Cemindia Projects Limited — Q2 FY26 earnings call

Call held 31 Oct 2025

Management summary

Cemindia Projects Limited reported robust Q2 FY26 results with a 9% YoY revenue growth to ₹2,175 crores and a significant 49% increase in PAT to ₹108 crores, driven by an expanded EBITDA margin of 11.1%. The company's total order book stands at ₹9,700 crores, supplemented by ₹4,700 crores in L1 positions, providing strong revenue visibility. Management maintained its FY26 revenue growth target of 20-22% and is actively pursuing opportunities in new segments like data centers, while managing working capital effectively.

Highlights

  • Total operating income of INR2,175 crores in Q2 FY '26, translating into a growth of 9% on a year-on-year basis.

  • EBITDA margin was at 11.1% in Q2 FY '26 against 10.3% in Q2 FY '25, a growth of 19%.

  • PAT of INR108 crores in Q2 FY '26 against INR72 crores, a growth of 49% on a year-on-year basis.

  • The total order book now stands at close to INR9,700-odd crores, with an additional INR4,700 crores in L1 positions.

  • Management maintained its FY26 revenue growth target of 20-22%.

Concerns

  • Q2 revenue was 'a little down from quarter 1 as because of monsoon effect'.

  • Bangladesh is 'not in our focus because of some obvious reason' for new orders.

Key financials

2 periods

Q2 FY26

  • Total Operating Income
    ₹2,175 Cr
    YoY +9%
  • EBITDA
    ₹242 Cr
    YoY +19%
  • EBITDA Margin
    11.1%
  • PAT
    ₹108 Cr
    YoY +49%

H1 FY26

  • Total Operating Income
    ₹4,718 Cr
    YoY +8%
  • EBITDA
    ₹496 Cr
    YoY +13%
  • EBITDA Margin
    10.5%
  • PAT
    ₹245 Cr
    YoY +42%

What they filed

Q1 FY27: revenue up 5.6%, net profit up 2.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,991 2,270 2,532 2,576 2,195 +10%2,315 +2%2,973 +17%2,721 +6%
EBITDA182 207 255 240 202 +11%222 +7%358 +40%275 +15%
Net profit72 87 113 137 108 +50%111 +28%242 +114%141 +3%
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

₹9,700 Cr

as of 2025-09-30 quantified

Composition

Mix 2 geographies
  • Domestic Market 90%
  • International Market 7%

Share of order book by geography

Pipeline

L1 awaiting loa

L1 bids awaiting Letter of Award (LOA)

Management noted that the total order book including L1 positions is almost at ₹14,400 crores, with strong opportunities in new segments like data centers, large diameter tunnels, and airports.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹60 Cr this quarter · ₹250 Cr (FY26) planned
    Capex is around INR60-odd crores so far in Q2. And the expectation is like close to INR250 crores to INR30-odd crores of capex to be spent in the full year basis
  • Debt Debt disclosed
    And as usual, conservatively, we are financed with a net debt-to-equity ratio of 0.25x.
  • Liquidity Liquidity disclosed Working capital limits are at INR6,500 crores with 85-90% utilization. Bangladesh project receivables are INR100-130 crores, considered normal. Total mobilization advances are INR900 crores, with 20% interest-bearing. Net working capital days for Q2 are around 90 days.
    So again, we are at INR6,500-odd crores of the overall limits available with us. And the utilization again is like 85% to 90% fully.

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · High confidence 20-22%
    FY '26, I think we have projected already around 20%, 22%. It is around 20%.

    — Jayanta Basu

Order Book

  • FY26 Year-End Order Book Order Book · FY26 · High confidence INR15,000-16,000 crores
    We still want to maintain the same guideline end of the year, INR15,000 crores, INR16,000 crores will be the order book, if not more.

    — Jayanta Basu

Profitability

  • EBITDA Margin Profitability · Ongoing · Medium confidence around 11%
    But our endeavor will be to have around 11% EBITDA, PAT close to 4%.

    — Jayanta Basu

  • PAT Margin Profitability · Ongoing · Medium confidence close to 4%

    — Jayanta Basu

Order Book Composition

  • Data Center Vertical Share of Overall Order Book Order Book Composition · 2-year horizon · Medium confidence at least 15%
    So do you think this could become something like, let's say, 10%, 15% of the overall order book? At least 15%.

    — Jayanta Basu

Order Inflow

  • Thermal Sector Order Inflow Order Inflow · This year · Medium confidence INR2,000-2,500 crores
    But for us, it will be in the range of, say, INR2,000 crores, INR2,500 crores maximum in this year.

    — Jayanta Basu

What to watch in Q3 FY26

FY26 Revenue Growth Achievement

Next quarter (Q3 FY26)
Current 9% YoY in Q2, 8% YoY in H1
Target 20-22%

Why it matters

To assess if the company is accelerating its execution pace to meet the full-year revenue growth guidance, especially after a monsoon-affected Q2.

FY '26, I think we have projected already around 20%, 22%. It is around 20%.

Risks & concerns

  • Manpower availability for new large-scale opportunities

    medium

    While the company has continuous in-house capability building, quality manpower for large opportunities like shipbuilding remains a challenge.

    Management acknowledged

  • Monsoon impact on Q2 revenue

    low

    Revenue in Q2 was slightly down from Q1 due to monsoon effects, which is a historical trend affecting 14-16% of revenue.

    Management acknowledged

  • Local issues in Bangladesh project

    low

    The Bangladesh project faced some turmoil due to local issues, but it is now under control, and payments are received as required.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
FY26 Revenue Growth Target Direct
FY '26, I think we have projected already around 20%, 22%. It is around 20%.

Confirms the company's top-line growth ambition for the current fiscal year, providing clarity on revenue expectations.

Asked by Aditi Loharuka

Order Book and L1 Pipeline Details Direct
Yes, we have in the port sector, we received 1 order from JSW Port at Odisha, around INR800 crores of job. Similarly, we have received from the group on Vizhinjam Breakwater INR400 crores. And this is in port sector. Abu Dhabi, as you have just mentioned, it is also port job is around INR700 crores. In the airport segment, we have received around INR1,300 crores of job between Jaipur and Trivandrum. Underground Metro at Kolkata, close to INR1,000 crores we received the order. And in the power plant, we have received a job from the group around INR400 crores. Data centers, INR1,500 crores. And there is a small job in Khawda. So altogether, INR6, 100 crores of job we have received. There are a few jobs at INR1,000 crores, which is in pipeline. A bulk of them at Mundra, sorry, breakwater job at Vizhinjam Port, INR1,000 crores of job.

Provides a detailed breakdown of recent order wins and the L1 pipeline across various segments, crucial for understanding future revenue streams and diversification.

Asked by Dhananjay Mishra

Data Center Vertical Margin Profile Direct
Because civil construction company we have a standard margin profile.... So margin profile will be quite okay, quite standard, whatever we have in civil construction around whatever we have. So I don't know why I think it will be less.

Clarifies that the new data center vertical is expected to maintain standard civil construction margins, addressing potential concerns about margin dilution from new business ventures.

Asked by Kedar

Data Center Go-to-Market Strategy (Promoter vs. External) Direct
Step by step, we'll definitely eventually will go to the external customer. But initially, maybe 1 year or 1 year or so, we'll be leaving with the promoter.

Outlines the initial strategy for the data center business, indicating a reliance on promoter-led projects before expanding to external clients, which impacts near-term growth drivers.

Asked by Kedar

Market Share in Group's Capex Evasive
I won't be able to comment on it.

Management declined to quantify its market share within the Adani Group's capex, leaving uncertainty about the potential scale and predictability of internal business.

Asked by Pritesh

Overall Margin Trajectory and Improvement Partial
very difficult to predict what will be the margin. But our endeavor will be to have around 11% EBITDA, PAT close to 4%.

While acknowledging the aspiration for improvement, management provided a cautious outlook on margin expansion, guiding towards maintaining current levels rather than significant acceleration.

Asked by Deekshant

Doubling Revenues in Less Than 3 Years Direct
Yes, I think I must say that's a reasonable assumption.

Management confirmed that doubling revenues in less than three years, driven by the order book and execution speed, is a reasonable assumption, indicating strong long-term growth potential.

Asked by Jayesh Shah

Adani Group Projects - Tender Process Direct
No, no, no. We are a listed entity. So it goes through a tender process. The normal process what is to be followed before, same thing continuing. I have clarified it before also. It doesn't come to us automatically.

Reaffirms that even projects from the Adani Group follow a formal tender process, ensuring transparency and competitive bidding for Cemindia and mitigating concerns about preferential treatment.

Asked by Bobby Jay

3 min read 7 chapters

Detailed narrative

Robust Q2 and H1 FY26 Financial Performance

Cemindia Projects Limited delivered strong financial results for Q2 FY26, with total operating income growing 9% year-on-year to ₹2,175 crores. EBITDA saw a 19% increase to ₹242 crores, leading to an improved EBITDA margin of 11.1% compared to 10.3% in the prior year. Profit After Tax (PAT) surged by 49% to ₹108 crores. For the first half of FY26, revenue stood at ₹4,718 crores (up 8% YoY), EBITDA at ₹496 crores (up 13% YoY) with a 10.5% margin, and PAT at ₹245 crores (up 42% YoY).

Strong Order Book and Pipeline Visibility

The company's total order book currently stands at approximately ₹9,700 crores. In H1 FY26, Cemindia secured new orders worth ₹6,189 crores, with an additional ₹1,000 crores won post-September 2025, bringing the total new orders received to ₹7,200 crores. Furthermore, the company holds L1 positions for projects valued at ₹4,700 crores, including Pune Metro (₹1,700 crores) and a Project Varsha for the Indian Navy (₹1,000 crores). Management aims for a year-end order book of ₹15,000-16,000 crores.

Diversified Order Inflow Across Key Segments

Recent order wins are diversified across several key segments. The port sector contributed ₹1,900 crores from projects like JSW Port Odisha, Vizhinjam Breakwater, and Abu Dhabi. The airport segment secured ₹1,300 crores from Jaipur and Trivandrum, while the underground metro in Kolkata added ₹1,000 crores. Data centers emerged as a significant new segment with ₹1,500 crores in orders, alongside ₹400 crores from power plants. Approximately 25-26% of the order book is from group companies, with domestic projects accounting for 90-93%.

New Avenues: Data Centers and Large Diameter Tunnels

Cemindia has successfully launched its new data center segment, securing its first job and commencing work in Navi Mumbai. Management sees huge prospects in this area, focusing on both civil and electromechanical components. The civil component in data centers is estimated at 25-30% of the project value, with the vertical expected to contribute at least 15% to the overall order book within a two-year horizon. The company is also exploring opportunities in large diameter tunnels and airports.

Operational Execution and Project Updates

Key projects like Ganga Expressway and Udangudi are completed, while CMRL Chennai Metro and Bangalore Metro tunneling are nearing completion or completed. Challenging projects such as LNG Petronet and Dahej are progressing smoothly. The Project Varsha for the Indian Navy was delivered on time and with quality. Despite initial turmoil due to local issues, the Bangladesh project is now under control, with payments received as scheduled.

Capital Management and Working Capital

The company maintains a conservative net debt-to-equity ratio of 0.25x. Capex for Q2 FY26 was approximately ₹60 crores, with a full-year projection of ₹250-300 crores, subject to requirements for large equipment. Working capital limits stand at ₹6,500 crores, with 85-90% utilization. Net working capital days for Q2 were around 90 days. Bangladesh project receivables are ₹100-130 crores, considered normal, and total mobilization advances are ₹900 crores, with 20% being interest-bearing.

Margin Outlook and Long-Term Growth

Management aims to maintain an EBITDA margin of around 11% and a PAT margin close to 4%, acknowledging that margins are market-driven and difficult to predict significant expansion. Historically, underground metro and marine segments offer better margins. The company believes that doubling revenues in less than three years is a reasonable assumption given the strong order book and execution capabilities.

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