DBEIL - Deepak Builders
📢 Recent Corporate Announcements
Deepak Builders & Engineers India Limited (DBEIL) has issued a postal ballot notice seeking shareholder approval for a 1:10 stock split. The proposal involves sub-dividing each equity share of face value Rs. 10 into ten shares of face value Re. 1 each to improve liquidity. Additionally, the company intends to increase its authorized share capital from Rs. 55 crore to Rs. 65 crore. Shareholders can participate in the remote e-voting process from May 4, 2026, to June 2, 2026.
- Proposed 1:10 stock split reducing face value from Rs. 10 to Re. 1 per share
- Increase in authorized share capital from Rs. 55 crore to Rs. 65 crore
- Post-split authorized equity shares will stand at 65 crore shares of Re. 1 each
- Remote e-voting period scheduled from May 4, 2026, to June 2, 2026
- Cut-off date for eligibility to vote was April 24, 2026
The Board of Directors of Deepak Builders & Engineers India Limited has approved a stock split where each equity share of face value Rs. 10 will be subdivided into 10 equity shares of face value Re. 1. To accommodate this and future requirements, the company is also increasing its authorized share capital from Rs. 55 crore to Rs. 65 crore. These decisions were made during the board meeting on April 28, 2026, and are subject to shareholder approval via postal ballot. The move is primarily aimed at improving stock liquidity and making the shares more affordable for retail investors.
- Sub-division of 1 equity share of face value Rs. 10 into 10 equity shares of face value Re. 1 each
- Authorized Share Capital increased from Rs. 55,00,00,000 to Rs. 65,00,00,000
- Post-split authorized capital will consist of 65 crore equity shares of Re. 1 each
- The corporate action is subject to approval by shareholders through a Postal Ballot process
Deepak Builders & Engineers India Limited (DBEIL) has informed the stock exchanges that it does not meet the criteria to be classified as a 'Large Corporate' under SEBI guidelines. This declaration is based on the criteria specified in SEBI circulars from 2018 and 2023 regarding disclosure requirements for large entities. As a result, the company is not subject to the mandatory incremental borrowing requirements from the debt market that apply to larger firms. This is a routine regulatory filing and does not reflect any change in the company's operational status.
- Declaration submitted to NSE and BSE on April 15, 2026, regarding Large Corporate status.
- Company confirmed non-applicability as per SEBI circular SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172.
- Exempted from specific disclosure and mandatory debt market borrowing norms applicable to Large Corporates.
Deepak Builders & Engineers India Limited (DBEIL) has emerged as the lowest (L1) bidder for a major construction project from Indian Oil Corporation Limited (IOCL). The project, valued at Rs 474.25 crores, involves building 12 high-rise residential towers (G+13) at the Panipat Refinery township in Haryana. Upon the formal award of this contract, the company's total order book is expected to reach approximately Rs 2,000 crores. This win highlights the company's technical capability in monolithic construction technology for large-scale PSU projects.
- Declared L1 bidder for a project valued at Rs 474.25 crores from IOCL.
- Project involves construction of 12 high-rise (G+13) buildings using monolithic technology.
- Total order book to reach approximately Rs 2,000 crores following the formal award.
- Scope includes parking, sewerage treatment plants, utility infrastructure, and roadworks.
- Project is located at the Panipat Refinery & Petrochemical Complex Township in Haryana.
Deepak Builders & Engineers India Limited has announced the closure of its trading window starting April 1, 2026, in compliance with SEBI insider trading regulations. The closure applies to all designated persons and their immediate relatives ahead of the Q4 and FY26 audited financial results. The window will remain shut until 48 hours after the results are officially declared to the exchanges. The date for the board meeting to approve these results will be communicated in due course.
- Trading window closure effective from April 1, 2026.
- Closure is for the quarter and year ending March 31, 2026.
- Applies to all Designated Persons and their immediate relatives.
- Window reopens 48 hours after the declaration of audited financial results.
CRISIL Ratings has reaffirmed the credit ratings for Deepak Builders & Engineers India Limited (DBEIL), maintaining a 'CRISIL BBB+/Stable' for long-term facilities and 'CRISIL A2' for short-term facilities. Significantly, the total rated bank loan facilities have been enhanced from Rs 470 crore to Rs 637 crore, representing a 35.5% increase in credit headroom. This reaffirmation amid higher debt limits suggests the rating agency's confidence in the company's ability to service larger obligations. The stable outlook indicates expected consistency in the company's financial and operational performance.
- Long-term rating reaffirmed at CRISIL BBB+ with a Stable outlook.
- Short-term rating reaffirmed at CRISIL A2 for non-fund-based limits.
- Total rated bank loan facilities increased from Rs 470 crore to Rs 637 crore.
- Major facilities include Rs 510 crore in non-fund-based limits and approximately Rs 81 crore in fund-based limits.
- The enhancement in limits provides the company with additional liquidity and capacity for project execution.
Deepak Builders & Engineers India Limited (DBEIL) has received a summons from the Directorate General of GST Intelligence (DGGI) dated March 20, 2026. The inquiry pertains to the alleged availment and utilization of ineligible Input Tax Credit (ITC) under the CGST Act, 2017. This is a continuation of search proceedings that previously occurred in December 2025 and February 2026. While the company states the financial impact is currently unquantifiable, the ongoing investigation by tax authorities represents a potential liability risk.
- Summons issued under Section 70 of the Central Goods and Service Tax Act, 2017.
- Inquiry focuses on the alleged wrongful availment and utilization of ineligible Input Tax Credit (ITC).
- Company officials are required to appear before the GST Officer on March 23, 2026.
- Follows previous search proceedings conducted on December 4, 2025, and February 2, 2026.
Deepak Builders & Engineers India Limited has confirmed that there were no deviations in the utilization of funds raised through its Initial Public Offering (IPO) for the quarter ended December 31, 2025. The company has successfully deployed Rs 1,962.21 million across its primary objectives, including debt repayment and working capital. Specifically, Rs 300 million was used to clear borrowings and Rs 1,119.56 million was allocated to working capital. Only a negligible amount of Rs 1.34 million remains unutilized, currently held in bank accounts.
- Total gross proceeds from the fresh issue amounted to Rs 2,172.10 million.
- Rs 300 million fully utilized for repayment or prepayment of company borrowings.
- Rs 1,119.56 million fully deployed towards funding working capital requirements.
- Rs 542.65 million utilized for general corporate purposes as per the prospectus.
- Zero deviation reported in the utilization of funds, as reviewed by the Audit Committee and Monitoring Agency.
Deepak Builders & Engineers India Limited (DBEIL) has received a summons from the Directorate General of GST Intelligence (DGGI) dated January 30, 2026. The summons is part of an ongoing inquiry into the alleged availment and utilization of ineligible Input Tax Credit (ITC) under the CGST Act, 2017. This follows previous search proceedings conducted at the company's premises in December 2025. The company's Director has been asked to appear before the GST officer on February 3, 2026, to provide evidence and documents.
- Summons issued under Section 70 of the Central Goods and Service Tax Act, 2017.
- Investigation pertains to the availment and utilization of ineligible Input Tax Credit (ITC).
- Follows a prior search operation conducted by the DGGI on December 4, 2025.
- Director Sh. Deepak Singhal summoned to appear before the GST Officer on February 3, 2026.
- Financial impact is currently unquantifiable as the inquiry is at a preliminary stage.
Deepak Builders & Engineers India Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFIN Technologies Limited, confirms that all securities dematerialized or rematerialized during the quarter ended December 31, 2025, have been reported to the stock exchanges. This is a standard procedural filing required to maintain the integrity of electronic shareholding records. The filing ensures the company remains compliant with listing obligations regarding depository services.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Certificate issued by Registrar and Share Transfer Agent (RTA), KFIN Technologies Limited.
- Confirms reporting of dematerialized and rematerialized securities to NSE and BSE.
- Filing adheres to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
Deepak Builders & Engineers India Limited (DBEIL) has informed the stock exchanges about the closure of its trading window for all designated persons and their immediate relatives. This is a mandatory compliance step under the SEBI (Prohibition of Insider Trading) Regulations, 2015. The closure is standard practice ahead of the declaration of financial results for the quarter ending December 31, 2025. The window will remain closed until 48 hours after the financial results are officially announced.
- Trading window closed for all designated persons and their immediate relatives.
- Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015.
- Closure is in anticipation of the financial results for the quarter ending December 31, 2025.
- Trading window to reopen 48 hours after the official announcement of financial results.
Financial Performance
Revenue Growth by Segment
The company recorded a 13.76% YoY growth in total revenue from operations, reaching INR 581.79 Cr in FY25 compared to INR 511.40 Cr in FY24. Growth is driven by the civil construction segment, specifically hospitals, bridges, and roads. Revenue grew at a CAGR of 15-18% over the four-year period ending FY25.
Geographic Revenue Split
Operations are highly concentrated in Northern India, with Punjab accounting for approximately 45% of the unexecuted order book and Haryana accounting for approximately 50%. This 95% concentration in two states exposes the company to regional regulatory and economic shifts.
Profitability Margins
Net Profit After Tax (PAT) margin stood at 9.75% in FY25, a decline from 11.81% in FY24. Reported PAT decreased by 6.06% to INR 56.75 Cr in FY25 from INR 60.41 Cr in FY24. PBILDT margins were moderate at 10.08% in FY23, while operating profitability improved to 22% in FY24 and reached 25.55% in H1 FY25.
EBITDA Margin
Operating profitability improved significantly to 25.55% during H1 FY25 (April-Sept) from 22% in FY24. This improvement is attributed to the execution of higher-margin contracts and the presence of price escalation clauses that protect against raw material volatility.
Capital Expenditure
The company plans debt-funded capital expenditure in the near term to enhance capacity. While specific INR Cr figures for future years are not fully detailed, the company utilized INR 22.85 Cr for the purchase of Property, Plant, and Equipment in H1 FY25.
Credit Rating & Borrowing
CRISIL Ratings maintains a 'Stable' outlook. Borrowing costs are reflected in an interest coverage ratio of 3.9x in FY25. Following the IPO, the Debt-Equity ratio improved significantly to 0.32x in FY25 from 1.00x in FY24, reducing overall financial risk.
Operational Drivers
Raw Materials
Key raw materials include cement, steel, and other construction aggregates. Cost of materials consumed was INR 336.84 Cr in FY25, representing approximately 57.9% of total revenue.
Import Sources
Sourcing is primarily domestic, centered around project sites in Punjab and Haryana to minimize logistics costs for heavy materials like cement and steel.
Key Suppliers
Not specifically named in the documents, but procurement is managed through a mix of established vendors for civil construction materials.
Capacity Expansion
The company operates its own plant and machinery to reduce rental expenses. Planned capex is intended to enhance execution capacity to support the INR 1,500 Cr order book.
Raw Material Costs
Raw material costs totaled INR 336.84 Cr in FY25. The company utilizes escalation clauses in the majority of its contracts to pass on incremental raw material cost increases to customers, maintaining margin stability.
Manufacturing Efficiency
Efficiency is driven by high asset ownership. Return on Capital Employed (ROCE) was 17.85% in FY25, down from 31.64% in FY24 due to the enlarged capital base post-IPO.
Logistics & Distribution
Distribution costs are integrated into construction costs; the focus on Punjab and Haryana (95% of orders) keeps logistics expenses localized.
Strategic Growth
Expected Growth Rate
15-20%
Growth Strategy
Growth will be achieved through the execution of the INR 1,500 Cr outstanding order book (3x FY24 revenue). The company raised INR 196.22 Cr (net proceeds) via an IPO in 2025 to repay debt and fund working capital, which will lower interest costs and improve bidding capacity for larger government projects.
Products & Services
Civil construction services for infrastructure facilities including hospitals, bridges, roads, railway stations, oil refineries, and government buildings.
Brand Portfolio
Deepak Builders & Engineers India Limited (DBEIL).
New Products/Services
Expansion into specialized infrastructure like railway station redevelopment and oil refinery civil works, which now constitute a portion of the top 3 projects (70% of order book).
Market Expansion
The company aims to diversify geographically beyond Punjab and Haryana to reduce state-specific concentration risks over the long term.
Market Share & Ranking
Operates in a highly fragmented civil construction sector; specific market share percentage not disclosed.
Strategic Alliances
The company maintains strong relationships with government agencies and entities like HSCC India Limited.
External Factors
Industry Trends
The construction sector is growing due to government focus on infrastructure. The industry is shifting toward larger, more complex EPC (Engineering, Procurement, and Construction) contracts, and DBEIL is positioning itself by scaling its order book to INR 1,500 Cr.
Competitive Landscape
Intense competition from a large number of small to medium-sized players in the civil construction space, which limits aggressive pricing.
Competitive Moat
Moat is based on 30+ years of promoter experience and a strong track record of timely execution with government bodies. This 'established market position' is sustainable but faces pressure from intense competition in the fragmented construction industry.
Macro Economic Sensitivity
Highly sensitive to government infrastructure spending and interest rate cycles. A 1% increase in interest rates would impact the INR 27.72 Cr finance cost incurred in FY25.
Consumer Behavior
Not applicable as the primary customers are government and quasi-government agencies.
Geopolitical Risks
Low direct impact as operations are domestic, but global commodity price spikes (steel/crude) indirectly affect raw material costs.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013, Indian Accounting Standards (Ind AS 115 for revenue recognition), and specific technical standards for civil engineering and infrastructure safety.
Environmental Compliance
Not disclosed as a specific INR value, but the company must adhere to construction-related environmental norms for government projects.
Taxation Policy Impact
Effective tax rate is approximately 30%, with INR 24.28 Cr provided for tax in FY25 against a Profit Before Tax of INR 81.03 Cr.
Legal Contingencies
The company has disclosed the impact of pending litigations in Note 36.2 of its financial statements. While specific case values are not totaled in the summary, the auditors noted these are disclosed to reflect their impact on the financial position.
Risk Analysis
Key Uncertainties
Execution risk of slow-moving projects in the order book and the potential for further working capital stretching (GCA currently at 325 days) could impact liquidity by 10-15%.
Geographic Concentration Risk
95% of the unexecuted order book is concentrated in Punjab (45%) and Haryana (50%).
Third Party Dependencies
High dependency on government departments for project approvals and timely payments, impacting the current ratio which stood at 2.75x in FY25.
Technology Obsolescence Risk
Low risk in civil construction, but failure to adopt modern project management software could lead to cost overruns.
Credit & Counterparty Risk
Exposure is primarily to government agencies, which have low default risk but can cause delays in receivables, as evidenced by a Debtors' Turnover Ratio of 5.33x in FY25.