Key Metrics of Mecon Limited
About Mecon Limited
Company details
- Registered office
- P.o.- & P.s.- Doranda, Ranchi, In-jh, 834002
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
Sign in to continue See plans & pricingFiling compliance
Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.
Vendor checks & payment capacity
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Credit ratings
PositiveUpgraded by ICRA on 12 Oct 2026 (from BBB)
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 12 Oct 2026 | ICRA | Upgraded (from BBB) | BBB+ | A2+ | Stable | ₹1,009 Cr | View |
| 23 Mar 2026 | ICRA | Reaffirmed | BBB | A2 | Stable | ₹1,009 Cr | View |
Credit strengths (ICRA, Oct 2026)
+ Improvement in operating performance and credit metrics
Mecon’s operating performance improved in FY2026, with the operating income increasing to Rs. 1,541 crore from Rs. 1,133 crore in FY2025, supported by higher execution of EPC projects and consultancy assignments.
+ Status of the company as a 100% GoI -owned entity
Mecon is a Miniratna PSU under the administrative control of the Ministry of Steel.
+ Strong liquidity profile, reflected in sizeable cash balance and debt -free status
The liquidity remains strong with free cash and liquid investment of over Rs. 730 crore in FY2026.
+ High level of competency in engineering and consultancy segment
Mecon has a demonstrated track record of over four decades in the engineering and consultancy segment and has established itself as one of the leading consultancy companies in India, especially in the metals and mining segments.
+ Low counterparty risks, supported by a predominantly PSU -backed order book
Mecon’s counterparty credit risk remains low with 90-95% of its outstanding order book comprising projects from PSU clients.
Credit challenges
− Profits remain highly volatile
Mecon’s profitability has remained susceptible to changes in project execution levels, contract mix, provisioning requirements and subcontracting costs.
− Margins impacted by sizeable manpower costs; employee productivity has been steadily improving over the years
Being a PSU, Mecon has an inherently high employee cost base compared to the private sector peers.
− Limited accretion to reserves over the years
Mecon’s net worth accretion has remained modest over the years due to subdued profitability, resulting in a largely range-bound tangible net worth (TNW).
Could lead to an upgrade
ICRA could upgrade the ratings if Mecon demonstrates a sustained improvement in its scale of operations and profitability, supported by a healthy execution of its order book, while maintaining a strong
Could lead to a downgrade
Pressure on the ratings could arise if there is a sustained decline in Mecon’s revenues and profitability. A significant deterioration in its
Agency-reported financials (ICRA, 12 Oct 2026)
| Metric | FY2025 | FY2026 |
|---|---|---|
| Operating income | ₹1,133 Cr | ₹1,541 Cr |
| PAT | ₹28.20 Cr | ₹78.40 Cr |
| OPBDIT/OI | -0.4% | 4.4% |
| PAT/OI | 2.5% | 5.1% |
| Total outside liabilities/Tangible net worth (times) | 2.70× | 2.80× |
| Total debt/OPBDIT (times) | 0.00× | 0.00× |
| Interest coverage (times) | -0.60× | 18.80× |
| Revenue growth (YoY) | — | 36.0% |
| EBITDA (margin × income) | ₹-4.53 Cr | ₹67.80 Cr |
| Implied total debt (debt/EBITDA × EBITDA) | — | ₹0.00 Cr |
| Implied interest cost (EBITDA ÷ coverage) | — | ₹3.61 Cr |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long term – Non-fund based – Long term/Short term | Non-fund based limits | ₹811 Cr | ₹811 Cr | 0.0% | BBB+ (Stable) | Upgraded | ICRA |
| Others Unallocated Short term – Fund based | Working capital & bank lines | ₹68.0 Cr | ₹48.0 Cr | −29.4% | BBB / A2+ (Stable) | Upgraded | ICRA |
| Overdraft | Working capital & bank lines | ₹130 Cr | ₹150 Cr | 15.4% | A2 | Upgraded | ICRA |
Credit assessment · Manufacturing
Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Next action stable or better (model) | 44% |
| Information on file | 56% · missing: Debt obligations and repayment schedule, Capex / investment plans, Auditor details, Shareholding pattern |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 68% chance the next rating action is stable or better
- Current rating BBB+ (investment grade)
- Interest coverage 18.8×
- ₹48 cr of rated limits not yet tied to a lender
Rated limits by facility
Timeline
From the report
The ratings also factor in the company’s comfortable financial profile, characterised by a debt-free balance sheet, sizeable free cash and bank balances (Rs. 730.8 crore as on March 31, 2026), and the strong financial flexibility arising from Government ownership.
From the report
The ratings also factor in the company’s comfortable financial profile, characterised by a debt-free balance sheet, sizeable free cash and bank balances (Rs. 730.8 crore as on March 31, 2026), and the strong financial flexibility arising from Government ownership.
From the report
Strong liquidity profile, reflected in sizeable cash balance and debt -free status – The liquidity remains strong with free cash and liquid investment of over Rs. 730 crore in FY2026.
From the report
Long Term – Non-fund based – 379.00 810.95 reaffirmed/assigned for enhanced Others amount Long Term / Short Term – [ICRA]BBB (Stable) / [ICRA]A2; 0.00 68.00 Unallocated assigned Short Term – Fund-based – Cash 130.00 0.00 - Credit Short-term – Fund-based – 0.00 130.05 [ICRA]A2; assigned Overdraft Total 509.00 1009.00 *Instrument details are provided in Annexure-I Rationale The ratings reaffirmation factors in Mecon Limited’s (Mecon) status as a 100% Government of India (GoI) owned public sector undertaking (PSU), lending it a high degree of financial flexibility, Further,its nil fund-based debt
From the report
Nonetheless, its debt-free status and a healthy liquidity position will keep the debt metrics comfortable.
From the report
Strong liquidity profile reflected by sizeable cash balance and debt-free status – Liquidity remains strong with free cash and liquid investment of Rs. 546.3 crore as on December 31, 2025.
From the report
The large cash balances, along with its debt-free status provide comfort.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
Principal business activities and related-party transactions are read from MGT-7 and AOC-4 filings.
Filings
No filings on record yet.