Annu Projects

EPC payer in overhead/underground utility infra

Annu Projects, established in 2003, is engaged in the design, development, implementation, operations and maintenance of essential overhead and underground utilities infrastructure across telecom, sewerage, gas pipeline and railway signaling verticals.

In the telecom infrastructure vertical, it is primarily engaged in surveying, designing, and installing cabling and tower infrastructures for communication, automation, and electronic security systems. As part of its offerings, the company also undertakes the laying of OFC network, both overhead and underground, for telecom operators across India.

Core activities of the company in sewerage infrastructure vertical include pipe laying, construction of manholes, construction of sewerage treatment plants, construction of pumping stations, and construction of structural facilities essential for supporting sewerage operations, construction of storm water drainage systems and screening chambers for combined or sanitary sewers. The sewerage system typically concludes either at the inlet of a sewage treatment facility or at the designated discharge point into the environment. It is one of the key contractors with Sewerage Infrastructure Development Corporation Limited, Madhya Pradesh Urban Development Company Limited, Bihar Urban Infrastructure Development Corporation Limited, and Jharkhand Urban Infrastructure Development Company Limited for their sewerage scheme.

In gas pipeline vertical it actively engaged in laying MDPE ranging from 20 mm to 125 mm in diameter, along with 38,300 GI house connections for domestic and commercial gas supply. It has completed projects for Indraprastha Gas Limited, Gujarat Gas Limited and GAIL India Limited.

Over the years it have gained expertise in laying the overhead and underground utilities infrastructure, and have laid (i) more than 26,200 kms of optical fibre cable (OFC) network and maintenance of more than 62,800 km of OFC networks in telecom infrastructure; (ii) more than 298 kms of sewerage pipes, construction and maintenance of sewerage treatment plant, construction of pumping stations, laying of house service connections in the sewerage infrastructure vertical; and (iii) more than 537 kms of MDPE laying of 20 mm to 125 mm diameter, 38,300 number of Galvanized Iron Pipes (?GI?) for domestic gas connections in the gas pipeline vertical across 4 (four) states in India, namely; Bihar, Uttar Pradesh, Odisha, and Jharkhand It have successfully won the bid for its first project in the railway sector for railway signaling work with an order book value of Rs 11. 313 crore.

Apart from bagging contracts through a transparent competitive bidding process undertaken by the Central Government or State Government, the company is also additionally executes projects as sub-contractors from various private parties. The company has completed 362 projects over the last 21 fiscals. Further, except for gas pipeline vertical, it also undertakes the operations and maintenance of the projects developed by it or others for a specific contractual period.

In FY26 revenue from operations, about 41.50% is accounted by telecom infrastructure, 52.67% from sewerage infrastructure, 4.03% from gas pipeline and 1.80% from others including trading of machines etc.

Ongoing projects of the company as on June 30, 2026, stand at 23 (with a total contract value of Rs 1959.348 crore) of which telecom infrastructure projects numbers 4 (TCV of Rs 1481.578 crore), sewerage infrastructure project numbers 14 (a TCV of Rs 451.778 crore), gas pipeline projects numbers 4 ( a TCV of Rs 12.643 crore) and signalling vertical project numbers 1 (a TCV of Rs 13.349 crore). Excluding the work completed amounting Rs 676.436 crore from the TCV of current OB, the outstanding order book stand at Rs 1005.055 crore [of which 82.91% is telecom infra orders; 14.96% sewerage infra; 1% gas pipeline and 1.13% railway signaling]. The outstanding order book includes the Rs 918.550 crore order from G R Infraprojects Limited pursuant to a work order dated March 10, 2026, as part of a consortium under BharatNet Phase III, a flagship project under the Government of India?s Digital India initiative. Current outstanding order book translates into about 4.2 times of its FY26 revenue.

As on June 30, 2026, it owned a fleet of more than 558 machine and equipment (such as horizontal directional drilling machine, excavators, splicing machine, digitrak machine, OTDR machine, HDPE pipe welding machine etc), which reduces its dependence on third party suppliers/vendors. It also typically assign a part of the works to the subcontractors who provide it with manpower along with the equipment support.

The issue, objects of the issue

The issue comprises only of fresh issue of up to 17,683,000 equity shares of Rs 10 face value.

Of the net proceeds, the company intends to use Rs 15.408 crore towards funding capital expenditure requirements of the company for purchase of machinery or equipment; Rs 115 crore towards funding working capital requirements of the company; and balance towards general corporate purposes.

Strengths

Established expertise in engineering, procurement and commissioning projects with special focus on underground and overhead utilities infrastructure. It is one of the diversified companies in the EPC sector, involved in fields ranging from fiber optics to sewerage projects and also undertakes gas pipeline projects.

Expertise in execution of project involving difficult terrain it has executed installation of overhead and underground OFC network in high altitude areas with elevations ranging from 8,000 feet to 15,000 feet in East Sikkim Area (Thegu, Nathula, Kupup etc.) as a subcontractor for GR Infraprojects.

Project management with integrated execution capabilities

Double digit PAT margin.

Weakness

Derived more than 90.00% of its revenue from operations from telecom infrastructure and sewerage infrastructure verticals during FY26, FY25 and FY24, respectively.

Derived 57.09%, 64.99% and 60.88% of its revenue from operations, during FY26, FY25 and FY24, respectively, from government sector entities based on competitive bidding.

Top 10 customers contributed to 97.96%, 98.25% and 95.90% of revenue from operations during FY26, FY25 and FY24, respectively.

One project (i.e. Design, Supply, Construction, Installation, Upgradation, Operation and Maintenance of middle mile network of Bharatnet, in Kerala Telecom Circle against Package No.- 16) accounts for 74.32% of the outstanding order book of the company. Five projects together accounts for 91.76% of the current outstanding OB of the company.

The business of the company is relatively concentrated in the States of Bihar, Jharkhand, Goa, West Bengal and Madhya Pradesh which contributed more than 70.00% of its revenue from operations for FY26/FY25/FY24. However looking at current outstanding order book, the project from Kerala dominates the OB.

Company has fluctuating cash flow from operating, investing and financing activities. Had negative cash flow from operating activities in FY26 and FY25.

Outstanding trade receivables as end of Mar 2026 stood at 64.98%/44.66% of revenue from operations in FY26 and FY25.

Collaborated with consortium/joint bidding partners to meet the technical and/ or financial eligibility requirements for certain projects in respect of the bids submitted. Any failure to tie up with consortium/joint bidding partners may adversely impact business operations. Non fulfillment of their portion of responsibility by consolrtium/JV partners will also impacts the business.

Failure on part of its sub-contractors may lead to delay in execution of the projects leading to invocation of bank guarantees by its customers.

Most of its contracts are entered into on EPC & O&M - fixed rate basis.

Any delay in obtaining RoW (?Right of Way?) from relevant authorities to lay optical fibres for telecom infrastructure or sewerage infrastructure or gas pipeline projects executed by the company may impact the operations of the company. Further operations involve trenching, laying of pipelines, and construction activities which are subject to various regulations including environmental regulations.

Inadequate or interrupted supply or sub-standard quality of materials or volatility in prices of certain materials i.e. optical fibre cable, TMT steel, cement, stone, bricks will affect the business operations.

There have been certain delays in payment of statutory dues.

Have limited operational track record in the gas pipeline and railway signalling verticals.

Valuation

Consolidated re-stated revenue for the fiscal ending March 2026 stood higher by 34% to Rs 241 crore. With the OPM expanding by 290 bps to 20.8%, the growth of OP was 56% to Rs 50.19 crore. Finally, net profit after MI was up by 56% to Rs 33.03 crore.

On expanded equity, the EPS for FY2026 was Rs 5. The issue price (on the upper price band) discounts the FY26 EPS by 19.8 times. The P/BV stood at 2.0 times and EV/Sales stood 2.9 times. On expanded equity, the Return on equity (ROE) works out to 6.8%.

In comparison, companies that is into EPC of laying OFC cable network and other telecom infra such as Bondada Engineer, Suyog Telematics and Railtel quotes at a PE of 15.7 time, 21.6 times and 33.2 times respectively. ITI reported loss for FY26 and HFCL which is also into manufacturing of OFC and other telecom products apart from telecom EPC quotes at 196.7 times. Likhita Infra that is into pipeline laying especially for O&G sector quotes at a PE of 12 times. EMS and Enviro Infra Engineers who are into water and waste water EPC quotes at a PE of 19.4 times and 11.9 times of their FY26 EPS. ROE of Bondada Engineers, Suyog Telematics, ITI, Railtel Corporation, HFCL, Likhitha Infra, Enviro Infra and EMS stand at 29.32%, 10.33%, 15.94%, 16.09%, 4.34%, 18.59%, 17.72% and 18.81% respectively. Similarly the OPM of Bondada Engineers, Suyog Telematics, ITI, Railtel Corporation, HFCL, Likhitha Infra, Enviro Infra and EMS for FY26 stand at 11.5%, 59.5%, 2%, 14.9%, 15.4%, 12.4%, 24.2% and 19.2% respectively.

Annu Projects : Re-stated Consolidated Financials
	2403 (12)	2503 (12)	2603 (12)
Sales	153.98	180.07	241.25
OPM (%)	18.5	17.9	20.8
OP	28.51	32.19	50.19
Other income	1.44	2.29	3.34
PBIDT	29.94	34.48	53.53
Interest	3.55	3.79	4.27
PBDT	26.39	30.69	49.27
Depreciation	1.97	2.48	3.10
PBT	24.42	28.21	46.17
EO Exp	0.00	0.00	0.00
PBT after EO	24.42	28.21	46.17
Tax	7.03	7.11	13.14
PAT from Continuing Biz	17.39	21.10	33.03
Share of Profit from Associates	0.00	0.00	0.00
PAT from Continuing Biz	17.39	21.10	33.03
Minority Interest	0.00	0.00	0.00
Net profit	17.39	21.10	33.03
EPS (Rs)*	2.7	3.2	5.0
* on post IPO fully dilluted equity of Rs 65.49 crore. Face Value: Rs 10
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate database

Annu Projects : Issue Highlights
Fresh Issue (in equity share nos.)	17683000
Offer for sale (in equity share nos.)	0
Price band (Rs.) *
Upper	99
Lower	94
Post-issue equity (Rs crore)	65.49
Post-issue promoter (including promoter group) stake (%)	65.05
Minimum Bid (in nos.)	70
Issue Open Date	07-08-2026
Issue Close Date	11-08-2026
Listing	BSE, NSE
Rating	45/100

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