Bigbloc Construction Limited

Bigbloc Construction Limited reported its highest-ever quarterly consolidated revenue from operations at ₹72.8 crores for Q3 FY26, marking a 28.1% year-on-year and 8.2% sequential growth. This strong performance was primarily driven by a 38% increase in sales volume, reaching 2,14,643 cubic meters. The company returned to profitability, posting a profit after tax of ₹0.4 crores for the quarter, reflecting improved operational metrics.

The quarter saw a significant improvement in profitability, with EBITDA reaching ₹8.1 crores, a 31.8% year-on-year increase. EBITDA margins expanded to 11.1%, up from 2.8% in Q3 FY25 and 10.8% in Q2 FY26. This margin expansion was attributed to improved capacity utilization, which rose to 67% consolidated (from 62% in Q2 FY26 and 53% in Q3 FY25), better price realizations (up 2-3%), and a more efficient cost structure due to lower fixed costs per unit.

The company secured a significant purchase order for AAC blocks from Larsen & Toubro, strengthening its presence in large infrastructure projects. Trial runs for the construction chemicals facility at Umargaon have commenced successfully, with commercial production expected soon, marking a key diversification step. The AAC wall panel business is gaining acceptance, particularly for industrial and commercial projects, with the JV facility's utilization reaching 51% and a target to increase wall panel utilization to 30-40% plus in the next 3-4 quarters.

Bigbloc Construction continues its focus on sustainability, with the contribution of renewable energy to total power consumption increasing to 36% during the quarter, up from 26% in the previous quarter. This improvement is a result of enhanced solar power installations across facilities, demonstrating commitment to reducing carbon emissions and lowering energy costs.

Management expects construction activity to remain strong, supported by government initiatives in affordable housing, infrastructure development, and urban redevelopment. The company aims to sustain momentum in capacity utilization, scale up AAC wall panel operations, and commence commercial operations for construction chemicals. Consolidated capacity utilization is targeted at 63-64% for FY26 and over 70% for FY27, with long-term EBITDA margins expected to reach 15-20%.

The company plans to undertake an expansion project for a new plant in Madhya Pradesh, with an installed capacity of 2,00,000 to 2,50,000 cubic meters per annum. The total capex for this facility is estimated to be ₹75-80 crores and is expected to be completed within the next 12 months. This expansion is intended to start in the running quarter, further bolstering the company's manufacturing capabilities.

Regarding the auditor's qualification on Ind AS 19 for employee benefits, management clarified that the actuarial valuation is performed annually instead of quarterly. The necessary provisions will be made in the annual accounts, and the company does not anticipate any major financial impact from this qualification. This addresses a potential concern raised by analysts during the call.