Swastika Infra Ltd

Swastika Infra Ltd IPO opens Sep 23-25, 2026. Check price band (₹175-185), lot size, GMP, issue size ₹160.87 Cr, allotment date & listing details.

Swastika reported ₹82.86 cr of profit over FY24 to FY26 and consumed ₹89.53 cr of cash in operations over the same three years. Operating cash flow was negative in every one of them, and free cash flow after capex adds up to minus ₹96.68 cr. Receivables, retention money and unbilled revenue reached ₹316.47 cr in March 2026, 62.8% of FY26 revenue or 229 days of sales, against 143 days in FY24. Retention alone went from ₹42.58 cr to ₹160.02 cr in two years.

Orders added were ₹588.02 cr in FY25 and ₹589.90 cr in FY26 while execution rose 44%, taking inflow to execution from 1.77x in FY24 to 1.02x. Of the ₹916.55 cr order book at July 2026, ₹476.28 cr or 52.0% shows no work done, including ₹249.80 cr of transmission and solar park orders won between July and November 2025. Finance cost doubled to ₹16.90 cr in FY26, 15.0% of average borrowings, and the RHP's EBITDA adds back ₹2.30 cr of bank guarantee and LC commission that is a running cost of EPC work. Adjusted EBITDA is ₹68.55 cr, a 13.61% margin. At ₹185 that is ₹631.22 cr market cap, ₹614.35 cr EV, 15.2x FY26 earnings and 9.0x adjusted EBITDA. Rajesh Power Services, the larger of the two peers the RHP picks, was at 10.1x earnings on the RHP's prices. The top customer was 31.44% of FY26 revenue, the top five 96.87% and the top ten 99.58%. In FY24 the top customer was 60.97% (high concentration risk and dependency on a single govt institution).

We do not like government EPC as a business, and nothing in this prospectus changes that view. Once a bidder qualifies, the tender goes to the lowest price, and the RHP itself says price is the deciding factor in most awards. The utility then measures the work, certifies it, holds back retention until the defect liability period ends, and decides when to pay. The contractor funds the gap: it posts a performance guarantee of up to 10% of the contract, backs each mobilisation advance with a guarantee of 110% of the advance, parks 10% to 20% of every guarantee in fixed deposits, and pays its own suppliers and subcontractors in the meantime. Swastika raised ₹38.09 cr net in a pre-IPO placement in July 2025 and is raising ₹128.50 cr now, and working capital is the main use of both.

Cumulative operating cash flow over FY24 to FY26 was minus ₹89.53 cr against ₹138.44 cr of RHP EBITDA and ₹82.86 cr of reported profit. FY26 looks better than FY25 at minus ₹9.65 cr, but that figure includes ₹45.58 cr from higher trade payables and ₹25.14 cr from other current liabilities, ₹17.72 cr of which is fresh mobilisation advances. Without those two items, operations consumed ₹80.37 cr in FY26. Suppliers are also being paid through TReDS and supplier finance lines that the company books as borrowings, at ₹72.62 cr in March 2026 against ₹19.49 cr in March 2024. Add them to trade payables and supplier credit has grown from ₹45.97 cr to ₹171.62 cr.