Savy Infra and Logistics

• Savy Infra and Logistics is coming out with an initial public offering (IPO) of 58,32,000 equity shares in a price band Rs 114-120 per equity share.
• The issue will open on July 21, 2025 and will close on July 23, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 11.40 times of its face value on the lower side and 12.00 times on the higher side.
• Book running lead manager to the issue is Unistone Capital.
• Compliance Officer for the issue is Sneha Shah.

Profile of the company

Savy Infra and Logistics is an Engineering, Procurement and Construction (EPC) company focused on earthwork and foundation preparation for infrastructure projects such as road construction, embankments, sub-grade preparation, granular sub-bases, and bituminous or concrete surfaces. Over the years, the company has gradually expanded from supplying quartzite for infrastructure projects to providing a range of services, including excavation, grading, utility work, and paving. Initially focused on earthwork and foundation activities, it has also extended its expertise to managing the logistics of excavated materials, ensuring their efficient transportation and disposal. Its approach has evolved to offer integrated solutions across the infrastructure, steel and mining sectors, maintaining a focus on providing reliable and efficient civil engineering services that meet the needs of its clients.

The company’s EPC projects include earthwork services which involve moving and shaping large volumes of soil and other materials, creating a strong and reliable base for buildings, roads, or other infrastructure. Additionally, its services also cover demolition, where it safely and efficiently dismantles existing structures to clear space for new projects. It rents advanced machinery, including rock breakers, heavy excavators, and cutting-edge blasting technology. It utilizes mechanical excavators for efficient excavation and manage all related processes, such as shoring, strutting, side protection to prevent collapses, and slush removal. It also handles the carting away and disposal of excavated materials.

As part of its logistics segment, the company offers Full Truck Load (FTL) services to clients in the infrastructure, steel and mining sectors. Its FTL services involve the efficient and reliable movement of large volumes of freight from one location to another, tailored to meet the unique needs of each client. It ensures point-to-point delivery, meaning that the freight is transported directly from the client’s designated starting location to the final destination without intermediate stops or transfers. This minimizes handling, reduces the risk of damage, and ensures timely delivery.

Proceed is being used for:

• Funding working capital requirements of the company
• General corporate purposes

Industry Overview

India’s Capital Goods manufacturing industry serves as a strong base for its engagement across sectors such as Engineering, Construction, Infrastructure and Consumer goods, amongst others. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables. India has a competitive advantage in terms of manufacturing costs, market knowledge, technology, and innovation in various engineering sub-sectors. India has one of the largest road networks (12,349 kms) comprising expressways, national, state highways, district and village roads. India’s national highway network grew by nearly 49% from 97,830 km in 2014- 15 to 146,145 km at the end of January 2024. The pace increased from 12.1 km a day in 2014-15 to 28.30 km per day in FY23. The government has set a target of constructing 10,000 km of national highways (NHs) in 2025-26. Increasing construction of roads and highways all over the country as a source of development in the state is further responsible for the future growth of the India construction market in the upcoming 5 years.

In FY25 (until December), exports of engineering goods reached at Rs 7,61,343 crore ($87.22 billion). The production of the Capital Goods Sector rose from Rs. 2,29,533 (US$ 27.58 billion) crore in 2014-15 to Rs. 4,29,001 crore ($51.55 billion) in 2023-24. Imports of Electrical Machinery in India increased to $12.30 billion in FY24. The Indian electrical equipment industry comprises of two broad segments, Generation equipment (boilers, turbines, generators) and Transmission & Distribution (T&D) and allied equipment like transformers, cables, transmission lines, etc. The sector contributes about 8% to the manufacturing sector in terms of value, and 1.5% to overall GDP. Incentives for capacity addition in power generation will further increase the demand for electrical machinery.

The India Construction Equipment Market size is estimated at Rs 69,046 crore ($7.91 billion) in 2025 and is expected to reach Rs 1,02,827 crore ($11.78 billion) by 2030, at a CAGR of 8.3% during the forecast period (2025-2030). The construction equipment industry is expected to sell 165,097 units by 2028. Indian auto components industry, which accounts for 2.3% of India’s GDP currently, is set to become the 3rd largest globally by 2025. Export of engineering goods is expected to reach $200 billion by 2030. The Ministry of Road Transport and Highways plans to construct around 13,814 km of national highway construction in FY 2024 and a network to two lakh km by 2025. India’s earthmoving and construction equipment (ECE) industry has enjoyed strong growth over the last seven years due to rapid economic development, and it has become the third largest construction equipment market in the world. Construction Equipment sales grew by 26% YoY to 135,650 units in FY24. With development of infrastructure, demand for construction equipment and other machinery is expected to rise significantly. 

Pros and strengths

Asset light business model: The company strategically outsource its trucking, machinery and equipment needs to third party contractors, ensuring its focus on execution of projects and not having its significant capital blocked in assets which ensures operational flexibility to adapt to different needs of variety of customers. It also leverages this arrangement to reduce risks attached to breakdown, theft to affect its operational efficiency and focus on timely execution of its projects.

Integrated business operations: The company offers comprehensive earthwork and logistics solutions as a core part of its integrated EPC services. It manages the entire process, starting from ground excavation to the removal of soils, fines, and hard rocks. By combining earthwork and logistics, it creates a streamlined process that supports smooth project execution while ensuring compliance with required standards. It ensures that all excavation and material handling operations are carried out efficiently, meeting quality standards and project timelines.

Strong financial performance: In FY24-25, the company delivered strong financial results with a revenue from operations of Rs 28,339.05 lakh and a profit after tax of Rs 2,387.79 lakh. Currently, it is managing 12 ongoing projects worth over Rs 20,142 lakh. Its order book comprised of upcoming projects aggregating to Rs 23,056 lakh. It has been able to achieve and maintain such an Order Book positions due to continued focus on its core areas and its technical expertise and timely execution and completion of its projects.

Risks and concerns

Maximum revenue comes from limited customers: The company is currently dependent on a limited number of customers for a significant portion of its revenues. The company has garnered 74.90%, 94.94% and 98.14% of its of its total revenue from top 5 clients in FY25, FY24 and FY23 respectively. The company typically does not have firm commitment in the form of long-term agreements with most of its customers and instead rely on purchase orders. Since, it is dependent on some of its customers for a substantial portion of its business, the loss of any one of such key customers or a substantial reduction in demand from such key customers could have material adverse effect on the business, financial condition and result of operations.

Geographical constrain: The company started its business operations primarily in the state of Odisha and expanded its operations in the states of Maharashtra, Gujarat, Odisha, Kerala and thereafter to states of Telangana, Andhra Pradesh, Chhattisgarh, Delhi etc. However, its projects have historically been concentrated in the state of Gujarat, Maharashtra and Andhra Pradesh and any changes affecting the policies, laws and regulations or the political and economic environment in the region may adversely impact its business, financial condition and results of operations.

Dependent on limited number of suppliers for raw materials supply: The company is dependent on limited number of suppliers and contractors for supply of key raw materials, equipment, trucks and manpower. The company has procured 90.28%, 74.69% and 86.46% of its raw material supply from top 10 suppliers in FY25, FY24 and FY23 respectively. The company has not made any long term supply arrangement with its suppliers. In an eventuality where its suppliers and contractors are unable to deliver it the required resources in a time-bound manner it may have a material adverse effect on its business operations and profitability.

Outlook

Savy Infra and Logistics is an EPC company specializing in earthwork and foundation preparation for infrastructure projects, including road construction, embankments, sub-grade preparation, and surface paving. The company has asset light business model coupled with strong financial performance. On the concern side, the company derives a majority of portion of its revenue from few customers related to infrastructure, steel and mining industry and loss of such customers may have an adverse impact on its business, financial condition and results of operations. Moreover, the company’s revenues are significantly dependent on a single business segment i.e. the services of EPC. Consequently, any downturn in sales within this segment would significantly hamper its operations and profitability.

The company is coming out with a maiden IPO of 58,32,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 114-120 per equity share. The aggregate size of the offer is around Rs 66.48 crore to Rs 69.98 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations in the financial year 2024-25 amounted to Rs 28,339.05 lakh. This represents Rs 18,179.73 lakh or 178.95% increase compared to the previous financial year's revenue from operations of Rs 10,159.32 lakh. The Profit After Tax (PAT) for the financial year 2024-25 reached Rs 2,387.79 lakh, marking an increase from Rs 986.66 lakh in the financial year 2023-24. In the financial year 2024-25, PAT constituted 8.41% of the total revenue, in contrast to 9.71% in the fiscal year 2023-24.

The company operates an asset light business model where it offers specialized services by renting trucks and drivers and managing the execution of transportation. This approach allows it to avoid the challenges of owning trucks, manpower issues, theft, accidents, and maintenance. By focusing on execution, it minimizes costs related to interest, depreciation, and asset ownership, which helps improve its profit margins. Going forward, the company plans to enter the green logistics sector by introducing electric vehicle (EV) solutions, which will significantly cut operational costs and meet the growing demand for sustainable transportation. Its EV trucks will reduce fuel expenses by around 80%, offering a substantial cost advantage that directly improves its bottom line and enhances profitability. This cost reduction allows it to operate more efficiently while maintaining competitive pricing.