Chavda Infra Limited is a premier, fully integrated **Engineering, Procurement, and Construction (EPC)** specialist headquartered in Ahmedabad. Since its inception in **1990**, the company has evolved from a local repair contractor into a dominant player in the high-rise "skyscraper" segment. Today, Chavda Infra is a key architect of Gujarat’s urban skyline, capable of delivering complex structures exceeding **140 meters** in height. --- ### **Strategic Market Positioning & Geographic Focus** Chavda Infra operates with a "depth-over-breadth" strategy, maintaining a concentrated and dominant presence in Gujarat’s high-growth urban corridors. * **The Tri-City Stronghold:** Operations are primarily focused on the **Ahmedabad, Gandhinagar, and GIFT City** regions. This concentration allows for optimized logistics, rapid mobilization of equipment, and deep relationships with local regulatory bodies. * **Skyscraper Dominance:** The company is a specialist in verticality. It is currently executing **5 out of the 10** approved skyscraper projects in the Ahmedabad and Gandhinagar region. * **Private Sector Preference:** Unlike many EPC firms that rely on low-margin government tenders, Chavda Infra sources the majority of its projects through **nomination** from elite private developers. This is driven by a reputation for quality that often allows the company to win contracts even when it is the **highest bidder**. * **Growth Catalysts:** The company is strategically positioned to benefit from major regional infrastructure drivers, including the **GIFT City** expansion, the **Mumbai-Ahmedabad High-Speed Rail**, and the **Sardar Patel Sports Enclave** (linked to India’s 2036 Olympic bid). --- ### **Integrated Business Model & Revenue Segments** The company manages the entire construction value chain in-house, reducing reliance on third-party vendors and protecting project timelines. #### **Revenue Diversification (FY24)** | Segment | Revenue Contribution | Focus Area | | :--- | :--- | :--- | | **Residential** | **55%** | Luxury high-rise apartments, townships, and HNW private residences. | | **Commercial** | **32%** | Premium office spaces, retail outlets, and mixed-use complexes. | | **Institutional** | **13%** | High-value specialized projects for universities and hospitals. | #### **The Integrated Advantage** * **Captive Supply Chain:** Operates **two Ready-Mix Concrete (RMC) plants** (via Chavda RMC LLP) for quality control and a **5,000 sq. ft. refurbishing yard** to extend the lifecycle of construction materials. * **Human Capital:** Employs **346+** permanent staff and manages a daily mobilized workforce of over **3,500** workers. * **Asset Ownership:** Maintains a robust logistics fleet including **20** mixers, **6** concrete pumps, **3** static booms, and various heavy loaders/JCBs. --- ### **Technological Edge & Execution Excellence** Chavda Infra utilizes global construction technologies to ensure structural precision and industry-leading execution speeds. * **Advanced Formwork Systems:** Utilizes **Aluminum Monolithic Formwork** (Malaysia), **Peri Up MI System** (Germany), **Doka Flex**, and **Gridflex** shuttering systems. * **Safety Leadership:** A pioneer in the Ahmedabad region for **Edge Protection Systems (EPS)** and **Static Boom Pumps**. The company maintains a **"Zero-Harm" culture** supported by dedicated Safety Parks. * **Efficiency Metrics:** The company follows a **three-year growth cycle** model, aiming to **double its business scale** every 36 months through continuous technological reinvestment. --- ### **Project Pipeline & Order Book** As of **May/June 2025**, the company maintains a robust unexecuted order book of approximately **₹953 Crores**. **Key Ongoing Projects:** * **The Identity (GIFT City):** ₹218.98 Crores (Commercial) * **Arvind Aqua City:** ₹150.00 Crores (Residential) * **Trogon Twin Towers:** ₹147.00 Crores (Commercial) * **WYNN (Sindhu Bhavan Road):** ₹131.02 Crores (Commercial) * **Kalrav Nest:** ₹125.00 Crores (Residential) * **Nirma Corporate House:** ₹72.75 Crores (Commercial) --- ### **Financial Performance & Capital Structure** Chavda Infra has demonstrated a strong growth trajectory since its listing on the **NSE Emerge** platform in **September 2023**. #### **Comparative Financial Highlights** | Metric | H1-FY25 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **₹114.88 Cr** | **₹241.32 Cr** | **₹162.00 Cr** | | **EBITDA** | **₹25.03 Cr** | **₹40.87 Cr** | **₹27.21 Cr** | | **EBITDA Margin** | **21.79%** | **17.73%** | **16.96%** | | **Profit After Tax (PAT)** | **₹9.29 Cr** | **₹18.76 Cr** | **₹12.05 Cr** | | **PAT Margin** | **8.08%** | **7.76%** | **7.44%** | #### **Solvency & Capital Management** * **Leverage:** The **Total Outside Liabilities to Total Net Worth (TOL/TNW)** ratio improved significantly from **4.07** in FY23 to **1.71** in FY24. * **Net Debt-to-Equity:** Maintained at a healthy **1.4x** as of October 2025. * **Fund Raising:** In late 2025, the company approved a **Preferential Issue** of **80,00,000 shares** at **₹114 per share** to raise **₹91.20 Crores** for working capital and machinery expansion through **March 2027**. * **Credit Rating:** Reaffirmed as **Stable** by **CARE Ratings Limited** in October 2025. --- ### **Commercial Terms & Risk Mitigation** The company employs several structural safeguards to protect its margins and liquidity: * **Cash Flow Protection:** Uses **milestone-based billing** (typically per slab cast) to ensure consistent cash conversion. * **Inflation Pass-Through:** Contracts include **escalation clauses** to mitigate the volatility of raw materials (Steel, Cement, Copper), which have seen increases of **30%–90%** over the last three years. * **Retention Policy:** **3%** of project revenue is held as retention money, released **12 months** after the Defect Liability Period. * **Inter-company Limits:** A cap of **₹700 Crores** is set for providing loans or guarantees to group entities to ensure capital remains focused on core EPC activities. --- ### **Key Risks & Challenges** * **Tax Contingency:** As of **April 2026**, the company is contesting an **Income Tax Authority** demand of **₹14.71 Crore** following a 2024 search. While management is appealing, this remains a pending liability. * **Working Capital Intensity:** The company reported a **negative cash flow from operations of ₹32.8 Crore** in FY25, driven by back-ended revenue cycles and high trade receivables. * **Input Cost Pressure:** Labour costs have surged by approximately **150%** over the last three years, while premium construction costs per sq. ft. rose from **₹2,200** in 2021 to **₹2,800** in 2024. * **Geographic Concentration:** While dominant in Gujarat, the company’s revenue is highly sensitive to the economic and regulatory environment of a single state.