Dhruv Consultancy Services Limited has secured a significant infrastructure consultancy project from the National Highways Authority of India (NHAI), marking another milestone in the company's portfolio of highway development projects.

Project Award Details

The company received the Letter of Award (LOA) on January 8, 2026, for consultancy services related to highway infrastructure development in Maharashtra. The project involves preparation of Detailed Project Report (DPR) for the 4-laning of Malegaon-Manmad-Kopargaon highway section.

Project Scope and Partnership

Dhruv Consultancy Services Limited will execute this project in association with Innovative Engineering Advisory LLP. The consultancy services focus on preparing comprehensive documentation for the 4-laning expansion of the Malegaon-Manmad-Kopargaon highway corridor in Maharashtra state.

The project falls under domestic infrastructure development initiatives and involves standard general contract conditions as specified by NHAI. The company confirmed that neither promoters nor group companies have any interest in the awarding entity, and the contract does not constitute a related party transaction.

Implementation Timeline and Requirements

The contract execution involves specific compliance requirements that the company must fulfill within stipulated timeframes. Dhruv Consultancy Services is required to furnish a Performance Bank Guarantee within 15 days from the LOA issuance date and complete the contract agreement execution as per the Request for Proposal (RFP) document specifications.

Regulatory Compliance

The company disclosed this development under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was made to both BSE Limited and National Stock Exchange of India Limited on January 9, 2026, ensuring full compliance with disclosure requirements for material events that could impact investor decisions.

Dhruv Consultancy Services Limited has received a credit rating reaffirmation from CARE Ratings Limited, though with a revised outlook that reflects tempered growth expectations. The rating agency maintained its assessment while adjusting future projections based on recent operational developments.

Rating Details and Facility Coverage

CARE Ratings reaffirmed the credit ratings across all bank facilities while revising the outlook from Positive to Stable. The rating action covers facilities totaling ₹39.50 crore across different categories.

Rationale Behind Rating Decision

The rating reaffirmation reflects the company's established strengths including its long track record, experienced promoters, and well-established clientele base. The ratings continue to derive support from healthy profit margins, comfortable capital structure, and adequate debt coverage indicators.

However, the outlook revision to Stable considers lower than expected growth in scale of operations and profitability, with order book position below anticipated levels. The rating agency noted concerns about the company's small scale of operations, working capital intensive nature, and competitive industry dynamics.

Financial Performance and Operational Metrics

The company's financial performance shows mixed trends with revenue growth accompanied by margin pressures. Total operating income reached ₹101.96 crore in FY25, representing 25.00% growth over FY24's ₹81.73 crore.

Profitability margins remained volatile, with PBILDT margin declining from 17.22% in FY24 to 14.46% in FY25, primarily due to increased professional and consultancy charges. The company's return on capital employed stood at 11.33% in FY25 compared to 12.22% in FY24.

Order Book and Business Challenges

The order book position declined to ₹239.55 crore as of September 30, 2025, from ₹303.52 crore as of December 30, 2024, representing 2.35 times net sales for FY25. This reduction stemmed from temporary debarment from NHAI projects, which contributed approximately 45.00% of revenue in FY25.

An interim court stay granted on July 8, 2025, lifted the restriction, allowing the company to resume engagement with NHAI. The management reported bidding for projects worth approximately ₹500.00 crore, with letters of award awaited.

Capital Structure and Liquidity Position

The company maintains a comfortable leverage profile with overall gearing at 0.17 times as of March 31, 2025, compared to 0.31 times in the previous year. This improvement resulted from lower external debt reliance and increased tangible net worth following equity infusion of ₹33.24 crore.

Liquidity remains adequate with unencumbered cash and bank balance of ₹6.92 crore as of March 31, 2025, though working capital intensity continues to pose challenges with gross current assets period at 407.00 days in FY25.