Soft Q1 miss, margin holds, growth deferred to H2

Delivered 22.9% EBITDA; exceeds 18%+ target

Confirmed ₹18,700+ Cr, diversified across water (41%), transport (35%), tunneling (24%)

Revenue -8.4% YoY, PAT -44.3% YoY; management attributed to extraneous headwinds, but execution bottlenecks acknowledged

Prior guidance was 15-20%; now emphasizing "closer to 15% than 20%"; this is a cautious downgrade within range

All approvals by end-June, shaft excavation at 10m depth; projects execution-ready but still dependent on external factors

Reaffirmed 15-20% range but emphasized "closer to 15% than 20%" after Q1 -8.4% miss. Implicit downgrade from midpoint 17.5%.

H1 FY27 order expectations shifted to H2. Analyst questioned 4-quarter degrowth; management acknowledged order book cyclicality.

Aunta-Simaria divestment at ₹1,000 Cr enterprise value, vs. prior ₹9,000 Cr portfolio (2022). Reaffirms capital recycling but not a new growth driver.

22.9% vs. 18%+ guidance; in line with FY26 annual (22.8%). Margin maintained despite soft revenue, signaling execution discipline.

External factors (geopolitical, Mumbai construction stoppage). Approvals behind us. Expect growth phase overall FY27 despite Q1 blip. Internally targeting 15-20% annualized.

WMEL at intersection of legacy construction and tech-driven future. Maintaining 15-20% growth. Water, rehabilitation, smart ops platform positioning for long-term niche.

Technology play. We target projects with differentiation, not run-of-the-mill. Associations & connects allow us to differentiate. Long-term relationships on specific elements.

Appointed date Q3 FY27. Revenue recognition ~₹500 Cr FY27. FY28 details to be discussed offline with team.

Smart Ops inventive, biologically transforms wastewater. No run-of-mill model. Slow, cautious progress. Revenue range ₹50-100 Cr, but no formal guidance given.

Domestic market focused. Fleet 100% occupied. Enough opportunity in India, not tempted to venture overseas now.

Confidence to deliver growth. Will be closer to 15% than 20%. Order book healthy. Approvals in place. External factors will determine outcome.

Order book 3–3.5 years (excl. O&M). Statutory approvals behind us. Projects tracked, traction returning. Growth phase to continue multi-year.

Very positive developments. Revised FDP submitted, awaiting DGH/MoPNG approval (4-6 weeks). High likelihood of field development. Will declare post-FDP approval.

Reaffirmed internally targeting 15-20% annualized basis. Q1 -8.4% miss; guidance now cautiously "closer to 15% than 20%" depending on macro headwinds.

Q1 22.9% EBITDA well above 18%+ target. Operational discipline and cost control enabling margin resilience despite soft topline.

Strategy relies on capital recycling (divesting mature assets, redeploying proceeds). Aunta-Simaria ₹1,000 Cr inflow to fuel growth capex.

4 of last 5 quarters degrowth (-8.4% YoY Q1). H1 order expectations deferred to H2. Supply chain, Mumbai construction stoppage, geopolitical volatility cited; uncontrollable.

Guided 15-20% FY27 growth; Q1 delivered -8.4% YoY. Now emphasizing "closer to 15% than 20%". Analyst Sanjay Shah and Avantika Jawahar directly challenged confidence; management hedged.

FDP submitted to DGH/MoPNG; awaiting approval (4-6 weeks as of call). Post-approval, 2 years to production. No interim cash flow; highly speculative.

Management shifted H1 order expectations to H2 FY27. Order book declined Q1 despite ₹18,700+ Cr level. Target ₹8,000-10,000 Cr new inflows still achievable but timing uncertain.

Dharavi-Ghatkopar needed high court clearance (received June 22). Pune-Shirur still awaiting appointed date (Q3 expected). Mumbai construction/AQI stoppage delays Bhandup project. Execution remains hostage to bureaucratic timelines.

Q1 EBITDA margin 22.9% held strong, but underlying business faces wage inflation, supply chain cost-push, potential commodity volatility. Run-of-mill water projects may not sustain 20-25% EBIT margins.