Amid India’s rapidly expanding industrial and infrastructure growth story, Goel Construction Company (GCCL) has carved out a strong position for itself. Established in 1997 in Rajasthan with modest beginnings, the company has evolved into a trusted EPC (Engineering, Procurement & Construction) contractor with expertise in Cement Plants, Power Plants, Dairy Plants, and other industrial facilities.
Now, with its SME IPO, GCCL is inviting investors to participate in this growth journey. The IPO size ranges between INR 95–100 crore, and post-listing, it is expected to mark a significant new chapter for both the company and its shareholders.
Before investing in an IPO, having complete details is crucial. Goel Construction IPO review gives insights into the company’s business model, revenues, projects, and key factors that help you make an informed investment decision.
Company Overview
Goel Construction’s journey over the last twenty-eight years reflects its steady transition from a small contractor to a large-scale project executor. The company began its operations in Rajasthan by focusing on institutional and infrastructure projects, often working as a sub-contractor in the early years. Over time, it built technical capabilities, expanded managerial expertise, and developed the confidence to undertake entire projects on its own. This progression is evident in the increasing scale of contracts—from an early project worth just INR 1.59 crore in 1997 to a recent award in 2024 valued at INR 172 crore.
The company’s performance is the leadership by promoters Mr. Purushottam Dass Goel and Mr. Arun Kumar Goel, who together bring more than five decades of experience, along with a workforce of over 1,100 employees and contract workers spread across multiple sites.
Goel Construction IPO Analysis: Business Model
Goel Construction’s business model is built around specialized EPC contracting in industrial plants, which provides both scale and sustainability. The company’s ability to handle complex, high-value projects has evolved over decades of execution experience.
- Contracting Framework: Goel Construction predominantly works on item-rate / BOQ (Bill of Quantities) contracts. In this format, clients supply the designs and engineering drawings, while GCCL executes the project on a measured-quantity basis. This reduces design-related risks for the company and allows it to focus on efficient execution. Some contracts also carry price variation clauses, offering protection against fluctuations in raw material or labor costs.
- Relationships: While competitive tenders form part of the pipeline, a significant portion of projects are acquired on a nomination basis from long-standing clients. This not only lowers customer acquisition costs but also improves win-rates in new bids due to strong references and a proven track record.
- Operational Differentiator: Ownership of heavy equipment and a trained workforce allows Goel Construction to maintain tighter control over timelines and costs. This operational self-reliance enhances margins and enables the company to bid confidently for large-value projects.
Goel Construction IPO Review: IPO Details
- IPO Dates: 2 – 4 September 2025
- Price Band: INR 250 – 262 per share
- Fresh Issue: 30,84,400 shares (INR 77.1 – 80.8 crore)
- Offer for Sale (OFS): 7,23,600 shares (INR 18.1 – 19.0 crore)
- Total Issue Size: 38,08,000 shares (INR 95.2 – 99.8 crore)
- Lot Size: 400 shares (min bid of 800 shares = ~INR 2.1 lakh)
- Individual Allocation: 35%
- Listing Date: 10 September 2025
- Listing: BSE SME
Utilization of Proceeds:
- INR 41.74 crore – Capital expenditure for equipment & fleet expansion
- INR 23.05 crore – Debt repayment/prepayment
- Balance – General corporate purposes
Revenue Streams & Segment Analysis
Goel Construction’s revenue model reflects both sectoral expertise and geographic diversification, two pillars that ensure growth stability.
By Customer Segments
- Cement Plants (Core Revenue Driver)
- Cement construction has been GCCL’s core strength for over two decades.
- In FY25, this segment contributed INR 438.29 crore (74.4% of total revenue).
- Projects include clinkerization units, grinding plants, silos, pre-heaters, and packing facilities.
- Completed high-value projects like the Clinkerization Package at Chhattisgarh (INR 145.73 crore, 2024) and Line-II at Kotputli, Rajasthan (INR 113.07 crore, 2024) showcase execution capability.
- Power Plants (Rapidly Expanding Segment)
- Revenue contribution increased from 4.5% in FY23 → 19.7% in FY25.
- Key ongoing project: Civil works for Balance of Plant (BOP) for a 2×800 MW project in Madhya Pradesh worth INR 172 crore.
- Demand outlook is positive with India targeting 80 GW of new coal-based capacity by 2032, offering a structural growth opportunity.
- Dairy & Allied Plants (Niche but Stable Segment)
- Contributed INR 34.61 crore (5.9%) in FY25.
- Projects include Cattle Feed Plants (CFP) and allied facilities.
- This segment, though smaller, adds diversification and positions Goel Construction as a multi-sector EPC player beyond cement and power.
By Geography
- Rajasthan (Anchor Market) – Contributed 40% of FY25 revenue. Being the home base, GCCL enjoys strong client relationships here.
- Chhattisgarh (22.6%) & Madhya Pradesh (18.4%) – Fast-growing hubs for cement and power projects.
- Emerging States – Gujarat, Punjab, and Odisha show gradual revenue growth, reflecting successful regional expansion.
- Balanced Spread – Presence in 12 states, including Rajasthan, Gujarat, Chhattisgarh, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, and Jharkhand. reduces concentration risk and provides multiple bidding opportunities simultaneously.
Order Book Visibility
- As of 30 June 2025, Goel Construction had an order book of INR 596.60 crore, covering 14 ongoing projects.
- Importantly, six projects individually exceed INR 100 crore, indicating the company’s capacity to manage large-scale assignments.
- Order book-to-revenue ratio of 0.74x in FY25 still provides medium-term visibility, while Letters of Acceptance (LOAs) worth INR 191.76 crore further strengthen the pipeline.
Goel Construction IPO Review: Financial Performance
Goel Construction has delivered consistent and accelerating financial growth over the last three years:
| Particulars | FY23 | FY24 | FY25 | Trend |
|---|---|---|---|---|
| Revenue | 270.73 | 386.06 | 589.98 | 47.6% CAGR |
| EBITDA | 23.41 | 36.29 | 57.91 | Margins improving |
| EBITDA Margin (%) | 8.65 | 9.40 | 9.81 | Stable & upward |
| Net Profit | 14.30 | 22.64 | 38.32 | 63.7% CAGR |
| Net Profit Margin (%) | 5.3 | 5.9 | 6.5 | Expanding |
| RONW (%) | 22.5 | 27.6 | 34.1 | Strong capital efficiency |
| ROCE (%) | 21.0 | 26.4 | 33.7 | Improving returns |
| D/E Ratio | 0.40 | 0.33 | 0.22 | Deleveraging |
- Growth Momentum: Revenue nearly doubled between FY23 and FY25, while net profit grew almost 3x.
- Profitability: Margins have expanded steadily, supported by cost control and owned equipment, reducing dependency on third parties.
- Capital Efficiency: Return ratios are among the strongest in the SME construction space, with RONW >34% in FY25.
- Balance Sheet Strength: Debt levels have reduced significantly, providing headroom for future expansion.
Goel Construction IPO Analysis: Strengths & Opportunities
Goel Construction enjoys multiple competitive strengths that position it well for future growth:
- Proven Execution Track Record: 19 projects completed in the last four years, including multiple large-scale cement and power plants. Timely delivery and quality adherence have cemented client trust.
- Repeat Clientele: Over 62% of FY25 revenue came from repeat customers. This relationship-driven model lowers acquisition costs and ensures stable order inflows.
- Experienced Promoters: Backed by 50+ years of promoter experience and a seasoned management team across tendering, procurement, and execution.
- Fleet Ownership Advantage: A fleet of 200+ equipment units provides execution reliability, faster mobilization, and reduced dependency on external vendors.
- Industry Tailwinds: India’s cement industry is expected to invest INR 1.25 trillion in capacity expansion by FY27, while power sector expansion targets 80 GW of new capacity by 2032. GCCL is well placed to capitalize on these opportunities.
Goel Construction IPO Review: Risks & Challenges
While Goel Construction’s business fundamentals are strong, a few challenges are worth noting:
- Order Book Dependency: The company’s order book provides visibility but is not a guaranteed indicator of future revenue. Delays in project execution or cancellations could impact topline growth.
- Sector Concentration: Cement projects still account for nearly 75% of revenues in FY25. Although diversification into power and dairy is ongoing, dependence on a single sector exposes the company to cyclical demand patterns.
- Execution Risks: As with all EPC companies, challenges like cost overruns, raw material price fluctuations, or site delays could compress margins.
- Working Capital Intensity: Construction projects often involve high receivable cycles and performance guarantees, which can strain liquidity.
- SME Listing Platform: Being listed on the BSE SME, liquidity in trading may initially be lower compared to mainboard-listed peers.
Final Words
Goel Construction represents a compelling SME IPO opportunity with the following positives:
- Robust Growth Track Record: 3-year revenue CAGR of 47.6% and profit CAGR of 63.7%.
- Strong Return Ratios: RONW of 34% and ROCE of 34% in FY25, among the best in the SME EPC space.
- Healthy Order Book: INR 596.60 crore across 14 projects ensures near-term revenue visibility.
- Diversification in Progress: Expanding presence in power and dairy segments reduces over-reliance on cement projects.
- Deleveraged Balance Sheet: Debt-to-equity of just 0.22x improves financial flexibility.
Valuations: At the upper price band of INR 262, the IPO implies a P/E multiple of ~7.5x FY25 EPS, which appears attractive compared to listed EPC peers trading at higher multiples.
For investors with a medium to long-term horizon, GCCL’s IPO offers a well-managed construction play riding on India’s industrial and infrastructure growth wave. Despite sectoral risks, its strong execution track record, repeat customer base, and improving financial metrics make it a positively skewed opportunity in the SME space.
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