Strong YoY, margin hold amid Q1 dip; DaaS pipeline solidifies path

Delivered OPM 10.5%, consistent with call; margin expansion confirmed

Segment growth plausible; however, 53% mix trails 55-60% target guidance

DaaS revenue ₹28 Cr (~10% of topline) aligns with 9-11% guidance; visibility claim supported

Q1 NWC 56 days claimed; management cautioned this is low due to Q1 seasonality

Receivable discipline evidenced; ECL 0.5% lifetime (₹22 Cr / ₹3.8-4K Cr) conservative

Wadhwa Group mandate (₹650 Cr) signed Q1. This is a +44% quarter-over-quarter jump in addressable revenue pool, extending visibility by ~6 months.

Guidance for 55-60% by FY28 maintained; Q1 achieved 53% (vs 51% in Q4 FY26). Slower than expected but trajectory intact.

Company plans deliberate debt uptake to fund 35-40% growth. Conservative vs 0.6x max, giving room. Not a change in policy, just crystallization of capex intent.

6 months in, growing fast, but monsoon impact noted. Described as 'meaningful' for FY27 contribution. New high-margin product within contract manufacturing.

Prior call hinted at broader expansion. This call: TN+MH 'scratched surface,' but no timeline or capex earmarked. Focus stays on existing strongholds.

Yes, mix shift (Contract Mfg + DaaS now 63% vs 46% prior) is the lever. Expect sustained margin next few quarters as mix continues to improve.

65-70% utilization on 9M ton base. Will recycle deposits (90L MT locked multi-year) to add 2-3M tons Q2-Q3 with no new capex.

Receivables growing slower than revenue (discipline). ECL 0.5% lifetime (₹22 Cr / ₹3.8-4K Cr accumulated). Quality improved; Tier-1 clients added. Recovery varies 25-80% depending on event.

Partners pay vendors day-1, we get 90-day credit. Interest borne by us or vendor (negotiated). Discounts available; we prioritize cash conservation over discount maximization.

Paid on milestones/credit terms (not sale-dependent). Fixed fee + % construction + % sales. Material supplied, we retain cash flow visibility. EBITDA 60-65%, no real estate risk.

Last FY collected ₹1,100+ Cr. Working capital discipline proven (NWC improved 97→56 days). Q3-Q4 meaningfully better on cash flows and revenues (40:60 seasonality).

South Tamil Nadu region, predominantly stone aggregates (coarse category). Asphalt growing as third material.

18-24 month projects. Already delivering ₹28 Cr (10% topline) this quarter. Will sustain 9-11% of revenue at 35-40% growth rate.

No direct competitors seen. DaaS = platform (money, materials, execution), not just sales. Focus: Bangalore, Chennai, Hyderabad (land availability). 9-11% of turnover target.

40:60 H1:H2 split. Milestone daily (slab cast, sales, fixed fee). Real-time accrual, reconciled monthly. We add value continuously, so receivables cycle better than pure sales agents.

Heavy contract manufacturing presence and construction activity in these states. Top 10 = 45-50% but spread across 15+ projects per top customer. Focus where we maximize returns.

Point taken. We are learning. Will consider feedback on disclosure strategy.

Q1 confirmed 37% growth inline. Company 'stick to the guidance'—not raising despite strong Q1. Seasonality (40:60 H1:H2) built in.

Q1 delivered 10.49%. Mix improvement (CM+DaaS from 46%→63%) supports. Directional target: 11% possible by FY28 if CM reaches 60% and DaaS holds 9-11%.

No new deposits being added, only recycle 90L MT locked multi-year to scale 9M→11M tons. Funded via operating cash flows.

Top-10 customers = 45-50% of revenue. However, largest customer spread across 15+ project sites. Cash flows project-level diversified, reducing single-customer cliff risk.

Most revenue from TN + MH. Company operates in 23 states / 1,200 PIN codes, but 'scratched surface' in existing regions. Geographic expansion remains opportunistic, not strategic mandate.

18-24 month DaaS project cycles expose to developer cash flow stress, unsold inventory risk, and revenue recognition/collection delays. Payment cycle 3-6 months post-project milestones; longer than B2B trade.

Q1 'slow on inflows' due to seasonality; 56 days likely unsustainable. Steady-state 60-70 days implies higher receivables and potentially greater debt requirement than ₹75-80 Cr planned.

Asphalt segment (6 months old, ₹53 Cr Q1) is nascent and high-margin. Public disclosure of traction may attract competitor entry. Management acknowledged risk in Q&A feedback.