Company projects FY28 working-capital gap of Rs 331.61 crore

Company projects its FY28 net working-capital gap at Rs 331.61 crore, more than double the Rs 126.10 crore reported at June 30, 2026. The projection reflects milestone-based billing in larger EPIC projects, with trade receivables forecast to reach Rs 226.11 crore and inventories Rs 120.91 crore by March 31, 2028.

Why is Company’s FY28 working-capital gap expected to rise?

Company expects its FY28 working-capital gap to rise because current assets are projected to grow faster than current liabilities. Net working-capital gap means total current assets less total current liabilities and cash and bank balances. Company projects total current assets of Rs 462.00 crore and current liabilities of Rs 111.86 crore at March 31, 2028, with cash and bank balances of Rs 18.53 crore deducted from the resulting total gap.

The FY28 net gap of Rs 331.61 crore is 56.9% above the Rs 211.33 crore projected for March 31, 2027 and 162.9% above the Rs 126.10 crore reported at June 30, 2026. Revenue from operations rose from Rs 13.49 crore in FY24 to Rs 277.63 crore in FY26, while profit after tax increased from Rs 1.51 crore to Rs 28.04 crore over the same period. Company links the funding need to higher-value orders and incremental business requirements in FY27 and FY28.

Company’s board approved the FY27 and FY28 estimates on October 6, 2026, and Pyushkothari & Associates, Chartered Accountants, certified the projections on the same date. Company also states that the fund requirements have not been independently appraised by a bank, financial institution or external agency. Order-book status, customer and vendor negotiations, costs, interest rates and project execution can require revisions to planned deployment.

How are EPIC projects stretching Company’s cash cycle?

Company says its growing focus on EPIC and turnkey assignments is extending the time between executing work and collecting cash. Project revenue is linked to completion milestones and billing is based on milestone-based execution, which Company says creates longer realisation cycles than recurring O&M contracts. Most project contracts are completed in six to 14 months, while O&M contracts generally run for 12 to 36 months.

Trade receivables rose from Rs 3.71 crore at March 31, 2024 to Rs 100.56 crore at June 30, 2026. Company projects receivables of Rs 147.75 crore at March 31, 2027 and Rs 226.11 crore at March 31, 2028, equal to 49.0% of projected FY28 current assets. Its receivable-day assumptions are 93 days for FY27 and 94 days for FY28, compared with 96 days in FY26 and 94 days in the three months ended June 30, 2026.

Onshore projects and data-centre projects are key parts of this change in working-capital mix. Onshore revenue increased from Rs 2.04 crore in FY24 to Rs 51.15 crore in FY25 and Rs 164.36 crore in FY26. Company says industrial and infrastructure onshore projects have longer execution timelines and customer approval processes than offshore and O&M contracts, while data-centre projects have structured payment milestones.

Company’s order book stood at Rs 491.12 crore across 21 projects at June 30, 2026. Onshore projects represented Rs 243.43 crore, or 49.57%, and data-centre projects accounted for Rs 177.57 crore, or 36.16%. Standalone EPIC projects comprised Rs 328.56 crore, or 62.85%, of the order book, indicating that project execution rather than recurring O&M activity accounts for most committed work.

Which assets and liabilities drive Company’s projected gap?

Company’s projected working-capital gap is driven principally by receivables, inventory and short-term loans and advances used for tendering and execution. Inventory is projected to rise from Rs 52.82 crore at June 30, 2026 to Rs 80.26 crore in FY27 and Rs 120.91 crore in FY28. The forecast assumes inventory holding of 62 days in both projected years, matching FY26 and the three months ended June 30, 2026.

Company attributes higher inventories to advance procurement for onshore and data-centre work, which require materials to be available for execution and can mitigate supply-chain risks. Inventory was Rs 2.47 crore at March 31, 2024, when O&M activities made up a larger share of operations, and reached Rs 37.43 crore by March 31, 2026. The projected increase therefore stems from higher project volumes rather than a rise in assumed inventory days.

Short-term loans and advances are projected to increase from Rs 34.12 crore at June 30, 2026 to Rs 63.84 crore in FY27 and Rs 93.29 crore in FY28. These balances include earnest money deposits, security deposits for contracts and supplier advances. Earnest money deposits and security deposits totalled Rs 27.66 crore at June 30, 2026, and Company says deposits for unsuccessful bids took an average three months to be released and refunded.

Trade payables partly fund these current assets, but Company assumes a lower supplier-credit period. Trade payables are projected at Rs 82.61 crore in FY28, up from Rs 47.33 crore at June 30, 2026, while payable days are expected to decline from 46 to 40. Company says the 40-day assumption reflects timely vendor payments intended to maintain uninterrupted supplies of materials and services.

How does Company plan to fund the FY28 requirement?

Company’s FY28 funding pattern comprises Rs 262.02 crore of internal accruals, Rs 18.12 crore of short-term borrowings and Rs 70.00 crore of cumulative net proceeds allocated to working capital. These sources total Rs 350.14 crore, matching the projected Rs 350.14 crore total working-capital gap before cash and bank balances are deducted. The disclosed FY28 funding pattern is therefore presented on a gross-gap basis, while the Rs 331.61 crore figure is the net gap after cash.

Company has earmarked Rs 70.00 crore from net proceeds for long-term working-capital requirements. The implementation schedule allocates Rs 36.00 crore in FY27 and Rs 34.00 crore in FY28. If utilisation in a financial year is not completed, Company says the balance may be used in FY28 or FY29, subject to applicable law.

Company separately proposes to use Rs 25.53 crore of net proceeds for heavy equipment, including trucks, dumpers, excavators, loaders, cranes and a forklift. Company says some equipment is currently leased or rented, and it reported equipment rent of Rs 29.60 crore in FY26 and Rs 11.10 crore in the three months ended June 30, 2026 for 41 rented units. This capital-expenditure allocation is distinct from the Rs 70.00 crore working-capital allocation.

Company states that a shortfall in net proceeds or an increase in actual funding needs may be met through internal accruals or additional equity and debt arrangements. The plan therefore depends on the projected internal-accrual contribution of Rs 262.02 crore, continued access to short-term borrowing and the execution pace of its Rs 491.12 crore order book at June 30, 2026.

Conclusion

Company’s projected Rs 331.61 crore FY28 net working-capital gap reflects an operating mix increasingly weighted toward milestone-billed EPIC, onshore and data-centre projects. Receivables are projected to increase by Rs 78.36 crore from FY27 to FY28, while inventories are expected to increase by Rs 40.65 crore, making collection timing, procurement and supplier payment terms material to the forecast.

The next disclosed milestones are the planned deployment of Rs 36.00 crore of working-capital proceeds in FY27 and Rs 34.00 crore in FY28, alongside receivable days of 93 and 94 days respectively. Company has also said that estimates may be revised for order-book changes, customer and vendor negotiations, costs and market conditions, while funding above the earmarked proceeds may require internal accruals or further equity or debt arrangements.