Capacit'e Infraprojects Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Capacit'e Infraprojects delivered strong Q3 FY26 results with record quarterly revenue and robust EBITDA growth, driven by efficient project execution. The company exceeded its annual order inflow guidance and significantly reduced its financing costs. Despite temporary execution delays from external factors, management is confident in accelerated execution in Q4 and continued growth in FY27, supported by a healthy order book and improved working capital management.

Highlights

  • Total Income for Q3 FY26 stood at INR681 crores, up 13% YoY.

  • EBITDA for Q3 FY26 grew 20% to INR108 crores, with margin expanding to 16% from 15.3% in Q3 FY25.

  • Year-to-date order bookings of INR3,909 crores surpassed the full-year guidance of INR3,500 crores.

  • Interest rates on fund-based limits reduced from 12.5% to 9.65%, and non-fund-based commissions from 2.5% to 1.3%.

  • INR38 crores of old outstanding receivables recovered, with INR12 crores more expected by March 2026.

Concerns

  • Temporary execution delays in Q3 FY26 due to municipal elections, extended monsoon, and regulatory interruptions (NGT).

  • Approximately INR100 crores in revenue was lost in Q3 FY26 due to these disruptions.

  • Challenges in recognizing JV revenue at the TCC level, impacting reported standalone revenue, though profits are recognized.

Key financials

2 periods

Q3 FY26

  • Total Income
    ₹681 Cr
    YoY +13%
  • EBITDA
    ₹108 Cr
    YoY +20%
  • EBITDA Margin
    16%
  • PAT
    ₹50 Cr

9M FY26

  • Total Income
    ₹1,930 Cr
    YoY +8%
  • EBITDA
    ₹318 Cr
    YoY +8%
  • EBITDA Margin
    16.6%
  • PAT
    ₹149 Cr
  • Net Assets Turnover
    5.5×

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

₹13,188 Cr

as of 2025-12-31 quantified

Execution

provides visibility over the next 3, 3.5, 4 years

Composition

Mix 2 client types
  • Public sector 61%
  • Private sector 39%

Share of order book by client type

Pipeline

other

Identified projects worth about INR14,000 crores

Cancellations & deferrals

  • deferred: Lost approximately INR100 crores in revenue due to disruptions (monsoon, elections, NGT issues)
Order bookings year-to-date reached INR3,909 crores, already exceeding full year guidance of INR3,500 crores, with confidence to further expand by INR500-1,000 crores in the next 45 days.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹100 Cr New plan · Capitalization will happen at Capacit'e level, charging monthly rental from all project sites.
    As far as the current financial year, the total additions as on date have been INR78.82 crores in the core assets. And we look for we believe that another INR15 crores to INR20 crores will get added. So we should be at about INR100 crores to INR105 crores of core asset addition in the current financial year.
  • Debt Debt disclosed Cost 9.7%
    • Rate reset Interest rates reduced from 12.5% to 10.25% for fund-based limits, and further to 9.65% by lead bank. Non-fund-based commissions reduced from 2.5% to 1.3%.
    • Repayment Expect close to INR70 crores repayment in the next financial year. ₹70 Cr
    Gross debt to equity stood at 0.25x, while net debt to equity at 0.12x.
  • Liquidity Liquidity disclosed INR38 crores of old receivables recovered, with INR12 crores more expected by March 2026. Collection profile improved by 30% over the corresponding period last year. Contract assets stand at INR1,900 crores (including debtors), with unbilled WIP at INR1,250 crores (consolidated).
    The recovery of INR38 crores as on date, not at the end of quarter has happened. And the remaining INR12 crores will happen before March. We don't see any slippage on that.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence 18-20%
    Next financial year on an expanded order book basis, we definitely need to grow at 18% to 20% as per the commitments to our client.

    — Rohit Katyal

Profitability

  • EBITDA Margin Profitability · Full Year FY26 · High confidence 16.5-17.5%
    Sir, we have already guided for 16.5% to 17.5%. For a construction company, it's never to be monitored on a quarterly basis. For the full year, this guidance is there for the current financial year, will continue for the next financial year.

    — Rohit Katyal

  • Standalone EBITDA Margin Profitability · Near Future · High confidence 17.5-18.5%
    So our guidance of 16.5% on a consol basis, standalone was always 18% plus. And we do believe we don't see any reason why that 17.5% to 18.5% on standalone will get impacted in the near future.

    — Rohit Katyal

Order Inflow

  • Order Bookings Order Inflow · Full Year FY26 · High confidence INR3,500 crores
    year-to-date bookings have reached INR3,909 crores, already exceeding our full year guidance of INR3,500 crores.

    — Rohit Katyal

  • Additional Order Bookings Order Inflow · Next 45 days · High confidence INR500-1,000 crores
    But we do believe that over the next 45 days, we will definitely increase our order book by another INR500 crores to INR1,000 crores.

    — Rohit Katyal

Working Capital

  • Working Capital Days Working Capital · Next 2-2.5 years · High confidence 90 days

    From 164 days today

    Second, the working capital days as on quarter ended 30/9/25 was 164 days, right, excluding retention. NOI between 165 to 170 currently, but we do see a reduction by March by a few days. However, we would like to see this again at the historic 90 days level over the next 2 to 2.5 years, and we are working behind that.

    — Rohit Katyal

Project Execution

  • MHADA Cluster 1 Tower Deliveries Project Execution · Full Financial Year FY26 · High confidence 8 towers
    During the full financial year FY '26, we are supposed to deliver 8 towers of cluster 1.

    — Rohit Katyal

  • JV Monthly Revenue Run Rate Project Execution · Next Financial Year · High confidence INR60-70 crores
    Given this and the associate infra works, we are confident that at the JV level, next financial year, the revenue should be between INR60 crores to INR70 crores per month.

    — Rohit Katyal

What to watch in Q4 FY26

MHADA Cluster 1 Tower Deliveries

Next 2 months
Current 2 towers inaugurated
Target 5 additional towers inaugurated (total 7 out of 8 for FY26)

Why it matters

Indicates execution progress and revenue realization from a key project.

Out of these two towers have been already inaugurated by the client and the remaining 5 towers will be inaugurated over the next 2 months.

Risks & concerns

  • Execution delays due to external factors

    high

    Extended monsoon, municipal elections, and NGT regulatory issues caused temporary disruptions and an estimated INR100 crores revenue loss in Q3 FY26.

    Management acknowledged

  • JV revenue recognition challenges

    medium

    Inability to fully recognize revenue from JV projects at the TCC level impacts reported standalone revenue, though profits are recognized.

    Management acknowledged

  • Labor availability and efficiency

    medium

    While new labor codes are not seen as a major cost impact, labor availability and contractor efficiency remain ongoing factors in project execution.

    Management acknowledged

Q&A highlights

6 direct
MHADA Tower Deliveries and JV Profit Recognition Direct
During the full financial year FY '26, we are supposed to deliver 8 towers of cluster 1. 1 tower has 278 tenements. So 8 towers will have corresponding number of tenements. Out of these two towers have been already inaugurated by the client and the remaining 5 towers will be inaugurated over the next 2 months. ... For the 9-month period, it stands at INR4.73 crores. Quarter 4 will see a similar number for a quarter. However, from next financial year, on the basis of expanded revenue, the profit addition from the JV to the limit of the share of Capacit'e will go up.

Clarifies the progress on key MHADA projects and explains the current JV profit recognition mechanism, indicating potential for higher JV profit contribution in the future.

Asked by Diwakar Rana

Recovery of Old Receivables Direct
Yes. We had committed internally to recover close to INR50 crores in the current financial year. The recovery of INR38 crores as on date, not at the end of quarter has happened. And the remaining INR12 crores will happen before March. We don't see any slippage on that.

Provides an update on the recovery of long-standing receivables, indicating improved liquidity and balance sheet health.

Asked by Diwakar Rana

Impact of New Labor Codes on Costs and Production Partial
No, not at the moment in time because 50% of our subcontractors have their own PF number already, and they are already compliant with the labor laws. The direct cost of our own personnel has been examined by our auditors, internal and external, and that is pegged at INR40 lakhs, which is practically negligible. ... So I don't see that labour code anyways will impact that. ... So you don't expect any dent on EBITDA margin which way you cross? We will not.

Addresses concerns about potential cost increases and production slowdowns due to new labor laws, with management downplaying the impact on margins and operations.

Asked by Rajesh Kumar Rathi

Q3 Revenue Loss due to Disruptions Direct
We have lost 1 month, we have lost INR100 crores at least. ... So I gave an approximate answer. It could be INR70 crores, it could be INR120 crores. Please don't hold me on that. But we can definitely take a realistic number and make it available to you.

Quantifies the impact of external disruptions (monsoon, elections, NGT) on Q3 revenue, providing context for the quarter's performance.

Asked by Deepak Poddar

Working Capital Days and Contract Assets Direct
So the entire contract assets stand at INR1,900 crores. ... So the company plans, as I told in the last quarter conference call also that over the next 8 quarters, out of which 1 quarter is already completed, which means September of '27, we would like this figure to be at 56% of the top line. ... The debtors stand at close to INR980 crores, if I'm not wrong. ... So I am saying that we have lost INR100 crores, close to INR100 crores. ... So the total creditors without provisioning, I repeat without provisioning because creditors levels include a provisional figure of INR242 crores. If you reduce that, the total creditor level for goods would stand at INR440 crores. And if you divide that by a revenue of INR2,600 crores also, you will get a 45 days creditor level average, okay?

Provides detailed figures on contract assets, debtors, and creditors, along with the company's ambitious target to significantly reduce working capital days over the next two years.

Asked by Aniket

Data Center Project Opportunities Direct
We have delivered 11 data centers to the Department of Telecommunication for the Indian defense over the last 2 years. 2 further of Udhampur and Kolkata are pending to be delivered, which will happen by March or April of the current calendar year. And therefore, we do believe that we are qualified. ... No, no. Similar margin. The margins are not very high. It is not design build.

Confirms the company's capability and active participation in bidding for data center projects, while clarifying that these projects offer similar, not higher, margins.

Asked by Dhananjay Mishra

Management's Ability to Scale Revenue and PAT Growth Partial
So if you see the PAT increase over the last 2 years has been on the basis of increase in revenue, keeping the indirect cost, fixed cost at a lower level. And therefore, the percentage of fixed cost has reduced in proportion to the top line, resulting in 100 basis points of margin expansion. all right? So we keep the guidance at the same level. If we are able to do better, we'll be very happy for the company and all its shareholders. ... See, the operating leverage playing out has already been seen by you all. So let us keep some things for the management to give positive surprises as well.

Analyst questioned if PAT growth would exceed revenue growth due to operating leverage; management indicated current guidance is maintained but hinted at potential positive surprises.

Asked by Rajesh Jain

Signature Global Project Execution Impact Direct
I am not aware of that. Our payments are on track. They have released all the advances. They have released the advances for the homework as well. So I don't see any impact as on date. While they continue to what we have been informed by the client that our project is sold out.

Addresses concerns about potential impact on the Signature Global project due to reduced bookings, with management confirming payments are on track and the project is sold out.

Asked by Rajesh Jain

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Detailed narrative

Q3 & 9M FY26 Financial Performance Overview

Capacit'e Infraprojects achieved its highest ever quarterly revenue in Q3 FY26, with total income reaching INR681 crores, a 13% year-on-year increase from INR601 crores in Q3 FY25. EBITDA for the quarter grew by 20% to INR108 crores, expanding the margin to 16% from 15.3% in the prior year. For the nine months ended December 31, 2025, total income was INR1,930 crores, an 8% increase, and EBITDA stood at INR318 crores with a margin of 16.6%, within the guided range. PAT for Q3 was INR50 crores, and for 9M, it was INR149 crores.

Strong Order Book and Inflow Momentum

The company's order book as of December 31, 2025, stood robustly at INR13,188 crores, providing significant revenue visibility for the next 3-4 years. Year-to-date order bookings for FY26 reached INR3,909 crores, already exceeding the full-year guidance of INR3,500 crores. Management expressed confidence in further expanding the order book by an additional INR500-1,000 crores in the next 45 days, potentially bringing the total FY26 inflow to INR5,000 crores, a 35% increase over the initial target. The order book is diversified with 61% from the public sector and 39% from the private sector.

Operational Resilience Amidst Execution Challenges

Despite facing temporary execution delays in Q3 FY26 due to external factors such as extended monsoons, municipal elections in the MMR region, and regulatory interruptions in the NCR region (NGT issues), project execution progressed well. Management estimated that approximately INR100 crores in revenue was lost during Q3 FY26 due to these disruptions. However, execution momentum has since normalized, and the company anticipates accelerated execution in Q4 FY26, expecting to achieve a record quarterly turnover.

Improved Financial Discipline and Cost of Debt

Capacit'e has demonstrated strong financial discipline by successfully reducing its interest rates on fund-based limits from 12.5% to 10.25% over the past two years, with a further reduction to 9.65% sanctioned by the lead bank. Non-fund-based limit commissions also saw moderation from an average of 2.5% to 1.3%. These reductions are expected to positively impact finance costs in FY27. The company maintains a healthy balance sheet with a gross debt to equity ratio of 0.25x and a net debt to equity ratio of 0.12x.

Working Capital Management and Receivables Recovery

The company is actively focused on improving its working capital cycle, with working capital days (excluding retention) at 164 days as of September 30, 2025. The target is to reduce this significantly to 90 days over the next 2-2.5 years. Notable progress has been made in recovering old receivables, with INR38 crores out of INR50 crores already recovered, and the remaining INR12 crores expected by March 2026. An additional INR25 crores from a K-RERA matter is also anticipated in Q1 FY27, further bolstering liquidity.

Project-Specific Updates and Future Growth Drivers

For the MHADA projects, 2 out of 8 planned Cluster 1 towers for FY26 have been inaugurated, with 5 more expected in the next two months. The JV order book is valued at over INR15,000 crores (TCC level), with a projected monthly revenue run rate of INR60-70 crores for the next fiscal year. CIDCO projects are expected to generate INR60 crores per month, and Signature Global projects, after Phase 2 handover in March, are projected to contribute INR30 crores per month. The company is also actively bidding for data center projects, leveraging its experience of delivering 11 data centers previously.

FY27 Outlook and Capital Expenditure Plans

Capacit'e Infraprojects is targeting an 18-20% revenue growth for FY27. The EBITDA margin guidance for the full year FY26 remains at 16.5-17.5% on a consolidated basis, with standalone margins expected to be 17.5-18.5%. The company's core asset additions for FY26 are projected to be INR100-105 crores, with INR78.82 crores already spent. Capex plans for FY27 will be finalized and disclosed after the Board meeting scheduled for March 20, 2026, with capitalization primarily occurring at the Capacit'e level.

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