Rs 1,000+ crore order book: Construction Company Gets ‘Positive’ Outlook Upgrade from Infomerics Ratings After Rs 119 Crore IPO

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Rs 1,000+ crore order book: Construction Company Gets ‘Positive’ Outlook Upgrade from Infomerics Ratings After Rs 119 Crore IPO

The stock price is trading 9.33 per cent up from the 52-week low.

Globe Civil Projects Limited (GCPL) announced that Infomerics Valuation and Ratings Private Limited (Infomerics Ratings) has upgraded its long-term outlook to ‘Positive’ from ‘Stable’ while reaffirming the existing credit ratings. The revision follows the company’s successful Initial Public Offering (IPO), through which it raised Rs 119 crore in July 2025.

Rating Action Details
Infomerics reviewed GCPL’s total Bank facilities of Rs 110 crore, covering long-term and short-term borrowings. The long-term bank facilities worth Rs 26 crore were rated IVR BBB/Positive (previously IVR BBB/Stable), while the short-term bank facilities of Rs 84 crore were reaffirmed at IVR A3+. The company’s facilities include OCC/ODBD limits of Rs 10 crore and two cash credit limits of Rs 6 crore and Rs 10 crore.

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Reasons for the Upgrade
The outlook revision was supported by an improved capital structure following the IPO and an expected decline in total debt to around Rs 120 crore by FY26 from about Rs 155 crore in FY25. This improvement is expected to strengthen debt protection metrics.

Financial Performance
GCPL reported total operating income of Rs 325.99 crore in FY25, marking an 11 per cent growth from Rs 294.90 crore in FY24. Operating profit margin rose to 16.43 per cent from 15.10 per cent, supported by efficient cost management. EBITDA increased by around 20 per cent to Rs 53.56 crore, and PAT improved by 57 per cent to Rs 24.05 crore.

Order Book and Clients
As of September 30, 2025, the company’s outstanding order book stood at Rs 1,001.28 crore, 3.07 times its FY25 revenue, ensuring revenue visibility. Projects worth Rs 481 crore are scheduled for FY26 and Rs 403 crore for FY27. Its client base includes CPWD, NBCC, Indian Railways, Delhi Public School, and Haryana Cricket Association.

Management and Experience
Established in 2002, GCPL is promoted by Mr. Ved Prakash Khurana, who has nearly 40 years of experience in the civil Construction sector. Under his leadership, the company has executed projects for Delhi Metro Rail Corporation, AIIMS, IITs, and Indian Railways across India.

Capital Structure and Metrics
The company’s overall gearing improved to 1.49x as of March 31, 2025, from 1.99x a year earlier. The interest coverage ratio rose to 2.78x from 2.01x, and DSCR improved to 1.42x from 1.12x. The IPO proceeds are expected to further reduce leverage and enhance liquidity.

Challenges and Liquidity
GCPL’s operations remain working capital intensive, with an average utilization of 92 per cent and an operating cycle of 131 days in FY25. The construction sector’s competitive nature and input cost volatility continue to pose challenges. Liquidity remains adequate, with expected accruals of Rs 36–50 crore against debt repayments of Rs 16 crore in FY26, Rs 8 crore in FY27, and Rs 3 crore in FY28. The company held unencumbered cash of Rs 27.95 crore as of September 30, 2025.

On Thursday, GCPL shares traded at Rs 73.50 per share, up 0.05 per cent at 11:53 am IST, reflecting investor confidence following the rating upgrade and financial improvement. The stock price is trading 9.33 per cent up from the 52-week low.

Disclaimer: The article is for informational purposes only and not investment advice.