Bench Mark Infotech’s Government Revenue Was 73% as Tender Wins Fell

Bench Mark Infotech Services Limited generated Rs 44.2454 crore, or 73.10%, of fiscal 2026 revenue from government customers, leaving its revenue dependent on tender-based public-sector work. Bench Mark Infotech’s bid-to-win ratio fell to 30.43% in FY25-26 from 41.07% in FY23-24, while trade receivables reached 90.83% of FY26 turnover.

How dependent is Bench Mark Infotech on government contracts?

Bench Mark Infotech was substantially dependent on government contracts in FY26 because government customers provided Rs 44.2454 crore of Rs 60.5276 crore in revenue from operations. Government customers include government bodies, government entities, government institutions, public sector undertakings and other entities funded by the Government of India. Non-government customers contributed the remaining Rs 16.2822 crore, or 26.90%, in FY26.

Bench Mark Infotech provides integrated information-technology infrastructure solutions and holds registrations and approvals to participate in government and defence-related projects. A large majority of government contracts are tender-based, meaning prospective suppliers submit competitive bids against stated requirements. The company says tenders are typically awarded to the lower bidder after all other eligibility requirements are met, making both pre-qualification and pricing material to future awards.

This government-contract dependence can continue only if public-sector budgets, tender opportunities and project execution remain available. Bench Mark Infotech identifies lower or reprioritised information-technology and digital-infrastructure budgets, reduced orders, project termination, delays and adverse Government of India policy changes as risks. The prospectus does not state that these events occurred in FY24 through FY26.

What changed in Bench Mark Infotech’s government revenue mix?

Bench Mark Infotech’s government revenue share fell to 73.10% in FY26 from 95.01% in FY25, even though total revenue from operations rose. Government revenue decreased by Rs 3.2972 crore, from Rs 47.5426 crore in FY25 to Rs 44.2454 crore in FY26. Over the same period, non-government revenue increased by Rs 13.7862 crore, from Rs 2.4960 crore to Rs 16.2822 crore.

Government revenue nevertheless remained higher in absolute terms than in FY24, when it was Rs 31.6768 crore. FY26 government revenue was Rs 12.5686 crore above the FY24 figure, but its share was 19.81 percentage points lower than FY24’s 92.91%. The difference reflects the expansion of non-government revenue rather than an elimination of public-sector exposure.

Customer concentration also remained high in FY26. Bench Mark Infotech’s top 10 customers provided Rs 57.0106 crore, or 94.19%, of FY26 revenue, compared with 89.08% in FY25 and 91.87% in FY24. Its largest customer contributed Rs 15.2612 crore, or 25.21%, in FY26, while the company reported no long-term or exclusive arrangements with customers.

Why did Bench Mark Infotech’s tender win rate fall to 30%?

Bench Mark Infotech’s bid-to-win ratio declined because it won 14 of 46 bids in FY25-26, compared with 23 wins from 56 bids in FY23-24. The bid-to-win ratio is the proportion of submitted bids that become successful project awards. The FY25-26 ratio of 30.43% was also below the 37.25% recorded from 19 successful bids out of 51 in FY24-25.

Across the three fiscal years, submitted bids decreased by 10 and successful bids decreased by nine. Bench Mark Infotech says tender outcomes may vary with the number of bidders, project requirements, pricing, qualification criteria and other client conditions. Meeting pre-qualification standards does not secure an award because government and public-sector contracts are generally awarded to the lowest bidder.

The tender process can require lower bid values to remain competitive, and this may affect the value of work won. Bench Mark Infotech also says it may need to partner with other companies where it cannot independently pre-qualify for large projects. Changes in qualification criteria and delays in government or public-sector tender processes can further affect when, or whether, new contracts are awarded.

How does government-contract dependence affect cash collection?

Bench Mark Infotech’s government exposure is linked to a longer operating cycle because government and public-sector projects involve billing milestones, certification, approvals and payment processes. Trade receivables rose to Rs 54.9796 crore at March 31, 2026, from Rs 37.9582 crore at March 31, 2025 and Rs 25.5947 crore at March 31, 2024. Receivables represented 90.83% of FY26 turnover, compared with 75.86% in FY25 and 75.07% in FY24.

Receivable holding days increased to 280 in FY26 from 232 in FY25 and 239 in FY24. Bench Mark Infotech attributes the FY26 increase mainly to higher government-customer exposure, longer billing and certification cycles, and greater revenue concentration in the third and fourth quarters. Competitive credit terms for private-sector customers also contributed to FY26 receivable days.

Amounts outstanding for more than one year totalled Rs 10.1721 crore at March 31, 2026, equal to 18.50% of trade receivables and 38.31% of net worth. This ageing balance rose from Rs 4.8352 crore at March 31, 2024 and Rs 8.2985 crore at March 31, 2025. Bench Mark Infotech recognised a provision for doubtful debts of Rs 41.38 lakh and states that delayed collections or non-recovery could require additional provisions, write-offs or working-capital funding.

Conclusion

Bench Mark Infotech’s FY26 revenue mix was less weighted to government customers than in FY25, but government contracts still supplied nearly three quarters of revenue. The decline in the tender bid-to-win ratio from 41.07% in FY23-24 to 30.43% in FY25-26 means future public-sector revenue remains subject to qualification requirements, lowest-bid pricing and competing suppliers.

The disclosed matters to watch are Bench Mark Infotech’s ability to secure new government and public-sector projects and the timing of tender awards, which the company says can fluctuate between periods. Collection performance is also material because FY26 receivables were Rs 54.9796 crore with 280 holding days, and government projects require milestone certification, approvals and payments before collection.