Annu Projects IPO

As of June 30, 2026, its order book, or confirmed future work, stood at ₹1,005.05 crore. With a strong book-to-bill ratio of 3.89 times in FY26, the company has good visibility into future revenue and a healthy pipeline of projects to work on.

As of June 30, 2026, it owned more than 558 construction machines, including horizontal directional drills. Having its own equipment helps avoid costly rental expenses, reduces the risk of project delays, and gives the company an edge when bidding for complex underground projects.

Its operating revenue has grown at a healthy three-year compound annual growth rate of 25.17%. The revenue increased from ₹153.98 crore in FY24 to ₹241.25 crore in FY26, showing that the business has been expanding steadily.

Its restated profit after tax rose from ₹17.39 crore in FY24 to ₹33.03 crore in FY26. That works out to a 37.82% growth rate, while its profit margin improved from 11.29% to 13.69%, pointing to better operating efficiency.

The company has traditionally focused on sewage and telecom projects, but it has now entered railway signalling by securing its first project worth ₹11.31 crore. This move gives it access to growing government spending on railway upgrades while reducing its dependence on just a few sectors.

The company has shown that it can win competitive government and private tenders, with a bid-to-win ratio of 33.33% in FY26, winning 5 out of the 15 projects it bid for. This regular bidding activity helps keep its project pipeline replenished.

Its promoters, Sanjay Kumar Sarraf and Krishna Ranjan, each have more than 20 years of hands-on experience in the civil and utility sectors. Their experience can help the company maintain customer relationships, navigate complex bidding processes, and manage large public infrastructure projects.

The business depends heavily on a small group of clients, with its top 10 customers contributing 97.96% of operating revenue in FY26. This concentration, compared with 98.25% in FY25 and 95.90% in FY24, means losing even one major customer or facing financial trouble at that client could have a serious impact on the company’s financial performance.

Government entities contributed 57.09% of its revenue in FY26. Since government customers can take longer to approve and release payments, this dependence can expose the company to project delays, budget changes, and cash flow pressure. It may then need additional bank borrowings to keep its daily operations running.

The company faces working capital pressure because payments from public sector clients can take a long time. In FY26, it took an average of 237 days to collect ₹156.77 crore in outstanding trade receivables. This keeps cash tied up and can increase its need for bank borrowings. Due to this, it also had to provide bank guarantees worth ₹89.49 crore to secure contracts.

More than 70% of its operating revenue comes from just five states: Bihar, West Bengal, Goa, Jharkhand, and Madhya Pradesh. This makes the company more exposed to local economic slowdowns, changes in political leadership, or regional policy changes that could affect infrastructure spending.

Missing project deadlines can result in penalties, known as liquidated damages. The company paid ₹9 lakh in FY26, ₹85.2 lakh in FY25, and ₹4.21 crore in FY24. If delays continue, these penalties can directly eat into profits.

The company relies significantly on subcontractors, who accounted for 33.50% of its total expenses in FY26. Its top 10 suppliers also accounted for 67.92% of material purchases. Any quality issues, labour problems, or supply delays involving these third parties could quickly affect its ability to complete projects on time.

It reported a negative operating cash flow of ₹24.7 lakh in FY26. Along with a negative investing cash flow of ₹23.44 crore, continued cash outflows could put pressure on its ability to fund new projects or repay its outstanding debt.