Safety Controls & Devices Limited is an EPC (Engineering, Procurement and Construction) company engaged in infrastructure and safety-related projects. Initially focused on fire protection systems, the company has diversified into power transmission, solar energy, EV charging infrastructure, and hospital construction projects. It earns revenue mainly through execution of government and private sector EPC contracts, where it provides end-to-end project services from design to commissioning.

Key Clients & Facilities
The company is highly dependent on a limited client base, with its top 3 customers contributing over 90% of revenue and top 5 contributing ~98% in recent periods.
It does not own heavy manufacturing facilities as it operates as an EPC contractor. Projects are executed at client locations using workforce deployment. The company has a registered office in Lucknow with necessary IT and operational infrastructure.

Product Portfolio & Order Book
The company operates across segments such as fire safety systems, power infrastructure, solar projects, and EV charging solutions. These services are critical in the infrastructure lifecycle, from construction to safety compliance and energy management. The company executes projects based on orders received from clients, including government entities. Revenue visibility depends on project execution timelines, milestone-based payments, and retention clauses, which also impact cash flows and working capital cycles.

Expansion, Capex & Future Plans
The company plans to use IPO proceeds partly for working capital requirements, with ₹3,150 lakh allocated for funding future working capital gaps.
Its growth strategy focuses on expanding into new markets, improving customer relationships, and optimizing resource utilization. However, execution of expansion depends on timely implementation and availability of financial resources, and there is risk of cost overruns or delays in expansion plans.

Employees & Banker
Oct 31, 2025, the company had 77, full time employees. The Banker to the Company is ICICI Bank Limited.

Management & Growth Vision

The company is led by experienced promoters Rajnish Chopra, Anjali Chopra, and Abhishek Chopra, who play a key role in strategic decision-making and execution.

Management’s vision focuses on scaling operations in EPC infrastructure, strengthening client relationships, and entering new sectors such as renewable energy and EV infrastructure. The company aims to grow by leveraging its expertise in project execution and expanding its order pipeline.

For funding expansion and capex, the company plans to rely on a mix of IPO proceeds, internal accruals, and borrowings.
However, growth execution will require efficient capital allocation and strong working capital management due to the nature of EPC business.

Industry Overview

The company operates in the EPC (Engineering, Procurement and Construction) and infrastructure sector, particularly in power transmission, renewable energy, and safety systems.

• The Indian infrastructure sector is one of the largest, contributing significantly to GDP, with strong government push in power, renewable energy, and urban infrastructure.
• The power and EPC market in India is expected to grow at a CAGR of 8–10%, driven by investments in transmission, renewable energy, and electrification.
• Globally, the EPC market is valued at trillions of dollars, with growth supported by energy transition and infrastructure modernization.
• Key industry players include large EPC companies like L&T, KEC International, and Tata Projects.

Growth is supported by rising investments in solar energy, EV infrastructure, and smart grid systems, where the company is also expanding.

Key Risk Factors

1. High Client Concentration Risk
The company derives a significant portion of revenue from a few clients, with top 3 customers contributing over 90%. Loss of any major client can significantly impact revenue and profitability.

2. Working Capital Intensive Business
EPC projects require large working capital due to inventory, receivables, and retention money. Delays in payments can strain cash flows and affect operations.

3. Dependence on Government Contracts
A large portion of contracts are from government entities, leading to delayed payments and longer receivable cycles, which can impact liquidity and profitability.

4. Intense Industry Competition
The EPC sector is highly competitive with aggressive bidding practices, which can reduce margins and increase the risk of losing contracts to competitors.

5. Execution & Project Risks
Project delays, regulatory approvals, environmental issues, or contractor failures can impact project timelines and increase costs, affecting overall profitability.

6. Dependency on Skilled Workforce
The business depends heavily on experienced management and skilled employees. Loss of key personnel can disrupt operations and project execution.

7. Supplier Dependency Risk
A significant portion of raw materials is sourced from limited suppliers, and any disruption or dispute can impact project execution timelines and costs.

Key Strengths & Opportunities

1. Diversified Business Model
The company has diversified from fire safety into power, solar, EV infrastructure, and construction, reducing dependency on a single segment and increasing growth opportunities.

2. Strong Client Relationships
Long-term relationships with key clients ensure repeat business and stable revenue streams, especially in government and infrastructure projects.

3. Presence in High-Growth Sectors
Focus on renewable energy, EV charging, and power infrastructure positions the company to benefit from strong industry growth trends.

4. Asset-Light EPC Model
The company operates without heavy manufacturing assets, reducing capital expenditure and allowing flexibility in project execution.

5. Strong Financial Performance Indicators
The company has shown improvement in profitability with PAT of ₹852 lakh (Jan 2026 period) and strong return ratios like ROCE ~33%.

6. Growth Through Order Book Expansion
Increasing project orders and expansion into new verticals provide visibility for future revenue growth, supported by government infrastructure spending.