Simplex Infrastructures Ltd Q3 FY26: ₹247 Cr Revenue, ₹8 Cr Profit… But ₹1,844 Cr Debt & CARE D Rating — Revival Story or Zombie Company?

---

1. At a Glance – The Comeback Nobody Ordered?

If Bollywood made a sequel called “Company That Refuses to Die”, Simplex Infrastructures Ltd would be the lead actor.

Founded in 1924 (yes, before your great-grandfather discovered LIC policies), this company has built bridges, ports, airports, tunnels… basically everything except shareholder wealth in the last decade.

Now here’s the masala:

• Revenue shrinking faster than your patience in a traffic jam
• Debt so large it needs its own Aadhaar card
• Credit rating at CARE D (default category)
• Promoters diluting stake like tea at a railway station
• Yet… suddenly reporting profits again

And the stock?
Still trading at a P/E of ~21.

Matlab… loss-making history + default rating + debt restructuring + still premium valuation?

Tell me honestly—
Is this a turnaround story… or financial jugaad on steroids?

---

2. Introduction – From Engineering Giant to Financial Gymnast

Simplex wasn’t always this… complicated.

Once upon a time, this was a serious infrastructure company executing:

• Metro rail projects
• Ports
• Power plants
• Airports
• Highways

Basically, the kind of stuff that makes politicians cut ribbons and take credit.

But then reality hit.

Over the last decade:

• Sales crashed from ₹5,600+ Cr (FY14) to ₹1,020 Cr (TTM)
• Net worth eroded
• Debt ballooned
• Cash flows turned negative
• And finally… defaults happened

Classic infrastructure sector tragedy:

Build big → get delayed payments → take loans → pay interest → repeat → collapse

But wait… plot twist.

Recently:

• Company reported profits again
• Debt reduced significantly (₹7,180 Cr → ₹1,844 Cr)
• Preferential allotments + debt conversion underway

So now investors are asking:

“Is this a phoenix… or just smoke from a fire?”

---

3. Business Model – WTF Do They Even Do?

Simplex is basically India’s “we build everything” contractor.

Their verticals include:

• Roads, railways & bridges
• Buildings (residential, hospitals, IT parks)
• Power & transmission
• Marine construction (ports, underwater piling)
• Urban infra (airports etc.)
• Ground engineering (piling, soil work)

Translation:

If it involves concrete, steel, and government payments… they are in.

Revenue mix (FY23):

• 77% from construction contracts
• 17% mining services
• Rest from other income

So essentially:
👉 They bid for contracts
👉 Execute projects
👉 Wait for payments (sometimes forever)

And that’s where the problem begins.

Because in India:

• Government delays = cash flow disaster
• Cash flow disaster = borrowing
• Borrowing = interest
• Interest = losses

Simplex mastered this loop like a Netflix binge.

Question for you:

Would you run a business where customers pay late… but banks want EMI on time?

---

4. Financials Overview – The “Profit Is Back” Drama

(Quarterly Results → So EPS annualisation rule applies)

Financial Comparison (₹ Cr)

Metric	Dec 2025	Dec 2024	Sep 2025	YoY %	QoQ %
Revenue	247.71	229.78