Dhruv consultancy Services Limited has secured significant consultancy contracts from central and state government authorities across four states during January and February 2026. The infrastructure consultancy company received multiple Letters of Award and Letters of Acceptance spanning highways, bridges, DPR preparation, supervision consultancy and project management assignments.

Major Contract Awards

The company secured six major consultancy mandates across Maharashtra, Telangana, Uttar Pradesh and West Bengal:

Diverse Service Portfolio

The assignments encompass a comprehensive range of infrastructure consultancy services including Detailed Project Reports preparation, bridge design, highway engineering, long-term supervision consultancy and project management consultancy. The contracts involve prestigious clients including the National Highways Authority of India, Central Public Works Department, and U.P. State Bridge Corporation Ltd.

The expansion highlights the company's strategy to strengthen its presence across key infrastructure verticals while building a geographically diversified order book. With an unexecuted order book of approximately ₹256 crore, the balanced mix of DPR assignments and supervision mandates provides strong revenue visibility.

Management Commentary

Mrs. Tanvi Dandawate Auti, Managing Director, expressed satisfaction with the contract wins, stating that these awards reflect continued confidence from central and state authorities in the company's technical capabilities and execution track record. She emphasized the company's diversified portfolio spanning multiple stages of infrastructure development, enabling comprehensive client service.

Company Performance

Established in 2003 and based in Navi Mumbai, Dhruv Consultancy Services provides infrastructure consultancy for design, engineering, procurement, construction, and project management services. The company has completed more than 250 projects with clients including Ministry of Road Transport, NHAI, CIDCO, JNPT, MMRDA and MSRDC.

The company employs more than 350 people, with over 75% being qualified engineers. It successfully completed its IPO on BSE SME platform raising ₹23 Cr in May 2018 and migrated to the Main Board of NSE & BSE in November 2021.

CARE Ratings Limited has announced the downgrade of credit ratings for Dhruv Consultancy Services Limited (DCSL), an infrastructure consultancy firm, following a comprehensive annual review that revealed significant operational and financial challenges during the nine months ended December 31, 2025.

Rating Downgrades Across All Facilities

The credit rating agency has revised ratings across all bank facilities, reflecting deteriorated financial performance and operational metrics. The downgrades encompass facilities totaling ₹39.50 crore.

Significant Revenue Decline and Operating Losses

The primary driver behind the rating downgrades was DCSL's substantial decline in operational performance during 9MFY26. The company's total operating income recorded a year-on-year decline of 51.62%, reducing to ₹36.52 crore from ₹75.49 crore in 9MFY25.

This decline was primarily attributed to revenue reversals arising from contractual and scope-related adjustments, including replacement of personnel, remuneration linked to attendance thresholds, and descoping of activities. The company also faced cost escalations, execution-related factors such as increases in estimated project costs, and extensions in project timelines.

During Q3FY26, the company reported negative revenue of ₹5.69 crore, with operating and net losses of ₹29.20 crore and ₹30.97 crore respectively. The revenue adjustments included a decrease in revenue recognition by ₹24.97 crore and a corresponding decrease in unbilled revenue of ₹6.13 crore.

Capital Structure and Liquidity Concerns

The operating losses significantly impacted DCSL's capital structure. Tangible net worth declined to ₹71.86 crore as on December 31, 2025, compared with ₹103.38 crore as on March 31, 2025. This resulted in moderation of the capital structure, with overall gearing reaching 0.33x as on December 31, 2025, from 0.17x as on March 31, 2025.

The company's liquidity position remained stretched, characterized by modest unencumbered cash and bank balances of ₹0.62 crore as of December 31, 2025, compared to ₹6.92 crore as of March 31, 2025. The average maximum utilization of fund-based limits stood at 80.43% in the last 12 months ended October 2025.

Order Book Position and Business Strengths

Despite the operational challenges, DCSL maintains several business strengths that support its credit profile. The company's order book position stood at ₹239.55 crore as on September 30, 2025, representing 2.35x of net sales for FY25, providing medium-term revenue visibility.

The company benefits from experienced promoters, with Chief Promoter Pandurang Dandawate having over three decades of industry experience and Managing Director Tanvi Auti bringing over a decade of expertise. DCSL has completed consultancy services for over 175 projects across 21 states in India.

Rating Outlook and Future Prospects

CARE Ratings has maintained a "Stable" outlook, reflecting expectations of continued support from experienced promoters and stable order book generation. The rating agency expects the company to maintain sustainable scale of operations with a comfortable financial risk profile.

Positive rating factors include potential significant increases in unexecuted order book position above 4 times of envisaged total operating income for FY26, improvement in scale of operations with gross cash accruals exceeding ₹15 crore, and better collection periods. However, the agency cautioned about risks from deteriorating profit margins and elongation in operating cycles that could pressure liquidity parameters.

The company operates in the fragmented infrastructure consultancy industry, providing services including detailed project reports, project management consultancy, and technical audits primarily to government bodies, which account for around 95% of revenue.

Source: None/Company/INE506Z01015/4f4802aa-8149-4e03-9911-f89f0a876052.pdf