating cash flows for three consecutive years, indicating heavy working capital consumption that could impair liquidity without external financing.
• High Working Capital Requirements: Net working capital requirement stood at ₹25,563.47 Lakhs (50.76% of FY2026 revenue), creating significant liquidity pressure and reliance on external debt.
• Contingent Liabilities: Contingent liabilities amounted to ₹27,267.93 Lakhs as of March 2026, primarily comprising bank guarantees issued to government clients. Invocation of these guarantees could severely impact financial condition.
• Project Execution Delays: The company experienced delays of 6 to 12 months in most projects during the last three fiscal years due to client-side issues such as delayed site handovers and approvals, leading to potential liquidated damages.
• Regulatory Non-Compliance: The company has a history of delayed statutory filings and pending adjudication proceedings before the Registrar of Companies, Jaipur, posing reputational and penalty risks.

Important IPO Dates

• IPO Opening Date: September 23, 2026
• IPO Closing Date: September 25, 2026
• Allotment Date: September 28, 2026
• Listing Date: September 30, 2026

Offer Details

• Fresh Issue Size: ₹129.00 Crore (Gross Proceeds)
• Use of Proceeds: ₹90.00 Crore for incremental working capital; balance for general corporate purposes.
• Price Band: Not Available
• Lot Size: Not Available

Bottom Line

Swastika Infra presents a high-growth profile with a 55% revenue CAGR and a robust order book in the government-backed power T&D sector. However, investors must weigh these growth metrics against significant risks, including persistent negative operating cash flows, extreme client concentration, and high contingent liabilities. The ₹129 crore fresh issue aims to alleviate working capital constraints, which are critical for sustaining its asset-light execution model.