Sugs Lloyd Ltd reported a strong maiden year as a listed entity, with revenue surging 71% to Rs 300.7 crore in FY26. Profit after tax reached Rs 28.69 crore, significantly outperforming initial management guidance. The company’s order book stands at Rs 825 crore, bolstered by a recent Rs 540 crore project win from Konkan Railway. While the balance sheet shows improved debt-to-equity ratios, investors should track high working capital requirements and long receivable cycles inherent in the power EPC sector.
Sugs Lloyd FY26 Revenue Climbs 71% to Rs 300.7 Crore
Revenue grew to Rs 300.7 crore, while Profit After Tax (PAT) reached Rs 28.69 crore.
Reader Takeaway: Strong revenue growth and order wins drive performance, but high working capital cycles remain a key monitoring point.
What just happened
Sugs Lloyd Limited has released its Annual Report for FY2025-26, marking its first full year as a public company. Revenue climbed to Rs 300.7 crore, beating the management's guidance of Rs 270 crore. Profit After Tax grew 72% year-on-year to Rs 28.69 crore, while the Basic EPS reached Rs 14.19.
Why this matters
The company has successfully transitioned to the public markets, significantly strengthening its balance sheet. Shareholders' funds rose to Rs 137.2 crore, and the debt-to-equity ratio improved sharply to 0.50x from 2.04x in the previous year. These improvements provide a stable foundation for the company’s ambitious target of achieving Rs 1,000 crore in revenue by FY28.
Strategic Developments
A major highlight is the Rs 540 crore SCADA-based project awarded by Konkan Railway Corporation. This win is a cornerstone of the current Rs 825 crore order book. The company is now gearing up for its 17th Annual General Meeting on September 30, 2026, where shareholders will vote on increasing borrowing and investment limits to Rs 600 crore to support future operations.
Risks to watch
Working capital intensity remains high, with the receivable cycle averaging 139 days. The company relies heavily on state and central government utilities, making it vulnerable to tender delays and payment cycles. Management is currently utilizing bill discounting and surety bonds to maintain liquidity.
Context metrics
The company maintains an EBITDA margin of 14.5%. Its current order book comprises Rs 708 crore in Power T&D and Rs 110 crore in Solar projects.