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.