This article first appeared on GuruFocus .
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Total Revenue:INR1,632 crore, a 26% year-on-year increase.
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EBITDA:INR176 crore, with a 10.8% margin, reflecting a 3% year-on-year decline.
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Profit After Tax (PAT):INR89 crore, an 11% increase over Q1 FY26.
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PAT after Minority Interest:INR80 crore, a 53% increase compared to INR53 crore in Q1 FY26.
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Earnings Per Share (EPS):INR25.23, up from INR16.61 in the corresponding quarter of FY26.
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Wind Business Revenue:INR431 crore, an 8% year-on-year increase.
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Civil Segment Revenue:INR796 crore, a 28% year-on-year growth.
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Industrial Construction Revenue:INR270 crore, down 13% year-on-year.
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Industrial EPC Revenue:INR96 crore.
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Mining Business Revenue:INR84 crore, a 223% year-on-year growth.
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Order Inflows:Approximately INR1,864 crore during Q1 FY27.
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Total Order Backlog (including MDO projects):Approximately INR55,398 crore.
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Executable Order Book (excluding MDO):Approximately INR16,229 crore.
Release Date: August 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Total revenue grew 26% YoY to INR1,632 crore in Q1 FY27, driven by strong execution across core verticals.
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PAT after minority interest surged 53% YoY to INR80 crore, with EPS rising to INR25.23 from INR16.61.
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Order backlog remains robust at INR55,398 crore including MDO projects, providing multi-year revenue visibility.
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Mining business revenue jumped 223% YoY to INR84 crore, supported by ramp-up at KBP mine.
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Secured key orders including Mumbai Monorail O&M, marking entry into urban mobility space.
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Management maintains full-year guidance of INR12,000 crore order inflow and 12.5% EBITDA margin.
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O&M business offers high margins of 18-20% and is expected to grow with new power capacity additions.
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MDO projects are expected to reach 20-23% EBITDA margins by FY29, improving overall profitability.
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Strong order pipeline in power sector with INR25,000-30,000 crore immediate opportunities and high strike rate.
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Standalone EBITDA margin improved to 11.3% from 10.2% YoY, reflecting operational efficiency.
Negative Points
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Consolidated EBITDA margin declined 3% YoY to 10.8% due to higher material costs and Middle East conflict.
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KRPM project margins fell to 10% from 14% due to increased royalty costs and reduced seized quantity revenue.
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KBP mining margins were impacted by higher overburden removal costs from opening new seams.
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Industrial construction revenue declined 13% YoY to INR270 crore.
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ETC business revenue fell to INR217 crore from INR250 crore, with no order inflow in the quarter.
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Order inflow of INR1,864 crore was only 15.5% of the annual target, indicating slow start.
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International revenue remains low at 4% of total, with Middle East conflict affecting operations.
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Raw material costs (steel, gases, diesel) increased, with PVC clauses only partially compensating.
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Lower other income due to completion of QFP-funded projects and reduced interest income.
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MDO revenue guidance for FY27 was revised down to INR500 crore from earlier INR600 crore.
Q & A Highlights
Q: How should we look at overall annual EBITDA margins given the current scenario of higher overburden removal costs, royalty costs, and raw material prices? A: N. Nani Arvind, CFO, explained that the margin decline was due to one-time exceptional revenue in Q1 FY26, higher OB removal costs from opening new seams at the KBP mine, and lower other income. He reaffirmed the company's guidance of a 12.5% EBITDA margin for FY27, citing new high-margin O&M and civil infrastructure orders. He also noted that the standalone business posted an 11.3% EBITDA margin, up from 10.2% in Q1 FY26.
Q: What is the execution target for the MDO projects this year and next year, and what are the expected margins? A: Rohit Sajja, Executive Director, stated that the company plans to produce 3 million tons at the KBP mine this year and expects the second mine (Washere) to commission by November-December. Combined revenue target for FY27 is INR500 crore. For FY28, revenue is expected to jump to INR1,100-1,200 crore. He added that EBITDA margins for MDOs will be around 15-17% in FY28, ramping up to 21-23% by FY29 once peak capacity is reached.
Q: Can you provide more details on the KRBM project, specifically the expected revenue and EBITDA margin after factoring in the revised royalty structure? A: The management revealed that the KRBM project's EBITDA margin has dropped from 14% last year to 10% in Q1 FY27 due to the government's new royalty-sharing order and reduced seized quantities. Revenue for the project is expected to remain stable at INR700-750 crore for the full year. The margin is expected to stay in the 10-11% range for the remaining quarters.
Q: What is the opportunity size for new orders, and how does the company plan to achieve its INR12,000 crore order inflow target for FY27? A: Kodandaramaiah SK, Director of Business Development, stated that the company has mapped an opportunity pipeline of INR25,000-30,000 crore, with INR20,500 crore in the power sector and INR8,500 crore in infrastructure. Rohit Sajja added that the company's strike rate in the power sector is around 60-65%, which supports the INR12,000 crore target. Key clients include Adani, JSW, and BHEL, with major projects like Pirpanti, Assam, and Hanumoni in the pipeline.
Q: What is the order backlog from major clients like Adani and BHEL, and what is the typical payment cycle? A: Rohit Sajja disclosed that the company has an outstanding order book of around INR2,400 crore from Adani (14 projects) and INR5,300 crore from BHEL (5 major projects). N. Nani Arvind added that the average execution period for the order book is 2.5 years. On payments, private clients like Adani typically pay 70% on bill submission and the balance within 30 days, while BHEL pays within 30 days of certified bills. Retention money is generally 5%, which is released against bank guarantees.
Q: How is the O&M business expected to scale up in the next 2-3 years, and what margins does it enjoy? A: N. Nani Arvind stated that O&M contributes about 30% of overall revenue and is expected to grow at 30-35% annually, driven by capacity additions of 8,000-10,000 MW per year. The opportunity size is estimated at INR800-2,000 crore per annum. He confirmed that O&M margins are healthy at 18-20%, making it a key driver of profitability.
Q: What is the company's execution capacity in terms of manpower and balance sheet to handle future orders? A: N. Nani Arvind highlighted that the company has a strong HR base of about 4,000 engineers and 45,000-50,000 workmen. Rohit Sajja added that with the current working capital limits, the company can execute up to INR10,000 crore of revenue annually. He noted that only INR100-120 crore of annual CapEx is needed for new equipment, as 80-90% of crane and construction equipment requirements are managed in-house.
Q: Why did the ETC business see a decline in revenue, and what is the outlook for the power construction and EPC segments? A: Rohit Sajja explained that the ETC revenue decline was due to an accident at the Athena Vedanta project and near-completion of FGD projects. However, work has resumed and will reflect in Q2 onwards. He stated that power plant construction (erection, testing, commissioning) has maximized execution potential at 14-15 boilers simultaneously, with only 5-7% growth expected. The EPC segment, however, is expected to grow at 20-22%, leading to an average growth of 14-15% for the power sector.
Q: What is the revenue guidance for FY27, and how will the company achieve it? A: The management reaffirmed the FY27 revenue guidance of INR7,300 crore, representing around 28% growth year-on-year. The growth will be driven by the civil infrastructure segment (28% YoY growth in Q1), mining business (223% YoY growth), and O&M. The company also expects to maintain its margin profile through higher contributions from O&M, mining, and other high-margin businesses.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
