Dhruv Consultancy Services Gets Credit Rating Reaffirmed with Outlook Revised to Stable

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.

Facility Type	Amount (₹ crore)	Rating	Rating Action
Long-term bank facilities	8.50	CARE BBB-; Stable	Reaffirmed; Outlook revised from Positive
Long-term/Short-term bank facilities	26.00	CARE BBB-; Stable/CARE A3	Reaffirmed; Outlook revised from Positive
Short-term bank facilities	5.00	CARE A3	Reaffirmed

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.

Financial Metric	FY24	FY25	H1FY26
Total Operating Income (₹ crore)	81.73	101.96	40.81
PBILDT (₹ crore)	14.07	14.75	5.71
PAT (₹ crore)	5.90	6.95	2.60
PBILDT Margin (%)	17.22	14.46	13.99
PAT Margin (%)	7.21	6.82	6.37

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.

Leverage Metric	FY24	FY25	H1FY26
Overall Gearing (times)	0.31	0.17	0.22
Interest Coverage (times)	4.73	5.73	7.05
Total Debt to GCA (times)	2.02	1.61	-

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.74%	-8.63%	-9.07%	-37.14%	-62.73%	-44.53%

Contract Details

Dhruv Consultancy Services Limited has announced a significant new contract win. The company has been awarded a project valued at ₹9.17 crore by the National Highways Authority of India (NHAI).

Project Scope

The contract involves providing Authority Engineer services for the following project:

Project Name: Four laning of Sangli to Solapur section of NH-166 from km 219.956 to km 272.394 in the state of Maharashtra on HAM mode under Bharatmala Pariyojana
Contract Length: 36 months
Contract Value: ₹9.17 crore (excluding GST)

Impact and Outlook

This new contract is a positive development for Dhruv Consultancy Services Limited. It demonstrates the company's continued ability to secure projects from major government entities like NHAI. The contract's duration of 36 months provides a stable revenue stream for the company in the medium term.

About Dhruv Consultancy Services Limited

Dhruv Consultancy Services Limited is an engineering consultancy firm specializing in infrastructure projects. The company provides a range of services including feasibility studies, detailed project reports, and project management consultancy for various infrastructure sectors, with a focus on transportation.

Conclusion

The securing of this contract represents a positive development for Dhruv Consultancy Services Limited. It contributes to the company's order book and provides revenue visibility for the next 36 months. However, it's important to consider this contract in the context of the company's overall financial performance and growth strategy.