B.R.Goyal Infra. — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

B.R.Goyal Infra reported a strong H1 FY26 with record turnover and significant PAT growth, driven by robust order inflows and efficient execution. The order book expanded by 73% YoY, providing substantial revenue visibility. While operating cash flow was negative in H1 due to project investments, management anticipates it will turn positive by the fiscal year-end, maintaining a positive outlook for the infrastructure sector.

Highlights

  • Highest ever H1 consolidated turnover of ₹342 crores, reflecting 60.56% YoY growth from ₹213 crores in H1 FY25.

  • Profit after tax (PAT) grew to ₹16 crores in H1 FY26, up from ₹6 crores in H1 FY25, indicating strong profitability improvement.

  • Order book grew 73% YoY to ₹1,535 crores as of September 30, 2025, providing strong revenue visibility for the next two years.

  • Secured new orders worth ₹582.45 crores in H1 FY26 across roads, buildings, wastewater, and toll collection.

  • Successful diversification into the wastewater treatment segment, with an order book of ₹162 crores in this segment.

Concerns

  • Operating cash flow was negative in H1 FY26 due to investments in new projects, though management expects it to turn positive by March 2026.

  • Absolute receivables increased, but management clarified it's proportional to increased turnover and working capital cycle remains stable at 45-60 days.

Key financials

  1. Revenue from Operations ₹342 Cr +60.6%YoY
  2. EBITDA ₹27 Cr
  3. EBITDA Margin 8%
  4. Profit After Tax ₹16 Cr +166.7%YoY
  5. Capex (basic) ₹13.5 Cr
  6. Debt Increase ₹7 Cr

What they filed

Q4 FY26: revenue up 36.8%, net profit up 61.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue226 353 205 297 329 +46%483 +37%
EBITDA7 25 12 29 28 +300%47 +88%
Net profit4 18 6 19 16 +300%29 +61%
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

₹1,535 Cr

as of 2025-09-30 quantified

73% YoY

Inflow this quarter

₹582.45 Cr

Execution

Between 12 months to 36 months, with majority around 18-24 months for current order book.

Composition

Mix 4 segments
  • Road EPC 65.1%
  • Building EPC 6.5%
  • Wastewater 10.4%
  • Toll Collection 17.9%

Share of order book by segment

Pipeline

L1 awaiting loa

Overall bided projects, new plazas, and water/wastewater projects in pipeline.

The company has a strong order book providing clear visibility for the next two years and is confident in delivering consistent growth.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹16 Cr
    • Plant and machinery, construction equipment and vehicles
    Amount invested by the company in capex is around INR13.5 crores on basic and including GST is around INR16 crores. This is majorly in the plant and machinery, construction equipment and vehicles.
  • Debt Gross ₹77 Cr
    in the next 6 months, the debt has increased by INR7 crores. from INR 70 crore to INR77 crores now. So, do you have plans to further increase the debt or how will you do it? Sir, the main reason for increasing my debt is that I had done a capex.
  • Liquidity Liquidity disclosed Working capital cycle is around 45-60 days. Operating cash flow was negative in H1 due to project investments but is expected to be positive by March 2026. Bank guarantee limit enhancement from INR 100 crores to INR 325 crores is being pursued.
    So, working capital cycle is around 45 days to 60 days and in comparison to turnover, if you compare then the working capital cycle and debt receivables have not increased by a percentage, but in absolute terms, it has increased because of the increase in turnover. That's why. So, there won't be any challenge in terms of working capital which we will face problem to achieve the current year targets. ... So, positively, on 31st March, my operating cash flow will be positive. ... in the case of around INR100 crores, there will be an enhancement of INR325 crores.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 35-40%
    Sir, we are expecting around 35% to 40% growth on top line as well as on bottom-line also.

    — Dasharath Tomar

  • H2 FY26 Turnover Revenue · H2 FY26 · High confidence ₹400-450 crores
    And we expect that in the current H2, we will achieve a turnover of INR400 crores to INR450 crores.

    — Dasharath Tomar

  • FY26 Turnover Revenue · FY26 · High confidence ₹700-750 crores
    Yes sir. We are expecting INR700 crores to INR750 crore. That's why I am saying that we are targeting around 35% to 40% growth from the last year.

    — Dasharath Tomar

  • Revenue Growth Revenue · FY27 · High confidence 15-20%
    For FY '27, we are expecting growth in 15% to 20%.

    — Dasharath Tomar

Profitability

  • EBITDA Margin (Consolidated) Profitability · FY26 · High confidence 11-13%
    So, this time we are expecting EBITDA margins to be somewhere between 11% to 13% on a consolidated basis.

    — Dasharath Tomar

  • EBITDA Margin (Wastewater) Profitability · Ongoing · High confidence 18-20%
    In waste water, almost EBITDA becomes 18% to 20%.

    — Yash Goyal

  • PAT (Wastewater) Profitability · Ongoing · High confidence 12-15%
    In PAT is 12% to 15%. So, in this, in waste water, PAT remains good.

    — Yash Goyal

  • EBITDA Margin (Toll Collection) Profitability · Ongoing · High confidence 2-4%
    In TCC, EBITDA remains around 2% to 4%.

    — Yash Goyal

  • PAT (Toll Collection) Profitability · Ongoing · High confidence 1.5-3%
    And PAT remains from 1.5% to 2.5% or 3%.

    — Yash Goyal

Order Book

  • Order Book Value Order Book · by March 31, 2026 · High confidence ₹2,000 crores
    So, we are expecting that on 31st March '26, we will have an order of around INR2,000 crores.

    — Dasharath Tomar

Order Inflow

  • New Orders from Pipeline Order Inflow · near future · Medium confidence ₹500 crores
    So, out of that 24%, INR2,500 crores orders, we expect to get around INR500 crores of new orders in the near future.

    — Yash Goyal

What to watch in Q3 FY26

Operating Cash Flow

by March 31, 2026
Current Negative in H1 FY26
Target Positive by March 31, 2026

Why it matters

Verifies management's expectation of improved cash generation and financial health by fiscal year-end.

So, positively, on 31st March, my operating cash flow will be positive.

Risks & concerns

  • Payment delays from government schemes (Jal Jeevan/AMRUT)

    medium

    Past issues due to payment mechanism changes, but new mechanism (central government directly paying contractors) is expected to resolve this for future projects.

    Analyst addressed

  • Working capital stretch due to increased receivables

    low

    Receivables increased in absolute terms but not as a percentage of turnover; working capital cycle remains stable at 45-60 days, no significant challenge expected.

    Analyst downplayed

  • Negative operating cash flow in H1 FY26

    low

    Negative OCF is due to investments in new projects and WIP; expected to turn positive by March 31, 2026, as realizations begin.

    Analyst acknowledged

Q&A highlights

8 direct
Toll Plaza Project Evaluation and Bid Pipeline Direct
we look at three different aspects when we are bidding for a plaza. First, we collect our data manually... Then, we match those data with the banking which has been done in the past from that plaza and the data provided by the government authorities. We compile these three data and then we make our numbers and that is how we bid our project cost.

Provides insight into the company's rigorous data-driven approach for bidding on toll collection contracts, including manual data collection and cross-verification.

Asked by Tej Pal Singh

Management of Increased Receivables and Working Capital Cycle Direct
working capital cycle is around 45 days to 60 days and in comparison to turnover, if you compare then the working capital cycle and debt receivables have not increased by a percentage, but in absolute terms, it has increased because of the increase in turnover. That's why. So, there won't be any challenge in terms of working capital which we will face problem to achieve the current year targets.

Addresses concerns about rising receivables, clarifying that the increase is proportional to turnover growth and the working capital cycle remains healthy, mitigating a potential red flag for investors.

Asked by Tej Pal Singh

Payment Issues with Government Schemes (Jal Jeevan/AMRUT) Direct
in AMRUT 1.0, the payments were struck because there was a change in mechanism of the payment system by central government. So, we were not participating in those bids, because since this financial year only, we have started for waste water treatment. So, right now the projects which we are executing in Tamil Nadu, these are for World Bank. ... So, now what government has did is the central government is taking the money from the state government and the central government is directly paying to the contractors. So, there is a surety of payment which is to be done.

Explains past payment issues in government schemes and highlights a new mechanism where the central government directly pays contractors, reducing payment risk for future projects.

Asked by Saket Kapoor

Operating Cash Flow Status and Future Outlook Direct
And if you see now, the operating cash flow is negative. There has been an enhancement in WIP because all the money has been deployed there as well. Now, this realization has started there from the government department. So, positively, on 31st March, my operating cash flow will be positive.

Clarifies the reason for negative operating cash flow in H1 (investment in new projects) and provides a clear timeline for when it is expected to turn positive (by March 2026), reassuring investors about liquidity.

Asked by Rohan Mehta

Margin Differences Across Business Segments Direct
Sir, the EPC building, EPC road remains almost the same, sir. Almost 13% to 15% EBITDA remains and 7% to 8% PAT remains. In waste water, almost EBITDA becomes 18% to 20%. In PAT is 12% to 15%. So, in this, in waste water, PAT remains good. In TCC, EBITDA remains around 2% to 4%. And PAT remains from 1.5% to 2.5% or 3%.

Provides a detailed breakdown of EBITDA and PAT margins across different segments (EPC, wastewater, toll collection), which is crucial for understanding the company's profitability drivers and future margin potential as the business mix evolves.

Asked by Rohan Mehta

Competition in HAM/PPP Models for Wastewater Direct
Sir, actually, there is competition in HAM, sir. But, in the long term, the IRR of the projects is very good. We have also started bidding, sir. We had put in a single HAM worth INR950 – INR 1,000 crores. We didn't get that. We have a subsidiary worth INR80 crores. The project is going on in SPB. State HAM. ... So, HAM is our priority. It is one of the priorities. But, it is not the utmost priority.

Acknowledges competition in HAM projects but indicates a strategic focus on EPC as the primary priority while still exploring HAM opportunities, providing clarity on the company's growth strategy.

Asked by Rohan Mehta

RMC Plant Utilization in H2 FY26 Direct
Ma'am, actually, in H1, primarily, due to rains, our third-party consumption is reduced. Because, the third-party, the local builders, the building constructors, they need ready mix concrete. So, in H2, our biddlers, the tie-ups that we are already supplying, we automatically increase there If we look at it tentatively, there is a ratio of 35% to 65%. In H1, it is 35% and in H2, it is 65%.

Explains the lower RMC utilization in H1 due to monsoon and projects a significant increase in H2, indicating better operational efficiency and revenue contribution from this segment in the coming period.

Asked by Muskaan Malhotra

Long-term Revenue Mix Target Direct
So we are predicting the future. So the way we are bidding around 60% revenue will come from road contract, 10% will from building and balance 15% to 20% is from toll collection and same balance 15% to 20% is from wastewater.

Outlines the company's strategic vision for its future revenue composition, showing a continued strong focus on road contracts while growing contributions from toll collection and wastewater.

Asked by Sana

2 min read 5 chapters

Detailed narrative

Strong H1 FY26 Performance and Order Book Growth

B.R.Goyal Infrastructure Limited achieved its highest ever H1 consolidated turnover of ₹342 crores in H1 FY26, marking a robust 60.56% year-on-year growth compared to ₹213 crores in H1 FY25. This performance was supported by efficient execution and higher toll collection contracts. The company's order book as of September 30, 2025, stood at ₹1,535 crores, representing an impressive 73% growth from ₹887 crores on September 30, 2024. New orders worth ₹582.45 crores were secured during H1 FY26, contributing to this strong pipeline.

Profitability Improvement and Margin Outlook

The company demonstrated significant profitability improvement, with Profit After Tax (PAT) increasing to ₹16 crores in H1 FY26 from ₹6 crores in H1 FY25. EBITDA for H1 FY26 was ₹27 crores, translating to an EBITDA margin of 8.03%. Management guided for a consolidated EBITDA margin of 11-13% for the full FY26, with potential to reach 15-20% if more water-infra orders are secured. Segment-wise, wastewater projects are expected to yield 18-20% EBITDA and 12-15% PAT, while toll collection contracts are projected at 2-4% EBITDA and 1.5-3% PAT.

Strategic Diversification and Project Pipeline

B.R.Goyal Infra has strategically diversified into the wastewater treatment segment, securing approximately ₹162 crores in orders. The company's overall bid pipeline stands at around ₹2,500 crores, with specific targets of ₹500 crores for new toll plazas and ₹700-750 crores for water/wastewater projects. The management highlighted a shift in government payment mechanisms for schemes like Jal Jeevan Mission, where the central government now directly pays contractors, reducing payment risk. The company is also exploring new geographies like Bihar for wastewater projects.

Capital Expenditure and Debt Management

The company incurred a capital expenditure of approximately ₹16 crores (including GST) in H1 FY26, primarily for plant, machinery, construction equipment, and vehicles. This capex is aimed at ensuring smooth and fast project execution. Debt increased by ₹7 crores, from ₹70 crores to ₹77 crores, mainly to fund this capex. Management stated that the debt-to-equity ratio remains below the industry average, providing ample headroom for future growth. The working capital cycle is maintained at a healthy 45-60 days.

RMC Division and Real Estate Contribution

The Ready-Mix Concrete (RMC) division, based in Indore, has an installed capacity of 1.7-1.8 lakh cubic meters per annum and operates at 70-75% utilization. While H1 utilization was lower due to monsoons, it is expected to increase to 65% in H2 FY26. The company also generates revenue from real estate, having completed its first private industrial park and launched two plotting projects in Indore. The remaining available real estate area is approximately 1.6 lakh square feet.

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