By Enersider Desk | Mumbai
Large, diversified engineering, procurement, and construction (EPC) companies in India are projected to see their revenue grow by 9–11% in the current fiscal year, driven by robust infrastructure capital expenditure, healthy order books, and improved project execution, according to a recent study by Crisil Ratings.
The analysis, which covered 15 major EPC firms with a combined annual revenue of ₹3.15 lakh crore last fiscal, attributes this growth to steady government spending and a moderate rise in private investments. Infrastructure capex, which constitutes about 75% of India’s total capital expenditure, is expected to expand by 7–9% this year. Gautam Shahi, Director at Crisil Ratings, noted, “Private sector participation is anticipated to increase to 11%, up from 9% last fiscal, supported by government initiatives in roads and renewable energy.”
The order book-to-revenue ratio stood strong at 3.7 times as of March 2025, compared to 3.5 times a year earlier. A notable shift has been the rise in overseas orders, which now account for 27% of the total order book, up from 23% last year. Sector-wise, power projects—especially in transmission and distribution—have gained share due to their higher profitability.
Operating margins are expected to improve by approximately 50 basis points to 9.5%, aided by stable commodity prices, rupee depreciation, and a favorable order mix. Despite varying working capital needs across sectors, the overall working capital cycle is likely to remain stable.
Vinit Patil, Team Leader at Crisil Ratings, added that strong cash accruals will support incremental working capital and moderate capex, keeping debt levels steady. Key credit metrics, including debt-to-equity and interest coverage ratios, are projected to remain healthy. However, the report cautions that lower-than-budgeted capex or commodity price volatility due to geopolitical risks could pose challenges to this optimistic outlook.
