Bondada Engineer — Q4 FY26 earnings call

Call held 6 May 2026

Management summary

Bondada Engineer reported a strong FY26 with revenue reaching INR 2,843 crores and a healthy order book of INR 7,147 crores. The company is strategically expanding into high-growth segments like BESS, Data Centers, and Defense, supported by a planned INR 120-130 crore integrated manufacturing facility. Despite a slight margin dip in Q4 due to specific project mix and material costs, full-year profitability improved, and the company maintains a debt-free status with a cash surplus, projecting 60-70% revenue and net profit growth for FY27.

Highlights

  • FY26 revenue grew to INR 2,843 crores, maintaining a 90-95% CAGR over the last three years.

  • Strong order book of INR 7,147 crores as of March 31, 2026, with 65% from renewable energy and 1,463 crores from BESS.

  • Secured INR 2,850 crores in L1 orders expected to convert in Q1 FY27, indicating robust pipeline conversion.

  • Net profit for FY26 was INR 211 crores, with full-year EBITDA margin improving to 7.5% from 7.2% last year.

  • Company is debt-free with a cash surplus of INR 100 crores as of March 31, 2026, and positive operating cash flow of INR 125 crores.

Concerns

  • Q4 FY26 saw a slight dip in margins due to billing of some low-margin projects and increased material costs (steel, cable) by 17-18% in the last quarter.

  • Management acknowledged avoiding certain BESS tenders due to unviable pricing and reverse auction thresholds, potentially missing some market share.

Key financials

3 periods

Headline

  • Revenue
    ₹2,843 Cr
  • Net Profit
    ₹211 Cr
  • Receivables (as % of Revenue)
    27.5%
  • Average Collection Period
    87 days

FY25

  • EBITDA Margin
    7.2%

FY26

  • EBITDA Margin
    7.5%

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.

Order book

high confidence

Total value

₹7,147 Cr

as of 2026-03-31 quantified

Execution

to be delivered in next 18 to 20 months time

Composition

Mix 2 segments
  • Renewable Energy 63.5%
  • BESS 20.5%

Share of order book by segment· partial disclosure (83.9% of the book)

Pipeline

L1 awaiting loa

L1 orders awaiting conversion and tenders participated in

The company has a robust order book with significant contributions from renewable energy and BESS, alongside a strong pipeline of L1 orders and tenders.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹120 Cr
    • Integrated manufacturing facility (combining all products, world-class facilities) ₹120 Cr
    So the Capex would be around INR120 crores to INR130 crores.
  • Debt Net cash ₹100 Cr
    After netting of all the debt still the company is sitting on INR100 crores of cash, cash positive.
  • Liquidity Cash ₹100 Cr Company is cash positive and has positive operating cash flow of INR 125 crores.
    After netting of all the debt still the company is sitting on INR100 crores of cash, cash positive. So that way that way we manage the working capital very well.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence 60-70%
    So having said this, maybe anything around 60% to 70% of revenue growth will be there even coming financial year.

    — Dr. Raghavendra Rao Bondada

  • Data Centers Revenue Contribution Revenue · FY27 · Medium confidence 7-8%
    And this revenues from this data centres around 7% to 8% of our total revenue will be constituting this financial year around 7% to 8% of revenue from data centre will constitute in this financial year.

    — Urmish Shah

Profitability

  • Net Profit Growth Profitability · FY27 · High confidence 60-70%
    On that around 60% to 70% growth will be there as an absolute amount. Yeah, bottom line.

    — Dr. Raghavendra Rao Bondada

  • Data Centers EBITDA Profitability · Ongoing · Medium confidence 14-15%
    And coming back to the EBITDAs as of now anything that takes EBITDA of around 14% to 15% we are looking forward for this data centres.

    — Urmish Shah

Margin

  • EBITDA Margins Margin · FY27 · High confidence Maintain or slightly improved (20-30 bps)
    EBITDA margins for this year will remain same or maybe we will have a little improved margins of by about 20, 30 basis points yes.

    — Satyanarayana Baratam

Capacity

  • Renewable Energy Capacity Capacity · by 2030 · High confidence 25 GW

    Previously 10 GW → 25 GW

    So we have the target of 25-gigawatt renewable energy capacity to be achieved by 2030.

    — Dr. Raghavendra Rao Bondada

  • Solar Capacity (within RE) Capacity · by 2030 · High confidence 16 GW
    These 25 gigawatts again further divided into 16 gigawatts of solar and around 9 gigawatts of BESS both go and even EPC, EPC scope.

    — Dr. Raghavendra Rao Bondada

  • BESS Capacity (within RE) Capacity · by 2030 · High confidence 9 GW

    — Dr. Raghavendra Rao Bondada

  • EPC Commissioning (Solar/BESS) Capacity · FY27 · High confidence 1.5 GW
    And then targeting 1.5 gigawatt of EPC commissioning to scale the execution capabilities because 7.8 gigawatt of portfolio is there which needs to be commissioned next to 2 to 2.5 years. Out of that actually around 1.5 gigawatt of peak which we are targeting to complete as per the budgeted timelines.

    — Dr. Raghavendra Rao Bondada

What to watch in Q1 FY27

Integrated Manufacturing Facility Progress

next quarter
Current Land identified, construction to start in Q2 FY27
Target Construction initiated, updates on progress

Why it matters

This facility is key to enhancing manufacturing capabilities, volumes, and future revenue generation (INR 1,500-1,800 crores/annum).

Yeah. So this facility is primarily to integrate all our manufacturing units... So we have already identified around 27 acres nearby Hyderabad and this plant construction will start anytime in the second quarter of this financial year.

Risks & concerns

  • Q4 Margin Compression

    medium

    Q4 margins dipped due to low-margin projects and increased raw material costs (steel, cable up 17-18%), but full-year margins improved.

    Analyst acknowledged

  • Unviable BESS Tenders

    low

    Management consciously avoided certain BESS tenders due to unviable pricing and reverse auction thresholds, prioritizing profitability over volume.

    Management downplayed

  • Geopolitical Impact on Raw Material Costs

    low

    Geopolitical scenarios can cause abnormal increases in raw material costs, leading to staggered deliveries, but management states they manage seasonal increases.

    Analyst acknowledged

  • Perception of Solar Overcapacity

    low

    Management clarified that the perception of solar overcapacity is incorrect; the challenge lies in grid stability and connectivity, which the government is addressing.

    Analyst downplayed

Q&A highlights

8 direct
Revenue and Net Profit Guidance for FY27 Direct
So having said this, maybe anything around 60% to 70% of revenue growth will be there even coming financial year. And most of these contracts are long-term contracts. And this profitability is going to be almost in terms of percentage is going to be the same or in terms of absolute number and you see that this is same almost around there also around 60% to 70% growth is going to be there in the from last financial year.

Analyst sought specific growth numbers for the upcoming fiscal year, and management provided clear 60-70% growth guidance for both top and bottom line.

Asked by Randhir Singh

Order Book Pipeline and L1 Orders Direct
So in addition to the existing order book of around INR7,150 crores order book, and anytime actually which we are tender's participation is around INR25,000 crores to INR30,000 crores but our win rate is around 20%, 25%. But currently we are almost sitting on around INR2,850 crores orders L1 which we are going to get in the first quarter.

Clarified the distinction between the existing order book, the tender pipeline, and the immediately convertible L1 orders, providing visibility into near-term revenue.

Asked by Nishita Shanklesha

New Integrated Manufacturing Facility Capex and Revenue Potential Direct
So the Capex would be around INR120 crores to INR130 crores. ... But otherwise with this INR120 crores of yeah he's in charge with this INR120 crores of capital investment to give you a single answer it's it can generate up to INR1,500 to INR1,800 crores of revenue per annum.

Provided specific investment figures for the new facility and its significant potential for annual revenue generation, clarifying its future impact.

Asked by Nishita Shanklesha

Adani Order Status and Execution Direct
Adani order which we have received a few months back that is already under execution because actually after having the land and after having the connectivity only Adani is allotting the project to allotted the project to us. And this is in midway. This plant needs to be commissioned by next March. So already I think we have executed around 20% even few crores, I think almost around INR70 crores, INR80 crores even billing is also billing is also done with Adani. It is under full swing. It is under in under construction under WIP and which we are in fact as of now actually which we are little ahead of timelines of this project.

Addressed concerns about a major Adani order, confirming it's under execution, ahead of schedule, and already generating revenue, providing confidence in project delivery.

Asked by Prem Kumar

Q4 Margin Dip Reasons Direct
Yeah, there are two major reasons, Urmishji. One is in the last quarter actually we have booked some low margin projects billing in this fourth quarter. And second reason being there is a little increase in the material cost particularly in terms of renewable energy. Steel and cable prices gone up little higher. So because of that also there is a little increase in the cost of material.

Clarified the specific factors contributing to the Q4 margin compression, attributing it to project mix and raw material cost increases, while reassuring that full-year margins improved.

Asked by Urmish Shah

AP 2 GW IPP Project Equity Infusion and Dilution Risk Direct
So for INR250 crores of equity infusion we have a lot of avenues. We have, we have no issues on that. And moving forward as we go along, based on the timing and all, we can raise the equity which is required for the IPP 2 gigawatt.

Addressed analyst's concern about potential dilution from equity requirements for the large AP IPP project, with management indicating sufficient avenues for funding without immediate dilution risk.

Asked by Ayush Sharaf

Defence Segment Rationale and Product Focus Direct
We right now are like ratio between the EPC contracts and the products is about 90% to 10%, which we would like to upgrade towards products with the ratio of 70% to 30%. So in the products, because the best, the product array that you can have is from the defence where your margins can be higher. And plus we also were actually keenly looking at intellectualize our products rather than being in the regular, like exclusivity products to a few exclusive intellectual property based like products.

Explained the strategic shift towards higher-margin products, particularly in defense, to improve the overall product-to-EPC ratio and leverage intellectual property.

Asked by Urmish Shah

Data Center Wallet Share and Capex per MW Direct
Actually we are not risen to that. It's because actually it is a multi billion requirement of data centres but actually our activity here is at least to start with 2 gigawatt, 3 gigawatt of data centres. Sorry megawatts, 2 megawatt and 3 megawatt of data centre. So each megawatt is coming maybe around INR 35 crores to INR 40 crores of our scope of work actually.

Provided specific capex figures for their scope of work in data centers (INR 35-40 crores per MW), clarifying their role in this capital-intensive segment.

Asked by Surya Nayak

3 min read 6 chapters

Detailed narrative

Q4 & FY26 Performance Overview

Bondada Engineering Limited reported a robust financial year, with FY26 revenue reaching INR 2,843 crores. The company has maintained an impressive Compound Annual Growth Rate (CAGR) of 90-95% over the last three years and 53% over the past 14 years. Net profit for FY26 stood at INR 211 crores, and the full-year EBITDA margin improved to 7.5% from 7.2% in FY25. Despite a slight dip in Q4 margins due to a mix of low-margin projects and increased raw material costs, management emphasized the overall positive trajectory.

Strong Order Book and Future Growth Drivers

As of March 31, 2026, Bondada Engineering boasts a strong order book of INR 7,147 crores, with renewable energy contributing approximately 65% (INR 4,536 crores) and Battery Energy Storage Systems (BESS) accounting for INR 1,463 crores. The company also has a significant pipeline, including INR 9,000 crores for 2 GW AP IPP projects and INR 2,850 crores in L1 orders expected to convert in Q1 FY27. This order book is projected to be executed over the next 18-20 months, underpinning future revenue growth.

Strategic Expansion into New Segments

Bondada is strategically expanding into high-growth and high-margin segments. In BESS, the company has secured 850 MW of orders from Tamil Nadu and AP, with projects expected to complete within 12-18 months, offering IRRs of 12-13% for BOO models and 17-18% for IPP solar. The data center segment is targeted to contribute 7-8% of total revenue in FY27 with an EBITDA margin of 14-15%. Furthermore, the company is actively pursuing opportunities in the defense and aerospace sectors, focusing on niche products and system integrations, including potential inorganic growth.

Integrated Manufacturing Facility Plan

To support its ambitious growth and enhance operational efficiency, Bondada Engineering plans to establish a new integrated manufacturing facility. This facility, requiring a Capex of INR 120-130 crores, will combine all existing manufacturing units for renewable energy products, MMS structures, transmission towers, and BESS components. Land has already been identified, and construction is slated to commence in Q2 FY27. This plant is expected to generate INR 1,500-1,800 crores in annual revenue once operational, contributing incrementally from FY28.

Financial Health and Working Capital Management

The company demonstrated strong financial health, achieving a cash surplus of INR 100 crores as of March 31, 2026, effectively making it debt-free. Operating cash flow was positive by INR 125 crores. Efficient working capital management was highlighted, with receivables maintained at 27-28% of revenue, translating to an average collection period of 87 days. Significant collections of over INR 1,000 crores were made in Q4, including INR 457 crores in March alone, supported by the use of the TReDS facility for vendor payments.

Future Outlook and Long-Term Vision

Bondada Engineering projects a 60-70% growth in both revenue and net profit for FY27, with EBITDA margins expected to remain stable or slightly improve by 20-30 basis points. The long-term vision includes achieving 25 GW of renewable energy capacity by 2030 (16 GW solar, 9 GW BESS). The company is also focusing on strengthening its telecom leadership, expanding into 5G infrastructure, and leveraging its experience for Kavach implementation in Indian Railways. The strategic shift aims for EPC to contribute 50-60%, IPP 20-25%, and products 15-20% of revenue by FY28/FY29.

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