Garuda Construction and Engineering Limited is a rapidly scaling **Engineering, Procurement, and Construction (EPC)** firm specializing in end-to-end civil construction solutions. Originally the in-house construction arm for its promoter group, the company has evolved into a multidisciplinary contractor serving both private developers and government entities. Following its successful listing on the **NSE** and **BSE** in **October 2024**, the company is leveraging an asset-light model to execute a massive multi-state project pipeline. --- ### **Multidisciplinary Service Capabilities** The company operates a full-spectrum business model, capturing value across the entire construction lifecycle: * **Civil Construction:** Design and execution of concrete and composite steel structures for high-rise residential, hospitality, and industrial clusters. * **MEP Services:** Integrated Mechanical, Electrical, and Plumbing solutions, including HVAC and specialized firefighting systems. * **Finishing & Interior Works:** High-specification finishing for marquee commercial and luxury hospitality projects. * **Operations & Maintenance (O&M):** Long-term facility management, highlighted by the **Delhi Police Headquarters** contract, which provides stable revenue through **FY 2032**. --- ### **Project Portfolio and Order Book Dynamics** As of **December 31, 2025**, the company’s order book stands at a robust **₹4,336.72 crore**, representing a massive **19.27x** its FY25 operating revenue. The portfolio is diversified across sectors and geographies: | Metric | Value / Details | | :--- | :--- | | **Total Order Book** | **₹4,336.72 crore** | | **Revenue (FY25)** | **₹225.03 crore** | | **Sector Mix** | Commercial (**58%**), Residential (**42%**) | | **Client Mix** | Public Sector (**~66%**), Private Sector (**~33%**) | | **Geographic Footprint** | Maharashtra (MMR), Delhi, Karnataka, Tamil Nadu, Rajasthan, Arunachal Pradesh, Punjab, and Uttar Pradesh | **Key Landmark Projects:** * **Delhi Police Headquarters:** A **17-storey twin tower** landmark (9 lakh sq. ft.) featuring a complete glass facade. * **Gorakhpur International Convention Centre:** The company’s largest public sector order at **₹1,087.34 crore**. * **Powai Heights, Mumbai:** Civil works for three high-end residential towers valued at **₹1,416 crore**. * **Agro Processing Cluster (Jalore):** A specialized Food Park approved by the **Ministry of Food Processing Industries (MoFPI)**. --- ### **Asset-Light Strategy and International Expansion** Garuda employs an **asset-light business model**, prioritizing scalability by utilizing third-party equipment vendors and subcontractors. This reduces capital intensity and allows the firm to focus on high-margin "Lock-and-Key" projects. * **Geographic Diversification:** While historically focused on the **Mumbai Metropolitan Region (MMR)**, the company is aggressively expanding into North and Northeast India. * **Global Foray:** In **June 2025**, the company established **Garuda Arabia Limited** in Saudi Arabia with an initial investment of **1 Million Saudi Riyals** to tap into Middle Eastern infrastructure opportunities. --- ### **Financial Performance and Capital Structure** The company has demonstrated a **42.96% CAGR** in operating income over the last three years, maintaining industry-leading margins. | Metric (₹ Crore) | FY24 | FY25 | H1 FY26 | | :--- | :---: | :---: | :---: | | **Total Operating Income** | **154.18** | **225.03** | *Exceeded FY25 levels* | | **EBITDA Margin (%)** | **32.30%** | **29.53%** | **29% - 35%** | | **Profit After Tax (PAT)** | **36.39** | **49.80** | **55.10** | | **Gearing Ratio** | — | **-0.58%** | — | **Capital Management Highlights:** * **IPO Proceeds:** Raised **₹173.85 crore** in October 2024. As of March 2025, **₹131.57 crore** was deployed into working capital, with **₹28.10 crore** held in fixed deposits. * **Debt Profile:** The company is virtually debt-free, with total borrowings of only **₹0.1 crore** and a **negative Net Debt** of **₹192.48 crore**. * **Future Fundraising:** To support its tripling order book, the company has proposed a **Qualified Institutions Placement (QIP)** to raise up to **₹500 crore** by the end of **FY 2026**. --- ### **Hospitality and Real Estate Assets** Beyond pure-play EPC, the company manages a portfolio of hospitality and township assets: | Property | Location | Type | | :--- | :--- | :--- | | **Golden Chariot Hotel & Spa** | Vasai, MH | Luxury/Wellness | | **Juvana Resort and Spa** | Aamby Valley | Premium Leisure | | **Rivali Park** | Kandivali, Mumbai | Residential | | **Makindian Township** | Amritsar | Integrated Township | --- ### **Operational Risks and Working Capital Challenges** Despite strong growth, the company’s business model involves unique complexities that impact liquidity: * **Non-Cash Settlement Models:** Significant contracts involve barter arrangements. For projects in Gorakhpur (**₹1,518.60 crore**), the company receives **6 acres of land on a 99-year lease** instead of cash. Other contracts are settled via **residential flats**. * **Elongated Operating Cycle:** The operating cycle increased from **107 days (FY24)** to **204 days (FY25)**. This is driven by high **debtor days** and the time required to monetize non-cash assets. * **Execution Backlog:** Approximately **₹1,773.76 crore** of the order book remains uncommenced as of late 2025 due to pending **Commencement Certificates (CC)** and site handovers. * **Concentration Risk:** While diversifying, a significant portion of the order book is tied to a few mega-projects in Uttar Pradesh and Mumbai, making the company sensitive to regional regulatory shifts. --- ### **Strategic Outlook: FY2026–2028** Management is focused on transitioning from "order wins" to "intensive execution." Key targets include: 1. **Execution Pace:** Completing **₹2,452.11 crore** of the current order book by **FY28**. 2. **Margin Maintenance:** Sustaining **EBITDA margins** in the **27%–30%** range through niche, high-margin contract selection. 3. **Monetization:** Developing or selling land parcels and residential units received as barter to recycle capital into new EPC projects. 4. **Institutional Growth:** Increasing authorized share capital to **₹80 crore** to facilitate future equity-based growth.