Guidance reaffirmed but Q1 delivery soft; H2 execution critical

Q1 delivered only 6.7% YoY growth; needs ~28% avg H2 to hit 20% full year

Labor normalized in June but Q1 already delivered; benefit unproven in Q2 yet

Q1 at 15.7% within range but down from 17.2% YoY; compressed by ₹10 Cr provision

Order book solid but execution constrained; IIT Bombay delayed, NBCC late to ramp, CIDCO only 2 of 7 locations active

₹165 Cr → ₹193 Cr (+₹28 Cr). Split: ₹121 Cr aluminum formwork, ₹56 Cr plant/machinery. Reflects new project needs and high-rise buildlings.

Prior 22% FY25, 12% FY26; Q1 FY27 is 6.7%. No formal guidance cut but implied path to 20% FY much harder post Q1 softness.

₹10 Cr Q4 FY26 + ₹10 Cr Q1 FY27 = ₹20 Cr total hedges. Aluminum +35–40%, copper exposed; indices lag actual costs.

₹13.5K Cr OB unchanged but major projects (IIT, CIDCO, NBCC) all started later than prior-call plan. No order quantity cut, only timeline slip.

Gross debt ₹522 Cr (up from Q4 due to payment timing, not structural increase). Net debt-free in 8 quarters reaffirmed despite CapEx uplift.

IIT Bombay delayed by tree-cut permissions (should have ₹65–70 Cr Q1 revenue), NBCC only started ramping now (threefold increase coming), CIDCO only 2 of 7 locations handed over. Projects will ramp Q2–Q3. CAGR 2022–26 is ~20%, PAT CAGR >40%, so conversion track record is sound.

Aluminum up 35–40%, price variation not reflected yet in CPWD indices. Substantial portion expected to reverse Q3–Q4 as indices catch up. We've historically reversed large provisions over 7–8 years. Wait-and-watch approach; indices govern, not company opinion.

Not a bottleneck issue. CIDCO ₹2.5K Cr yet to start, NBCC rising from ₹15 Cr/month to ₹60 Cr/month, IIT Bombay just started. Order book includes sites not yet active. Our CAGR is 18% consol; 20% FY27 guidance means slight acceleration. Labor and technology improvements will support it from Q3–Q4.

All are milestone-based, cyclical, nothing >1–2 years overdue. CIDCO ₹300 Cr unbilled (work done, milestone pending), MHADA ₹200 Cr unbilled. Contract assets+debtors ratio is 78% (down from 120% post-COVID). Targeting leadership position by March 2028, matching pre-COVID levels.

Gross debt up due to ₹150 Cr payment timing shift (already collected in current month), not structural. Equipment purchase may increase debt ₹45–50 Cr net. Working capital improving 25–30 days this year (like last year's 40 days reduction). Net debt trajectory on track.

Not '7 buildings' — total balance area is ₹2,000 Cr + escalation (28% price variation currently). In OB, we've booked ₹2,000 Cr. As locations handed over, we'll clarify building-by-building breakdown in Q2 call. Price variation can swing ±2–5%.

No provisioning expected Q2; will wait for Q3 indices before Q3 call commentary. EBITDA margins exclude other income. If prices stabilize and indices catch up, reversals in Q3–Q4.

Net working capital has improved 43 days last year. Expect 25–30 days improvement this year. Contract assets+receivables declining. Ideally revert to pre-COVID 56–72 days. March 2027 to March 2028 we should hit leadership position.

Reaffirmed explicitly despite Q1 at +6.7%. Needs H2 to average ~28% growth. Executive team confident, citing Q2 Labor improved, IIT/NBCC/CIDCO/MHADA ramp Q2–Q4.

Q1 at 15.7% within range but lower half. Commodity provisions headwind; reversal hope Q3–Q4 if escalation indices catch up. Risk of further provisioning if indices lag.

Split: ₹121 Cr formwork/aluminum extrusion, ₹56 Cr plant/machinery (high-rise & composite buildings), ₹5.4 Cr IT/SAP. Q1 done ₹52.2 Cr; on track.

IIT Bombay (₹550 Cr) started Q2 instead of Q4 FY26 due to tree permits. NBCC late to profit ramp. CIDCO only 2 of 7 locations active. These delays cascade into H2 revenue miss.

Aluminum +35–40%, copper exposed. Government contracts (55–60% of biz) have price variation clauses but indices lag actual purchase costs. ₹10 Cr provision Q4 + ₹10 Cr Q1 = ₹20 Cr total hedges. If indices don't catch up, further provisions or margin cuts needed.

Q1 delivered 6.7% growth YoY; guidance is 20% for full year. To hit 20%, H2 must average ~28% growth. No single quarter since FY25 has delivered >12% growth. Feasibility highly dependent on timing of CIDCO, MHADA, NBCC ramps.

Contract assets + debtors at 78% of revenue (down from 120% post-COVID). Nothing is >1–2 years overdue (all milestone-based), but high absolute amount suggests working capital intensity. Any client payment delays cascade into cash burn.

Q1 hit by Mumbai water cuts, labor shortages (30% in June), tree permits (IIT). Delhi NCR GRAP (Nov–Jan) could cost ~20 days or more if AQI >400. Management factored these in but external risk remains high.