Infomerics Ratings Withdraw Bank Facility Ratings for Globe Civil Projects Ltd

Infomerics Ratings Withdraw Bank Facility Ratings for Globe Civil Projects Ltd​

Infomerics Valuation and Ratings Private Limited confirmed the withdrawal of ratings assigned to the bank facilities of Globe Civil Projects Ltd (GCPL). The rating action was executed following the request of GCPL and with 'No Objection Certificates' received from lenders Canara Bank, ICICI Bank, and Kotak Mahindra Bank.

The ratings were upgraded simultaneously with their withdrawal. The company's total rated facilities amount to Rs 110 crore, comprising Long Term Bank Facilities and Short Term Bank Facilities.

A detailed breakdown of the facilities and their rating actions is provided below.


The rating upgrade was supported by the improvement in revenue projected for 9MFY26, driven by a robust order book position, alongside a strengthened capital structure following the successful mobilization through the Initial Public Offering (IPO) in July 2025. The enhanced financial flexibility is anticipated to lead to improved debt coverage indicators over the medium term, supporting the company's expected growth trajectory.

Operational and Financial Highlights​

Infomerics notes that GCPL's financial performance shows a trend of improvement. In FY25, the company's total operating income (TOI) improved by approximately 11% to Rs 325.99 crore from Rs 294.90 crore in FY24. This growth was fueled by a healthy order book and smoother execution.

For the year ended March 31, 2025, the company reported moderate revenue growth of approximately 8% to Rs 246.01 crore from Rs 226.89 crore in 9MFY25. However, operating margins weakened with EBITDA and PAT margins declining by approximately 164 bps to 16.53% and approximately 71 bps to 7.14%, respectively, citing execution disruptions in the Delhi-NCR region and delays in regulatory approvals.

The company's capital structure showed marked improvement post-IPO. As of September 30, 2025, tangible net worth stood at Rs 224.80 crore, up from Rs 104.54 crore as of March 31, 2025. Total debt remained relatively stable at Rs 150.42 crore on September 30, 2025, compared to Rs 155.21 crore on March 31, 2025. This resulted in an overall gearing improvement to 0.46x from 1.49x.

Key Rating Strengths and Weaknesses​

GCPL's key strengths include an established operational track record and management experience, with the promoter, Mr. Ved Prakash Khurana, having nearly four decades in the construction sector. Furthermore, the order book as of December 31, 2025, was valued at approximately Rs 870 crore, offering adequate medium-term revenue visibility with an execution timeline of 18 to 30 months. The order book is predominantly composed of Central Government-funded institutional projects, which reduces counterparty credit risk.

However, the analysis points to several key rating weaknesses. The business operations of GCPL are working capital intensive, indicated by a high utilization of working capital limits of approximately 92% for the last 12 months and an operating cycle of 131 days. Additionally, the domestic construction sector is noted as highly fragmented and competitive. Profitability remains susceptible to fluctuations in input prices such as steel, cement, bitumen, and fuel, although GCPL's project agreements include an escalation clause for increases in costs of principal raw materials.

Financial Comparison Table​

The following table summarizes key financial metrics for GCPL:

GLOBECIVIL Stock Price Movement​

Shares of Globe Civil Projects Limited are edging higher to ₹43.33 as of 11:43 AM, rallying 1.29% in live trading. The stock has seen 27,083 shares trade during the session so far, underpinning the morning's upward momentum.

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