Goel Construction IPO

Goel Construction claims to have a proven track record in managing and executing a wide range of construction projects. Over the last four years, the company has successfully completed 19 projects and currently has 14 ongoing projects. Its management and execution teams have developed expertise across all phases of the project life cycle, including tendering, procurement, and execution, allowing it to manage complex projects across various sectors and geographies.

The company claims to have built long-term relationships with its client base. These relationships are attributed to its reputation for delivering projects on time and maintaining high-quality standards, which have contributed to a strong customer retention rate and ongoing business growth.

Goel Construction Company claims to have a robust order book, which reflects its future revenue potential. As of June 30, 2025, its order book stood at Rs 596.60 crore.

The company claims to own and efficiently manage a large fleet of construction equipment, reducing dependency on third-party providers. As of June 30, 2025, Goel Construction owned 202 pieces of equipment, including cranes, excavators, and batching plants. The company’s in-house fleet management system enables it to optimise equipment utilisation, minimise downtime, and ensure timely project execution.

The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 270.73 crore in FY23 to Rs 386.06 crore in FY24 and Rs 589.98 crore in FY25. PAT increased from Rs 14.30 crore in FY23 to Rs 22.64 crore in FY24 and Rs 38.32 crore in FY25.

The top customer accounted for Rs 251.49 crore (42.69 percent) of the company’s revenue in FY25, Rs 170.80 crore (44.28 percent) in FY24, and Rs 124.79 crore (46.24 percent) in FY23. Any failure to retain this key customer or a loss of business from this client can adversely affect the company’s business and financial standing.

As of FY25, the company had contingent liabilities amounting to Rs 52.94 crore. If any of these contingent liabilities materialise, it could adversely affect the company’s financial condition.

The company reported negative cash flow from investing activities amounting to Rs 33.20 crore in FY25, Rs 36.09 crore in FY24, and Rs 37.47 crore in FY23. Additionally, negative cash flow from financing activities amounted to Rs 5.03 crore in FY25 and Rs 0.84 crore in FY24. The company also reported a net decrease in cash and cash equivalents amounting to Rs 6.51 crore in FY23. If cash outflows continue to exceed inflows in the future, the company may face liquidity challenges.

The company, its promoters, and directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.

Goel Construction is highly dependent on domestic suppliers for key materials like cement, steel, and other raw construction materials. Any disruption in the timely or cost-effective supply of these materials could negatively impact the company's ability to meet project deadlines and anticipated costs. The company does not have long-term supply contracts in place, and any slowdown or discontinuation of material delivery by its suppliers could cause significant delays.

Goel Construction has experienced certain procedural lapses concerning labour law obligations, which could expose the company to regulatory scrutiny and financial liabilities. Although the company has made efforts to comply with various labour laws, including bonus payments and minimum wage compliance, inaccuracies in filings and non-compliance with certain statutory obligations may lead to penalties or legal actions. Past instances of non-compliance, including incorrect filings under the Payment of Bonus Act, could result in financial penalties, legal proceedings, and reputational damage, which may affect its operations and financial condition.

Goel Construction’s business is subject to seasonal fluctuations, with slower progress during the monsoon season. This seasonality can affect project schedules, cash flows, and overall operations. Although the company accounts for these variations in its projections, there is no guarantee that future estimates will always align with actual progress. If discrepancies arise, it could lead to delays or halts in project completion, which could negatively impact the company's financial condition, results of operations, and overall business performance.

As of July 31, 2025, the company had outstanding financial indebtedness of Rs 27.14 crore. Any failure to service or repay these loans can hurt the company’s operations and financial position.