StockFin.ai Try Free →

SRM Contractors Limited (SRM)

Construction · Construction · NSE · Updated 16 June 2026

₹494.2 ↑ 11.75% (1Y)

🎯 Key Takeaways

SRM Contractors Limited is in a clear growth phase, transitioning from a small-cap construction player to a mid-tier infrastructure contractor with expanding order book and improving profitability. Management is actively scaling operations through targeted capex and order inflow targets, supported by strong execution in challenging geographies.
Revenue grew 57.9% QoQ to ₹150 in Q3FY25.
⚠️ Execution risk in large orders: Management's target of converting 60-70% of the order book depends on timely project execution and client delivery, wh

Market Cap

₹1,102

P/E Ratio

29.6

Div Yield

0.00%

Promoter

0.0%

✨ Ask AI About SRM 📊 Interactive Charts

📖 The Story

SRM Contractors Limited is in a clear growth phase, transitioning from a small-cap construction player to a mid-tier infrastructure contractor with expanding order book and improving profitability. Management is actively scaling operations through targeted capex and order inflow targets, supported by strong execution in challenging geographies. The company is focused on margin discipline while pursuing aggressive top-line growth, positioning itself as a volume-driven but margin-conscious builder in India's infrastructure cycle.

📰 What's Happening

In Q4 FY26, SRM Contractors reported 94% YoY revenue growth to INR1,111 crore and 102% PAT growth to INR111 crore, driven by robust execution in infrastructure projects across difficult terrains. The company added INR1,097 crore of fresh orders during the year, bringing the total order book to INR1,884 crore as of March 2026. Management highlighted a target of INR2,000 crore order inflow for FY27 and plans for INR250 crore capex in FY27, with a focus on converting 60-70% of the order book. EBITDA margin guidance remains steady at 16-18%, while PAT margin is expected to improve to 8.75%-10.25%. The financial performance was underpinned by operational efficiency and scale, despite macroeconomic headwinds.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	108	55	95	150
Operating Profit	13	11	18	26
OPM %	11.8%	17.9%	15.9%	14.9%
Net Profit	6	5	10	16
EPS	₹14.73	₹8.32	₹18.04	₹6.97

The company has demonstrated consistent top-line expansion, with revenue rising from INR55 crore in Q1FY25 to INR150 crore in Q3FY25, accompanied by improving operational performance. Operating profit margins remained stable around 15-16% despite rising input costs, while net profit margins showed volatility due to one-off expenses and tax variations. EPS fluctuated significantly, peaking at INR18.04 in Q2FY25 before declining to INR6.97 in Q3FY25, reflecting timing of revenue recognition and tax impacts. The recent PAT growth to INR111 crore in Q4FY26 marks a recovery in profitability, supported by higher scale and better cost absorption. Management expects margin expansion to materialize gradually as order book conversion accelerates and capex ramps up.

🔮 Management Outlook & What's Next

Management has provided clear forward guidance, targeting INR2,000 crore of order inflow for FY27 and INR250 crore of capex to sustain growth momentum. They expect 60-70% conversion of the existing order book into revenue over the next fiscal year, which would support sustained top-line growth. PAT margin guidance of 8.75%-10.25% indicates an expectation of gradual improvement from current levels, assuming stable input costs and efficient execution. EBITDA margins are expected to remain within the 16-18% range, reflecting disciplined cost management. The company is focused on scaling operations while maintaining financial prudence, with growth driven by infrastructure demand in Tier-2 and Tier-3 markets.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Construction

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Larsen & Toubro Limited	5.38 L Cr	33.1	—	—	—
Rail Vikas Nigam Limited	59,006	45.4	—	—	—
NBCC (India) Limited	25,331	49.1	—	—	—
IRB Infrastructure Developers Limited	24,518	3.8	—	—	—
Kalpataru Projects International Limited	21,476	39.0	—	—	—
Cemindia Projects Limited	15,453	44.3	—	—	—
KEC International Limited	14,602	31.4	—	—	—
Techno Electric & Engineering Company Limited	13,909	36.5	—	—	—
Engineers India Limited	13,868	33.4	—	—	—
Ircon International Limited	13,416	17.6	—	—	—

🔗 Peer Stock Analyses

LT RVNL NBCC IRB KPIL

⚠️ Risk Factors

1. Execution risk in large orders: Management's target of converting 60-70% of the order book depends on timely project execution and client delivery, which can be impacted by regulatory delays or weather conditions in operational zones. 2. Margin pressure: PAT margin guidance (8.75%-10.25%) remains below current levels, requiring sustained operational efficiency and cost control to achieve improvement. 3. Regulatory compliance: The SEBI warning for procedural lapses in related party transactions indicates past governance gaps, which could lead to increased scrutiny or penalties if not fully addressed. 4. Market cyclicality: Growth is tied to infrastructure spending, which remains vulnerable to government budget shifts or macroeconomic slowdowns affecting capital expenditure cycles.

📋 Recent Filings

🧠 Analyst's Read

SRM Contractors is executing a clear growth strategy with a strong order book and disciplined capital allocation, but margin improvement remains a key execution risk. Investors should monitor order book conversion rates and margin trends in the upcoming quarters to assess whether the company can translate top-line growth into sustainable profitability. The stable promoter holding and lack of new regulatory headwinds provide downside protection, but the stock may remain range-bound until visible margin expansion materializes.

Based on filing content and financial data. Not a recommendation.

✨ Deep Dive with AI on SRM

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-06-16.