Twamev Construction & Infrastructure: Post-IBC Resurrection With Asterisks, Mar 2026
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1. At a Glance
The company reports ₹67.45 crore revenue for FY26, down 20.5% from FY25’s ₹84.86 crore.
Net profit sits at ₹7.65 crore, a 86% plunge from ₹55.98 crore in FY25. The culprit: FY25’s other income included ₹79 crore from a legacy arbitration claim with a State government; strip that out, and FY26 looks more like a normalization.
Operating margin inches up to 11.9%, against 33.1% in FY25 (again, the gap is the one-off arbitration income).
EPS measures ₹0.49, down from ₹3.61 in FY25. The market prices this at 44.3x trailing earnings—well above the peer median of 18.1x.
Debt sits consolidated at ₹354 crore, largely in a step-down subsidiary tied to two outstanding arbitration claims: one nearing execution (Bihar), one restarted at the Supreme Court level (TRPL/NHAI). These claims are positioned as near-term catalysts and material risks.
The company is practically three years into its post-NCLT life, still rebuilding governance and investor confidence after a decade of distress.
2. Introduction
Twamev Construction & Infrastructure Ltd, formerly Tantia Constructions, is a rail and road infrastructure contractor incorporated in 1964.
The company spent much of 2012–2023 in operational distress: successive losses, over-leveraging, and governance failures led to SBI-triggered insolvency (Dec 2019). The NCLT approved a resolution plan (Feb 2020), but operationalization took until June 2023, when a new promoter group took control under a completely reshaped board.
This makes the “new Twamev” barely three years old, though it retains over 600 legacy projects in its credential base.
The rebranding (new logo, name change to Twamev in Feb 2025) was presented as a deliberate distance from the old distressed identity. Management emphasizes “practically born in 2023” while leveraging the credentials and experience baked into the old regime.
Recent developments: the company received order wins in Feb 2025 (₹27.99 crore road bridge contract) and Dec 2024 (₹151 crore ropeway JV in Shillong). It secured ₹19.05 crore SAIL-ISP contract in May 2026. Order book stands at approximately ₹325–₹330 crore.
3. Business Model: WTF Do They Even Do?
Twamev is an EPC (Engineering, Procurement, Construction) contractor focused on infrastructure.
Core segments: railways (bridges, Road-Over-Bridges), roads, urban water infrastructure (pipelines, treatment plants), ropeway projects, and occasional industrial fabrication. The company operates primarily in roads and railways; its entry into ropeways is newer, anchored by the Shillong ropeway project (flagship, ₹175 crore, JV with KC International, POMA supplying equipment from France).
Revenue mix FY24: contract receipts ~98%, interest on fixed deposits ~2%. The company is entirely project-driven; no manufacturing or recurring streams.
Execution model is shifting toward “asset-light” + JV/partnership scaling. Management explicitly stated it prefers to avoid heavy fixed-asset buildup because moving equipment adds cost. The Shillong ropeway is being executed as a 60:40 JV with KC International, positioning it as a test case for partnership-led scaling.
Geographic footprint is concentrated in the Northeast (Meghalaya, Mizoram, Tripura, West Bengal) plus pockets in East India. Recent order wins suggest expansion intent into Madhya Pradesh and Uttar Pradesh.
Working capital is a structural drain: debtor days hit 343 in FY26, vs. 192 in FY25. The company’s projects involve long payment cycles from government agencies, especially in water and rail, creating a relentless cash-collection lag.
4. Financials Overview
Figures are consolidated, in ₹ crore.
Metric
FY24
FY25
FY26
YoY
Revenue
53.05
84.86
67.45
-20.5%
Operating Profit
-5.13
28.12
8.04
-71.4%
EBITDA (calculated)
-2.76
29.95
9.56
-68.1%
Net Profit
-22.22
55.98
7.65
-86.3%
EPS
-1.43
3.61
0.49
-86.4%
FY26 results show revenue contraction across the board. Operating profit fell 71%, and net profit collapsed 86%.
Management on the call (May 2025 concall) attributed the weakness to timing: FY25 saw a one-time ₹79 crore other income (legacy arbitration claim approval by the judiciary). Excluding that, management claimed FY25 operating profit would have been ₹29.95 crore from core operations, of which ₹1.83 crore came from depreciation/interest adjustments; normalized EBITDA was thus around ~₹28 crore. FY26’s ₹8.04 crore operating profit, less ₹1.52 crore depreciation, yields ~₹9.56 crore EBITDA, implying normalized operating margins of ~14% (vs. the reported 11.9%).
Other income in FY26 dropped to ₹1.82 crore, vs. ₹34.70 crore in FY25, a reflection of the tail end of arbitration income recognition (the bulk was front-loaded in FY25).
Interest expense fell to ₹0.73 crore (FY25: ₹2.11 crore), continuing a multi-year trend of interest burden reduction post-NCLT.
Tax outflow was minimal (negative ₹0.04 crore), consistent with management’s disclosure of a “huge tax shield” available for the next few years due to past losses.
5. Market Expectations & Historical Multiples
This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.
Metric
Current
3-Year Average
5-Year Average
Peer Median
P/E
44.3
25.8
35.2
18.1
EV/EBITDA
71.7
41.2
52.1
32.5
P/B
0.99
1.2
1.15
1.8
ROE
2.25%
6.4%
2.1%
12.1%
ROCE
1.17%
5.2%
3.1%
14.9%
The market currently pays 44.3x earnings, versus a 3-year average of 25.8x and a peer median of 18.1x. The multiple elevation appears to price in the company’s post-NCLT turnaround narrative, the arbitration catalysts, and near-term order-book execution. However, the absence of normalized earnings (FY26 is depressed, FY25 contained a one-off) makes the multiple volatile and backward-looking.
EV/EBITDA sits at 71.7x, above its own 5-year average of 52.1x and the peer median of 32.5x, reinforcing the multiple premium despite weak absolute returns.
The company’s ROE stands at 2.25% (FY26), far below its 3-year average of 6.4% and the peer median of 12.1%. Similarly, ROCE at 1.17% is below both the 5-year average (3.1%) and peer median (14.9%), indicating that incremental capital is earning sub-par returns.
The P/B multiple of 0.99 suggests the market values the equity slightly below its accounting book value, a bearish signal given the historical volatility and the intangible nature of turnarounds.
What the market appears to be pricing in: (a) successful execution of arbitration claims, (b) conversion of the ₹325–₹330 crore order book into normalized margins (8–10%, per management guidance), and (c) no fresh balance-sheet shocks. Absent these, the multiple has room to compress sharply.
6. What’s Cooking
The Bihar arbitration claim is the nearest catalyst. Management stated on the May 2025 call that the execution petition will be heard within 3–4 months from that date, with Bihar Government having raised no objections in Calcutta High Court. A Supreme Court judgment in Feb 2025 defeated Bihar’s appeals, and management framed a receipt as highly probable. The claim amount is embedded in the FY25 P&L as other income (₹79 crore, though recognition rules are fluid here).
The TRPL/NHAI arbitration is the larger structural play. This subsidiary holds the ₹338 crore of consolidated borrowings; the arbitration award
