CEMPRO

Cemindia Projects Limited reported robust financial results for Q4 and full FY26. Q4 FY26 operating income grew 17% YoY to INR2,973 crores, with EBITDA surging 66% YoY to INR450 crores, leading to a significant EBITDA margin expansion to 15.1% from 10.7% in Q4 FY25. For the full fiscal year 2026, total operating income reached INR10,061 crores, marking the first time the company crossed the INR10,000 crore revenue mark, representing a 9% YoY growth. PAT for FY26 increased by 60% to INR598 crores, with an EBITDA margin of 11.9%.

The company achieved a record order book of INR29,000 crores as of April 30, 2026, a substantial increase from INR20,000-21,000 crores in the previous year. This was driven by strong order inflows of INR19,000 crores secured during FY26, significantly higher than the typical INR7,000 crores in prior years. Management also highlighted a substantial pipeline of INR70,000 crores, with 35-40% expected from the group, and has already secured INR4,800 crores in Q1 FY27 (INR3,200 crores in April and INR1,600 crores as L1).

The strong Q4 FY26 EBITDA margin of 15.1% was attributed to efficient project execution, adherence to budgeted costs, proper cost monitoring, and the realization of pending claims and provision reversals. However, management clarified that this elevated margin is not a regular phenomenon and guided for a normalized EBITDA margin of 10-10.5% going forward^⏳. For FY27, the company aims for at least 25% revenue growth and targets an order book of INR25,000 crores, with a broader outlook of 20-25% revenue growth for the next 1-3 years.

Cemindia is actively diversifying its project portfolio. It has secured approximately INR3,000 crores in data center projects from the Adani Group, marking a new division for the company. While marine projects are a limited market, opportunities are anticipated from Vadhvan Port and Bangladesh. The company sees significant prospects in roads, highways, and large-diameter tunnel projects, emphasizing its focus on pure EPC contracts and a cautious approach to asset-heavy models like HAM water projects.

The company reported a capex of INR260 crores for FY26 and projected a higher capex of INR350-400 crores for FY27. Cemindia maintains a conservative debt-equity ratio of 0.18%. A significant portion of its working capital is supported by mobilization advances, with INR1,400 crores outstanding as of March 2026. Notably, 90% of these advances are interest-free, which positively impacts the company's cost of funds.

The Vadhvan Port project, a significant opportunity, has been delayed for over a year due to 'local issues' beyond management's control, impacting its commencement. The company also acknowledged inflationary pressures on raw materials. While approximately 80% of its contracts include escalation clauses to mitigate cost increases, some exposure remains. Management also noted that central government payments are generally timely, but caution is exercised with certain state government projects.