Ramky Infrastructure closes 2025 with debt-free financial flexibility and high growth momentum

"The Company reported steady revenue growth driven by progress in key EPC and HAM projects, with healthy EBITDA fueled by cost control and efficiency gains," said Sravanth Rayapudi, CFO of Ramky Infrastructure Ltd. The year-end update highlights consistent performance across Water and Wastewater, Industrial Parks, and Urban Solutions (Buildings), focusing on disciplined bidding, lifecycle operations, and capital recycling. 

Ramky Infrastructure Limited, specializing in Industrial Parks, Water and Wastewater management, and Urban Solutions, released a year-end business update for 2025. The company strengthened its operating fundamentals and fine-tuned its strategy to respond to the next infrastructure growth cycle. Their selection process emphasized a risk-aware approach and larger opportunities aligned with execution strengths.

The company targets reliable projects in the ₹1,000 crore to ₹2,000 crore range to minimize fragmentation in smaller projects and enhance delivery controls for complex jobs. As of the update, Ramky’s order book is about ₹10,000 crore, allowing for visibility of two to 2.5 years, complemented by a robust domestic pipeline of around $1 billion and an international pipeline nearing ₹1,000 crore, focusing on Industrial Parks and Water projects. 

Project work spans Engineering, Procurement, and Construction (EPC) (approximately 40%), Hybrid Annuity Model (HAM) (around 30%), and Operation & Maintenance (O&M) (30%), thus balancing execution-driven revenues and long-term operational cash flows. Additionally, the company is the lowest bidder for projects valued at about ₹3,000 crore, expecting to secure them soon.

Ramky Infrastructure underscored its capability in execution, managing most of the work in-house supported by structured project monitoring. The organization employs standardized delivery processes across various projects to ensure consistent timelines and quality. In the Water and Wastewater sector, the scope includes design-build projects, sewage treatment plants, and related infrastructures, with a previous successful completion of numerous treatment plants within 18 to 20 months. A key revenue project recently handed over caused a short-term dip in execution visibility, as the company transitions to new awards for full-scale delivery.

The company's Buildings division remains robust, having developed around 15 million sq ft and an ongoing construction of another 15 million sq ft for a group developer entity and external clients. In 2025, Ramky adopted a significant approach to 'Commissioning as a controlled transition point,' minimizing gaps during handover by integrating operational responsibilities into the construction plans.

Focusing on O&M, Ramky outlined two primary business engines: Water and Wastewater operations for sewage treatment facilities typically lasting 15 to 20 years, and Industrial Parks that require utility and ecosystem services. Enhancing operating capabilities improves eligibility for future tenders while feeding operational learnings back into project planning and execution.

The company also pursues international opportunities in Oman and Saudi Arabia, eyeing significant tenders worth ₹500 to ₹600 crore this year and larger wins anticipated by FY27. Ramky is transitioning from restructuring, with no standalone term debt, relying on project-specific borrowings linked to completed assets, around ₹160 crore.

The firm reported Q2 FY26 performance signaling growth momentum post-restructuring with consolidated revenues at ₹4,716 million, EBITDA at ₹1,420 million, and PAT at ₹778 million, projecting a FY26 revenue growth of 25 to 30%, EBITDA around 22 to 23%, and PAT between 13 to 15%. Long-term, a growth target of 5x over five years correlates to backlog conversion.

CEO Sunil Nair remarked the Q2 results reflect strategic goal realization, affirming the foundation for sustainable growth. CFO Sravanth Rayapudi noted the strong balance sheet with nil debt facilitated steady revenue progress from key projects, while obtaining new orders expanded the order book beyond ₹9,000 crore, reinforcing strong execution across ongoing initiatives. 

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