1. At a Glance
If “structural steel” had a Bollywood equivalent,Salasar Techno Engineering Ltd (STEL)would be that character actor who’s everywhere — bridges, towers, poles — but never wins an award. With a market cap of ₹1,806 crore and a stock price of ₹10.3 (as of 21 Nov 2025), the company has been a roller coaster in steel boots. Over the past three months, the stock jumped a spicy33.6%, proving that investors love drama almost as much as quarterly profits.
In Q2FY26 (ended September 2025), Salasar’s consolidated revenue strutted in at ₹427 crore, up51.8% YoYand42% QoQ, while PAT hit ₹15.8 crore — a64.4% YoYjump. The company boasts an8.26% operating marginand aROCE of 11%, not exactly metal-melting returns, but at least the steel isn’t rusting. With anEPS of ₹0.09, aP/E of 65.8, and aDebt-to-Equity of 0.43, the company’s financial posture looks like that of an engineer balancing on a half-welded beam — stable, but not chill.
The highlight reel? A ₹2,198 crore order book, an ED raid, and not one but two pending amalgamations. This quarter had everything except a romantic subplot — unless you count the non-binding MoU with Elegant Forge.
2. Introduction
Welcome to Salasar Techno Engineering — where steel meets suspense. Incorporated in 2006, this company has mastered the art of turning metal into money and occasionally, newspaper headlines. It manufactures galvanized steel structures and executes EPC (Engineering, Procurement, Construction) projects that serve as the skeletal system for India’s telecom, power, and rail infrastructure.
If you’ve ever seen a telecom tower in Bihar or a railway bridge in Rajasthan, odds are Salasar was there first — with welding torches, invoices, and the occasional pending payment. Their clientele reads like a bureaucrat’s contact list:Indus Tower, Bharti Airtel, DMRC, Power Grid Corporation, RITES, and IRCON. The company’s expansion map is basically a travel influencer’s dream — from Delhi to Assam domestically, and internationally from thePhilippines to Africa.
But the story gets juicier. While FY25 ended with aggressive EPC wins, FY26 began with an Enforcement Directorate raid on its promoters,Mr. Alok Kumar (Chairman & MD)andMr. Shashank Agarwal (JMD). The company clarified that “no business disruption” occurred — which, let’s admit, is a very Indian way of saying “we cleaned up before the guests arrived.”
So, what happens when a ₹1,800 crore market cap company juggling heavy steel, government EPC contracts, and corporate restructuring faces both growth and gossip? Let’s dive into the steel soup.
3. Business Model – WTF Do They Even Do?
Salasar Techno Engineering’s business model is basically a buffet of engineering segments, all garnished with zinc and stress. The company manufacturesgalvanized steel structures(the ones that don’t rust even when your relatives do) and executesEPC contractsacrosstelecom, energy, and railways.
Their three main dishes are:
- Tower & Steel Structures:These include telecom and transmission towers, utility poles, stadium masts, and bridge girders — basically, anything that can stand tall and take credit for someone else’s signal strength.
- Heavy Steel Structures:Built at theirHapur plants (capacity: 1.96 lakh MTPA), these cater to railway bridges and industrial buildings. A 15,000 MTPA “Heavy Steel Division” adds muscle — perfect for when the government announces another round of infra booster packages.
- EPC Division:This is the high-stakes arena where engineering meets bureaucracy. Salasar designs, procures, and constructs railway electrification lines, overhead structures, and grid projects.
In short: They fabricate the steel, galvanize it, install it, and occasionally pray the government clears the bills.
Their FY25order book of ₹2,198 croreshows where the weight lies:
- EPC Segment: ₹2,063.5 crore
- Heavy Steel Structures: ₹65.1 crore
- Monopoles: ₹39.3 crore
- Telecom: ₹30–35 crore rolling monthly orders
Think of it as an engineering thali — EPC is the rice, towers are the dal, and monopoles are the chutney that keeps things interesting.
4. Financials Overview
| Metric | Q2FY26 | Q2FY25 | Q1FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹427 Cr | ₹281 Cr | ₹300 Cr | 51.8% | 42.3% |
| EBITDA | ₹42 Cr | ₹26 Cr | ₹30 Cr | 61.5% | 40.0% |
| PAT | ₹15.8 Cr | ₹9.6 Cr | ₹9 Cr | 64.4% | 75.5% |
| EPS (₹) | 0.09 | 0.06 | 0.05 | 50.0% | 80.0% |
Annualized EPS:₹0.36 →P/E:28.6x (based on current price ₹10.3).
Commentary:The Q2FY26 result was like that one cousin who suddenly tops the exam — impressive, but everyone’s still
suspicious. Revenue jumped a chunky 52%, thanks to a strong EPC push, while margins finally escaped single digits. The only catch? Debt’s still lounging at ₹350 crore, sipping interest like cold brew.
5. Valuation Discussion – Fair Value Range Only
Let’s calculate this like a calm auditor who’s seen worse balance sheets.
a) P/E Method:EPS (annualized) = ₹0.36Industry P/E = 34.8Fair Value Range = ₹0.36 × (25x to 35x) = ₹9.0 – ₹12.6
b) EV/EBITDA Method:EV = ₹2,112 Cr; EBITDA (TTM) = ₹137 Cr → EV/EBITDA = 15.4xIndustry avg = 12–18x → Fair Range = ₹1,650 – ₹2,460 Cr EV→ Fair Equity Value = (EV – Debt) / Shares ≈ ₹8.0 – ₹12.0 per share
c) DCF (Simplified):Assuming FCF recovers from negative territory and grows modestly at 10% for 5 years, discount rate at 12%, fair value comes around ₹9–₹13.
✅Educational Fair Value Range:₹9–₹13 per share
Disclaimer:This fair value range is foreducational purposes onlyand not investment advice.
6. What’s Cooking – News, Triggers, Drama
Oh boy, where do we start? Q2FY26 was the kind of quarter where corporate filings read like crime thrillers and board meetings sounded like courtroom scenes.
- ED Raid (April 2025):The Enforcement Directorate searched the residences of the Chairman and JMD over alleged irregularities. The company clarified “no disruption,” which in Indian corporate language means, “the laptops are working fine.”
- Amalgamation Overload:
- Hill View Infrabuild Ltdmerger approved on30 Dec 2024.
- EMC Ltdmerger approved26 Mar 2025.
- Both are now part of Salasar’s grand consolidation plan — a.k.a. the “We’re Bigger, Trust Us” strategy.
- MoU with Elegant Forge (Feb 2025):Signed a non-binding MoU for potential acquisition. Non-binding means they’re still checking if the chemistry is right.
- Credit Rating Update (Oct 2025):Infomerics reaffirmed IVR A/Stable and IVR A1, removing watch status. In short, “you’re stable, but don’t mess up again.”
- Funding Plans:The board authorised exploring fundraising options — a fancy way of saying “cashflow thoda tight hai.”
7. Balance Sheet
| (₹ in Cr) | Mar 2024 | Mar 2025 | Sep 2025 |
|---|---|---|---|
| Total Assets | 1,151 | 1,725 | 1,848 |
| Net Worth (Equity + Reserves) | 450 | 786 | 813 |
| Borrowings | 350 | 317 | 350 |
| Other Liabilities | 351 | 622 | 686 |
| Total Liabilities | 1,151 | 1,725 | 1,848 |
