SRIT India shift lifts FY28 working capital to ₹407.857 crore

SRIT India projects working-capital requirements of ₹407.857 crore in Fiscal 2028, compared with ₹150.271 crore in Fiscal 2026, as it plans to execute more projects internally. The shift away from partner-funded, back-to-back delivery is expected to reduce supplier-payment periods while SRIT India continues to finance costs before milestone-based client collections.

Why is SRIT India bringing more project execution in-house?

SRIT India is moving towards greater in-house execution to retain project margins that were previously shared with contractors and consortium partners. Under the earlier back-to-back model, product-specific partners largely carried out execution and were paid after SRIT India received payments from clients, giving the partners a funding role alongside their delivery role.

SRIT India says this partner dependence was primarily driven by working-capital considerations rather than an absence of technology or execution capability. Standalone revenue from operations increased to ₹439.533 crore in Fiscal 2026 from ₹380.088 crore in Fiscal 2025, while the consolidated order book was ₹1,204.717 crore as of June 30, 2026. The company intends to use its record of delivery for government and enterprise clients to undertake a progressively larger share of projects itself.

The strategy transfers more of the project funding burden to SRIT India. Turnkey assignments require upfront spending on manpower, software development, hardware procurement and other project costs, but payments are generally released only after client milestones are completed, accepted, verified and certified. SRIT India says this expenditure-to-payment interval has historically ranged from five to eight months.

Government contracts also require funds to be blocked before and during execution. Earnest money deposits, or EMDs, may become maintenance-margin deposits until completion, while performance bank guarantees generally range from 5.00% to 10.00% of contract value and can require bank margin money or fixed deposits. Total EMDs and security deposits were ₹8.891 crore in Fiscal 2026, versus ₹10.792 crore in Fiscal 2025.

How much will SRIT India’s working capital increase?

SRIT India estimates that working capital will rise to ₹407.857 crore in Fiscal 2028 because current liabilities are projected to decline faster than current assets increase. The Board approved the Fiscal 2026 to Fiscal 2028 projections and their assumptions on August 27, 2026.

SRIT India’s actual requirement had already increased from ₹32.932 crore in Fiscal 2024 to ₹64.540 crore in Fiscal 2025 and ₹150.271 crore in Fiscal 2026. Working capital represented 12.34% of revenue from operations in Fiscal 2024, 16.98% in Fiscal 2025 and 34.19% in Fiscal 2026; as a share of total assets, it rose from 7.91% to 24.96% across the same period.

The Fiscal 2028 amount is a management estimate, not a reported result. SRIT India states that the projections use assumptions about future events and management actions that may not necessarily occur, meaning the increase depends on the planned execution mix, collections, project activity and liability timing.

Which assets and liabilities drive the higher capital need?

Trade receivables, contract assets, supplier advances and lower supplier credit are the main drivers of SRIT India’s projected working-capital increase. Trade receivables, the largest individual current-asset category, are estimated to increase from ₹232.826 crore in Fiscal 2026 to ₹293.964 crore in Fiscal 2028.

Other current assets, which include contract assets, advances to suppliers, balances with authorities and current tax assets, are forecast to rise from ₹174.708 crore in Fiscal 2026 to ₹233.195 crore in Fiscal 2028. A contract asset is work completed under the percentage-of-completion accounting method for which the relevant client milestone has not yet been certified to permit invoicing.

SRIT India expects the holding period for other current assets to fall from 119 days in Fiscal 2026 to 100 days in Fiscal 2027 and 93 days in Fiscal 2028 as contract assets are certified and invoiced. Trade-receivable days are also projected to decline from 176 days to 143 days and then 128 days, following an earlier decline from 233 days in Fiscal 2024.

The Fiscal 2024 receivables period was elevated partly by a Build, Own, Operate, Transfer, or BOOT, project. SRIT India had delivered that project earlier, but quarterly payment terms began after the go-live certificate was received in mid-Fiscal 2024. The company says a substantial portion of those carried-forward receivables has since been realised and expects 120 to 140 days to be its normal government-project collection cycle.

Why does direct delivery reduce supplier credit?

SRIT India expects direct project delivery to reduce trade-payable days from 164 days in Fiscal 2026 to 102 days in Fiscal 2027 and 57 days in Fiscal 2028. This reduction increases the company’s working-capital requirement because suppliers and contractors will no longer be paid to the same extent only after client collections.

Trade payables are projected to decline from ₹205.405 crore in Fiscal 2026 to ₹94.561 crore in Fiscal 2028, while total current assets are expected to increase by ₹104.535 crore. Other financial liabilities are forecast to fall from ₹41.021 crore to ₹19.398 crore, and other current liabilities and provisions are estimated to reduce from ₹86.739 crore to ₹66.156 crore.

Under the back-to-back model, payments to suppliers and contractors were linked to payments received from customers, aligning trade-payable and trade-receivable cycles. As SRIT India funds major projects internally and uses fewer subcontractors, it expects less supplier credit, fewer subcontractor-related deposits and lower contract liabilities and accrued project costs.

Performance bank guarantee use illustrates another execution-related funding commitment. SRIT India issued guarantees of ₹22.272 crore in Fiscal 2026 against ₹492.189 crore of relevant contract value, or 4.53%, compared with 2.60% in Fiscal 2025 and 1.23% in Fiscal 2024. The underlying relevant contract values were ₹853.628 crore in Fiscal 2025 and ₹946.755 crore in Fiscal 2024.

How does SRIT India plan to fund the projected requirement?

SRIT India’s Fiscal 2028 funding pattern combines internal accruals of ₹248.879 crore, short-term bank borrowings of ₹34.978 crore and net proceeds from the fresh issue of ₹124 crore. These amounts equal the projected working-capital requirement of ₹407.857 crore for Fiscal 2028.

SRIT India proposes to use ₹124 crore of net proceeds for incremental working-capital requirements during Fiscal 2027 and Fiscal 2028. The stated annual funding table allocates ₹80.600 crore of fresh-issue proceeds to Fiscal 2027 and ₹124 crore to Fiscal 2028, alongside higher internal-accrual funding.

The plan also assumes that other financial assets and bank balances other than cash and cash equivalents will become less capital-intensive. Their holding period is projected to decline from 39 days in Fiscal 2026 to 34 days in Fiscal 2027 and 24 days in Fiscal 2028 as unbilled revenue is billed and realised. These balances include unbilled revenue, EMDs, security deposits and bank deposits maintained as margin against bank guarantees.

Conclusion

SRIT India’s projected ₹407.857 crore Fiscal 2028 working-capital requirement reflects a change in who finances the project cycle. Direct execution is intended to retain more project margin, but it requires SRIT India to fund costs during the interval before government and enterprise clients accept milestones and release payments.

The next measure is delivery against the Board-approved Fiscal 2027 and Fiscal 2028 funding plan. The projection depends on receivable days declining to 143 days and then 128 days, contract assets being certified and invoiced, trade-payable days falling to 57 days, and internal accruals, bank borrowings and fresh-issue proceeds being available as planned.