Delta Galaxy Engineering Services Limited, an infrastructure EPC contractor specialising in hydro dams, mining works, and water infrastructure, has delivered a strong financial performance in FY 2024–25. The company works primarily as a sub-contractor for industry leaders such as Patel Engineering and Afcons—giving it both scale and credibility.
Metric | FY 2024–25 | FY 2023–24 | Growth |
|---|---|---|---|
| Revenue from Operations | ₹233.63 crores | ₹174.48 crores | +34% |
| Profit Before Tax (PBT) | ₹34.30 crores | ₹19.93 crores | +72% |
| Profit After Tax (PAT) | ₹25.52 crores | ₹14.05 crores | +82% |
| Net Profit Margin | 10.92% | 8.05% | +287 bps |
PAT growth at 82% far outpaced revenue growth of 34%, signalling operational leverage and improved project execution efficiency.
In an industry where 3–6% margins are common, a 10.92% net margin positions Delta Galaxy significantly above peer averages.
| Metric | FY 2024–25 | FY 2023–24 | Change |
|---|---|---|---|
| Total Assets | ₹233.31 crores | ₹126.61 crores | 0.84 |
| Share Capital | ₹26.62 crores | ₹15.00 crores | 0.77 |
| Reserves & Surplus | ₹86.79 crores | ₹12.19 crores | 6.12 |
| Total Equity | ₹113.41 crores | ₹27.19 crores | 3.17 |
The company strengthened its balance sheet through retained profits and preferential allotment—enabling eligibility for larger EPC projects requiring bank guarantees and working capital buffers.
Metric | FY 2024–25 | FY 2023–24 | Change |
|---|---|---|---|
| Trade Receivables | ₹131.04 crores | ₹46.99 crores | +179% |
| Trade Payables | ₹75.50 crores | ₹39.49 crores | +91% |
| Current Liabilities | ₹96.75 crores | ₹72.42 crores | +34% |
| Working Capital Cycle | Stretched | Moderate | Increasing |
High receivables (56% of revenue) reflect industry billing norms:
Milestone-based payments
Retention money (5–10%)
Government project delays
Mobilization advance adjustments
This is typical for EPC—and not a financial distress signal—but requires active collection management.
| Metric | FY 2024–25 | FY 2023–24 |
|---|---|---|
| PAT | ₹25.52 crores | ₹14.05 crores |
| Weighted Avg Shares | 2,12,16,204 | 26,42,186 |
| EPS | ₹12.03 | ₹53.16 |
Why did EPS fall despite 82% profit growth?
The weighted average number of shares increased 8x (from 26.42 lakhs to 2.12 crores) during FY25, primarily due to:
Preferential allotment of 1.16 crore shares during the year
Share capital increased from ₹15 crores to ₹26.62 crores
Impact: While absolute profit grew 82%, it's now split among 8x more shareholders, resulting in lower per-share earnings.
| Ratio | FY 2024–25 | FY 2023–24 | Trend |
|---|---|---|---|
| Current Ratio | 2.23 | 1.59 | Improved |
| Debt-Equity Ratio | 0.24 | 1.09 | Significantly improved |
| Net Profit Margin | 10.92% | 8.05% | Improved |
| Return on Equity (RoE) | 22% | 51% | Normalized |
Positive Trends:
Current Ratio improved to 2.23: Strong liquidity position, can easily meet short-term obligations
Debt-Equity improved from 1.09 to 0.24: Company dramatically reduced leverage through equity infusion
Net Profit Margin expanded: Better cost management and operational efficiency
Interpretation: The company raised significant capital but is still in deployment phase. Returns will improve once the expanded capital base generates proportionate profits.
| Issue | Amount | Period | Status |
|---|---|---|---|
| TCS Default | ₹11,224 | Sep 2024 | Pending |
| Professional Tax | ₹34,000 | FY 2024-25 | Pending |
| GST (RCM) | ₹1,44,000 | FY 2023-24 | Unpaid |
| Total | ₹1,89,224 | - | - |
These are administrative lapses—not financial weaknesses—but must be resolved to maintain EPC vendor compliance ratings.
| Expense Category | FY 2024–25 | FY 2023–24 | Growth | % of Revenue |
|---|---|---|---|---|
| Total Expenses | ₹199.33 crores | ₹154.56 crores | 0.29 | 85.30% |
| Employee Benefits | ₹4.12 crores | ₹2.14 crores | 0.93 | 1.80% |
| Finance Costs | ₹2.93 crores | ₹2.80 crores | 0.05 | 1.30% |
| Depreciation | ₹0.54 crores | ₹0.72 crores | -25% | 0.20% |
Key Observations:
Employee costs nearly doubled: Indicates aggressive hiring to support 34% revenue growth
Finance costs remained stable: Despite business expansion, borrowing costs controlled
Depreciation declined: Either asset write-offs completed or slower capex
Metric | Value |
|---|---|
| Book Value per Share | ₹42.60 |
| EPS | ₹12.03 |
| Fair Value Range (P/E 12–15x) | ₹144–₹180 |
| Conservative P/B Method | ₹64–₹107 |
Note: Actual valuation depends on industry multiples, growth trajectory, and investor sentiment.
Delta Galaxy Engineering Services Limited had a strong FY 2024-25 with:
34% revenue growth
82% profit growth
Improved financial stability (D/E: 0.24)
Clean audit opinion
However, concerns exist:
High receivables (₹131 cr - collection risk)
Massive shareholder dilution (EPS fell despite profit growth)
Statutory compliance lapses
Declining return ratios
Overall Assessment: The company is in a growth phase with strong fundamentals but needs to focus on working capital management and compliance. The dilution is a one-time event if capital is deployed wisely.