Udayshivakumar Infra Ltd. (USK) AI Stock Analysis

• Market Cap: ₹1.27B
• Dividend Yield: N/A
• Average Volume (3M): 13.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -39.60%
• EPS Growth: -166.76%
• Country: IN
• Employees: 182
• Sector: Real Estate
• Sector Strength: 53
• Industry: Engineering & Construction
• EPS (TTM): -0.86
• Shares Outstanding: 55,357,143
• 10 Day Avg. Volume: 8,495
• 30 Day Avg. Volume: 13,128
• PEG Ratio: 0.23
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -4.91
• 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: 50 Neutral
• Price Target: ₹24.00 ▲(0.63% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is constrained primarily by weak financial performance (losses, low margins, and consistently negative free cash flow), partially offset by strong recent technical trend signals. Valuation is also a headwind because the negative P/E reflects unprofitable operations, and no dividend yield support is available from the provided data.

Positive Factors

Contract-based revenue model

USK’s core business earns revenue via EPC/works contracts and milestone-based receipts, a durable model tied to multi-month/year projects. This creates predictable billing milestones and long-term client relationships, supporting steady revenue recognition when order backlog is healthy.

Contract protections (variation/escalation)

Contracts that include variation orders and escalation clauses provide structural protection against input-cost inflation and scope changes. Over time these mechanisms help preserve contracted revenue and margins versus firms lacking such clauses, supporting margin sustainability across project cycles.

Manageable leverage / healthy equity ratio

A moderate debt-to-equity profile and reasonably healthy equity ratio indicate the company has retained asset coverage and borrowing capacity. That balance-sheet structure supports ongoing project execution and access to external finance for working capital or bidding, improving operational continuity.

Negative Factors

Consistent negative free cash flow

Persistent negative free cash flow reduces the firm’s ability to self-fund project advances, equipment needs and working capital. Over months this forces reliance on external financing or shareholder support, increasing refinancing and liquidity risk in an industry with lumpy cash cycles.

Low gross margin and negative net margin

A 6.9% gross margin and negative net margin indicate limited buffer for cost overruns and limited profitability resilience. Structurally low margins constrain reinvestment, make tender pricing sensitive, and increase the likelihood that cyclical input-cost spikes will translate into prolonged losses.

Declining and volatile revenue

A sharp revenue decline and volatile top line reduce scale benefits and fixed-cost absorption for a project-heavy firm. Lower volume weakens negotiating leverage with suppliers and subcontractors, raises per-project overhead, and makes sustainable margin recovery and cash-generation more difficult over the medium term.

Udayshivakumar Infra Ltd. Business Overview & Revenue Model

Company Description

Udayshivakumar Infra Ltd. provides infrastructure services. It is engaged in the business of construction of roads including National Highways, State Highways, District Roads, Smart Roads under PM's Smart City Mission projects, Smart Roads under Municipal Corporations, Bruhat Bengaluru Mahanagara Palike (BBMP) and Local Area Roads. The company was founded by Udayshivakumar in 1995 and is headquartered in Davangere, India.

How the Company Makes Money

USK primarily makes money by earning contract revenue from infrastructure and civil construction projects it executes. Key revenue streams typically include (1) EPC/works-contract receipts for constructing infrastructure assets (e.g., roadworks and associated civil structures) where revenue is recognized based on project progress/measurements, (2) revenues from project-specific supply and service components bundled within contracts (such as site preparation, earthwork, paving/structures, and other execution activities), and (3) variation orders, escalation clauses, and milestone/measurement-based payments as specified in client agreements. Earnings are influenced by the company’s ability to win tenders, execute projects within time and cost budgets, manage input costs and subcontracting, and collect certified bills from clients. Specific details on USK’s segment-wise revenue split, major clients/partners, and the exact mix of projects are not available here; null.

Udayshivakumar Infra Ltd. Financial Statement Overview

Summary

Weak profitability and cash generation: revenue declined sharply into 2025, gross margin is low (6.9%), net margin is negative, and free cash flow is consistently negative. Balance sheet leverage is moderate with a reasonably healthy equity ratio, but ROE has deteriorated due to losses.

Income Statement

The company's revenue has been volatile, with a sharp decline from 2024 to 2025. The Gross Profit Margin is relatively low at 6.9% for 2025, and the Net Profit Margin is negative, indicating losses. EBIT and EBITDA margins have suffered, suggesting operational inefficiencies.

Balance Sheet

The company's Debt-to-Equity ratio is moderate, suggesting manageable leverage. However, the Return on Equity has deteriorated due to recent net losses. The Equity Ratio is reasonably healthy, hinting at a stable asset base, but recent losses pose a risk.

Cash Flow

The Free Cash Flow has been consistently negative, indicating poor cash generation relative to expenses. Operating Cash Flow to Net Income Ratio is negative, reflecting operational cash flow challenges, though past financing activities have provided some relief.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.73B	2.89B	5.77B	2.87B	1.86B	2.10B
Gross Profit	157.83M	199.47M	613.39M	414.12M	316.97M	275.43M
EBITDA	46.29M	90.82M	523.17M	313.51M	245.01M	217.86M
Net Income	-116.61M	-72.07M	301.28M	160.47M	123.73M	93.19M
Balance Sheet
Total Assets	3.25B	3.30B	3.22B	2.85B	1.63B	1.47B
Cash, Cash Equivalents and Short-Term Investments	227.53M	310.88M	18.44M	799.43M	152.41M	52.50M
Total Debt	384.07M	599.88M	380.77M	448.56M	264.83M	306.02M
Total Liabilities	1.64B	1.61B	1.47B	1.40B	942.91M	906.37M
Stockholders Equity	1.62B	1.68B	1.75B	1.44B	683.21M	561.80M
Cash Flow
Free Cash Flow	21.58M	-422.06M	-573.85M	-48.19M	118.09M	172.05M
Operating Cash Flow	46.41M	-80.54M	-515.29M	121.97M	291.95M	172.05M
Investing Cash Flow	-32.35M	-86.60M	-182.70M	-214.12M	-166.98M	14.79M
Financing Cash Flow	-15.57M	154.02M	-83.00M	739.16M	-52.97M	-136.78M

Udayshivakumar Infra Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:USK, the sentiment is Negative. The current price of 23.85 is below the 20-day moving average (MA) of 26.22, above the 50-day MA of 23.48, and below the 200-day MA of 29.58, indicating a bearish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 6.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:USK.

Udayshivakumar Infra Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
KAUSHALYA	51 Neutral	₹261.84M	13.89	―	―	―	―
USK	50 Neutral	₹1.27B	-6.77	―	―	-39.60%	-166.76%
LANCORHOL	49 Neutral	₹1.41B	-233.07	―	0.80%	4.65%	-137.16%

Udayshivakumar Infra Ltd. Corporate Events

Udayshivakumar Infra Discloses Promoter Share Acquisition Under SEBI Rules

Udayshivakumar Infra Ltd. disclosed a change in the shareholding of its promoter and managing director pursuant to insider trading regulations. The filing reports an on-market purchase of equity shares on the National Stock Exchange, triggering continual disclosure requirements under the Securities and Exchange Board of India framework.

The acquisition increases the promoter-level equity holding in the company, underscoring continued promoter confidence and potentially tightening the free float available to public shareholders. Such transactions are closely watched by investors as indicators of management’s outlook on the company’s prospects and can influence market perception of the stock.

Promoter of Udayshivakumar Infra Raises Stake with Open-Market Share Purchase

Udayshivakumar Infra Ltd. has disclosed a change in shareholding by its promoter and managing director, Udayshivakumar, in line with insider trading regulations. He acquired 30,000 equity shares on the open market, marginally increasing his stake from 66.19% to 66.25%, a move that signals continued promoter confidence and slightly strengthens promoter control in the company.

The company informed both BSE and NSE that the transaction was executed on February 25, 2026, with the disclosure filed on February 26, 2026. This acquisition, while small in percentage terms, underscores adherence to regulatory transparency requirements and may be viewed positively by investors tracking promoter commitment and governance standards.

Udayshivakumar Infra Closes Trading Window Ahead of Q3 FY2026 Results

Udayshivakumar Infra Limited has announced the closure of its trading window for designated persons, their immediate relatives, officers and specified employees from 1 January 2026 until 48 hours after the company discloses its financial results for the quarter ending 31 December 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct. The board meeting date for approving and declaring these quarterly financial results will be communicated separately to the stock exchanges, signaling the upcoming earnings announcement cycle and the company’s adherence to regulatory norms on insider trading and disclosure.