Revenue +12% masks 78% PAT collapse; margin recovery stalled

Wage hike hit 35–40% in late April/May; management's defense on timing unconvincing

Q1 delivered +12% YoY; 15% maintained nominally but hedged to 12% due to NGT

Q1 EBITDA margin 4.3%; management explicitly ruled out double-digit for FY27

Highly dependent on client goodwill; no contractual lock; uncertain timeline

Demolition on track, billing projections aggressive but dependent on ramp speed and project approvals

Prior call: aspire to double-digit margins FY27. This call: ruled out for FY27, hope FY28. Result: 4.3% vs 8.59% prior year.

Stated 15% maintained; actual guidance 12–15% (12% if NGT materializes). Q1 delivery +12% at low end.

₹8,000 Cr → ₹4,000–5,000 Cr FY27 due to pricing/cost volatility caution.

89% of order book has material escalation; labor escalation clause % unknown; many large contracts lack it.

₹300 Cr → ₹220–250 Cr FY27 due to project delays (DLF design changes, Gems Park delay).

Costs were incurred; bill value finalized now, reducing receivables by ₹29 Cr. Dispute now going to arbitration.

Labor increase was unpredictable; 35–40% hike in NCR mid-quarter due to demand/supply and festivals.

Ruling out double-digit for FY27. Hoping Q1 FY28 if compensation flows in next 2 quarters and NGT impact minimal.

Demand/supply dynamics are unpredictable; impact felt much more in Q1 due to festivals and skill shortage.

We don't have that data; CFO will get back offline.

Ground work starting now (demolition on track). FY27: ₹700 Cr, FY28: ₹1,000 Cr. Completion FY29.

Central Vista work continues; impact limited to material supply. Can't quantify yet.

Clients are seeing labor shortage themselves; large developers offering completion incentives. Some offset expected.

No, revising down to ₹4,000–5,000 Cr due to volatility; bid pipeline also trimmed to ₹5,000–6,000 Cr.

Never paid penalties to date. Delays are accepted by clients as industry-wide; extensions granted.

Q1 delivered +12%. Second half dependent on project ramp and Assam state normalization. NGT regulatory risk stated but unquantified.

Being conservative due to material/labor price volatility. Bid pipeline visibility ₹5,000–6,000 Cr.

Expected ~5–6% FY27 at best if labor compensation flows; baseline compressed by 1.5% labor, partially offset by project ramp.

Depends on new project bidding incorporating higher labor/staff cost base and client compensation for Q1 impact flowing in Q2–Q3.

Reduced due to delays in DLF, Gems Park projects. Focus on mechanization post-FY27 to address labor shortages.

Labor wage inflation 35–40% in NCR is permanent; affects 50% of order book. Company embedded ₹16.9 Cr cost (~1.5% revenue), uncompensated so far.

No contractual obligation on most large contracts (except 89% with material escalation). Management expecting compensation over next 2 quarters, but depends on client goodwill.

NGT (National Green Tribunal) measures pending; Haryana crackdown on RMC plants; unquantified margin impact expected Q3+. Central Vista exemption sought but not confirmed.

Client design changes (DLF, Gems Park, CST) causing delays; complex projects with month-to-month scope changes; labor availability at 40–50% in some projects.

Switchgear, panels sourced internationally; delivery delays 4–6 weeks → 3–4 months; prices volatile. Affects project timelines and material cost pass-through.