Bondada Engineer — Q4 FY25 earnings call

Call held 7 May 2025

Management summary

Bondada Engineering reported strong FY25 results with 96% YoY revenue growth to ₹1572 crores and nearly 150% PAT growth. The company highlighted a robust order book exceeding ₹5000 crores, targeting ₹8000-8500 crores by March 2026, driven by significant wins in solar EPC, new entry into battery energy storage systems (BESS) with a ₹240 crore L1 order, and expansion into the Indian Railways sector. Management expressed confidence in maintaining growth momentum and margins, while also addressing challenges in international repeat orders and the pace of railway project execution.

Highlights

  • Revenue grew by 96% year-on-year to ₹1572 crores in FY25.

  • PAT grew by almost 150% year-on-year in FY25.

  • Secured first and largest order for battery energy storage system (BESS) worth ₹240 crores (L1 status).

  • Successfully completed first international order worth $2.7 million for game change solar in the USA.

  • Maintained a healthy order book of ₹5000+ crores, with a target to reach ₹8000-8500 crores by March 2026.

Concerns

  • Repeat orders for the US game changer solar project are in halt due to Trump's import duties on steel structures from India.

  • Railway tendering processes are slower compared to renewable energy and telecom sectors.

  • 5G implementation in India is not yet complete, with full coverage expected in 1.5 years, impacting telecom segment growth.

Key financials

3 periods

Headline

  • Revenue
    ₹1,572 Cr
    YoY +96%
  • PAT Growth
    1.5%
    YoY +150%
  • Receivables (incl. GST)
    ₹530 Cr

FY25

  • Solar Revenue
    ₹920 Cr
  • Product Revenue
    ₹218 Cr

FY25 end

  • Receivables
    ₹520 Cr

What they filed

Q1 FY27: revenue up 24.0%, net profit up 28.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue481 376 714 558 659 +37%712 +89%914 +28%692 +24%
EBITDA51 38 82 65 78 +53%85 +124%96 +17%78 +20%
Net profit37 25 56 42 52 +41%54 +116%63 +13%54 +29%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • RE Segment (Order Book)
    ₹3,589 Cr Total₹3,300 Cr EPC₹200 Cr O&M
  • Battery Storage (L1 Order)
    ₹240 Cr Value
  • Railways (Order Book)
    ₹228 Cr South-Central Railway₹600 Cr Kavach Infra Project
  • Telecom (Order Book Target)
    ₹1,000 Cr Value
  • Products (FY25 Revenue)
    ₹218 Cr Value

Order book

high confidence

Total value

₹5,000 Cr

as of 2025-05-07 quantified

Execution

Solar EPC orders executable within 10 to 18 months; O&M for 3-5 years post COD.

Composition

Mix 3 segments
  • RE Side 71.8%
  • RE EPC 65.4%
  • RE O&M 4%

Share of order book by segment· categories overlap, and sum to 141.2%

Pipeline

L1 awaiting loa

L1 for battery energy storage system, participating in tenders for battery storage, Kavach infra, and telecom towers.

The company has a healthy order book of over ₹5000 crores, with a significant portion from the RE sector. They are actively participating in new tenders across segments, including a ₹240 crore L1 order for battery storage, which is not yet part of the reported order book. The target is to grow the order book to ₹8000-8500 crores by March 2026.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Debt disclosed
    • New borrowing Sanction of 125 crores from SBI, enhancing bank guarantee limits. ₹125 Cr
    strong financial backing from Bank of Baroda and SBI
  • M&A Speck Systems Limited Acquisition · Closed · Consideration ₹[object Object] (undisclosed)

    Acquired for assets, specifically to expand office space, not for defense sector entry or product lines which are outdated.

    Acquisition was for assets (office expansion), not for product lines or defense sector entry.

    You also acquired the Speck Systems Limited recently Sir like is it like plans to enter into defense sector or what is the plan regarding that? No tech system with the NCLD company. We have taken this company for the purpose of effects actually affect only because actually one very big effect near to our office is there actually, which we want to expand our office. At this point of time, not getting into the defense segment and also whatever that speck products are, there are out outdated actually with that product range actually we may not be able to do anything in. It is not the purpose of business. It is for to acquire the assets.
  • Liquidity Liquidity disclosed Working capital is well managed, with ₹120 crores in advances to suppliers to secure prices and delivery timelines.
    Working capital, I think for this year, last year we have well managed working capital. I think we have managed our working capital almost five times last year but this year also we have set up our working capital to, you know, to manage our top line, that's not a constraint. ... our 120 crores of our money is with has advances with all our suppliers. If I'm not fixing my prices, my forwarding prices with my suppliers, so our profit, we cannot manage and maintain our profits. That's the reason actually most of my money is lying with module suppliers and the inverter suppliers and ITD suppliers.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY25 · High confidence 0.96
    This year, we are pleased to report a 96% year on year revenue growth

    — Dr. Bondada Raghavendra Rao, Chairman and Managing Director

  • Railway Business Revenue Revenue · by 2030 per annum · Medium confidence ₹500-600 crores
    we will also take this business maybe around Rs.600-500 crores business by 2030 per annum.

    — Management

  • Data Center Revenue (25 MW) Revenue · per month · High confidence ₹70 lakhs
    I think yeah for data center per month is coming around 70 lakhs.

    — Management

  • Revenue Doubling Revenue · this year · Medium confidence 2x
    OK. So, when you are guiding around the doubling the revenue to 800 crores, we can expect some 0.5 to 1% increase in the margin this year?

    — Rabindra Nath Nayak

Profitability

  • PAT Growth Profitability · FY25 · High confidence 1.50
    and almost around 150% PAT growth.

    — Dr. Bondada Raghavendra Rao, Chairman and Managing Director

Order Book

  • Total Order Book Order Book · by March 2026 · High confidence ₹8000-8500 crores
    March 2026 number already I told actually we are going to close the order book of anything between around Rs.8000 to 8500 crores by March 2026 after recognizing the revenue of this year.

    — Management

Market Growth

  • Battery Storage Market CAGR Market Growth · by 2030 · High confidence 0.27
    Actually, as you all know that actually this market is going to be expand and grow at a CAGR almost around 27% reaching up to the $32 billion USD by 2030.

    — Dr. Bondada Raghavendra Rao, Chairman and Managing Director

Capacity

  • Battery Storage Installation Capacity · by 2030 · High confidence 160 GW
    by 2030 by around almost around 160 GW to be installed

    — Dr. Bondada Raghavendra Rao, Chairman and Managing Director

  • Battery Storage Installation Capacity · by 2047 · High confidence 1840 GW
    by 2047 we need to install 1840 GW

    — Dr. Bondada Raghavendra Rao, Chairman and Managing Director

  • Solar IPP Target Capacity · by 2030 · High confidence 2 GW
    2030 we want to install 2 GW of this.

    — Nitin Gandhi

Segment Contribution

  • Solar Contribution to Revenue Segment Contribution · this year · Medium confidence 0.55-0.60
    Actually, I think solar will contribute to around 55 to 60% even this year also

    — Management

  • Telecom Contribution to Revenue Segment Contribution · this year · Medium confidence 0.30
    and around 30% will be from telecom

    — Management

  • Products Contribution to Revenue Segment Contribution · this year · Medium confidence 0.10-0.15
    around 12 to 15% is from, 10 to 15% we get from our products.

    — Management

  • Railway Business Contribution Segment Contribution · down the line · Medium confidence 0.20-0.25
    it may go up to 20%, 25% of our revenue contribution.

    — Management

Working Capital

  • Working Capital Cycle Working Capital · this year · High confidence 75 days
    I think this year also we will be able to manage it 75 days

    — Baratam Satyanarayana, Whole Time Director and CFO

Growth

  • Subsidiary Growth Growth · year on year · High confidence 0.30-0.35
    as the overall this all subsidiaries will grow at 30 to 35% year on year growth.

    — Management

  • Product Business Growth Growth · year on year till 2030 · High confidence 0.35-0.40
    all these products will grow at a 35-40% growth year on year at least till 2030.

    — Management

Margin

  • Margin Increase Margin · this year · Medium confidence 0.005-0.01
    OK. So, when you are guiding around the doubling the revenue to 800 crores, we can expect some 0.5 to 1% increase in the margin this year?

    — Rabindra Nath Nayak

What to watch in Q1 FY26

Conversion of Battery Storage L1 order to final order

next two weeks
Current L1 status, awaiting final order
Target Final order received and announced

Why it matters

This is a new, significant business segment (₹240 crores) and its conversion to a firm order will validate the company's entry into BESS.

We also emerged as L1 for the battery energy storage system... we are just L1 and we are yet to get the final order but the order value is almost around Rs.240 crores. ... maybe in next two weeks term, we are getting the LY.

Risks & concerns

  • Impact of US import duties on repeat international orders

    medium

    Repeat orders for the US game changer solar project are on hold due to Trump's import duties on steel structures from India.

    But this repeat order of game changer is a little bit hard because of Trump importing the import duties on steel structures from India. They are now evaluating and pursuing the cases but repeat orders are not yet come, but we are waiting. How what action they will take.

    Management acknowledged

  • Slow tendering processes in the Railways sector

    low

    Railway tendering processes are slower compared to renewable energy and telecom, impacting project timelines.

    only thing is yes here actually railway tendering processes bit slow compared to the renewable energy and telecom because actually once we submit the tender, they will take two months to evaluate the tender thereafter another they will take another two months to give the L1

    Management acknowledged

  • Delayed 5G implementation across India

    low

    5G is not yet fully implemented across India, with full coverage expected in 1.5 years, affecting telecom segment growth.

    5G itself is not implemented properly in India. 5G will take another 1 and a half year to implement 100 percent across the country.

    Management acknowledged

Q&A highlights

8 direct
Order book composition and execution timeline for RE segment Direct
Out of total Rs.5044 order book, around Rs.3589 crores is from RE side, out of Rs.3589, almost around Rs.3300 crores is EPC and around Rs.200 crores is from O&M side of the solar plants. ... Solar EPC, whatever the current orders are in hand, which we have to hand over the customers in next depends upon the order size actually anything between another 10 months to 18 months actually latest by 10 months and longest by 18 months, next one and half year, we have to close all these order book of EPC and O&M is once it is COD is done from there actually three years to five years duration we have to maintain the solar plants.

Provides a clear breakdown of the order book by segment and the expected execution timelines, crucial for revenue visibility.

Asked by Rabindra Nath Nayak

Capacity expansion needs for large order book Direct
First one is that as a people management and second one is working capital; third one is our factory contribution to our EPC projects is almost around 78%. I don't think any problem in capacities of my factory because actually in case of telecom, we are manufacturing the towers from our factory. ... people management, talent pooling is a continuous process that will not stop anywhere and we are continuously recruiting people from the reputed organizations. That's not a constraint at this point of time for our growth. Working capital, I think for this year, last year we have well managed working capital.

Clarifies that no significant capacity expansion investment is needed for the current order book, with focus on people management and working capital.

Asked by Bijal Bakhai

Receivables situation and collection from PSUs Direct
our receivables whereas actually if you can see properly thoroughly our numbers balance sheet, what we have delivered in February and March month is Rs.530 crores revenues. And whereas end of financial year, our receivables are Rs.520 crores. ... But coming to my customers, all are cash rich companies if you take NLC or you take Singareni or if you take BSNL, BSNL, I don't say it is cash rich but funded by USOF, Airtel, Reliance Jio, we are not finding any problem in getting our payments actually, only thing is yes end of the year, receivables are looking very high because of last two months of financial year deliveries are more and sales are more and the substantial portion of that are maturing in April month, May month and June month.

Addresses concerns about high receivables by explaining the timing of collections and the creditworthiness of major clients, indicating that most will be collected by June.

Asked by Rabindra Nath Nayak

Railways (Kavach) opportunity size and margins Direct
Indian Railway is going to spend almost around Rs.10,000 crores on safety projects. So even if I am able to do around 3-4 percent is also out of that, it's a huge, huge business for next to 5 to 10 years... Coming back to the margins, yes, definitely better margin than solar EPC and telecom projects, better margins than these two segments.

Highlights the significant market potential in the Indian Railways safety projects and confirms higher margins compared to existing solar EPC and telecom segments.

Asked by Darshit Shah

Economics and model for Battery Energy Storage System (BESS) Direct
One is CapEx model, 1 is this TPC model CapEx model, is that actually which you have to invest and then you take the rentals from the developer or the customer for next 12 years... Cost of this installation is anything 1.8 crore to 2 crores per MW. ... As a CapEx model, we have to bear entire cost, one time cost and they will pay the per month per MW. What I told 1.8 to 2 crores is per MW hour installation cost, that is supply and installation cost.

Provides clarity on the CapEx model for BESS projects, including the investment required per MW and the revenue generation mechanism (rentals).

Asked by Hardik Gandhi

Reason for lower margins in the services segment Direct
In terms of services, what happened is actually out of the total services is 70% of the revenue contribution coming from Reliance Jio contract where we have almost 7 and a 1/2 to 8 crore revenue per month for managing their entire Telangana network. In Reliance Jio, we don't have much of margins here. They generally give anything in between 5 to 7% only. ... But this year is going to be changed because my BSNL 4G saturation project to O&M is also getting started because project is completed recently. This O&M of 4G saturation of this you see a revenue of services revenue which is having very good margin, no maybe, maybe, definitely we will maintain that services margin also from this.

Explains that lower service margins were due to a large Reliance Jio contract, but anticipates improvement with the commencement of higher-margin BSNL 4G O&M projects.

Asked by Mohit Khan

Microsoft data center business and revenue potential Direct
Microsoft is coming up with a lot of data centers. We are already empaneled with Microsoft recently and it's a huge process. ... we are going to manage Microsoft data centers in Hyderabad very, very soon actually maybe next one or two months we are going to sign the agreement. ... we are talking about only the services part actually maintaining of data centers, network availability, power availability 24 by 7 at 99.99% level. ... I think yeah for data center per month is coming around 70 lakhs.

Reveals a new strategic partnership with Microsoft for data center management services, outlining the scope and potential monthly revenue.

Asked by Rabindra Nath

Impact of 4G to 5G migration on telecom revenue and future outlook Direct
Yes, your point is correct, but actually yes, there is the overall as the operators there is a slowdown in 5G, they have covered the Tier 1, Tier 2 cities, but they are not expanding into the Tier 3 cities of 5G. But CapEx deployment is less... 5G predominantly works on fiber so now fiber rollouts are happening. So, this 5G will come in in near future also for those 3-Tier towns and even remote locations.

Explains the current slowdown in 5G rollout in Tier 3 cities and remote locations due to CapEx and fiber deployment, but anticipates future growth as fiber rollouts progress.

Asked by Suryanarayan

3 min read 6 chapters

Detailed narrative

FY25 Performance and Growth Momentum

Bondada Engineering Limited reported robust financial performance for FY25, with revenue growing by 96% year-on-year to ₹1572 crores. This growth was accompanied by an impressive 150% increase in PAT. The company aims to sustain this growth momentum by strategically focusing on high-growth sectors and spaces, ensuring proper planning and execution to maximize shareholder value. Management emphasized their commitment to risk mitigation measures and continuous evaluation of new opportunities aligned with their capabilities.

Order Book and Future Revenue Visibility

The company currently holds a healthy order book exceeding ₹5000 crores. Management has set an ambitious target to grow this to ₹8000-8500 crores by March 2026. The RE segment, primarily solar EPC and O&M, constitutes a significant portion of the current order book, totaling ₹3589 crores (₹3300 crores EPC, ₹200 crores O&M). Solar EPC orders are expected to be executed within 10 to 18 months, while O&M contracts will run for 3-5 years post-COD.

Entry into Battery Energy Storage Systems (BESS)

Bondada Engineering has successfully emerged as L1 for its first battery energy storage system (BESS) project in Telangana, valued at ₹240 crores. This marks a new business segment for the company, with the BESS market projected to grow at a CAGR of 27% to $32 billion by 2030. The company aims to install 2 GW of BESS by 2030, with an estimated installation cost of ₹1.8-2 crores per MW for the CapEx model, generating rentals over 12 years.

Diversification into Indian Railways and Telecom

The company has expanded into the Indian Railways sector, securing an initial order of ₹228 crores from South-Central Railway and participating in tenders worth ₹600 crores for Kavach infra projects. The Indian Railways plans to spend ₹10,000 crores annually on safety projects, presenting a substantial long-term opportunity with better margins than solar EPC and telecom. In telecom, while 5G rollout in Tier 3 cities is slower, the company is actively pursuing large tenders, including a ₹6000 crore tower tender, and expects to maintain telecom's revenue contribution at around 30%.

Capital Management and Receivables

Bondada Engineering reported managing its working capital effectively, with a cash conversion cycle of approximately 75 days, which it aims to maintain. Receivables stood at ₹520 crores at the end of FY25, representing about 33% of turnover. Management clarified that a significant portion of these receivables, particularly from February and March deliveries (totaling ₹520 crores), are from cash-rich PSUs and are expected to be collected by June 2025. The company has also secured ₹125 crores in additional sanction from SBI to enhance its bank guarantee limits.

Strategic Initiatives and Product Business

The company is in advanced discussions to manage Microsoft data centers in Hyderabad, with an agreement expected within one to two months, potentially generating ₹70 lakhs per month for a 25 MW data center. The product business, including eco-build products, solar streetlights, and BLDC motors, grew by 35% to ₹218 crores in FY25 and is projected to maintain a 35-40% year-on-year growth until 2030. The recent acquisition of Speck Systems Limited was primarily for office expansion and assets, not for entering the defense sector or utilizing outdated product lines.

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