Detailed Narrative
New Management and Corporate Restructuring
Twamev Construction and Infrastructure Limited, formerly Tantia Constructions, has been under new management since June 2023, following NCLT proceedings. This marks the first full financial year under the new leadership, which has focused on resolving legacy issues, strengthening internal controls, and rebranding the company in February 2025. The company now operates without past liabilities from the NCLT process, leveraging its rich legacy while moving forward with a clean slate.
Strong Q4 FY25 Financial Performance
The company reported a robust Q4 FY25, with revenue increasing by a sharp 60% to ₹84 crores, up from ₹53 crores in the previous quarter. Profit After Tax (PAT) jumped to ₹56 crores, translating to an EPS of ₹3.62. This strong performance was significantly bolstered by ₹79 crores in other income for FY25, primarily stemming from the near resolution of a legacy arbitration claim with a State government. Operational margins are also noted as attractive, with a minimal tax outgo due to a large tax shield.
Order Book and Future Growth Outlook
As of March 31, 2025, Twamev holds an unexecuted order book of ₹300-330 crores, with projects expected to be completed over the next 24 to 36 months. The order book composition includes roads (28%), water pipeline (6%), railways (33-34%), and the Shillong ropeway (28-29%). Management aims to secure an additional order book of ₹250-300 crores during the current fiscal year, targeting operational margins of 8-10% going forward⏳.
Asset-Light Strategy and Funding Initiatives
Twamev is committed to an asset-light strategy, minimizing investments in fixed assets to optimize costs. The standalone company currently has practically no bank borrowings, with a ₹338 crore borrowing residing in a subsidiary, supported by an arbitration claim. To fund future growth and working capital requirements, the company has secured shareholder approvals for a QIP, aiming to raise approximately ₹8,200 crores, and is also pursuing substantial bank facilities.
Resolution of Key Arbitration Claims
The company is actively pursuing two significant arbitration claims. The Bihar project arbitration is progressing well, with execution hearings underway, and significant headway towards receiving the claim is expected within the next 3-4 months. Additionally, the TRPL (Tantia Rucksall Private Limited) arbitration, related to an NHAI project and a ₹338 crore subsidiary borrowing, restarted in May 2025 and is anticipated to conclude within the current year.
Enhanced Governance and Strategic Partnerships
Post-NCLT, the new management has significantly strengthened internal controls and governance, with the promoter group holding 90-93% and a regulatory mandate to reduce this to 75% within two years. The company has formed strategic partnerships, including an exclusive tie-up with POMA, a French global major in the rope industry, for bidding in India, and a collaboration with BBJ, a public sector enterprise. Synergy with the promoter's mechanical EPC company will enhance joint bidding capabilities for civil and mechanical projects.