Capacit'e Infraprojects Limited — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Capacit'e Infraprojects delivered its highest-ever Q2 results, driven by strong execution and robust order inflows that have already met the initial full-year target. The company demonstrated financial discipline by reducing gross debt and improving debtor days, while maintaining healthy EBITDA margins. Strategic focus on well-funded government and existing private clients, coupled with an accelerating MHADA project, positions the company for continued growth, despite ongoing labor challenges.

Highlights

  • Record Q2 results in company's history, with total income up 24% YoY to 650 crores.

  • EBITDA margin maintained at 16.8%, aligning with the higher end of the full-year guidance of 16.5%-17.5% (excluding other income).

  • Strong order inflow of 3,464 crores year-to-date, already meeting the initial full-year target of 3,500 crores.

  • Significant debt reduction, with gross debt falling to 405 crores and net debt-to-equity at a healthy 0.11x.

  • Successful recovery of 8.69 crores from a slow-moving asset (Neelkanth client) and sale of properties worth 14 crores, with another 30 crores expected soon.

Concerns

  • Labor availability remains a challenge across the industry, though management is implementing strategies to mitigate it.

  • Receivables from PWD Maharashtra (JJ Hospital) are 45 crores, with 90-day outstanding, though 50% is expected in December.

Key financials

  1. Total Income ₹650 Cr +24%YoY
  2. EBITDA ₹108 Cr +14%YoY
  3. EBITDA Margin 16.8%
  4. PAT ₹51 Cr +14%YoY
  5. PAT Margin 7.9%
  6. Gross Debt ₹405 Cr
  7. Net Debt-to-Equity 0.11×
  8. Net Asset Turnover 5.4×

What they filed

Q1 FY27: revenue up 6.8%, net profit down 14.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue518 590 671 589 646 +25%675 +14%712 +6%629 +7%
EBITDA95 90 86 102 108 +14%108 +20%109 +27%99 −3%
Net profit45 52 53 47 51 +13%50 −4%45 −15%40 −15%
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

₹11,991 Cr

as of 2025-09-30 quantified

Execution

accelerated execution in the second half of FY26 and thereon

Composition

Mix 2 client types
  • Public Sector 60%
  • Private Sector 40%

Share of order book by client type

Pipeline

other

Project pipeline for coming quarters

Robust order book and healthy pipeline provide strong visibility for accelerated execution in H2 FY26 and beyond.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹405 Cr Cost 10.3%
    • Repayment Reduction in gross debt from 417 crores (Mar 31, 2025) to 405 crores (Sep 30, 2025). ₹12 Cr
    • Repayment Further repayment of Avendus loan in the current quarter. ₹7.14 Cr
    • Rate reset Average bank interest rate of 10.3% on working capital limit from Q3 onwards, commissions on BG/LC down by 75 bps.
    Gross debt as on September 30, 2025 stood at 405 crores, down from 417 crores as on 31st March 2025, with gross debt-to-equity at 0.22x and net debt-to-equity at 0.11x.
  • Liquidity Cash ₹65 Cr · Undrawn ₹300 Cr Cash balance maintained above 65-70 crores. Unutilized bank guarantee/LC limits of ~300 crores, plus ~150 crores project-specific limits from SBI. Total assessed limits within consortium are 1,420 crores.
    So, fund-based total assessed limit is Rs.240 crores and we continue to carry a cash balance at any given point in time of more than Rs.65-70 crores. ... The unutilized bank guarantee limits or LC limits will be close to about Rs.300 crores or thereabouts. This does not include the project-specific limits of State Bank of India of close to about Rs.150 crores.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 16.5%-17.5%
    We have given a guidance for the full year of EBITDA between 16.5% to 17.5%. We expect the year to end at the higher trajectory, close to 17.5%.

    — Rohit Katyal

Order Inflow

  • Order Bookings Order Inflow · FY26 · High confidence 3,500 crores
    So, the initial target was 3,500 crores. Obviously, we cannot not take any orders for five months. So, yes, we will cross our target quite decently in the current financial year, which could mean certain additional revenues happening in the next financial year.

    — Rohit Katyal

  • CIDCO 7th Location Order Inflow · Q4 current fiscal · Medium confidence ~2,000 crores
    The seventh location is expected to be received by the company in Q4 of the current fiscal. That will amount to close to 2,000 crores of executable work plus price variation computed thereon.

    — Rohit Katyal

Revenue

  • MHADA SPV Revenue Revenue · FY27 · High confidence >1,000 crores
    We do believe that we should cross 1,000 crores plus revenue in FY27 at the SPV level.

    — Rohit Katyal

Execution

  • Q3 FY26 Execution Execution · Q3 FY26 · High confidence 725 crores
    We are targeting 725 for Quarter 3.

    — Rohit Katyal

  • March FY26 Execution Execution · March FY26 · High confidence 850 crores
    And in March, we are targeting 850 and that takes us to 2,810.

    — Rohit Katyal

  • Total FY26 Execution Execution · FY26 · High confidence 2,810 crores

    — Rohit Katyal

Working Capital

  • Debtor Days Reduction Working Capital · remaining FY26 · High confidence 20-25 days
    We have reduced that debtor level by 21-days already and we are well on track to reduce them further by 20, 25 days in the remaining period of the current fiscal.

    — Rohit Katyal

  • Debtor Level Working Capital · FY27-end · Medium confidence pre-COVID period
    But we have given ourselves two years, that is FY27-end to get us back to the debtor level of pre-COVID period.

    — Rohit Katyal

Billing

  • CIDCO Billing Billing · next financial year · High confidence 720 crores
    We will be billing 720 crores in the next financial year

    — Rohit Katyal

Market context

  • Signature Global Revenue Revenue · current financial year · High confidence 150 crores
    That is the current status of Signature Global, and we expect close to 150 crores or thereabouts in the current financial year.

    — Rohit Katyal

What to watch in Q3 FY26

MHADA SPV Revenue Growth

Next financial year (FY27)
Current Accelerating, 35% recognized in order book
Target Nearly doubling up the revenue at the LLP, at the SPV level in the next financial year (>1,000 crores)

Why it matters

Significant project, doubling revenue at SPV level would be a major growth driver for the company.

On the sale residential 320-meter tall buildings, we have received, go ahead to commence work on all the 10 towers by the client... thereby giving a strong indication of nearly doubling up the revenue at the LLP, at the SPV level in the next financial year, point number one.

Risks & concerns

  • Labor Availability

    medium

    Labor availability is a challenge across the industry, with a shortfall of 2,000-3,000 workmen needed, facing competition from UAE, Middle East, and Eastern Europe.

    Management acknowledged

  • Receivables from PWD Maharashtra (JJ Hospital)

    medium

    45 crores pending from JJ Hospital, with 90-day outstanding, though 50% of funds are expected to be released in December.

    Management acknowledged

  • NGT impact in North India

    low

    Management expressed hope that NGT (National Green Tribunal) actions do not disrupt projects in North India, but remains confident in meeting guidance.

    Management acknowledged

Q&A highlights

7 direct
Receivables Recovery & Accounting Direct
No, we had a recovery from Neelkanth client, which was being shown in Q1 as receivable. Since then, it was realized in Q2 and therefore, that amount stands reduced by 8.69 crores. Such recoveries against those balance 55 crores will continue in the coming quarters as well. So, it was a slow-moving asset, which has now been recovered.

Clarified the reduction in outstanding receivables was due to actual recovery, not just write-offs, and provided specific figures for recovery and property sales.

Asked by Vansh Solanki

EBITDA Margin Guidance (Excluding Other Income) Direct
It is excluding other income. The EBITDA guidance has been given between 16.5% to 17.5%. We are at 16.8% for the first half year and we should end the financial year at the higher end of the top bracket.

Clarified the basis of the EBITDA margin guidance, confirming it excludes other income, which is crucial for consistent financial analysis.

Asked by Deepak Poddar

Execution Scale-up for FY26 Targets Direct
So, we never did 650 crores in a monsoon season also earlier. We are targeting 725 for Quarter 3. We have done 240 crores in October already. So, we are well on target to achieve that. And in March, we are targeting 850 and that takes us to 2,810.

Provided specific quarterly execution targets for H2 FY26, addressing analyst concerns about scaling up after H1 performance to meet the full-year revenue growth.

Asked by Deepak Poddar

MHADA Project Acceleration and Revenue Contribution Direct
On the sale residential 320-meter tall buildings, we have received, go ahead to commence work on all the 10 towers by the client... thereby giving a strong indication of nearly doubling up the revenue at the LLP, at the SPV level in the next financial year, point number one. The commercial tower, which was the only thing pending, we have just received go ahead in the current week...

Detailed the significant progress and future revenue potential from the large MHADA project, including specific timelines for construction and revenue doubling at the SPV level.

Asked by Parvez Qazi

Strategy for Project Selection (Government & Private) Direct
So, on the government side, we will only work for clients who have their own sources of funds, like MCGM, MHADA, and CIDCO, for example. On the other governments, we are yet waiting and watching. We will be actively participating for central government projects which have funds allocated from the budget...

Outlined the company's disciplined approach to project selection, focusing on funded government projects and existing private clients, which mitigates receivable risks.

Asked by Rajdeep Singh

Reasons for Healthy Margins and Differentiators Direct
So, we have started construction on the tallest building... it is a documented fact that Capacit'e is among the top three in the country as far as super high-rise is concerned. Needless to mention that it is a highly technical subject, and therefore, super high-rises will always command premium over normal 30-40 floor buildings.

Management articulated key competitive advantages, such as expertise in super high-rise construction and efficient asset utilization, which contribute to superior margins.

Asked by Gunit Singh

Debtor Days Reduction Plan Direct
So we have given a roadmap for reduction of debtors by total 60-days. We have reduced that debtor level by 21-days already and we are well on track to reduce them further by 20, 25 days in the remaining period of the current fiscal.

Provided a clear, quantified plan and progress update on improving working capital efficiency by reducing debtor days.

Asked by Gunit Singh

Impact of Accounting Policy Change on Revenue Partial
So we spoke about this in March and we are two quarters down. It has panned out now and it will continue, it will be cyclical. We have not booked any revenue on the new projects which we have received either from IIT or Downtown. So that will start happening sometime in Quarter 4.

Addressed the lingering question about the impact of accounting policy changes on revenue recognition, indicating that the initial impact has panned out and new projects will contribute from Q4.

Asked by Riddhesh Gandhi

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Detailed narrative

Strong Q2 Performance and Execution Momentum

Capacit'e Infraprojects reported its highest-ever Q2 results, with total income reaching 650 crores, a 24% increase year-on-year from 523 crores in Q2 FY25. This performance was driven by an unwavering focus on operational excellence and disciplined project management. The company is on track to achieve its full-year execution target of 2,810 crores, with Q3 targeting 725 crores and March targeting 850 crores, demonstrating strong momentum despite the monsoon season.

Robust Order Book and Strategic Inflows

The company's standalone order book stood at 11,991 crores as of September 30, 2025, with a healthy mix of 60% public sector and 40% private sector projects. Year-to-date order bookings have already reached 3,464 crores, nearly achieving the initial full-year guidance of 3,500 crores. Management emphasized a strategic focus on clients with assured funding, such as MCGM, MHADA, and CIDCO in Maharashtra, and central government projects, ensuring project viability and timely payments.

Debt Reduction and Improved Working Capital

Capacit'e Infraprojects continued its focus on strengthening its financial foundation, reducing gross debt to 405 crores as of September 30, 2025, down from 417 crores at March 31, 2025. This resulted in a gross debt-to-equity ratio of 0.22x and a net debt-to-equity of 0.11x. The company also made significant progress in reducing debtor levels by 21 days in H1 FY26 and aims for a further 20-25 days reduction in the remaining fiscal year, targeting pre-COVID levels by FY27-end.

MHADA and CIDCO Projects Driving Future Growth

The MHADA project is accelerating, with 25 rehab towers already handed over and actual construction on the 320-meter tall residential buildings commencing in January/February. Management expects revenue from the MHADA SPV to nearly double in FY27, exceeding 1,000 crores. For CIDCO, the first six locations total 2,600 crores, with 300 crores expected to be built in H2 FY26 and 720 crores billed in FY27. The seventh CIDCO location, valued at 2,000 crores, is expected in Q4 FY26, further boosting the order book.

Sustainable Margins and Operational Excellence

The company reported an EBITDA margin of 16.8% for Q2 FY26, which is well within its full-year guidance range of 16.5%-17.5% (excluding other income). Management attributed its healthy margins to its specialized expertise in super high-rise construction, which commands a premium, efficient asset utilization with an H1 FY26 net asset turnover of 5.4x, and a focused single-segment approach. The shift towards design-build (EPC) projects also offers opportunities for better engineering and higher profitability.

Addressing Labor Challenges and Strategic Outlook

While acknowledging industry-wide labor availability challenges, Capacit'e Infraprojects is actively managing this through a dedicated Labor Resource Department and adopting new technologies to reduce reliance on manual labor. The company's strategic decision to avoid unfunded state government projects, coupled with its strong balance sheet and robust order book, provides confidence in its path of sustainable value creation and continued high growth phase.

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