Strong order book masks steep Q1 collapse in execution and profits

Delivered revenue ₹2,671 Cr; call figure includes ₹56 Cr other income

OPM 9.4% (₹251 Cr EBIT implied); call includes ₹57 Cr other operating income in EBITDA

Delivered ₹30.3 Cr; down 78% YoY. Explanation addresses overhead burden + interest cost + tax headwind.

11% orders slow-moving; 20% in initial phase. No concrete Q2 data yet; recovery unproven.

Order book real; Croatia & Vadhvan confirmed. But both projects minimal FY27 revenue; ramp FY28+.

UP JJM stuck receivables ₹~400 Cr, minimal progress. Working capital bloated. OCF negative Q1. Debt reduction contingent.

Prior: ₹30K Cr FY27 target (₹8K Cr secured, ₹7K Cr L1). Current: ₹15.7K Cr booked YTD, reaffirming ₹30K Cr. No change in guidance.

Prior call withheld growth guidance due to geopolitical risk. Same stance maintained. Not a cut; consistent cautious framing.

Prior: Expected significant debt drop. Current: ₹3,500 Cr year-end target (~₹400–500 Cr reduction from FY26 ₹3,900 Cr), net debt ₹2,700–2,800 Cr. Conditional on collection improvements not yet realized.

Prior: Challenges from FY26 continuing. Current: Same challenges, but 'symptoms getting addressed,' land releases expected Q3-Q4. No new evidence yet.

Symptoms evident: land-related issues getting addressed by Maharashtra govt; compensation issue in MP being resolved. Q3-Q4 expected to see significant uptick.

Croatia: minuscule FY27 expenditure, ramps next year. Vadhvan: geotechnical & design work FY27, main work FY28+. HSR tunneling November, good turnover thereafter.

Cannot give direction on top line due to geopolitical uncertainty. Historically H1 ~40–45%, H2 ~55–60%. Aspire to strong order book and balance sheet improvement. Strong FY28 and FY29 expected.

Own only strategic assets. Lease rentals high in Africa (equipment value 9-month payback vs. 48–60 months India). Marine fleet is competitive moat. Not over-invested in non-strategic assets.

9-month: Urban 34%, Marine 32%, Hydro/Underground 20%, Surface 14%. 2-year: Urban 36%, Surface 20%, Hydro 15%, Marine/Industrial remainder. Well diversified.

Yes, ₹700–800 Cr. Order inflows ₹30K Cr minimum confidence; currently ₹15.7K Cr booked.

No link to revenue. TBM depreciation is accelerated per running meters. Q1 had minimal TBM activity; depreciation will jump H2 when tunneling starts.

Yes, seasonal. Q1 customers release annual budgets by March, devote Q1 to planning. Collections weak in Q1 across years.

₹1,221 Cr total JJM order: UP ₹510 Cr, MP ₹414 Cr, Rajasthan ₹297 Cr. Major problem UP (₹~400 Cr receivable stuck); MP, Rajasthan paying. Very slow collection despite completions.

~5.65% slow-moving, 2% Bangladesh, 3% JJM = ~11% problematic. ~20% in initial phase (low turnover). Land/right-of-way issues resolving; water portion started, land portion H2.

Debt ₹3,500 Cr target (similar to FY26 ~₹3,900 Cr). Despite ₹700–800 Cr capex, expecting 5–10% working capital improvement. Net debt ₹2,700–2,800 Cr.

Overseas margins 200–300 bps better. Q1 overseas revenue only 16% (down from 30% prior); order book back to 25%, targeting 30% as new orders execute.

Geopolitical uncertainty, elongated award cycles, project-related developments preclude quantified targets. Historically H1 40–45%, H2 55–60%.

Quarterly margins volatile based on project mix & execution pace. Individual project margins robust; overall subject to volume ramp.

Committed to equipment investment in strategic areas. TBM, marine fleet, tunneling equipment. H2 will see higher capex push.

11% orders slow-moving; 20% early-phase. Q1 revenue missed due to land, labor, clearances. H2 recovery unproven. Large new orders (Croatia, Vadhvan) backloaded FY28.

UP Jal Jeevan Mission ₹~400 Cr receivable stuck; minimal Q1 progress. Working capital bloated by uncertified work. OCF negative. Debt reduction target contingent on collection turnaround not yet evident.

Overseas revenue 16% Q1 (targeting 30%+). Material movement costs elevated due to geopolitical turmoil (though improving). Equipment imports subject to tariff/forex risk. Africa rental costs high, justifying owned fleet.

Equipment base ₹4,300 Cr; turnover stagnated ₹10–13K Cr 3+ years. Depreciation ₹83–454 Cr/year. Interest + depreciation burden high relative to EBITDA. Q1 TBM depreciation low due to dormancy; will spike H2 when active.

Interest cost up despite lower debt; new interest-bearing client advances (38% of total) at blame. Net debt ₹2,700–2,800 Cr (0.68x equity). FY27 capex ₹700–800 Cr to be funded; debt reduction contingent on collection improvement not yet materializing.