Key Metrics of Srm Contractors Limited
About Srm Contractors Limited
Sectors
Company details
- Registered office
- Sector - 3, Near Bjp Head Office, Trikuta Nagar, Jammu, In-jk, 180012
- Listed
- NSE: SRM · ₹379.20
Operational Areas of Srm Contractors Limited
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.
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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 CARE on 09 Jul 2026 (from A-)
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 24 Aug 2026 | CARE | Reaffirmed | A | A1 | Stable | ₹543 Cr | View |
| 28 Jul 2026 | CARE | Reaffirmed | A | A1 | Stable | ₹503 Cr | View |
| 09 Jul 2026 | CARE | Upgraded (from A-) | A | — | Stable | ₹430 Cr | View |
| 03 Jul 2025 | CARE | Upgraded (from BBB+) | A- | — | Stable | ₹230 Cr | View |
| 24 Dec 2024 | CARE | Reaffirmed | BBB+ | A3+ | Stable | ₹230 Cr | View |
| 01 Oct 2024 | CARE | Upgraded (from BBB) | BBB+ | — | Stable | ₹94.4 Cr | View |
| 06 Mar 2024 | CARE | Assigned | BBB | A3 | Positive | ₹94.4 Cr | View |
Credit strengths (CARE, Aug 2026)
+ Significant improvement in scale of operations with sustained healthy profitability
SRM reported significant improvement in its consolidated operational performance in FY26, with TOI increasing by ~95% to ₹1,025.57 crore against ₹528.13 crore in FY25. The growth was driven by healthy execution across its diversified portfolio comprising road, tunnel, slope stabilisation and bridge projects, and incremental contribution from its subsidiary, MIPL. Despite the significant increase in scale, the company maintained healthy profitability margins, with PBILDT and profit after tax (PAT
+ Healthy and growing order book providing revenue visibility, with moderate concentration risks
SRM, on a consolidated basis including MIPL, has a healthy unexecuted order book of ~₹2,250–2,300 crore as on March 31, 2026, providing medium-term revenue visibility of 2.2x of TOI for FY26. The order book reflects a diversified mix of road, bridge, tunnel and slope stabilisation projects, with a notable increase in the share of specialised slope protection and geotechnical works supported by MIPL. The standalone SRM order book strengthened in the year with addition of large -value EPC projects
+ Comfortable financial risk profile
SRM’s financial risk profile remains comfortable, supported by healthy internal accrual s and a strengthened net worth base following its Initial Public Offer (IPO) in April 2024. The overall gearing stood at 0.35x as on March 31, 2026, despite slightly increasing due to an increase in total debt, which was primarily availed for funding equipment purchase and project mobilisation requirements for newly awarded contracts. Debt protection metrics remained comfortable, with interest coverage improv
+ Experienced promoters and established track record in construction industry
SRM was established in 2008 by Sanjay Mehta, who brings nearly two decades of experience in executing a wide range of construction and infrastructure projects. Over the years, the company has built a strong track record of successfully delivering projects across roads, bridges, canals, tunnels, and small hydro developments. SRM has executed contracts across northern India, including states such as Uttarakhand, Jammu & Kashmir, Himachal Pradesh, Arunachal Pradesh, and Ladakh. Leveraging its
Credit challenges
− Working capital intensive operations though efficiently managed
SRM operates in a working capital intensive environment, primarily due to the inherent nature of EPC contracts, involving milestone-based billing and retention money. In FY26, gross current asset days remained elevated at 192 days (FY25: 152 days) reflecting increased execution. Average creditor period increased to 90 days (FY25: 40 days) primarily due to supplier and subcontractor payments are aligned with project cash flows and customer collections. The company continues to maintain healthy
− Presence in a highly fragmented and competitive construction industry
SRM operates in the fragmented and competitive EPC industry, where order awarding is based on competitive bidding, technical qualifications and financial strength. The presence of numerous organised and regional players results in pricing pressures, which may impact margins. The sector is exposed to risks arising from raw material price volatility, regulatory approvals, environmental clearances and changes in government spending priorities.
− Inherent execution risks related to projects
The company remains exposed to execution risks such as delays in land acquisition, regulatory approvals, adverse weather conditions, labour shortages and cost overruns. A significant portion of its projects are in geographies with difficult terra in and harsh climatic conditions, which may impact project timelines. Timely execution of its growing order book without material cost overruns remains a key monitorable.
Could lead to an upgrade
• Growth in total operating income (TOI) above ₹2500 crore and sustained improvement in profit before interest, lease rentals, depreciation and taxation (PBILDT) margin. • Efficient working capital management, further improving the
Could lead to a downgrade
• Decline in scale of operations by over 20% from existing levels & moderation in PBILDT margin below 12% on a sustained basis. • Deterioration in Net Debt/PBILDT beyond 0.75x on a sustained basis. • Delays in project execution impacting the company’s financial performance and
Agency-reported financials (CARE, 24 Aug 2026)
| Metric | March 31, 2025 | March 31, 2026 | Q1FY27 |
|---|---|---|---|
| Total operating income | ₹528 Cr | ₹1,026 Cr | ₹196 Cr |
| PBILDT* | ₹81.56 Cr | ₹167 Cr | ₹39.13 Cr |
| Profit after tax (PAT) | ₹55.00 Cr | ₹111 Cr | ₹19.71 Cr |
| Overall gearing (x) | 0.15× | 0.35× | — |
| Interest coverage (x) | 10.76× | 17.60× | — |
| Revenue growth (YoY) | — | 94.2% | — |
| PAT margin | 10.4% | 10.8% | 10.0% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long Term Short Term Bank | Working capital & bank lines | — | ₹483 Cr | — | A / A1 (Stable) | Reaffirmed | CARE |
| Facilities Long Term Bank Facilities | Working capital & bank lines | — | ₹60.9 Cr | — | A (Stable) | Reaffirmed | CARE |
CARE ratings on record (checked 23 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| BG/LC | ₹483 Cr | CARE A; Stable / CARE A1 |
| Cash Credit | ₹60.9 Cr | CARE A; Stable |
Lenders
| Fund-based - LT | Cash Credit | Bank of Baroda |
| Fund-based - LT | Cash Credit | HDFC Bank Ltd. |
| Fund-based - LT | Cash Credit | ICICI Bank Ltd. |
| Fund-based - LT | Cash Credit | State Bank of India |
| Fund-based - LT | Cash Credit | Yes Bank Ltd. |
| Non-fund-based - LT/ ST | BG/LC | Bank of Baroda |
| Non-fund-based - LT/ ST | BG/LC | HDFC Bank Ltd. |
| Non-fund-based - LT/ ST | BG/LC | ICICI Bank Ltd. |
| Non-fund-based - LT/ ST | BG/LC | State Bank of India |
| Non-fund-based - LT/ ST | BG/LC | Yes Bank Ltd. |
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) | 82% |
| Information on file | 78% · missing: Capex / investment plans, Auditor details |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 72% chance the next rating action is stable or better
- Current rating A (investment grade)
- Interest coverage 17.6×
Rated limits by facility
Timeline
From the report
The improved operating performance resulted in healthy cash generation, with gross cash accruals (GCA) increasing to ₹131.89 crore and net cash flow from operations of ₹149.12 crore in FY26.
From the report
The company is expected to generate GCA of ~₹180-190 crore in FY27, which is sufficient to meet its moderate debt repayment obligations of ₹62 crore and incremental working capital requirements.
From the report
Liquidity is further supported by free cash, bank balances and liquid investments of ~₹120 crore as on March 31, 2026, providing adequate financial flexibility.
From the report
The improved operating performance resulted in healthy cash generation, with gross cash accruals (GCA) increasing to ₹131.89 crore and net cash flow from operations of ₹149.12 crore in FY26.
From the report
The company is expected to generate GCA of ~₹180-190 crore in FY27, which is sufficient to meet its moderate debt repayment obligations of ₹62 crore and incremental working capital requirements.
From the report
Liquidity is further supported by free cash, bank balances and liquid investments of ~₹120 crore as on March 31, 2026, providing adequate financial flexibility.
From the report
The improved operating performance resulted in healthy cash generation, with gross cash accruals (GCA) increasing to ₹131.89 crore and net cash flow from operations of ₹149.12 crore in FY26.
From the report
The company is expected to generate GCA of ~₹180-190 crore in FY27, which is sufficient to meet its moderate debt repayment obligations of ₹62 crore and incremental working capital requirements.
From the report
Liquidity is further supported by free cash, bank balances and liquid investments of ~₹120 crore as on March 31, 2026, providing adequate financial flexibility.
From the report
The company’s overall gearing improved from 0.33x as of March 31, 2024, to 0.1 0x as of March 31, 2025, primarily due to the infusion of equity capital from the IPO, which strengthened net worth and led to a reduction in debt levels since it utilised part of IPO proceeds to repay debt.
From the report
SRM primarily meets its working capital requirements through internal accruals and extended creditor payment cycles, with minimal reliance on sanctioned working capital limits and mobilisation advances—helping to reduce associated financing costs.
From the report
Liquidity: Adequate SRM Contractors Limited maintains an adequate liquidity position, supported by a healthy buffer between expected gross cash accruals of ~₹89 crore and debt repayment obligations of ~₹14 crore, in FY26 (April 01 to March 31).
From the report
Liquidity: Adequate SRM Contractors Limited maintains an adequate liquidity position, supported by a healthy buffer between expected gross cash accruals of ~₹89 crore and debt repayment obligations of ~₹14 crore, in FY26 (April 01 to March 31).
From the report
The company’s reliance on working capital borrowings remains minimal, with average utilisation of fund-based working capital limits at a low level of ~11% for 12 months ended April 2025.
From the report
Liquidity: Adequate Adequate liquidity is marked by sufficient buffer available between expected accruals of ~Rs.53 crores against debt repayment obligations of ~Rs.9 crores during FY25 (refers to the period April 01 to March 31).
From the report
Liquidity: Adequate Adequate liquidity is marked by sufficient buffer available between expected accruals of ~Rs.53 crores against debt repayment obligations of ~Rs.9 crores during FY25 (refers to the period April 01 to March 31).
From the report
The company will be raising approximately Rs 138 crores which they will be using for capital expenditure, repayment of debt, funding of working capital requirement, investment in JVs and general corporate purpose.
From the report
Liquidity: Adequate The company has adequate liquidity as reflected by the cash and bank balance of Rs 19.7 crores (Including FDRs lien marked with bank of Rs 8.64 crores).
From the report
The average working capital utilisation has remained high at 76% for last 12 months ending Sept 2023.
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.
Competitors of Srm Contractors Limited
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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.