Detailed Narrative
Q3 and 9M FY26 Financial Performance Overview
Dilip Buildcon reported a challenging Q3 and 9M FY26. For the nine months ended December 31, 2025, consolidated revenue decreased by 18.69% YoY to ₹6,684 crores, and consolidated EBITDA saw a 7.82% decline to ₹1,373 crores. However, consolidated PAT surged by 126% to ₹1,275 crores, primarily driven by an exceptional gain📎 from the divestment of 7 HAM assets to an InvIT. Stand-alone figures also reflected a similar trend, with revenue down 23.09% to ₹5,145 crores and PAT up 193.56% to ₹775 crores due to the same exceptional item📎.
Record Order Book and Future Revenue Visibility
The company's order book reached a historic high of ₹29,300 crores as of December 31, 2025, marking its highest level since FY22. Year-to-date FY26 order inflows amounted to approximately ₹17,900 crores, already surpassing the full-year guidance. Management expressed strong optimism for FY27, projecting a revenue of ₹10,000 crores, representing a significant 30-40% growth from the revised FY26 estimate of ₹7,000-7,500 crores. This robust order book, coupled with diversification across sectors, is expected to drive future execution and revenue.
Strategic Focus on Asset Monetization and InvIT Platform Growth
Dilip Buildcon continues its strategy of asset monetization, having already transferred 7 HAM assets to InvIT platforms. The company plans to monetize the remaining balance assets in two tranches: 4 assets by June 2026 and the rest by March 2027. The successful listing of Anantam Highways InvIT is viewed as a long-term annuity platform. Management clarified their strategy is to hold these InvIT units to grow the platform, rather than short-term encashment, aiming to build one of India's larger InvIT platforms.
Debt Management and Deleveraging Targets
The company's net debt currently stands at approximately ₹2,100 crores, expected to remain at this level by the end of FY26. Management acknowledged that lower execution volumes in prior periods hampered debt reduction efforts. However, they are targeting a debt reduction of ₹700-800 crores in FY27 and aim to be net debt-free by FY28. The company highlighted that if it had not retained InvIT assets worth ₹1,600 crores, its debt would be significantly lower.
Capex Discipline and Diversification into Mining
DBL maintains strict capital expenditure discipline, with annual capex moderating to around ₹100 crores in recent years, a significant reduction from peak levels of ₹500 crores. For FY27, capex is expected to remain in the ₹100 crore range, primarily for replacement. The mining business remains a key focus, with consolidated coal production targeted at approximately 30 million tons for FY26 and a medium-term goal of 57 million tons by FY29. SPV-level capex for projects like Siarmal and the bauxite mine is managed separately, with DBL's direct contribution being minimal (₹200-300 crores for solar and transmission projects combined).
Working Capital and Margin Outlook
Working capital days increased from 75 to 132 over the last four quarters, which the CFO attributed to a significant reduction in revenue (denominator effect) rather than an increase in inventory. Management expects working capital days to decrease as execution picks up in the coming quarters⏳. For profitability, while Q4 FY26 margins are expected to be in line with the current year, management guided for an improved EBITDA margin of 12-13% for FY27, driven by operating efficiencies from the large order book.