Capacit'e Infraprojects Limited — Q4 FY26 earnings call

Call held 21 May 2026

Management summary

Capacit'e Infraprojects reported a defining FY26 with robust revenue and EBITDA growth, exceeding order inflow guidance, and significant improvements in working capital and debt metrics. Despite Q4 execution challenges due to elections and labor migration, and commodity price volatility, the company remains optimistic about FY27 with strong order book visibility and targeted growth. Management has made a ₹10 crore provision for commodity price increases, which may be reversed if conditions improve.

Highlights

  • FY26 Revenue grew 11.61% YoY to ₹2,623 crores, demonstrating consistent performance.

  • FY26 EBITDA increased 12.66% YoY to ₹427 crores, maintaining a healthy margin of 16.3%.

  • Order inflow for FY26 reached ₹4,446 crores, surpassing the guidance of ₹3,500 crores, indicating strong business development.

  • Working capital days reduced by 43 days, and net cash from operating activities surged to ₹224 crores in FY26 from ₹52 crores in FY25, reflecting improved operational efficiency.

  • Interest cost decreased from 12.65% to 9.65%, and the bank rating was upgraded to BBB+, signifying an improving credit profile.

Concerns

  • Q4 FY26 revenue growth was 6.11% YoY, the lowest in 10-15 quarters, attributed to temporary disruptions from local elections and labor migration.

  • Q4 FY26 PAT declined 15.09% YoY to ₹45 crores, primarily due to a reduction in other income.

  • Geopolitical challenges have led to steep increases in commodity prices (aluminum, copper, electrical items), with escalation clauses not fully matching actual price increases, necessitating a ₹10 crores provision in Q4 FY26.

  • Labor availability remains a challenge, with the company still short of approximately 3,000 workmen across project sites.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹712 Cr
    YoY +6.1%
  • EBITDA
    ₹109 Cr
    YoY +26.7%
  • EBITDA Margin
    15.3%
  • PAT
    ₹45 Cr
    YoY -15.1%

FY26

  • Revenue
    ₹2,623 Cr
    YoY +11.6%
  • EBITDA
    ₹427 Cr
    YoY +12.7%
  • EBITDA Margin
    16.3%
  • PAT
    ₹193 Cr
  • Net Cash from Operating Activities
    ₹224 Cr
    YoY +330.7%

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

₹13,498 Cr

as of 2026-03-31 quantified

Composition

Mix 2 client types
  • Public Sector 57%
  • Private Sector 43%

Share of order book by client type

Pipeline

qualified rfp

Bids submitted for more than INR 5,000 crores

Order inflow during FY '26 stood at INR4,446 crores, exceeding our full year guidance inflow of INR3,500 crores. Supported by a strong pipeline of quality bids, we remain highly optimistic about order inflows during FY '27.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹67.81 Cr this quarter · ₹165 Cr (FY27) planned
    • Aluminum formwork, jump-form ₹165 Cr
    Last year, the addition was INR67.81 crores in quarter 4, right? And the additions for the full year was INR147.33 crores. For the current financial year, our target towards capex, mainly coming from aluminum formwork, jump-form will be close to about INR165 crores.
  • Debt Net ₹170 Cr · 0.4× EBITDA Cost 9.7%
    The gross debt stood at 0.25x and the net debt to equity stood at 0.10x. ... the interest cost over the last 15 months has come down from 12.65% to 9.65%. ... the net debt is approximately as on today, as I speak to you, less than INR170 crores.
  • M&A Non-core assets Divestment · Closed · Consideration ₹[object Object] (cash)

    Monetization of non-core assets to improve liquidity and balance sheet.

    Realized INR 44 crores in FY26 from non-core asset disposal.

    The company has realized aggregate INR44 crores during FY '26 against disposal of noncore assets or properties.
  • Liquidity Liquidity disclosed Net cash from operating activities stood at INR224 crores in FY '26 as compared to INR52 crores in FY '25. The company's bank rating has been upgraded to BBB+, signifying overall improving credit profile. The assessed working capital limits, fund-based and non-fund-based, stand fully tied up, providing clear headroom to boost execution in the coming year.
    Net cash from operating activities stood at INR224 crores in FY '26 as compared to INR52 crores in FY '25. The company's bank rating has been upgraded to BBB+, signifying overall improving credit profile. The assessed working capital limits, fund-based and non-fund-based, stand fully tied up, providing clear headroom to boost execution in the coming year.

Guidance & targets

Order Inflow

  • Order Inflow Order Inflow · FY27 · High confidence ₹4,500-5,000 crores
    I'll give you a range of INR4,500 crores to INR5,000 crores, and we are well on track to achieve that.

    — Rohit Katyal

Revenue Growth

  • Revenue Growth Revenue Growth · next 2 years (year-on-year) · Medium confidence 20%
    Over the next 2 years, we are seeing that we are giving a guidance of 20% revenue growth year-on-year.

    — Rohit Katyal

Profitability

  • EBITDA Margin Profitability · FY26, FY27 · Medium confidence 15.5-16.5%
    Considering the current situation, the EBITDA guidance for the full financial year '26, '27 will be in the range of 15.5% to 16.5%.

    — Rohit Katyal

  • EBITDA Margin (optimistic) Profitability · FY26, FY27 · Low confidence 16.5-17.5%
    However, if the global uncertainties cease over the next few weeks, a couple of months, the guidance will be restored to 16.5% to 17.5%.

    — Rohit Katyal

Asset Monetization

  • Non-core asset sales Asset Monetization · FY27 · High confidence ₹50 crores
    The company is expected to realize INR50 crores in FY '27 from sale of noncore assets.

    — Rohit Katyal

Capex

  • Capex Capex · FY27 · High confidence ₹165 crores
    For the current financial year, our target towards capex, mainly coming from aluminum formwork, jump-form will be close to about INR165 crores.

    — Rohit Katyal

Working Capital

  • Net Working Capital Days Working Capital · next 8 quarters · Medium confidence 56-60 days
    Over the next 8 quarters, you will see we achieving that what we were talking about net working capital of 56 to 60 days.

    — Rohit Katyal

Finance Cost

  • Reduction in Finance Cost Finance Cost · full year · Medium confidence ₹6-8 crores
    So yes, you can take it from us that on an absolute basis, the company will exhibit reduction in finance cost by maybe INR6 crores to INR8 crores for the full year.

    — Rohit Katyal

Other Income

  • Other Income per quarter Other Income · FY27 per quarter · High confidence ₹3-4 crores
    So going forward, then we can expect only about INR3 crores to INR4 crores per quarter as other income.

    — Rohit Katyal

What to watch in Q1 FY27

Reversal of commodity price provision

next 2 quarters
Current ₹10 crores provision made in Q4 FY26
Target Reversal of provision if escalation matches price increase

Why it matters

This reversal would positively impact profitability if commodity price volatility subsides and escalation clauses catch up.

If the escalation receivable from the client matches this increase overall over the next 2 quarters, the provisions so made will be reversed.

Risks & concerns

  • Commodity price inflation due to geopolitical challenges

    high

    Steep increase in prices of aluminum, copper, and electrical items; escalation clauses not fully matching actual price increases, leading to a ₹10 crores provision.

    Management acknowledged

  • Labor availability and migration issues

    medium

    Temporary disruptions due to local elections in MMR region and labor migration linked to assembly elections, leading to revenue loss of ₹45-50 crores in Q4 FY26 and ₹125 crores for FY26.

    Management acknowledged

  • Project slowdown in Tier 2/3 cities if commodity prices remain unchecked

    medium

    While metros are resilient, unchecked price increases could lead to a slowdown in projects in Tier 2/3 cities.

    Management acknowledged

  • Impact of GRAP implementation on execution

    low

    GRAP implementation in Delhi-NCR could potentially impact execution, but management stated no such stoppage from April till today.

    Analyst downplayed

Q&A highlights

7 direct
Impact of war and commodity pricing on execution and profitability Direct
So while our projects in the private sector have 100% pass-through for commodities, and the government sector, we are covered by escalation in all our projects, however, the increase in the escalation indices is not matching with the actual price increase, as I mentioned in my opening remarks, especially pertaining to products in electrical and aluminum formwork, which have inputs of copper and aluminum, which have increased drastically.

Analyst questioned the impact of geopolitical events on project costs and profitability, and management clarified the pass-through mechanisms and the current mismatch in escalation indices vs. actual price increases, leading to a provision.

Asked by Jainam Jain

Reasons for lower Q4 FY26 growth despite earlier guidance for record revenue Direct
So yes, the company has lost revenue of close to INR45 crores, INR50 crores, but then we would not like to put that an excuse because let's face the fact, in India, going forward, we will have to factor in a loss of 30 days due to elections, another 30 days due to NGT or environmental issues.

Analyst challenged management on the Q4 revenue growth being the lowest in 10-15 quarters, contradicting prior guidance. Management attributed it to unforeseen labor migration due to elections, acknowledging the impact but stating it's a factor to be managed going forward.

Asked by Diwakar Rana

Total revenue loss in FY26 due to disruptions Direct
In the whole of financial year, it will be about INR125 crores.

Analyst pressed for a specific figure on revenue loss due to disruptions, which management quantified for the full year, providing clarity on the scale of the impact.

Asked by Diwakar Rana

EBITDA margin guidance and inclusion of other income Direct
Excluding.

Analyst sought clarification on whether the EBITDA margin guidance of 15.5-16.5% included other income, to which management confirmed it was excluded, providing a clearer picture of core operational profitability.

Asked by Rahul Kumar

Working capital reduction and future finance cost run rate Direct
So the current year, you will see an absolute drop in, on an absolute level, a drop in the overall finance cost, including the advances on which interest is payable, all right? So yes, you can take it from us that on an absolute basis, the company will exhibit reduction in finance cost by maybe INR6 crores to INR8 crores for the full year.

Analyst inquired about the impact of working capital reduction on finance costs, and management provided a specific range for expected finance cost reduction, highlighting a key efficiency gain.

Asked by Darshil Jhaveri

Order book split between public and private sectors for FY27 guidance Partial
60% is public sector, 60% to 65%. Private will be 32% to 35%.

Analyst asked for a breakdown of the FY27 order book guidance by client type, which management provided, indicating a continued focus on public sector projects while maintaining private sector presence.

Asked by Rajesh Jain

Revenue targets for CIDCO and MHADA projects in FY27 Direct
We should be close to INR500 crores to INR600 crores in CIDCO, and we should be close to INR350 crores to INR400 crores in MHADA.

Analyst sought specific revenue targets for key projects, and management provided a clear range for both CIDCO and MHADA, offering visibility into execution from these large projects.

Asked by Vaibhav Shah

Procurement arrangement with Arisinfra Direct
It is an agreement for project supplies, purchase of certain commodities like cement, steel in bulk. So, the benefit only is that when the purchase done is about INR20 crores from one vendor, it's a joint negotiation which happens with the manufacturer by virtue of which we are able to lower.

Analyst asked about a specific procurement arrangement, and management explained it as a joint negotiation strategy to achieve bulk discounts, indicating a cost-saving initiative.

Asked by Rajesh Jain

2 min read 6 chapters

Detailed narrative

Strong FY26 Performance Despite Q4 Headwinds

Capacit'e Infraprojects delivered a robust FY26, with revenue growing 11.61% YoY to ₹2,623 crores and EBITDA increasing 12.66% YoY to ₹427 crores, achieving a 16.3% margin. This performance was driven by strengthened execution capabilities across project sites. However, Q4 FY26 saw a lower revenue growth of 6.11% YoY to ₹712 crores, impacted by temporary disruptions from local elections and labor migration, leading to an estimated ₹45-50 crores revenue loss in the quarter and ₹125 crores for the full year.

Significant Improvement in Working Capital and Debt Profile

The company achieved a significant reduction in working capital days by 43 days in FY26, leading to a substantial improvement in net cash from operating activities, which surged to ₹224 crores from ₹52 crores in FY25. The net debt stood at less than ₹170 crores as of the call date, with a net debt to equity ratio of 0.10x. The interest cost also saw a notable reduction from 12.65% to 9.65% over the last 15 months, and the bank rating was upgraded to BBB+, reflecting a healthier financial position.

Robust Order Inflow and Strong FY27 Outlook

Capacit'e Infraprojects secured order inflows of ₹4,446 crores in FY26, exceeding its guidance of ₹3,500 crores. The standalone order book stood at ₹13,498 crores as of March 31, 2026, with 57% from the public sector and 43% from the private sector. For FY27, the company targets an order inflow of ₹4,500-5,000 crores and anticipates a 20% year-on-year revenue growth, backed by a strong bidding pipeline of over ₹5,000 crores.

Commodity Price Volatility and Mitigation Strategy

Geopolitical challenges have led to steep increases in commodity prices, particularly for aluminum, copper, and electrical items. While private sector contracts offer 100% pass-through, government contracts' escalation indices are not fully matching actual price increases. As a prudent measure, the company made a ₹10 crores provision in Q4 FY26 for procurement costs. This provision may be reversed if escalation matches the price increase over the next two quarters.

Strategic Focus on Execution, Asset Monetization, and Capital Efficiency

The company continues its focus on increasing execution across projects and aims to accelerate project progress in FY27. It realized ₹44 crores from non-core asset sales in FY26 and expects to realize another ₹50 crores in FY27, with the remaining ₹90 crores over the next 24 months. Capex for FY27 is targeted at ₹165 crores, primarily for aluminum formwork and jump-form, supporting execution capabilities.

Project-Specific Revenue Expectations for FY27

Management provided specific revenue expectations for key projects in FY27. For CIDCO projects, revenue is expected to be in the range of ₹500-600 crores, and for MHADA projects, it is projected to be ₹350-400 crores. Substantial revenues are also anticipated from Downtown 25, NBCC, Signature Global, and key client Raymond, indicating a diversified revenue stream from the existing order book.

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