1. At a Glance
Simplex Infrastructures Ltd — the 1924-born veteran of Indian construction — is like that old bridge it once built: creaking, dented, but still standing. With amarket cap of ₹2,285 crore, this Kolkata-based EPC contractor is somehow still mixing cement and spreadsheets even after a decade of financial turbulence. ItsQ2 FY26results surprised the market with a rare green number —PAT of ₹8.62 crore, a sharp 177% jump QoQ — though that’s still peanuts in the ₹247.99 crore sales bucket (which itself fell7.49% QoQ).
The stock trades at₹289with aP/E of 66.4, which makes you wonder: are investors valuing hope or hallucination? ItsROE sits at -4.4%,ROCE is basically zero (-0.05%), and thedebt-to-equity ratio at 1.97suggests banks have been holding the company up like a tired uncle at a wedding. Despite everything, the share price has climbed26% in the last year, proving that in Indian markets, nostalgia can be more powerful than numbers.
So, what exactly is this century-old infrastructure survivor cooking these days? Let’s dig in.
2. Introduction
Simplex Infra isn’t just old—it’s ancient. Founded when the British were still discussing train routes instead of taxes, this company has literally seen empires rise, fall, and get stuck in bureaucratic clearances. Fromunderwater pilingtometro viaducts, fromGreenfield airportstodrainage networks, Simplex has laid foundations across India — some physical, some financial.
But in recent years, the company has been more famous for itsNCLT near-death experiencesanddebt dramasthan its engineering feats. Defaulting on payments, erosion of net worth, operational creditors knocking on NCLT’s door — the works. Still, every time someone writes its obituary, Simplex files a new project or a preferential allotment notice, just to say, “Bhai, main zinda hoon.”
In FY25, it raised over₹423 crorethrough preferential issues,converted loans from ICICI and NARCL into equity, and even luredQuant Mutual FundandICICI Bankinto holding fresh stakes. It’s like watching a financial zombie doing yoga — not pretty, but undeniably flexible.
So yes, this company is technically in recovery mode. But will it rebuild its fortune or just patch its balance sheet again? Keep reading, because this story has more plot twists than a Mumbai Metro tender.
3. Business Model – WTF Do They Even Do?
Simplex Infra’s business model can be summed up as: “If it stands, we can build it. If it falls, we’ll claim variation order.”
The company operates through multiple civil construction segments:
- Roads, Railways & Bridges:Think NHAI highways, metro stations, and bridges that connect your office to eternal traffic.
- Buildings:From residential skyscrapers to IT parks, Simplex has built everything except its own balance sheet.
- Power & Transmission:The company erects power infrastructures—thermal, hydel, and even nuclear. If it’s dangerous and delayed, Simplex is probably involved.
- Marine & Ground Engineering:With underwater piling and soil stabilization expertise, they’ve literally gone below ground to stay relevant.
- Urban Infrastructure:They’ve renovated airports like Jaipur and Udaipur, and even built a full Greenfield airport at Andal, West Bengal — a project that’s ironically been smoother than their quarterly results.
TheirFY23 order book stood at ₹39,176 million, with new orders worth₹6,761 million, spanning highways, industrial plants, IOCL works, and more. That’s a big number on paper, but given their historical execution, it’s like saying you’ve joined the gym — doesn’t mean you’re fit yet.
4. Financials Overview
Let’s bring the concrete numbers into focus:
| Metric | Latest Qtr (Sep 2025) | YoY Qtr (Sep 2024) | Prev Qtr (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 247.99 | 268.06 | 242.59 | -7.5% | 2.2% |
| EBITDA (₹ Cr) | 15.96 | 3.01 | 7.65 | 430% | 108% |
| PAT (₹ Cr) | 8.62 | -10.72 | 4.93 | NA | 75% |
| EPS (₹) | 1.08 | -1.89 | 0.60 | NA | 80% |
Annualised EPS = ₹1.08 × 4 = ₹4.32 → P/E = 289 / 4.32 =66.9
So yes, the P/E looks like a mid-life crisis number.
Commentary:Simplex just pulled off a mini-miracle. After years of losses, it’s reporting a profit again. EBITDA margin of 6.4% (vs 1.1% last year) is an achievement for a company that once struggled to pay its diesel bills. But sales are
shrinking like patience during a roadblock — down 7.5% YoY. The recovery is fragile, like a temporary bridge waiting for the cement to dry.
5. Valuation Discussion – Fair Value Range Only
Let’s play the valuation game (educational purpose only, bhai):
Method 1: P/E ValuationIndustry P/E = 20Simplex EPS (annualized) = ₹4.32
- Conservative: 10× = ₹43
- Optimistic: 25× = ₹108
Fair Value Range (P/E):₹43 – ₹108
Method 2: EV/EBITDAEV = ₹3,922 Cr, EBITDA (TTM) = ₹102 Cr → EV/EBITDA = 38.5×Industry average = 12–18×
If it ever returns to normalcy (say 15× multiple):Implied EV = 15 × 102 = ₹1,530 Cr → Equity Value = 1,530 – 1,844 (Debt) =negative.
So technically, valuation says “Abey, go get profitable first.”
Method 3: DCF (Debt-Heavy)Assuming operating cash flows grow from ₹208 Cr to ₹300 Cr over 5 years, discount rate 12%, terminal growth 3% — fair value range lands between₹80–₹120.
Conclusion:Fair Value Range (Educational only):₹43 – ₹120Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
The last year was pure Bollywood:
- Debt-to-Equity Conversions:ICICI Bank and NARCL (the bad bank) swapped loans worth ₹34.48 crore into shares. Yes, even bad loans got a second life.
- Preferential Issues Galore:Over ₹423 crore raised through multiple allotments in FY25–FY26, with new equity and warrants issued to banks and funds.
- New Shareholders:Quant Mutual Fund, ICICI Bank, and even NARCL now hold stakes. When the bad bank becomes your investor, you know redemption has a price tag.
- Capital Raises:In FY25, Simplex issued ₹498 crore worth of equity and warrants, diluting old shareholders faster than concrete in monsoon.
The new buzz is that lender settlements and equity conversions might finally make the company bankable again. But let’s be honest — this company has seen more “restructurings” than Delhi flyovers.
Will it use the new cash to pay off old debt or just start new projects and delay those too? Only
