Swastika Infra relies on utilities for 97% of revenue

Swastika Infra Limited relies on government utilities for nearly all of its operating activity: projects for those customers generated Rs 487.823 crore, or 96.87%, of Fiscal 2026 revenue from operations, and government-awarded work made up 100% of the order book on July 31, 2026. This dependence links revenue, collections and future contracts to public electricity-distribution entities.

How concentrated is Swastika Infra's utility revenue?

Swastika Infra's utility revenue is concentrated because its business centres on turnkey power-distribution infrastructure projects for state electricity distribution companies, or DISCOMs. A turnkey contract requires the contractor to deliver a completed system, typically covering design, supply, installation, testing and commissioning. The company identifies government utilities as the principal source of projects in this model.

The disclosed government-utility customer group includes West Bengal State Electricity Distribution Company Limited, Madhya Gujarat Vlj Nagam Limited, Assam Power Distribution Company Limited, Goa Electricity Department and Himachal Pradesh State Electricity Board Limited. It also includes Uttar Haryana Bijli Vitran Nigam, Jaipur Vidyut Vitrant Nigam Limited, Uttarakhand Power Corporation Limited, Ajmer Vidyut Vitran Nigam Limited and Rajasthan Rajya Vidyut Prasaran Nigam Limited, leaving Swastika Infra dependent on a limited customer category rather than a broad commercial base.

Government-utility project revenue increased by Rs 299.5441 crore between Fiscal 2024 and Fiscal 2026, while its share of operating revenue rose by 7.03 percentage points. The largest change occurred in Fiscal 2025, when the share increased by 6.82 percentage points from Fiscal 2024; it then rose by a further 0.21 percentage points in Fiscal 2026. Continued reliance on utilities requires Swastika Infra to remain eligible for tenders, win bids and execute projects while clients maintain spending and payment capacity.

Why does Swastika Infra rely on utilities for 97% of revenue?

Swastika Infra relies on utilities for 97% of revenue because government-awarded power transmission and distribution work accounts for 96.87% of Fiscal 2026 operating revenue. The prospectus identifies policy changes, altered budget allocations for transmission and distribution infrastructure, funding shortages, lower available sector work and political considerations as factors that may affect contract awards or payments.

Government contracts can also extend the time between bidding and execution. Swastika Infra reported that projects took an average of two to three months to start from their award dates during the last three fiscal years. The company says utility contracts can involve extensive internal processes, added scope after award and renegotiated terms, any of which can delay operations or reduce the number of contracts available for bidding.

Government entities generally use standard contractual terms, giving Swastika Infra limited scope to negotiate provisions that may favour the client. If a utility terminates an agreement without company fault, compensation generally depends on unpaid work and the timing of termination against payment milestones; the company says recovery may be time-consuming and may not cover its investment plus lost profits. Swastika Infra reported no government-client contract terminations in Fiscal 2026, Fiscal 2025 or Fiscal 2024.

Is Swastika Infra's whole order book government awarded?

Yes. Swastika Infra disclosed that 100% of its order book as of July 31, 2026 consisted of projects awarded by government utilities. The company had 18 ongoing engineering, procurement and construction, or EPC, power projects across six Indian states, with aggregate project order value of Rs 2,036.65 crore. EPC means the contractor is responsible for engineering, procurement and construction work.

Swastika Infra separately disclosed Rs 916.55 crore of order book, defined as anticipated revenue from the uncompleted portions of existing ongoing contracts. This balance-work measure includes signed agreements where all preconditions, including letters of intent or allotment from the client, have been met. The Rs 2,036.65 crore aggregate is the total value of 18 projects, whereas Rs 916.55 crore is the remaining work available for execution.

The company's book-to-bill ratio declined to 1.41 in Fiscal 2026 from 1.92 in Fiscal 2025 and 2.08 in Fiscal 2024. Swastika Infra defines the ratio as order book including goods and services tax divided by revenue from contracts for the relevant period. The lower Fiscal 2026 ratio shows that the reported order-book measure was smaller relative to annual contract revenue than in the preceding two fiscal years, without changing the 100% government-utility composition.

How concentrated are Swastika Infra's largest projects?

Swastika Infra's five largest projects represented 69.72% of the Rs 916.55 crore order book on July 31, 2026. Their combined balance work was Rs 639.1552 crore, while the largest two projects accounted for 41.83% of the total. This adds individual-project concentration to the company's dependence on government utilities.

The largest project had Rs 225.3355 crore of balance work, or 24.58% of the order book, for segregation of 11 kilovolt mixed feeders at Sikar Circle for Ajmer Discom in Rajasthan under the Revamped Distribution Sector Scheme. The second-largest project, a power-evacuation system for a 2,450 megawatt solar park at Pugal Bikaner, had balance work of Rs 158.12 crore, or 17.25% of the order book.

The next three projects represented 10.41%, 8.86% and 8.62% of the order book. They cover smart-grid work in Himachal Pradesh, underground cabling in Siliguri, West Bengal, and conversion of overhead high-tension and low-tension networks into underground cable systems at Bhachau, Gujarat. Swastika Infra says losses or cost overruns on one or more substantial contracts could affect operating results because of this concentration.

What could interrupt Swastika Infra's utility contracts?

Swastika Infra reported past execution delays of six to 12 months arising from delayed site handover, uncleared drawings and delayed payments by government clients. A delay on a government project can affect the timing of work and collections, while changes in pre-qualification criteria can limit the company's ability to bid for future contracts. Government tender processes may also be subject to delays or revised requirements.

A payment dispute remains pending before the High Court of Rajasthan, Jaipur Bench. Swastika Infra filed Civil Writ Petition No. 8235 of 2021 against the State of Rajasthan, Ajmer Vidyut Vitran Nigam Limited and Rural Electrification Corporation over recovery of price-variation amounts for copper transformers supplied under work orders. The company says such proceedings can require management attention, consume financial resources and affect relationships with government clients.

Tender outcomes determine whether the government-utility pipeline is replenished. Swastika Infra participated in 28 bids in Fiscal 2026, of which eight were accepted and 20 were lost, compared with two accepted bids from 10 in Fiscal 2025 and six accepted bids from 16 in Fiscal 2024. The company says EPC contracts are awarded after technical and financial prequalification and competitive price bidding, so future awards require both qualification and competitive bids.

Conclusion

Swastika Infra's Fiscal 2026 growth and remaining contracted work were overwhelmingly tied to government utilities, which supplied Rs 487.823 crore of revenue and all of the July 31, 2026 order book. The five largest projects accounted for 69.72% of balance work, meaning customer-category concentration is accompanied by substantial exposure to a small number of contracts.

The next developments to watch are conversion of the Rs 916.55 crore balance-work order book, payment timing and any further execution delays. Tender outcomes after eight accepted bids in Fiscal 2026, changes in utility qualification criteria or funding, and updates in Civil Writ Petition No. 8235 of 2021 could also affect the government-utility pipeline.