This article first appeared on GuruFocus .
Release Date: January 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Bigbloc Construction Ltd ( BOM:540061 ) reported its highest quarterly revenue in history for Q3 FY26, reaching INR728 million, a 28.1% increase year-on-year.
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The company's EBITDA for Q3 FY26 was INR81 million, marking a 31.8% increase year-on-year, with margins expanding to 11.1%.
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Capacity utilization improved significantly, with the company achieving 70% plus utilization levels across most facilities.
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The company secured a significant purchase order from Larsen & Toubro for the supply of AAC blocks, strengthening its presence in large infrastructure projects.
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Bigbloc Construction Ltd is increasing its focus on sustainability, with renewable energy contributing 36% to total power consumption, up from 26% in the previous quarter.
Negative Points
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The company's capacity utilization at the GB facility remains lower at around 50-51%, indicating room for improvement.
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The AAC wall panel business is facing adoption barriers, with utilization levels at 51%, lower than the core AAC block business.
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The company is facing delays in carbon credit issuance due to slow processing by auditing authorities.
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There is a qualification from auditors regarding non-compliance with IND AS 19 for employee benefits, which needs to be addressed.
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The order book is relatively short-term, typically around 3 to 5 days, indicating potential volatility in demand.
Q & A Highlights
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Warning! GuruFocus has detected 6 Warning Signs with BOM:540061.
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Q: Have the realizations improved in the last quarter, and how are you looking at it going forward? A: Our focus has been on improving capacity utilization across our facilities, reaching 70% plus in most, except for the GB facility at 50-51%. We have improved realizations in Q3 and expect further improvements given the demand trajectory. - Chief Financial Officer
Q: What percentage of the revenue in this quarter was from construction chemicals? A: Construction chemicals contributed around 5 to 7% of the revenue. The average realization increased by about 2 to 3% for this quarter. - Chief Financial Officer
Q: What is the current capacity utilization at the VI plant? A: The VI plant's capacity utilization was approximately 70% last quarter. - Chief Financial Officer
Q: What are the utilization levels at the Ahmedabad and Ramswadi plants? A: Last quarter, the Ahmedabad plant had a capacity utilization of around 80-81%, while the Ramswadi plant was at 51%. We aim for 80-85% as optimal utilization. - Chief Financial Officer
Q: What are the primary adoption barriers for the AAC wall panel business? A: The AAC wall panel business is seeing new inquiries, and as early movers, we are capturing potential projects. We aim to improve utilization to 30-40% plus over the next 3 to 4 quarters. - Chief Financial Officer
Q: Do you foresee any significant order book coming in, especially from dealerships? A: We generally maintain an order book of 3 to 5 days, with bulk orders from select customers like L&T. We receive monthly or weekly purchase orders from most clients. - Chief Financial Officer
Q: What kind of utilization are you expecting for FY26 and FY27? A: We expect to close FY26 with an average utilization of 63-64% and aim for 70% plus in FY27. - Chief Financial Officer
Q: What are the expected margins for FY26 and FY27? A: We aim for sustainable EBITDA margins of 15-20% in the industry, hoping to reach these levels in upcoming quarters. - Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
