Dilip Buildcon Limited — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Dilip Buildcon reported a mixed Q2 FY26, with strong consolidated margins and robust performance in its Coal MDO business, alongside significant progress in asset monetization via its InvIT. However, standalone revenue guidance was revised downwards due to slower order inflows, leading to a slight increase in net debt and a delay in debt reduction targets. The company remains optimistic about achieving its full-year order inflow target and improving financial metrics in FY27.

Highlights

  • Consolidated Revenue for H1 FY26 was ₹4,546 crores, demonstrating continued operational scale.

  • Consolidated EBITDA Margin for Q2 FY26 was strong at 24.5% (₹471 crores), indicating efficient project execution.

  • Year-to-date order inflows of ₹5,500 crores provide good visibility, with optimism to meet the full-year target of ₹15,000 crores.

  • Coal MDO operations are robust, with Siarmal achieving 10 million metric tons in H1 FY26 and Pachhwara 3.6 million metric tons, targeting 32 million metric tons total for FY26.

  • Successful listing of Anantam Highways InvIT and transfer of 7 assets provides a clear monetization path for HAM projects and improves the company's risk profile.

Concerns

  • Standalone revenue guidance for FY26 was revised downwards to ₹8,000 crores from ₹8,500 crores due to slower-than-expected project awards.

  • Net debt increased by ₹500 crores from March to September 2025, primarily due to faster payments to creditors.

  • Debt reduction commitments have been slightly delayed due to reduced revenues and cash flows, with the standalone debt increasing slightly this year.

  • NHAI ordering activity has been weak, impacting overall industry momentum, though DBL remains optimistic.

Key financials

  1. Standalone Revenue ₹1,417 Cr
  2. Standalone H1 Revenue ₹3,427 Cr
  3. Standalone EBITDA Margin 10.8%
  4. Standalone H1 EBITDA Margin 10.4%
  5. Standalone H1 PAT ₹164 Cr
  6. Consolidated Revenue ₹1,926 Cr
  7. Consolidated H1 Revenue ₹4,546 Cr
  8. Consolidated EBITDA Margin 24.5%
  9. Consolidated H1 EBITDA Margin 22%
  10. Consolidated PAT ₹214 Cr
  11. Consolidated H1 PAT ₹485 Cr
  12. Standalone Net Debt ₹2,102 Cr

What they filed

Q1 FY27: revenue down 9.2%, net profit down 52.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,497 2,590 3,096 2,620 1,926 −23%2,138 −17%2,300 −26%2,378 −9%
EBITDA535 477 661 521 471 −12%382 −20%392 −41%429 −18%
Net profit266 158 277 271 214 −20%789 +399%124 −55%128 −53%
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

₹18,600 Cr

as of 2025-09-30 quantified

Pipeline

other

Bidding pipeline for various sectors including NHAI, water, and other diversified projects.

Management is optimistic about achieving the full-year order inflow target despite weak NHAI ordering, focusing on profitable projects.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹50 Cr Cut — strategic refinement and resource optimization
    • Small and replacement capex ₹50 Cr

    Previously planned ₹500 Cr

    Similarly, we have also reduced and almost brought to a nil, our capex, which was earlier INR500 crores range every year to now INR50 crores to INR100 crores, and that to only going in smaller and replacement capex.
  • Debt Gross ₹2,493 Cr · Net ₹2,102 Cr
    • New borrowing Net debt increased by INR500-odd crores from March to September, mainly due to faster payment to creditors (INR450 crores reduction in creditors). ₹500 Cr
    So Shravan-ji, the net debt is INR2,102 crores which is given in the presentation -- well, just a second. So basically, my cash credit is INR2,362 crores. Some loan, INR131 crores, and I have cash equivalent INR392 crores.
  • M&A Anantam Highways InvIT Divestment · Closed · Consideration ₹[object Object] (undisclosed)

    Monetization source for HAM projects, providing comfortable way forward for asset movement.

    DBL holds INR1,332 crores worth of units, valued at INR1,400 crores. Total value enhancement from equity invested is about INR1,050 crores.

    In our HAM project portfolio, I'm also delighted to inform you of our own InvIT in partnership with Alpha Alternatives Fund named Anantam Highways got listed on the NSE in October 2025. ... DBL directly holds around INR9.58 crores units. And we have another 3.60 units we have placed with Alpha Alternatives fund. So in total, company is having INR1,332 crores worth units. Basically, these are at the INR100 issue price, but the total valuation against this is around INR1,400 crores.
  • Liquidity Cash ₹392 Cr
    So basically, my cash credit is INR2,362 crores. Some loan, INR131 crores, and I have cash equivalent INR392 crores.

Guidance & targets

Order Inflow

  • Total Order Inflow Order Inflow · FY26 · High confidence ₹15,000 crores
    However, we are very optimistic to achieve the total order inflow of INR15,000 crores on a full year basis, which will set a good pace for next year revenue growth.

    — Rohan Suryavanshi

Revenue

  • Full Year Revenue Revenue · FY26 · High confidence ₹8,000 crores

    Previously ₹8,500 crores → ₹8,000 crores

    However, the new orders of this year, which will be around INR15,000 crores like I mentioned, will end up leaving our next year revenue for around INR10,000 crores. Now at that number, when we get that, we are sure that we will reduce our debt by another INR500 crores, which will be around INR1,000 crores in FY '27 once you complete that. So in total, the good news is that the worst is over. We have a good order book pipeline. There will be a significant jump in next year's revenue as this year revenue is coming down. We will be able to generate good free cash, which will help us in reducing the debt.

    — Rohan Suryavanshi

  • Full Year Revenue Revenue · FY27 · High confidence ₹10,000 crores
    However, the new orders of this year, which will be around INR15,000 crores like I mentioned, will end up leaving our next year revenue for around INR10,000 crores.

    — Rohan Suryavanshi

EBITDA Margin

  • EBITDA Margin EBITDA Margin · FY27 · Medium confidence 10-11%
    Yes. Yes. Next year. This year, that will be around 10% to 11% max because of the reduced sort of revenue, sir.

    — Rohan Suryavanshi

Debt

  • Debt Reduction Debt · FY27 · High confidence ₹500 crores
    Now at that number, when we get that, we are sure that we will reduce our debt by another INR500 crores, which will be around INR1,000 crores in FY '27 once you complete that.

    — Rohan Suryavanshi

  • Debt-Free Status (Standalone) Debt · FY28 · High confidence Debt-free
    Yes, sir. Yes, sir. (in response to 'So the stand-alone pay, we will be net debt-free by FY '28?')

    — Rohan Suryavanshi

  • Consolidated Debt Debt · year-end FY26 · Medium confidence ₹6,000-7,000 crores
    It will be range bound in the range of INR6,000 crores to INR7,000 crores, that is where it will be I think somewhere in that range as something that will be the range there.

    — Sanjay Kumar Bansal

  • Consolidated Debt Reduction Debt · Q1 FY27 · High confidence ₹1,500 crores
    So Q1, we are targeting four asset transfer. So around, say, INR1,500 crores debt will be reduced by Q1 FY27 and balance around INR3,000-plus crores debt will be reduced by March '27.

    — Sanjay Kumar Bansal

  • Consolidated Debt Reduction (Balance) Debt · March '27 · High confidence ₹3,000+ crores

    — Sanjay Kumar Bansal

Coal MDO Volume

  • Siarmal MDO Sales Volume Coal MDO Volume · FY26 · High confidence 25 million metric tons
    In our Siarmal MDO, we've achieved a sales volume of around 10 million metric tons in first half of FY '26. And we are on target to meet our full year target of 25 million metric tons for the full year of FY '26.

    — Rohan Suryavanshi

  • Pachhwara MDO Sales Volume Coal MDO Volume · FY26 · High confidence 7 million metric tons
    Similarly, our Pachhwara MDO has achieved 3.6 million metric tons in H1 FY '26, positioning us well to reach our full year target of 7 million metric tons for FY '26.

    — Rohan Suryavanshi

  • Total Coal Production Coal MDO Volume · FY26 · High confidence 32 million metric tons
    So in total, we'll achieve a production of 32 million metric tons of coal in FY '26, putting us in the lead of one of the top producers of coal in the country.

    — Rohan Suryavanshi

  • Total Coal Production Coal MDO Volume · by 2029 · High confidence 57 million metric tons
    This trend will keep on increasing in the next few years as with the profit. We're expecting to do 57 million metric tons of coal by 2029 which will be -- in both these 2 mines, which will total to almost 8% to 9% of the total coal output of the country.

    — Rohan Suryavanshi

Coal MDO Cash Flow

  • Free Cash Flow from Coal Business Coal MDO Cash Flow · per year · High confidence ₹1,000 crores
    after 3 years, we have to get about INR1,000 crores of free cash only from the coal business per year.

    — Devendra Jain

Solar Capacity

  • Solar Capacity Wins Solar Capacity · coming year or so · Medium confidence 1 GW
    We won a 100-megawatt project already, and we are hopeful to secure another 1 gigawatt of solar in the coming in the coming year or so.

    — Rohan Suryavanshi

Cost

  • Interest and Finance Costs Cost · FY26 · High confidence ₹450 crores
    For next year, we can target -- for this full year, we can target around INR450 crores interest and finance costs.

    — Sanjay Kumar Bansal

  • Interest and Finance Costs Cost · FY27 · High confidence ₹350 crores
    And next year, we can target around INR350 crores.

    — Sanjay Kumar Bansal

Working Capital

  • Working Capital Days Working Capital · next quarter · Medium confidence Closer to 90 days

    From 114 days today

    It will come closer to 90 days, back to the earlier.

    — Sanjay Kumar Bansal

Project Completion

  • CHP Completion (Siarmal) Project Completion · 18-24 months · High confidence Complete
    So, the CHP will complete between 18 to 24 months from now.

    — Devendra Jain

What to watch in Q3 FY26

Order Inflow Achievement

next quarter
Current ₹5,500 crores YTD FY26
Target ₹15,000 crores for FY26

Why it matters

Achievement of the full-year order inflow target is crucial for future revenue growth and order book visibility.

However, we are very optimistic to achieve the total order inflow of INR15,000 crores on a full year basis, which will set a good pace for next year revenue growth.

Risks & concerns

  • Weak NHAI Ordering Activity

    medium

    NHAI has awarded only 300 km of orders this year, 5% of the target, impacting overall industry momentum and DBL's order inflows.

    Management acknowledged

  • Lower Order Book & Revenue Impact

    medium

    Steep reduction in order inflows over the past two years has led to reduced revenues and free cash flows, impacting debt reduction plans.

    Management acknowledged

  • Delay in Debt Reduction Commitments

    medium

    Due to lower revenue guidance and cash flows, the company has not been fully able to deliver on debt reduction commitments, leading to a slight increase in debt this year.

    Management acknowledged

  • Revenue Guidance Revision

    low

    Full-year FY26 revenue guidance reduced to ₹8,000 crores from ₹8,500 crores as expected project pace and new orders did not materialize as anticipated.

    Management acknowledged

  • Rail Dispatch Issues for Siarmal MDO

    low

    Initial hiccups in rail dispatch for Siarmal MDO led to some coal production adjustments, though the issue is now resolved.

    Management acknowledged

Q&A highlights

8 direct
Current Order Book Execution & AD Spending Direct
Shravan, the AD spending for all the new projects that we have just won, which we are expecting AD to come by Q4, max.

Clarifies the timeline for administrative approval (AD) spending on new projects, which impacts execution and revenue recognition from the existing order book.

Asked by Shravan Shah

NHAI Awarding & HAM/Toll Projects Outlook Direct
About when if I talk about the total bids, about 1,60,000 right now only which is both HAM and BOT projects, everything as much is already there. Now we are very confident of doing good hit, but our agenda is to get profitable projects. We will not be going and winning something at a stupid rate. The good part is the government -- because of the government's new qualification criteria, competitive intensity and reduced and we will we're expecting to win good orders here also.

Provides insight into the NHAI bidding pipeline and management's strategy to prioritize profitable projects, leveraging new qualification criteria to reduce competitive intensity.

Asked by Shravan Shah

Solar Equity Investment & IRR Expectations Direct
So our agenda for the solar and let me give you idea why DBL is looking at that sector. We mentioned that our stated goal is to build more consistent long-term cash flows. And while we do that, DBL is known for its execution capability. Solar projects are much less complex and sooner execution time lines as well than any of the other large infrastructure projects that we take on. ... In terms of IRR, we target broadly mid-teen IRR returns from here.

Explains the strategic rationale for entering solar, focusing on consistent cash flows and leveraging execution capabilities, with a target of mid-teen IRR returns.

Asked by Shravan Shah

Net Debt Reconciliation and Cash Position Direct
So Shravan-ji, the net debt is INR2,102 crores which is given in the presentation -- well, just a second. So basically, my cash credit is INR2,362 crores. Some loan, INR131 crores, and I have cash equivalent INR392 crores. ... So basically, the FDs, which is more than 12 months, this goes into investment, the other investments.

Clarifies the components of standalone net debt, gross debt, and cash equivalents, explaining how long-term FDs are categorized as investments rather than readily available cash.

Asked by Shravan Shah

Anantam InvIT Unit Valuation and Future Transfers Direct
So let me tell you, the DBL directly holds around INR9.58 crores units. And we have another 3.60 units we have placed with Alpha Alternatives fund. So in total, company is having INR1,332 crores worth units. Basically, these are at the INR100 issue price, but the total valuation against this is around INR1,400 crores. ... So, we will have basically balance because out of 8 assets, we transferred 7 and we got around INR 1,400 crores units. Now with balance, we will be close to INR3,400 crores, INR3,500 crores overall units.

Provides specific figures for DBL's current holding in the InvIT and the projected total value of units once all assets are transferred, indicating significant future monetization potential.

Asked by Deepak Purswani

Debt Increase Reasons and JJM Receivables Status Direct
So in terms of the debt increase from March to September, the debt increased by INR526 crores, if you can see my current asset current liability items. So my inventory demand almost same by INR30 crores, it is lesser, but I would say the same. Then receivable and basically -- invested around INR512 crores. So receivable plus other current asset item, including GST and others. ... So basically, the INR591 crores work creditors reduced ... Only 1 month, the receivables are coming on time.

Explains that the debt increase was primarily due to faster payment to creditors, reducing working capital liabilities, and confirms that receivables from the Jal Jeevan Mission are being received on time.

Asked by Deepak Purswani

Peak Debt Level and Transition to Self-Funding Direct
Yes, Amitji, you're very right. This is the peak debt level. If you see in the last few years, we've only kept on reducing. And if the external environment had been supportive if we had not seen a reduction in our top line in the last 2 years, we would have obviously made strides and been able to make even a larger sort of reduction in our debt. ... We, on a stand-alone level, our revenues while will increase next year, we continue to want to have them at a level where we don't have to take more debt at a standalone level, but we can grow it profitably. That is the goal for us.

Management confirms the current debt level is the peak and reiterates the commitment to becoming debt-free at a standalone level, aiming for profitable growth without further debt accumulation.

Asked by Amit

Consolidated Debt Reduction Target and Timeline Direct
Console level, we measured it, the reduction was from the transfer of HAM assets to InvIT. We were targeting that time each asset transfer to the InvIT. But one asset, NHAI NOC doesn't receive. So we transferred only 7 assets but that has happened in second week of October. So in quarter 3, INR2,961 crores precisely will be reduced. So if I compare on 30th September, the debt has increased to INR9,097 crores. But in quarter 2, it is already reduced. I mean transferred INR3,000 crores debt. So it will reflect in 31 December balance sheet.

Provides a detailed update on the consolidated debt reduction plan, explaining the impact of InvIT transfers and revised timelines for achieving specific debt levels by year-end FY26 and into FY27.

Asked by Samyak Shah

3 min read 7 chapters

Detailed narrative

Q2 & H1 FY26 Financial Performance Overview

Dilip Buildcon reported standalone revenue of ₹1,417 crores for Q2 FY26 and ₹3,427 crores for H1 FY26. Standalone EBITDA margin for Q2 was 10.80%, with H1 at 10.40%. On a consolidated basis, revenue reached ₹1,926 crores for Q2 and ₹4,546 crores for H1. Consolidated EBITDA margin for Q2 was a robust 24.5% (₹471 crores), and 22% (₹991 crores) for H1, reflecting efficient operations. Consolidated PAT for Q2 stood at ₹214 crores, with H1 PAT at ₹485 crores.

Order Inflow and Book Update

The company secured order inflows of approximately ₹5,500 crores year-to-date against a full-year target of ₹15,000 crores. Despite a challenging environment with weak NHAI ordering, management is optimistic about achieving the target. The current order book is referenced at around ₹18,600 crores. DBL has bid for projects worth ₹15,000 crores, with a broader pipeline including ₹1.5 lakh crores from NHAI and ₹25,000 crores from other diversified sectors like water and irrigation.

Coal MDO Business Performance and Outlook

The Coal MDO segment demonstrated strong performance, with Siarmal achieving 10 million metric tons in H1 FY26 and Pachhwara 3.6 million metric tons. The company is on track to meet its full-year target of 32 million metric tons of coal production for FY26. Looking ahead, DBL aims to increase total coal production to 57 million metric tons by 2029 and expects to generate ₹1,000 crores in free cash flow annually from the coal business once Siarmal and Pachhwara reach full capacity.

Debt Management and Deleveraging Strategy

Standalone net debt increased by approximately ₹500 crores from March to September 2025, reaching ₹2,102 crores, primarily due to faster payments to creditors. Management confirmed that the current debt level is the peak and reiterated its commitment to becoming debt-free at a standalone level by FY28. They target a debt reduction of ₹500 crores in FY27 and expect consolidated debt to be in the range of ₹6,000-7,000 crores by year-end FY26.

HAM InvIT and Asset Monetization

Dilip Buildcon's InvIT, Anantam Highways, in partnership with Alpha Alternatives Fund, was successfully listed on the NSE in October 2025. Seven out of 18 HAM assets have been transferred to the InvIT, with the balance expected to be transferred over the next two years. DBL currently holds InvIT units worth ₹1,332 crores, valued at ₹1,400 crores, providing a clear monetization pathway and improving the company's risk-return profile.

Diversification into Solar Energy

The company has diversified into the solar energy sector, winning a 100-megawatt project and expressing optimism to secure another 1 gigawatt in the coming year. This move is strategic for building consistent long-term cash flows, leveraging DBL's execution capabilities. The 100 MW project requires ₹70 crores in equity, with DBL's share being ₹39 crores, and targets mid-teen IRR returns.

Industry Outlook and Competitive Landscape

The construction sector is witnessing positive developments in order activity, though momentum is still building. NHAI has awarded only 5% of its 6,000 km target for the year. The government's increase in qualification criteria has led to reduced competitive intensity, which is viewed positively by DBL as it allows them to focus on profitable projects. The company also highlighted opportunities in water distribution (Jal Jeevan Mission) and metro rail sectors.

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