Bigbloc Construction Limited — Q3 FY26 earnings call

Call held 21 Jan 2026

Management summary

Bigbloc Construction Limited delivered its best quarterly performance in Q3 FY26, driven by strong post-monsoon demand recovery and improved operational efficiency. The company reported significant revenue and EBITDA growth, along with expanded margins and a return to profitability. Capacity utilization across facilities saw a notable increase, and strategic initiatives like the construction chemicals plant and wall panel business are progressing.

Highlights

  • Consolidated revenue from operations reached ₹72.8 crores, up 28.1% YoY.

  • EBITDA for Q3 FY26 was ₹8.1 crores, up 31.8% YoY, with margins expanding to 11.1%.

  • Sales volume increased by 38% YoY to 2,14,643 cubic meters.

  • Consolidated capacity utilization improved to 67%, driven by better price realizations and efficient cost structure.

  • Trial runs for the construction chemicals facility at Umargaon commenced successfully, with commercial production expected soon.

Concerns

  • Auditor's qualification on noncompliance with Ind AS 19 for employee benefits, though management stated no major impact is expected.

Key financials

  1. Revenue from Operations ₹72.8 Cr +28.1%YoY
  2. Sales Volume 2,14,643 cubic meters +38%YoY
  3. EBITDA ₹8.1 Cr +31.8%YoY
  4. EBITDA Margin 11.1%
  5. PAT ₹0.4 Cr
  6. Consolidated Capacity Utilization 67%

What they filed

Q1 FY27: revenue up 40.4%, net profit up 85.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue52 57 65 56 67 +30%73 +28%87 +35%79 +40%
EBITDA8 6 6 1 2 −75%8 +32%6 +10%6 +383%
Net profit0 0 -0 -5 -3 −1758%0 +52%-1 −165%-1 +85%
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.

Capital allocation

high confidence
  • Capex Capex disclosed
    • New plant in Madhya Pradesh (MP) with 2,00,000 to 2,50,000 cubic meters per annum capacity ₹75 Cr
    So we are planning to put up a plant in Madhya Pradesh with an installed capacity of around 2,00,000 to 2,50,000 cubic meters per annum. And the total capex for this facility will be in the tune of almost Rs. 75 crores to Rs. 80 crores.

Guidance & targets

Capacity Utilization

  • Consolidated Capacity Utilization Capacity Utilization · FY26 · High confidence 63-64%
    For the current year, I think we'll close average utilization levels of 63%, 64% for the entire year.

    — Mohit Saboo

  • Consolidated Capacity Utilization Capacity Utilization · FY27 · High confidence 70% plus
    And for FY27, we intend to reach capital utilization of almost 70% plus.

    — Mohit Saboo

  • Ramosadi Plant Utilization Capacity Utilization · next 1 or 2 quarters · Medium confidence 80%
    And the Ramosadi plan, we intend to get to 80% in the next 1 or 2 quarters.

    — Mohit Saboo

EBITDA Margin

  • EBITDA Margin EBITDA Margin · upcoming quarters · Medium confidence 15-20%
    On a long-term basis, I've always said that EBITDA margin of anywhere around 15% to 20% is easily sustainable in the industry. And hopefully, we intend to reach those margins in the upcoming quarters.

    — Mohit Saboo

Capex

  • MP Plant Operationalization Capex · from running quarter · High confidence 10 to 12 months
    So the MP plant capex, we intend to start hopefully in the running quarter. And the plant operationalization will take a period of almost 10 to 12 months.

    — Mohit Saboo

  • MP Plant Capex Capex · next 12 months · High confidence ₹75-80 crores
    And the total capex for this facility will be in the tune of almost Rs. 75 crores to Rs. 80 crores. ... Yes. It shall be done over the next 12 months approximately.

    — Mohit Saboo

AAC Wall Panel Utilization

  • AAC Wall Panel Utilization AAC Wall Panel Utilization · next 3 to 4 quarters · Medium confidence 30-40% plus
    And we should be able to keep on improving the capacity utilization in that plant and improving the sales of AAC wall panels over the next 3 to 4 quarters to reach 30%, 40% plus.

    — Mohit Saboo

What to watch in Q4 FY26

MP Plant Operationalization

next quarter
Current Capex initiated in running quarter
Target Progress towards operationalization within 10-12 months

Why it matters

This new plant represents a significant capacity expansion and future growth driver for the company.

So the MP plant capex, we intend to start hopefully in the running quarter. And the plant operationalization will take a period of almost 10 to 12 months.

Risks & concerns

  • Auditor's qualification on Ind AS 19 for employee benefits

    low

    Non-compliance with Ind AS 19 due to annual instead of quarterly actuarial valuation; management expects no major impact.

    Analyst downplayed

  • Slow carbon credit market

    low

    Carbon markets are currently slow, leading to a delay in securing and selling accumulated credits.

    Management acknowledged

Q&A highlights

8 direct
Realization improvement and current prices Direct
I think the average realization has just gone up by around 2% to 3% for this quarter.

Clarifies that improved realizations contributed to margin expansion, alongside volume growth and cost efficiencies.

Asked by Prasan

Cost changes versus last quarter Direct
as we improve our utilization levels, our operation costs also consequently goes down. We are able to save on the overall variable cost also to a certain extent and fixed cost to a big extent.

Explains the operational leverage and cost savings achieved due to higher capacity utilization, which boosted profitability.

Asked by Prasan

Vapi plant capacity utilization Direct
For Q3, it was around 68% for the Vapi plant.

Provides specific plant-level capacity utilization data, indicating strong performance at one of their key facilities.

Asked by Prasan

Ahmedabad and Ramosadi plants utilization outlook Direct
Ahmedabad StarBigBloc plant, last quarter capacity utilization was around 80% to 81%. And the Ramosadi plant, last quarter capacity utilization is around 51%. ... And the Ramosadi plan, we intend to get to 80% in the next 1 or 2 quarters.

Offers detailed insights into plant-specific utilization rates and future targets for the Ramosadi plant, highlighting growth potential.

Asked by Ashvath Rajan

Capex for MP plant and timeline Direct
So the MP plant capex, we intend to start hopefully in the running quarter. And the plant operationalization will take a period of almost 10 to 12 months.

Details the timeline and initiation of a significant growth capex project, which will add substantial capacity.

Asked by Ashvath Rajan

AAC wall panel adoption barriers and utilization Direct
panel utilization is so far around 10% and rest 40% utilization is from the block space. ... And we should be able to keep on improving the capacity utilization in that plant and improving the sales of AAC wall panels over the next 3 to 4 quarters to reach 30%, 40% plus.

Clarifies the current utilization split between panels and blocks in the JV facility and outlines ambitious growth targets for AAC wall panels, a key diversification product.

Asked by Jayshree Bajaj

Auditor's qualification on Ind AS 19 for employee benefits Direct
So for the Ind AS 19, for the employee benefit, the actuarial valuation, we are getting it done on an annual basis instead of a quarterly basis. And all that needs to be provided will be provided in the annual accounts. ... So we don't see any major impact of any qualification from the auditor for Ind AS 19.

Addresses a potential audit concern, clarifying that it's a timing difference in valuation and not expected to have a major financial impact.

Asked by Srijan Kaushik

Carbon credit accumulations Direct
I think we have pending credits to be issued worth almost 1,00,00 to 1,50,000 credits plus. ... And the carbon markets are a little slow currently. That's why we are not actively keen on getting those credits secured or sold.

Provides insight into potential future revenue from carbon credits and the current cautious approach due to market conditions.

Asked by Srijan Kaushik

2 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Overview

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.

Operational Efficiency and Capacity Utilization

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.

Strategic Initiatives and Product Diversification

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.

Sustainability Efforts

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.

Outlook and Growth Drivers

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%.

Capital Expenditure Plans

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.

Auditor's Qualification Clarification

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.

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