Gujarat-based Savy Infra and Logistics is knocking on the capital markets’ door with a fresh SME IPO, eyeing INR 66.48 – 69.98 crore through a 100% book-built issue. Positioned as an Engineering, Procurement and Construction (EPC) contractor with an added arm in logistics, the company claims it is capitalising on India’s infrastructure boom. Savy Infra IPO review uncovers the surface of strong top-line growth and profitability.
Business Overview
Savy Infra began as a supplier of quartzite before pivoting into infrastructure execution and logistics. Its offerings include road construction, embankment and sub-grade preparation, granular sub-base, and both bituminous and concrete surfacing. It also offers Full Truck Load (FTL) logistics services to sectors like steel, mining, and infra.
While this dual vertical model offers diversification, the business remains asset-heavy and project-driven, leading to revenue lumpiness and high working capital dependency. As of 30 April 2025, the company had 33 full-time employees across its sites.
Savy Infra IPO Review: Industry Overview
India’s logistics and infrastructure sector is undergoing a transformative expansion, driven by sustained government investments, rapid urbanisation, and manufacturing growth under initiatives like Gati Shakti, the National Infrastructure Pipeline (NIP), and PM Gati Shakti. As per the Ministry of Finance, India has earmarked over INR 143 lakh crore under the NIP till FY25, with significant allocations to roads, transport, and logistics.
The Indian logistics market was valued at USD 274 billion in 2022 and is projected to grow at a CAGR of 8.8% to reach USD 484 billion by 2028. The infrastructure segment, particularly road construction, is witnessing an aggressive push, with the Ministry of Road Transport and Highways targeting the construction of 13,814 km of highways in FY25.
Additionally, the Full Truck Load (FTL) transportation sub-sector, where Savy Infra operates, accounts for over 75% of road freight. The implementation of GST has created a unified national market, reducing inter-state transport delays, and fuelling demand for organised freight services.
For companies like Savy Infra, this translates into significant tailwinds:
- Robust Tender Pipeline: Surge in public works and EPC contracts opens up a larger bidding universe.
- Demand for Integrated Logistics: The government and private sector both increasingly seek end-to-end infra-logistics players.
- Digitisation & Formalisation: As the sector shifts towards technology-driven, asset-backed operations, players with captive equipment and fleet (like Savy) hold competitive leverage.
Overall, the sector offers high-growth potential, but is intensely competitive and sensitive to input inflation, payment delays from public clients, and regulatory changes.
Savy Infra Business Model Analysis
Savy Infra operates on a hybrid business model combining asset-backed EPC contracting with captive logistics services. The infrastructure arm is focused on project execution in public-sector-driven roadworks and civil development, while the logistics division supports internal project mobility and also services external clients in mining and manufacturing.
Key features of the model:
- Project-Based Revenue: The company earns from milestone-based billing in EPC projects. This creates high quarterly volatility but allows for lumpy profit spikes.
- Vertical Integration: By controlling its own FTL fleet, Savy reduces dependency on third-party logistics and cuts coordination delays during project mobilisation.
- Government Dependence: A large proportion of projects are sourced from public-sector tenders, which are lucrative but prone to delayed receivables.
- Scalability Concerns: Expansion into new geographies or project types would require significant capital infusion and localised execution capability, limiting flexibility.
This business model supports operational control and execution speed but poses challenges in scalability, debt servicing, and working capital turnover. Success will depend on execution efficiency, client diversification, and prudent financial discipline.
Financial Performance
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 6.19 | 101.59 | 283.39 |
| Net Profit | 0.34 | 9.87 | 23.88 |
| EBITDA % | 9.16% | 14.71% | 12.57% |
| ROE | 52.53% | 93.88% | 45.70% |
| ROCE | 15.11% | 78.71% | 36.69% |
| Debt/Equity | 0.75 | 1.25 | 1.50 |
The revenue growth from INR 6.19 Cr in FY23 to INR 283.39 Cr in FY25 is stunning, but also raises sustainability questions. Margins improved, but debt has grown, and the business still shows signs of working capital strain. Negative cash flow from operations in FY25, despite profitability, is a critical red flag.
Objects of the Offer
The IPO is entirely a fresh issue. The proceeds will be utilised for:
- Working capital requirements
- Equipment and machinery purchase
- Debt repayment
- General corporate purposes
This capital deployment suggests the promoters are committed to business expansion rather than cashing out. It’s a shareholder-aligned structure, but the heavy reliance on working capital funding underlines operational pressure.
Savy Infra IPO Review: Strengths
- Asset-Light Business Model: The company outsources machinery and trucks, reducing capital expenditure and enabling flexibility, with quick replacements minimizing delays. This model supports efficient execution across varied project locations.
- Integrated Business Operations: It offers end-to-end EPC solutions, combining excavation and logistics. Successfully executed projects for 11 clients, ensuring timely delivery, quality compliance, and operational efficiency across project phases.
- Strong Financial Performance: In FY24-25, the company reported INR 283.39 crore revenue and INR 23.88 crore PAT. It manages 12 projects worth INR 201.42 crore with an order book of INR 230.56 crore.
- Experienced Leadership: Led by Tilak Mundhra and guided by Liladhar Mundhra’s 20+ years’ business experience, the management ensures strategic growth, efficient execution, and strong industry relationships.
Savy Infra IPO Review: Risks
- Revenue Concentration in EPC: Over 70% of revenues from FY 2023–25 were from EPC services (80.36% in FY 2025), making the company highly vulnerable to downturns in this single segment.
- Geographic Concentration: Despite national expansion, 87.59% of FY 2025 revenue came from Maharashtra, Andhra Pradesh, and Gujarat; 82.26% of the current order book is concentrated in just three states.
- High Working Capital Requirement: Net working capital surged from INR 71.29 lakhs (FY 2023) to INR 58.26 crore (FY 2025); inability to fund this may strain operations and growth.
- Negative Cash Flows: The company recorded negative operating cash flows in FY 2023–25, with FY 2025 showing a deficit of INR 17.51 crore, indicating liquidity stress and growth limitations.
- Unsecured Loan Exposure: As of 31 May 2025, the company had INR 42.13 crore in unsecured loans, subject to immediate recall, risking cash flow and funding stability.
Savy Infra IPO Review: Valuation & Peer Comparison
Savy Infra IPO is priced at INR 114 – 120 per share, translating into a P/E ratio of 6.87 – 7.23x FY25 earnings. Here’s a direct comparison with listed peers based on FY25 data from the DRHP:
| Company | Revenue (INR Cr) | EPS (INR) | P/E | RoNW (%) | NAV (INR) |
| Savy Infra | 283.39 | 16.59 | 6.87 – 7.23 | 45.70 | 34.89 |
| AVP Infracon | 292.81 | 13.25 | 14.08 | 26.37 | 50.51 |
| Ganesh Infraworld | 538.22 | 11.59 | 14.34 | 22.31 | 42.02 |
| Active Infrastructure | 89.76 | 8.79 | 19.34 | 11.71 | 74.43 |
Summary:
- Savy Infra leads in RoNW and EPS, and its P/E valuation is significantly lower than peers.
- However, its NAV is below peers like Active Infrastructure and AVP Infracon, suggesting a relatively leveraged structure.
- The valuation gap reflects higher risk perception from its negative CFO, high gearing, and project dependency.
Savy Infra’s pricing appears compelling relative to earnings power, but sustainability remains key. The IPO valuation is attractive only if growth sustains and operational liquidity improves.
Final Words
Savy Infra dazzles with growth, but investors must tread carefully. With high working capital needs, project dependency, negative operating cash flow, and high leverage, the company’s fundamentals do not fully justify even its modest valuation.
If the company demonstrates consistent post-listing performance, especially on the cash flow and diversification fronts, it could emerge as a turnaround SME infra story.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.