Order book intact, execution stalled; guidance cut amid working capital squeeze

Q1 EBITDA ₹13 Cr on ₹148 Cr revenue = 8.8% (close to claim, held steady vs Q1 FY26's 8%)

Revenue fell 31% YoY. Management identified Bihar Supaul and Sindhudurg but did not quantify the impact or provide evidence that August resolution is guaranteed

₹66 Cr Q1 vs ₹113 Cr full FY26; this is 58% of prior year in one quarter. Orchid alone ₹38 Cr. Valid sign of momentum but base remains tiny

CFO admitted stretch from 45 to 65–70 days due to geopolitical issues and milestone-based payments. No concrete timeline for revert stated

This is a CUT from prior ₹1,400+ Cr EPC-only guidance. Q1 was only ₹152 Cr; H2 would need ₹1,048 Cr to hit target. Execution track record this quarter is weak

Prior: ₹1,400+ Cr EPC. Current: ₹1,200 Cr total (₹1,000 Cr EPC + ₹200 Cr RE). Misses prior guidance by ₹200+ Cr.

45-day cycle stretched to 65–70 days over past 6 months; CFO cited geopolitical instability and project payment delays. No recovery timeline.

₹66 Cr Q1 bookings vs ₹113 Cr full FY26. To hit annual target of ₹200+ Cr (per FY27 guidance), remaining 3 quarters must deliver ₹134+ Cr. Pace below expectations.

Expected FY27 contribution initially; now pushed to Q4 FY27 or Q1 FY28 due to pending approvals. No revenue expected FY27.

Design changed post-award; construction method shifted. Mutual decision to not execute. Loss of revenue visibility.

Real estate EBITDA 25–30%. ~₹300 Cr pending construction cost on ₹400+ Cr unsold. Residual free cash flow ₹220 Cr over next 2–3 years. But debt rose materially; where did capital go?

EPC working capital stretched due to milestone-based payments and WC cycle extended 45→65–70 days. Real estate needs capital. Both segments absorbing cash. Debt-to-equity still within limits.

Bihar Supaul and Sindhudurg. Issues now sorted; cash flows available from August 2026. Projects expected to ramp immediately.

Coimbatore and TOA (commercial Kharadi) expected Q3–Q4. Orchid Santacruz tight target for Q4 if completed. Q2 unlikely for any meaningful recognition.

Vedanta was stuck, client shifted focus. Now ramping. Royal Rides and Vashi Hospital have not kicked off. Vashi to start next quarter; Royal Rides still stalled.

Early engagement model; partners chosen at design stage. Approvals still pending. Construction not expected to start in next 6 months. Likely Q4 FY27 or next year, if at all.

Design changed post-award; construction method shifted to Mivan. Quoted rates for concrete became unviable. Mutual decision to not execute.

Still ₹1,200 Cr target (₹1,000 Cr EPC + ₹200 Cr RE). Q1 bad for timing reasons. H2 will be 70% of revenue. Structurally no loss of projects except Royal Rides.

Focusing on 1–2 acre developments, ₹250–300 Cr GDV (10–15% upfront). Large developers avoid these. Execution track record is differentiator. Geographic focus: Western and Central suburbs of Mumbai.

60–70% for real estate, 10–15% for EPC working capital, rest corporate. Warrant with 18-month vesting; first 25% tranche already done. Deployment in line with investment plan.

Down from prior ₹1,400+ Cr EPC guidance. Q1 only ₹152 Cr; H2 must deliver ₹1,048 Cr. Execution recovery bet on resolution of two stalled projects from August.

Current Q1 PAT only 1.3% NPM due to volume leverage loss. At ₹1,000 Cr EPC execution, gross margins 13–15% should flow to PBT closer to 8–9%.

Warrant deployment 18 months; first 25% tranche done. No specific capex numbers disclosed for real estate projects or new acquisitions.

Two major govt projects (Bihar Supaul, Sindhudurg) delayed Q4–Q1 on client cash flow issues. Vedanta was stuck. Royal Rides stalled (₹225 Cr order, ₹15 Cr revenue only). H2 execution bet to hit ₹1,200 Cr is aggressive.

Net WC cycle stretched from 45 to 65–70 days over 6 months. CFO cited geopolitical instability and project-specific payment delays. At ₹152 Cr net debt and ₹12–15 Cr monthly cash burn on stalled projects, liquidity risk rises.

Real estate currently ₹4 Cr revenue Q1, ₹66 Cr bookings. Long-term target ₹1,200–₹1,500 Cr annual booking by FY31 is 18–23x current run rate. FY27 target ₹200+ Cr revenue depends on 3 project completions in Q3–Q4, highly lumpy. Acquisition competition intense; project pipeline not yet contracted.

Heavy reliance on government EPC projects (CPWD, Maharashtra PWD, etc.). Government projects historically slow to pay milestones. Bihar Supaul and Sindhudurg delays demonstrate this risk. Advance at 12% interest but requires 10–15% BG upfront; costs not always visible as debt.

FY26 guidance ₹1,200+ Cr missed (delivered ~₹900–950 Cr). FY27 guidance cut from ₹1,400+ (EPC only, implied from FY26 call context) to ₹1,200 Cr (total). Q1 missed with no blame taken until Q&A pressure.