By Chaitanya | BBA Finance Graduate & 6+ Years of Experience in Stock market & Finance
Axis Solutions Limited, previously known as Asya Infosoft Limited, a rising name in the micro-cap segment, has recently secured a substantial contract valued at Rs 94.73 crore. This significant order was awarded by Sarala Projects Works Private Limited, a well-established domestic entity, and focuses on crucial rural water supply schemes. This development is a key highlight for Axis Solutions Limited, potentially shaping its growth trajectory.
The comprehensive project involves a wide array of activities, from the initial survey and design to detailed project report (DPR) preparation. Following this, the company will handle the procurement and construction of the rural water supply infrastructure. A one-month trial run will ensure operational efficiency, succeeded by a ten-year period (120 months) for operation and maintenance. While the physical construction work is slated for completion within just six months, the total project commitment extends over a decade, underscoring the long-term nature of this partnership. The order execution responsibility is extensive, covering civil, mechanical, electrical, automation, analytical, and instrumentation works.
Understanding the Client: Sarala Projects Works Private Limited
The awarding company, Sarala Projects Works Private Limited, brings decades of experience to the table, having been established in 1999. They are a prominent player in the civil construction sector, with a strong focus on irrigation, drinking water supply schemes, roads, rail works, electrical works, and sewerage schemes. Their operational footprint spans across several Indian states, including Andhra Pradesh, Telangana, Karnataka, Maharashtra, Madhya Pradesh, Jammu and Kashmir, and Odisha. The company also boasts an ISO 9001:2008 certification, indicating a commitment to quality standards.
Sarala Projects Works Private Limited has demonstrated robust financial performance. For the financial year 2024, their total operating income surged to Rs 321.77 crore, marking a 19% increase from Rs 269.68 crore in FY23. Their PBILDT (Profit Before Interest, Lease Rentals, Depreciation, and Taxes) also improved to Rs 42.62 crore in FY24, up from Rs 36.36 crore in FY23. As of March 31, 2024, their overall gearing ratio stood at a manageable 0.59x, with a net worth of Rs 139.24 crore and a total debt of Rs 81.52 crore. Their current order book is impressive at Rs 292 crore. A significant portion of their orders, 64.82%, originates from reputable government entities like NHAI, NHSRCL, and Vidarbha Irrigation Development Corporation, highlighting their credibility and experience in large-scale infrastructure projects.
Axis Solutions Limited: A Glimpse into Recent Performance and Future Plans
The announcement of this large order comes shortly after Axis Solutions Limited declared its Q1 FY26 financial results. For the first quarter of the current fiscal year, the company reported net sales of Rs 27.49 crore. While net sales saw a 20% increase, the operating profit stood at Rs 2.72 crore, and net profit was Rs 1.75 crore, indicating a compression in profitability despite higher revenues compared to the previous year.
Here’s a snapshot of Axis Solutions Limited’s Q1 FY26 results:
- Net sales: Rs 27.49 crore
- Operating profit: Rs 2.72 crore
- Net profit: Rs 1.75 crore
The company also shared details about its shareholding pattern, with promoters holding a substantial 85.64%, DIIs at 1.74%, and public shareholders accounting for 12.62%. This indicates a strong promoter conviction in the company’s future.
In a strategic move, Axis Solutions Limited is also planning a 100% acquisition of its UAE-based subsidiary, Axis Solutions FZE. This acquisition, involving an investment between Rs 30 lakh and Rs 1 crore, aims to consolidate its international operations. Axis Solutions FZE recorded a turnover of AED 704,080 for the financial year 2024-25, signifying its established presence in the Middle East market.
Market Reaction and Outlook for Axis Solutions Limited
The market responded positively to the order announcement. On August 12, 2025, the stock price of Axis Solutions Limited hit an upper circuit of 5%, reaching Rs 22.12. This immediately pushed the company’s market capitalization to Rs 104.54 crore as of the same date. This surge reflects investor confidence in the company’s ability to execute such a large-scale project and its potential for future growth.
This new order from Sarala Projects Works Private Limited, combined with another water supply project order secured earlier in August 2025 involving machinery and manpower provision, underscores the increasing order book and operational expansion of Axis Solutions Limited. Industry experts believe that consistent order wins and strategic acquisitions, as reported by financial news outlets, could significantly boost the company’s revenue and profitability in the coming quarters.
This significant contract marks a pivotal moment for Axis Solutions Limited. With a robust client like Sarala Projects Works and a strong pipeline of projects, the company appears well-positioned for sustained growth in the critical infrastructure sector.
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