ACS Technologies Limited has announced the receipt of a work order worth ₹2.61 crore from P2P Networks Private Limited, marking an important business engagement for the telecommunications infrastructure company. The order encompasses fiber execution services and ROW (Right of Way) services, representing a significant addition to the company's project portfolio.

Order Details and Specifications

The work order was formally disclosed on January 30, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The comprehensive order details highlight the domestic nature of this business engagement.

Regulatory Compliance and Corporate Governance

The company has confirmed full compliance with regulatory requirements, emphasizing transparency in its business operations. Key governance aspects of this order include:

Strategic Significance

ACS Technologies Limited expressed commitment to executing this project with the highest standards of quality, safety, and efficiency. The order aligns with the company's core competencies in telecommunications infrastructure services, particularly in fiber optic network deployment and right-of-way management services.

The formal disclosure was signed by Shilpi Gunjan, Company Secretary and Compliance Officer, ensuring proper regulatory compliance and stakeholder communication. This order reinforces ACS Technologies' position in the domestic telecommunications infrastructure market and demonstrates continued client confidence in the company's service delivery capabilities.

ACS Technologies Limited has announced that Infomerics Valuation and Rating Limited has assigned credit ratings to its banking facilities totaling ₹100.00 crore on January 21, 2026. The rating assignment marks a significant milestone for the IT services company as it continues to expand its operations across government and private sector clients.

Rating Details and Facility Breakdown

Infomerics has assigned comprehensive ratings across the company's banking facilities, reflecting its assessment of ACS Technologies' creditworthiness and financial stability.

The facilities comprise various banking instruments including Working Capital Term Loan (₹5.00 crore), Cash Credit facilities (₹52.00 crore including proposed limits), and Bank Guarantee facilities (₹43.00 crore including proposed limits). HDFC Bank serves as the primary lender for existing facilities, with additional proposed limits under consideration.

Financial Performance and Business Growth

ACS Technologies demonstrated substantial revenue growth in FY25, with total operating income increasing by 54.4% year-on-year from ₹81.99 crore in FY24 to ₹126.58 crore in FY25. This growth trajectory represents a compound annual growth rate of approximately 35% over the last three fiscal years, driven by higher order execution and supported by a healthy order book.

Despite strong revenue growth, profitability margins moderated as the company strategically accepted lower-margin private sector contracts to enhance market penetration and diversify its customer base beyond government clients.

Strong Order Book and Market Position

The company maintains a robust unexecuted order book position of ₹539.86 crore as of November 30, 2025, representing 4.26 times its FY25 revenue. This substantial order book provides strong revenue visibility for the next 1-2 years, with Annual Maintenance Contract work extending over 5-10 years depending on contract terms.

ACS Technologies serves a diverse client base including State Government agencies, Central Government entities, and private organizations across infrastructure, manufacturing, and trading segments. The company's focus on government clients and reputed private players provides comfort through low counterparty credit risk.

Capital Structure and Debt Management

The company maintains a comfortable capital structure with an overall gearing ratio of 0.48x as of March 31, 2025, compared to 0.27x in the previous year. The increase in gearing primarily reflects higher working capital borrowings driven by significant operational growth and increased order execution.

Despite the moderation in some debt coverage indicators, the company's interest coverage ratio remained comfortable at 4.33x in FY25, and total indebtedness as reflected by TOL/ATNW stood at 1.15x as of March 31, 2025.

Rating Rationale and Outlook

Infomerics' rating assignment considers several key factors including the extensive experience of promoters with over three decades in the industry, established relationships with reputed clientele, and improvement in business performance. The ratings also acknowledge the company's strong order book position providing healthy revenue visibility.

However, the ratings account for challenges including modest scale of operations, exposure to intense competition in the IT/ITES sector, and the working capital-intensive nature of operations. The operating cycle improved significantly from 262 days in FY24 to 170 days in FY25, though it remains elevated due to the project-based nature of system integration and turnkey technology contracts.

The stable outlook reflects expectations of continued stable business performance underpinned by the strong order book and healthy revenue visibility for the near to medium term. The company's liquidity profile is considered adequate, with sufficient cash accruals relative to debt repayment obligations and satisfactory working capital utilization at approximately 75% of limits.