Chavda Infra Ltd

Chavda Infra Ltd reported a steady performance in FY25 with consolidated revenue growing 8% YoY to ₹260 crores, EBITDA increasing 33% YoY to ₹56 crores, and PAT rising 12% YoY to ₹21 crores. EBITDA margins expanded significantly by 399 basis points to 21.6%. However, the muted revenue growth was attributed to delays in projects like Centroid (due to diaphragm wall issues) and Nirma's Hostel and Shivalik Greenfield (due to regulatory reasons), as well as the cancellation of one project (Orchid) due to commercial reasons. These delayed projects are expected to contribute revenue in Q1 FY26.

In FY25, the company was awarded 7 projects totaling ₹448 crores. The outstanding unexecuted order book stood at ₹703 crores at the end of FY25, and further increased to ₹953 crores as of May 30, 2025, including new awards like Arvind Aqua City (₹150 crores) and Nirma Limited's corporate house (₹73 crores). The order book composition is 41% residential, 51% commercial, and 8% institutional. Management expects to secure at least ₹300 crores in new orders in FY26 from a bid pipeline of ₹600 crores, with a conversion rate of 40-50%.

The company experienced negative cash flow from operations of ₹32.8 crores in FY25, primarily due to elevated trade receivables which increased from ₹47 crores to ₹89 crores. This led to an increase in short-term borrowings, with total borrowings reaching ₹162 crores. To address this, the Board approved raising up to ₹100 crores through equity or equity-linked instruments within the next 2-3 months. These funds are intended to bolster the financial position, meet working capital requirements, and invest in additional equipment and machinery, aiming to improve cash flow and reduce debt.

Chavda Infra Ltd primarily focuses on the private sector and leverages its strong presence in the Ahmedabad, GIFT City, and Gandhinagar tri-city area. The company aims to double its business every three years. While currently focused on strengthening its position in the tri-city, it plans to explore top-tier cities like Mumbai, Bangalore, Hyderabad, and Delhi in the next 4-5 years. Additionally, the company intends to diversify into the industrial segment, with an announcement for a project expected within the next 4-6 months. A merger with developers/RMC is also planned to be completed within the current financial year, post-fundraising.

The company highlighted its commitment to quality and speed, having built an extensive ecosystem including in-house logistics, laboratory, and project management teams. This enables rapid service and completion of projects ahead of schedule. Investments are being made in technology to handle taller buildings (up to 200 meters), as the Ahmedabad skyline is evolving with new 150-meter structures. Operational improvements include reducing slab placement time for projects like Mondel One from 15 days to 10 days, leading to faster execution and better payment cycles.