Sattva Engineering Construction Ltd. (SATTVAENGG)
SME CapIndustrials stocks · SME cap · NSE
Sattva Engineering Construction Ltd. is an EPC firm specializing in water and wastewater infrastructure, including WSS, UGSS, STP, and WTP projects. With 15+ years experience and 50+ projects delivered, it offers integrated design, execution, and O&M services, primarily in Tamil Nadu and expanding into South India.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100YoY data unavailable — classification deferred
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹78 Cr | NDF | +52.9% |
| EBITDA | ₹14 Cr | +7.7% | +75.0% |
| Operating margin | 17.0% | -100 bps | +0 bps |
| PAT | ₹9 Cr | NDF | +125.0% |
| PAT margin | 11.5% | +182 bps | +370 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Sattva Engineering reported strong FY26 results with revenue up 32% YoY to ₹143.2 Cr and PAT up 43% YoY to ₹13.1 Cr. Order book grew 4% YoY to ₹323 Cr by March 2026, further increasing to ₹447 Cr by May 2026, providing 3x FY26 revenue visibility.
The company delivered robust FY26 performance with significant revenue and PAT growth, supported by a healthy order book providing multi-year visibility. Expansion into new geographies and larger projects, coupled with a focus on improving working capital, supports the growth thesis, though rising debt-to-equity and cash conversion cycle warrant monitoring.
Revenue by segment - FY26
Latest issuer-disclosed distribution across 4 reported categories.
Scaling through larger, more complex water infrastructure projects
Strategic focus on larger, higher-capacity WSS and STP projects on an EPC basis, enhancing pre-qualification for marquee tenders and offering better margins.
Expanding geographic footprint for diversified growth
Established execution track record in Tamil Nadu as a strong foundation for expansion, with entry into Karnataka and participation in key tenders such as BWSSB.
Increasing ability to bid for EPC + O&M projects
The company is increasing its ability to bid for EPC + O&M projects, which is expected to support margin and cash flow stability.
Project Wins & Execution Capability
Secured two key projects in Tamil Nadu: a 47 MLD Water Treatment Plant project worth ₹106.2 crore and an Odour Control System project worth ₹40.6 crore. Expanded Karnataka presence with 20 MLD STP (₹76.1 crore) and 10 MLD STP (₹47.8 crore) project wins.
Structural demand tailwinds
Water scarcity & groundwater depletion driving need for reuse and desalination; climate volatility increasing demand for resilient water infrastructure.
Urbanization & industrial expansion
India’s population expected to cross 1.5Bn by 2030, accelerating urban water demand; industrial sector contributes 40–45% of water usage.
Policy push & capital deployment
Government initiatives like Jal Jeevan Mission, AMRUT, Smart Cities Mission, SBM 2.0, and increasing adoption of PPP models.
Increasing Net Debt to Equity
Net debt to equity ratio increased from 0.2x in FY25 to 0.8x in FY26.
Elongated Cash Conversion Cycle
Cash conversion cycle increased significantly from 72 days in FY25 to 113 days in FY26.
Debtor Days
Debtor days slightly increased to 108 days in FY26 from 105 days in FY25, indicating potential working capital strain.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation primarily focuses on annual (FY26 vs FY25) and half-yearly (H2 FY26 vs H2 FY25) comparisons, which are appropriate for assessing the performance of an infrastructure company with project-based revenue recognition and seasonal execution patterns.
Revenue from operations
Revenue grew by 32% YoY in FY26 to ₹143.2 crores.
Order book
Unexecuted order book stood at ₹323 crore as of March 2026, increasing to ₹447 crore as of 15th May 2026.
Order inflow
Order inflow was ₹202 cr in FY26, up from ₹163 cr in FY25.
Book to bill
Book to bill ratio was 2.85 in FY26, up from 2.26 in FY25.
Revenue Growth Target
Targeting 60% revenue CAGR through FY28, implying 2.5x business scale-up from current levels.
Margin Sustainability
Aiming for sustainable EBITDA margins of 15-16% and PAT margins of 9-10% through FY27-FY28.
Funding Strategy
Planned business growth to be primarily funded through internal accruals, with incremental debt financing supported by disciplined working capital management.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Order Book | ₹447 crore (as of May 15, 2026) | Sustained growth in order book and timely execution over the next 24-30 months. |
| EBITDA Margin | 15.4% (FY26) | Maintenance of EBITDA margins within the targeted 15-16% range through FY27-FY28. |
| Cash Conversion Cycle | 113 days (FY26) | Improvement in cash conversion cycle and debtor days to reduce working capital intensity. |
| Net Debt to Equity | 0.8x (FY26) | Management of debt levels in line with internal accruals and disciplined working capital. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
39BearishSMA20 -11.9% / mo · RSI oversold · MACD −
Technical chart
SATTVAENGGdaily · 1Y · AUTO+32.3%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 29. Wait for confirmation.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~13.5% over last month) — short-term momentum negative.
- RSI(14) at 29 — oversold zone; bounce conditions.
- MACD below signal but histogram contracting — bearish momentum easing.
- 48% off 52W high · 41% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 71 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 71 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 79.3%.
- Valuation contributes 28/30 to the score.
- Growth contributes 21/25 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Cash flow is weaker at 2/10; verify the latest quarterly trend.
- Quality is weaker at 14/20; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 59th percentile of the scored universe and 56th percentile within Industrials. Main check: cash conversion is weak at 40/100.
Healthy Trust Lite: Promoter holding is 62.9%. Key concern: Operating cash flow is negative at ₹-13 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 56th pctile, median 68 · SME: 77th pctile, median 64
5 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 62.9%.
- ▸Promoter pledge is zero.
- ▸ROCE is 22.8%.
- ▸OPM spread across recent quarters is 4%.
Trust risks
- ▸Operating cash flow is negative at ₹-13 Cr.
- ▸ROCE trend is -2.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 10.20
- P/B
- 1.50
- EV/EBITDA
- 7.41
- Market Cap
- 133.00Cr
Profitability
- ROE
- 19.70%
- ROCE
- 22.80%
- ROA
- 8.23%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 18.00%
- EPS 5Y
- 18.00%
- Revenue 3Y
- 20.00%
- EPS 3Y
- 45.00%
Balance Sheet
- Debt/Equity
- 0.34
- Interest Coverage
- 4.40×
- Altman Z
- 3.33
- Book Value
- 50.50
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 3/5
- OCF
- -13.00 Cr
- EPS TTM
- 7.49
Shareholding
- Promoter Hold
- 62.91%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 43%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
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