Building materials unicorn Infra.Market, which has confidentially filed draft papers for a ₹5,000 crore initial public offering (IPO), reported another year of strong revenue growth in FY25. However, rising costs and lower non-operating income weighed on profitability during the period.
According to the company’s consolidated financial statements filed with the Registrar of Companies (RoC), Infra.Market’s gross revenue rose 27% year-on-year to ₹18,472 crore in FY25, compared with ₹14,530 crore in FY24. Including non-operating income, total income stood at ₹18,556 crore in the fiscal year ended March 2025.
Business Mix Remains Construction-Led
Infra.Market operates across three core verticals structural products, finishing products, and lifestyle products, along with allied construction and equipment services.
- Structural products, comprising concrete and core construction materials, remained the largest contributor, accounting for over 60% of revenue at ₹11,176 crore
- Finishing products, including plumbing, walling, roofing solutions, plywood and laminates, generated ₹1,924 crore
- Lifestyle products, covering modular kitchens, consumer appliances and paints, delivered ₹2,487 crore
In addition, revenue from construction services, equipment rentals, exterior painting, chemicals and spare parts contributed ₹2,884 crore during FY25.
Costs Rise in Line With Scale
On the expense front, procurement of construction materials and equipment continued to dominate the cost structure, accounting for 75% of total expenditure at ₹13,751 crore.
Other key expense movements included:
- Employee benefit expenses surged 41% to ₹564 crore, including ₹40 crore in ESOP costs
- Finance costs rose 45% to ₹805 crore
- Freight and forwarding expenses increased 47% to ₹631 crore
- Power, fuel, legal, professional fees, travel expenses and impairment losses pushed total expenses up to ₹18,250 crore, compared with ₹14,272 crore in FY24
Profitability Impacted Despite Stable Unit Economics
While Infra.Market’s revenue and operating expenses expanded at a similar pace, a 60% decline in non-operating income, coupled with higher finance and depreciation costs, significantly impacted the bottom line.
As a result, net profit fell 42% to ₹220 crore in FY25, from ₹378 crore in FY24.
On the operational side, margins showed resilience:
- EBITDA margin improved to 7.97%
- Return on capital employed (ROCE) stood at 12.11%
- Expense-to-operating-revenue ratio remained flat at ₹0.99, indicating stable unit economics despite scale-up
Competitive Landscape Ahead of IPO
Infra.Market operates in an increasingly competitive B2B construction and materials marketplace alongside players such as OfBusiness, Zetwerk and Moglix.
For context:
- Zetwerk reported FY25 revenue of ₹12,798 crore
- OfBusiness recorded ₹19,296 crore in FY24
- Moglix posted ₹4,964 crore in FY24
With strong revenue momentum, improving EBITDA margins and a confidential IPO filing in place, Infra.Market is positioning itself as one of the largest building materials platforms preparing for the public markets, even as profitability faces near-term pressure.
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