Strong revenue growth masks thin margins and execution risks

Delivered 853.5 Cr vs. 518 Cr YoY, confirmed 65% growth. Q1 is seasonally weak.

Actual 6.4% EBITDA margin. Employees 5.39% of sales (vs. normal 4–4.5%). Explanation: Apr–May labor shortage, June revenue 319 Cr (higher). Credible but execution risk remains.

Verified: 37 lakh to 18.3 Cr YoY. But 2.12% NPM is VERY thin; breaks down to ₹55 Cr EBITDA on ₹853 Cr revenue.

Order book confirmed; 70% within-group (Adani), 30% external. Concentration risk high if Adani orders slow.

Prior guidance ₹6,000–8,000 Cr. MD now says ₹4,000–5,000 Cr. Implicit downgrade from 6,000–8,000 to 4,000–5,000.

Now guided as 2–3 quarters (by early 2027). Long-term debt ₹38 Cr, short-term ₹217 Cr; working capital facilities still utilized ₹844 Cr. Slipping timeline.

Prior FY26 calls: ₹6,000–8,000 Cr expected. MD now implies ₹4,000–5,000 Cr FY27. Soft language ('will be in same range') masks a 25% reduction.

FY26 guidance: 'within one year' (by June 2027). Now: 'within 2–3 quarters' (Oct–Dec 2026). Still on track but not ahead of plan.

EBITDA margin 6.4% (vs. 7–8% guidance). Management attributes to seasonal labor deficit; expects recovery as June performance (₹319 Cr revenue) validates acceleration into core construction phase.

Headcount 2,400 → 2,600. Employee cost 5.39% of sales (temporary excess to execute scaled order book). Management targets return to 4–4.5% as utilization improves.

Yes, will be more than 25% on average, between ₹4,400–4,500 Cr. Remain in same line.

H2 only due to seasonal labor deficit. April–May sales weak, June ₹319 Cr shows acceleration. If loss due to labor deficit factored in, EBITDA above 7%. Better in Q3–Q4.

Probably same range, ±₹400–500 Cr, remains ₹4,000–5,000 range. Projects under discussion for Q2–Q3.

Yes, we can expect so.

Mahim: raft foundation done, first basement floor underway. Matunga: sheet piling ongoing before excavation.

The whole amount is interest-free.

No clear timeline yet; control room just started. Probably next quarter heard. Not in FY27 order inflow guidance (government projects counted in bid pipeline only).

Three projects near EOT signing. Discussion in Lucknow last Monday. Expect EOTs by weekend/first week Aug. Money due. Account close end-Aug/mid-Sep. Unbilled ₹60 Cr + receivable ₹40 Cr will materialize.

H2 only. As execution speeds up in next few quarters, should be in better position to go beyond 7–8%.

No clarity. Called for discussion with top management/board. Visiting next week. They reached out to meet but unknown positive direction. Outstanding ₹90 Cr.

Should be for full year. Once execution speed picks up in next quarters, should be in better position to go beyond 7–8%.

Subsidiary company executes ₹80 Cr miscellaneous Adani projects. All future guidance will be on console basis only.

Two projects, ₹3,000 Cr. At ₹10–12 lakh/house (₹3,000–3,500 per sq ft), equals 30,000–32,000 houses out of total 2 lakh houses.

Depends on performance on current two. Foundation complexity high. Once stable on these, can always start new site. Right of first refusal if perform well.

Difficult to compare (project-specific). Currently 16,000–17,000 needed, almost full. Peak could add 3,000–4,000 more in next 1–2 quarters as activities diversify.

Most Adani projects are pass-through cost (no impact). 30% external book (INR 5,500–6,000 Cr older projects) mostly complete. Few activities at SMC & RVNL impacted by aluminum/copper inflation; minor.

No. Focus on buildings only (industry, data center, commercial, hotel, hospital). Not infrastructure or non-building work.

No. Focusing on Gujarat & Mumbai only. 25% non-Adani, 70–75% Adani target. Sufficient visibility for 2 years, not entering new regions yet.

Employee expense up (building team to 1.5–2x from last year). Strengthening to get more Adani orders and deliver on time.

Not focused on Mumbai/Visakhapatnam data centers yet. Dholera (Gujarat) has two lands (data center + defense). Could come later. MediCity & housing projects (Mundra, Ahmedabad) starting soon.

No separate revenue tracking; embedded in project revenue. Plant capacity ₹200 Cr/year, executing ₹150–200 Cr. Margin same as overall business (Adani projects only, no other customers).

Lesser number. ₹3,000 Cr, ₹10–12 lakh per house = 30,000 houses (out of 2 lakh total). Two projects building 30,000–32,000 houses now.

Slightly higher due to non-deductible expenses (permanent difference). Will remain elevated vs. 25%.

Yes, same level, slightly higher.

Cost-plus percentage on overall project cost (materials, labor, overhead). Not separate per-material margin. Total EBITDA level: Adani projects 6–7%, PSP projects 8–9%. Cost-plus effectively 7% EBITDA. Item-rate contract; material base rate quoted, actual difference paid in bill.

Always 1–2% gap in execution. Standardized by project type. Mumbai +3%, Mundra +1.5%. Overhead varies by project performance (can save 1–1.5% if project runs fast).

On track. Q1 seasonally weak; accelerating from June baseline. Order book ₹13,245 Cr supports full-year execution >₹4,000 Cr.

Q1 at 6.4% due to seasonal labor deficit & elevated employee costs. Management claims 1% margin leakage from April–May underperformance. Credible recovery if June acceleration sustains.

Team expansion (2,400 → 2,600) and April increments temporary. Normalization depends on higher absolute revenue.

Q1 delivered ₹28 Cr (3.3%). MD confirms 3–4% range on average; specific large projects may spike slightly.

70% of order book from Adani Group. ~45% of Q1 revenue from Adani. If Adani Group orders slow or investment cycle contracts, PSP exposed to ~40% revenue drop.

NPM at 2.1% (₹18.3 Cr on ₹853.5 Cr). EBITDA 6.4% below 7–8% guidance. Employee costs still 5.39% (vs. 4–4.5% normal). If labor inflation persists or execution slows, margins compress further.

SDB receivable ₹90 Cr (stuck; MD visiting next week, no timeline). UP Medical ₹100 Cr (₹60 Cr unbilled, ₹40 Cr receivable) expected to close by mid-Sep 2026. Combined ₹190 Cr at risk if customers delay further.

Q1 saw labor deficit in Apr–May; June recovered but dependent on sustained availability. Dharavi project (30,000+ houses) is largest yet; any execution slip could damage 'right of first refusal' for phase 2. SMC & RVNL impacted by aluminum/copper inflation.

Prior FY26 guidance: ₹6,000–8,000 Cr order inflows. Current call implies ₹4,000–5,000 Cr. MD used soft language ('same range') but new numbers are lower. If H2 misses even ₹4,000–5,000 Cr target, credibility dents further.