Gayatri Projects Limited (GAYAPROJ) AI Stock Analysis

• Market Cap: ₹2.53B
• Dividend Yield: N/A
• Average Volume (3M): 19.43K
• Price to Earnings (P/E): <0.1
• Beta (1Y): 0.63
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 2,390
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 115.23
• Shares Outstanding: 187,198,680
• 10 Day Avg. Volume: 22,806
• 30 Day Avg. Volume: 19,432
• PEG Ratio: <0.01
• Price to Book (P/B): -0.09
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 0.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹14.00 ▲(19.86% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is held back primarily by weak financial fundamentals—negative equity, high debt, and revenue contraction—despite recent profit and cash-flow improvement. Technicals are supportive on trend but look overbought, while valuation appears attractive due to the very low P/E.

Positive Factors

Improved operating & free cash flow

Operating and free cash flow turning positive (~2.6B in FY2025) is a durable improvement: it raises short-term liquidity for project execution, reduces reliance on incremental external funding, and creates a buffer for working-capital swings, improving operational resilience despite prior volatility.

Return to positive net income and strong EBITDA

Rebounding to positive net income and higher EBITDA indicates operational fixes or contract management improvements that can persist. Sustained underlying EBITDA supports debt servicing capacity and internal funding for projects, signaling a structural improvement if maintained across contract cycles.

Established EPC business across infrastructure segments

A diversified EPC model across roads, irrigation and civil works provides steady tender flow from government and public agencies. This positioning yields repeatable revenue opportunities and operational scale advantages in project teams, equipment use and bidding expertise over multi-year contract cycles.

Negative Factors

Persistently negative shareholders' equity

Negative shareholders' equity over multiple years is a structural solvency concern: it weakens creditor confidence, restricts access to conventional debt/equity markets, and limits ability to absorb project losses or bid for large contracts without external recapitalization or significant profit retention.

Very high absolute debt levels

Sustained debt of ~36–38B creates structural leverage risk: high interest and principal obligations constrain investment in execution capacity, elevate refinancing risk, and mean operating cash improvements must be large and persistent to materially restore balance-sheet health and strategic optionality.

Revenue decline and negative project-level gross profit

Contract-level margin erosion and a multi-year revenue decline (≈34% in FY2025) point to structural execution or pricing issues. Negative gross profit suggests contracts are being completed at losses or cost overruns persist, threatening sustainability of earnings unless procurement, pricing or project controls improve materially.

Gayatri Projects Limited Business Overview & Revenue Model

Company Description

Gayatri Projects Limited operates as an infrastructure company in India. It undertakes roads, tollways, irrigation, rail, airports development, power, mining, and industrial projects. The company was founded in 1963 and is based in Hyderabad, India.

How the Company Makes Money

The company primarily makes money by bidding for and executing infrastructure construction contracts (EPC/item-rate/other contract formats depending on the tender). Revenue is recognized from contract execution—typically measured by project milestones, certified work completed (running account bills), or percentage-of-completion as permitted under applicable accounting standards—while cash collection follows client certification and payment schedules. Key revenue streams generally include: (1) Road and highway construction and related structures, where earnings are driven by contract value and margins on materials, subcontracting, equipment utilization, and timely execution; (2) Irrigation and water infrastructure works (e.g., canals, dams/reservoir-related civil works, lift irrigation, and allied components), where revenue similarly arises from execution of awarded packages and variation orders; and (3) Other civil works and ancillary infrastructure assignments, which contribute based on the company’s order book and execution capacity. Profitability is influenced by the size and mix of the order book, tendering discipline, cost control (materials, fuel, labor, subcontractors), equipment productivity, project claims/variations, working-capital management (mobilization advances, retention money, receivables), and the ability to meet timelines (to avoid penalties and secure incentives where applicable). Specific information on significant partnerships contributing to earnings: null.

Gayatri Projects Limited Financial Statement Overview

Summary

Despite a rebound to positive net income and improved cash generation in FY2025, the company’s capital structure remains a major risk with persistently negative shareholders’ equity and very high debt. Revenue has also contracted sharply and FY2025 shows negative gross profit, signaling ongoing project-level margin pressure.

Income Statement

Profitability has rebounded from deep losses in FY2022–FY2023 to positive net income in FY2024 and FY2025, helped by strong EBITDA levels in FY2025. However, revenue has been shrinking for multiple years (including a ~34% decline in FY2025), and FY2025 shows negative gross profit, indicating ongoing project-level cost pressure even as bottom-line profit improved.

Balance Sheet

The balance sheet is highly strained: shareholders’ equity is negative across FY2022–FY2025, which is a major credit and solvency red flag. Debt remains very high (roughly 36–38B in recent years), and with negative equity the leverage picture is unfavorable and limits financial flexibility despite relatively stable total assets.

Cash Flow

Cash generation improved meaningfully in FY2025, with operating cash flow turning positive (~2.6B) and free cash flow also solid (~2.6B) after negative cash flow in FY2024 and very weak FY2022–FY2023. Still, cash flow has been volatile year-to-year, and recent operating cash flow relative to debt remains low, leaving limited cushion if working capital swings or project collections deteriorate.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.10B	4.50B	6.80B	10.17B	31.02B	39.01B
Gross Profit	-291.72M	-271.85M	273.55M	-6.66B	-1.48B	6.99B
EBITDA	1.82B	1.86B	916.06M	-11.35B	-5.82B	4.07B
Net Income	1.55B	1.24B	414.59M	-15.04B	-9.58B	431.02M
Balance Sheet
Total Assets	33.14B	34.39B	34.08B	35.78B	49.61B	57.70B
Cash, Cash Equivalents and Short-Term Investments	125.00M	2.50B	406.50M	299.48M	253.52M	837.48M
Total Debt	36.12B	36.28B	36.75B	37.91B	27.48B	21.23B
Total Liabilities	47.55B	48.76B	49.63B	51.77B	49.66B	48.16B
Stockholders Equity	-14.41B	-14.37B	-15.55B	-15.98B	-48.77M	9.53B
Cash Flow
Free Cash Flow	302.16M	2.56B	-1.13B	0.00	-7.12B	2.01B
Operating Cash Flow	334.01M	2.59B	-1.13B	-9.76B	-6.95B	2.28B
Investing Cash Flow	93.12M	-29.13M	2.40B	254.35M	2.11B	97.86M
Financing Cash Flow	-885.19M	-466.08M	-1.16B	9.52B	4.25B	-2.73B

Gayatri Projects Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPPINFRA	62 Neutral	₹3.36B	186.32	―	0.47%	-7.32%	-26.92%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
GAYAPROJ	54 Neutral	₹2.53B	0.03	―	―	―	―
MBLINFRA	54 Neutral	₹3.34B	-12.79	―	―	12.96%	-132.20%
BRNL	47 Neutral	₹1.58B	2.58	―	―	-57.13%	―
SADBHAV	46 Neutral	₹1.27B	-0.64	―	―	―	―
SADBHIN	43 Neutral	₹912.26M	-0.31	―	―	4.63%	67.17%