Madhav Infra Projects Limited

Business overview Madhav Infra Projects Limited is an Engineering, Procurement, and Construction (EPC) contractor and developer operating in the Renewable Energy and Infrastructure Development sectors. The company offers end-to-end solar power solutions including project feasibility, engineering, procurement, construction, commissioning, and operation & maintenance (O&M). Its infrastructure activities encompass power, roads, railways, and industrial infrastructure projects across India, headquartered in Vadodara, Gujarat.

Key facts (FY 2025-26)

• Consolidated Total Income for FY26 was ₹510.46 Crore, a decrease of 17.2% from FY25.
• Consolidated Profit After Tax for FY26 was ₹27.41 Crore, an increase of 6.0% from FY25.
• The company holds a strong Pan-India presence in Solar EPC and O&M services and has successfully executed numerous projects nationwide.
• It operates with 15 subsidiaries primarily involved in infrastructure development and renewable energy projects.
• Promoters Mr. Ashok Madhavdas Khurana (Chairperson) and Mr. Amit Khurana (Managing Director) hold 28.09% and 1.78% of equity respectively, with the Armaan Amit Trust holding 30.18%.
• Long-term bank facilities are rated CARE BBB; Stable, and long-term/short-term bank facilities are rated CARE BBB; Stable / CARE A3.

Recent developments (FY 2025-26)

• Awarded a 73.15 MW Solar Power Project in Madhya Pradesh for feeder level solarization under the PM-KUSUM C Scheme.
• The Board decided to retain profits for future growth and expansion, hence no dividend was recommended for FY26.
• Enhanced borrowing limits to ₹1,000 Crores to meet financial requirements for ongoing and proposed projects.
• Incorporated several Special Purpose Vehicles (SPVs) for implementing grid-connected Solar PV Power Plants under the Surya Mitra Krishi Feeders Scheme and PM-KUSUM-C feeder solarization component.
• The management continues to focus on a diversified business model, leveraging macroeconomic trends like rapid urbanization, clean energy transition, and sustainability.

Key risks flagged by management

• Market Competition: Operates in a competitive infrastructure market, facing challenges from established Indian and international players, which may affect project acquisition and profit margins.
• Cost Volatility & Supply Chain: Profitability can be adversely impacted by increases in prices of raw materials, sub-contracting costs, consumables, spares, or delays in material supply.
• Working Capital & Financing: A lengthened working capital cycle due to overextended receivables affects cash flow. The sector also faces high material and labor costs, inflation, and challenges in long-term infrastructure financing.
• Operational & Project-related Risks: Exposed to risks such as non-availability of key resources, project delays, cost overruns, force majeure events, and legal/technical challenges during project execution.

Pros

• Diversified Business Model: Engaged in both infrastructure development (roads, railways, power) and renewable energy (solar EPC, O&M), spreading revenue streams.
• Strategic Alignment with National Growth: Benefits from the Indian government's strong priority and increased capital outlay for infrastructure development and renewable energy.
• Robust Internal Controls: Has established effective internal financial control systems, with regular evaluations by internal audit and oversight by the Audit Committee.

Cons

• Declining Revenue: Consolidated total income decreased by 17.2% from ₹616.18 Crore in FY25 to ₹510.46 Crore in FY26.
• Working Capital Management: The auditor noted that unsecured loans provided to related parties (₹824.89 lakhs outstanding) are interest-free, which may be prejudicial to the company's interest.
• No Dividend: The Board did not recommend any dividend for FY26, opting to retain profits for future growth, which may affect investor returns.