Supreme Infrastructure India Limited (**SIIL**) is a Mumbai-headquartered **Engineering, Procurement, and Construction (EPC)** firm specializing in large-scale infrastructure. The company is currently undergoing a high-stakes financial pivot, transitioning from a period of severe debt distress toward a restructured, asset-light model focused on high-margin specialized construction. ### Strategic Pivot: The NCLT-Approved Transformation Following years of liquidity crises, SIIL is implementing a court-sanctioned **Composite Scheme of Compromise and Arrangement** (approved **March 28, 2025**). This scheme serves as the foundation for the company’s "Version 2.0," focusing on deleveraging and capital infusion. * **Debt Resolution:** The company reached a fixed settlement with **14 financial creditors**. As of **February 2026**, full payments have been completed for **11 lenders**, resulting in the release of charges on land, machinery, and promoter pledges. * **Capital Infusion:** In **July 2025**, a massive preferential allotment was executed to fund the settlement and provide working capital: * **7,10,37,388 equity shares** and **2,21,12,953 warrants** issued at **₹86.94** per unit. * Conversion of **₹235 crore** in promoter unsecured loans and **₹39.50 crore** in bank debt into equity. * Authorized capital expanded from **₹75 crore** to **₹250 crore**. * **Management Change:** A change in control was triggered in **December 2025** via an Open Offer for **26%** of share capital at **₹97.60/share** by the Acquirers (Vikram Sharma and associates). ### Core Operational Framework & Revenue Model SIIL operates through a single primary segment: **Engineering and Construction**. Its model integrates traditional contracting with modern infrastructure financing frameworks. * **Execution Frameworks:** Projects are delivered via **Build, Operate, and Transfer (BOT)**, **Public-Private Partnership (PPP)**, and **Hybrid Annuity Model (HAM)**. * **Backward Integration:** To protect margins, SIIL owns critical supply chain assets, including **Ready Mix Concrete (RMC)** plants, **Asphalt plants**, **Crushing plants**, and **quarries**. * **Revenue Recognition:** The company utilizes the **percentage-of-completion method** under **Ind AS 115**, recognizing income based on direct measurements of value transferred to the client. * **Seasonality:** Operations are **substantially seasonal**, with monsoon periods typically leading to quarterly fluctuations in margins and construction progress. ### Project Portfolio & Market Presence SIIL maintains a diversified footprint across **13 Indian states**, with a historical concentration in **Maharashtra**. **Key Infrastructure Verticals:** * Roads, Highways, and Bridges * Power and Railways * Buildings (Residential & Commercial) * Water Supply and Drainage Systems **Client Concentration (as of March 31, 2025):** | Client Category | Revenue Contribution (%) | | :--- | :--- | | **Government Promoted Agencies** | **37.00%** | | **Private Sector & Others** | **63.00%** | **Notable Clients:** Airports Authority of India (**AAI**), Bhabha Atomic Research Centre (**BARC**), Brihanmumbai Municipal Corporation (**BMC**), and various State **PWDs**. ### Financial Recovery & Balance Sheet Dynamics The company’s financial profile has shifted from a state of insolvency to a positive net worth following the recognition of exceptional gains from debt settlements. | Metric (Consolidated) | Dec 31, 2025 (9M) | March 31, 2025 (FY) | March 31, 2024 (FY) | | :--- | :--- | :--- | :--- | | **Net Worth** | **₹297.45 Cr** | **(₹6,234.38 Cr)** | **(₹4,802.19 Cr)** | | **Accumulated Losses** | **(₹633.81 Cr)** | **(₹6,791.02 Cr)** | **(₹5,559.72 Cr)** | | **Exceptional Gain (OTS)** | **₹3,678.01 Cr** | - | - | | **Total Debt (Standalone)** | *Reduced/Settled* | **₹7,300.14 Cr** | **₹6,190.68 Cr** | **Liquidity Management:** * **NCD Issuance:** In late 2025, the board approved raising **₹45 crore** via **Non-Convertible Debentures (NCDs)**, including a **₹25 crore** placement to **InRe Fund II** to bolster short-term liquidity. * **Cost Discipline:** The Managing Director and Executive Directors voluntarily **waived all remuneration** for FY24 and FY25 to support the turnaround. ### Subsidiary Structure & Insolvency Status A significant portion of SIIL’s legacy road assets is currently held within Special Purpose Vehicles (SPVs) that are undergoing legal resolution. * **Deconsolidation of SIBPL:** In **May 2024**, **Supreme Infrastructure BOT Private Limited (SIBPL)** entered the **Corporate Insolvency Resolution Process (CIRP)**. SIIL reclassified its **₹1,425.57 crore** investment as an **investment in associates**. * **Active Entities:** Includes **Supreme Mega Structure Private Limited** and **Supreme Infrastructure Overseas LLC**. * **Entities in CIRP/Liquidation:** * **Supreme Panvel Indapur Tollways (SPITPL)**: Under CIRP since Aug 2024. * **Sanjose Supreme**: Under liquidation. * **Patiala Nabha & Kopargaon Ahmednagar**: Under CIRP. ### Future Growth Strategy & Order Pipeline The "New Supreme" strategy prioritizes **margin discipline** and **specialized engineering** over high-volume, low-margin road bidding. * **Current Order Book:** Approximately **₹1,725 crore** (as of June 2025). * **High-Value Wins:** * **₹450 Crore Turnkey Project:** PAP housing complex in **Powai, Mumbai** (**16 lakh sq. ft.**). * **₹71.31 Crore Foundation Work:** Awarded by **Brookfield Properties** for excavation and piling at 'One Forest Avenue'. * **Sector Focus:** Targeting **complex foundations, piling, and high-end commercial real estate** to leverage the **PM Gati Shakti** and **National Infrastructure Pipeline (NIP)**. ### Critical Risk Factors Despite the successful restructuring, several material risks persist: * **Going Concern Uncertainty:** Auditors continue to highlight material uncertainty pending the final exit of the remaining **3 lenders** (SBI, PNB, and Union Bank) and the resolution of subsidiary defaults. * **Contingent Liabilities:** The company faces **₹1,533.16 crore** in outstanding corporate guarantees for defaulted subsidiaries. * **Asset Quality:** There are **₹757.06 crore** in long-overdue trade receivables. Auditors have noted a lack of **Expected Credit Loss (ECL)** adjustments for these balances. * **Regulatory & Legal:** The company has faced challenges regarding **Board disqualifications** under Section 164(2) and delays in statutory filings/AGMs for FY25. * **Execution Risks:** Operations remain sensitive to **Right of Way (RoW)** clearances, **National Green Tribunal (NGT)** construction bans, and raw material price volatility (typically **48-55%** of revenue).