Dilip Buildcon Limited — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Dilip Buildcon reported a mixed Q3 and 9M FY26, with significant declines in revenue and EBITDA, but a substantial increase in PAT driven by exceptional gains from InvIT divestments. The company's order book reached a historic high of ₹29,300 crores, providing strong future revenue visibility. Management expressed optimism for FY27, guiding for 30-40% revenue growth and improved EBITDA margins, while also outlining plans for debt reduction and continued asset monetization.

Highlights

  • Consolidated PAT increased by 126% to ₹1,275 crores for 9M FY26, primarily due to exceptional gains from InvIT divestment.

  • Order book stands at a historic high of ₹29,300 crores, providing strong revenue visibility for future periods.

  • YTD FY26 order inflows of approximately ₹17,900 crores already exceeded the full-year guidance set at the beginning of the year.

  • Management targets 30-40% revenue growth and 12-13% EBITDA margin for FY27, indicating strong operational improvement expectations.

  • Strategic shift to asset-backed businesses (mining, HAM, InvITs, renewables) is expected to drive long-term profitability and cash flow.

Concerns

  • Consolidated Revenue decreased by 18.69% YoY to ₹6,684 crores for 9M FY26, and EBITDA decreased by 7.82% to ₹1,373 crores.

  • Stand-alone Revenue and EBITDA also saw significant declines of 23.09% and 22.91% respectively for 9M FY26.

  • Net debt remains elevated at approximately ₹2,100 crores, with management acknowledging that lower execution hampered debt reduction efforts.

  • Working capital days increased from 75 to 132 over the last 4 quarters, primarily due to reduced revenue impacting the denominator.

Key financials

  1. Consolidated Revenue ₹6,684 Cr -18.7%YoY
  2. Consolidated EBITDA ₹1,373 Cr -7.8%YoY
  3. Consolidated PAT ₹1,275 Cr +126%YoY
  4. Stand-alone Revenue ₹5,145 Cr -23.1%YoY
  5. Stand-alone EBITDA ₹535 Cr -22.9%YoY
  6. Stand-alone PAT ₹775 Cr +193.6%YoY

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

₹29,300 Cr

as of 2025-12-31 quantified

Execution

Order takes at least 6 months for revenue to start flowing for EPC, longer for HAM/huge projects.

Composition

  • Diversified (other)

Pipeline

L1 awaiting loa

Orders bidded and expected to open

The current order book is the highest in the company's history and is the most diversified, providing strong optimism for next year's execution and revenue growth. Management is also looking at an additional ₹3,000-5,000 crores of projects by March end.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹100 Cr
    • Replacement capex
    For the next year also, there might be replacement capex, but that will also all be in that INR100 crores and lower range. That is what we are targeting.
  • Debt Net ₹2,100 Cr
    Even though currently net debt stands at around INR2,100 crores and we expect this to remain around this level only by the end of the financial year.
  • M&A 7 HAM assets Divestment · Closed

    Asset monetization, supports sustainable captive recycling

    Exceptional gain received, contributing to 9M FY26 PAT increase.

    The profit after tax increased by 193.56% to INR775 crores from INR264 crores. The increase in profit after tax is mainly because of the exceptional gain received by the company from flipping of 7 assets to Anantam InvIT.
  • M&A 4 HAM assets Divestment · Pending regulatory

    Asset monetization, aligned with COD milestones

    The balance assets are to be monetized in 2 tranches, one in June '26 with 4 assets and remaining by March '27, aligned with the COD milestones.
  • M&A Remaining 11 assets for Anantam InvIT Divestment · Pending regulatory · Consideration ₹2,000 Cr (units)

    Asset monetization, net inflow of capital

    Only INR 200-250 crores investment left, expected net inflow of INR 1,700-1,800 crores from units received.

    The remaining 11 assets which are to go into the Anantam Highways InvIT, we have only about INR200 crores to INR250 crores of investment left to be made in them. But the InvITs -- that units that we will get against it is about INR2,000 crores, which means still a net inflow of INR1,700 crores to INR1,800 crores.
  • Liquidity Liquidity disclosed Company has approximately INR 500 crores of fixed deposits in its coal SPV books.
    Also one other thing important, even in our coal SPV, we are having currently fixed deposits and about INR400-plus crores currently. So there is that also, which is on my coal SPV books. So there is significant or I think that number is around INR490 crores at the end at the quarter end. So almost INR500 crores of fixed deposits standing on my coal SPVs.

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · Medium confidence ₹7,000-7,500 crores

    Previously ₹8,500 crores → ₹7,000-7,500 crores

    expect to close our year-end about INR7,000 crores to INR7,500 crores, in between.

    — Rohan Suryavanshi

  • FY27 Revenue Revenue · FY27 · High confidence ₹10,000 crores
    I'm happy to say that at least we are expecting around INR10,000 crores of revenue in next financial year

    — Rohan Suryavanshi

Revenue Growth

  • FY27 Revenue Growth Revenue Growth · FY27 · High confidence 30-40%
    30% plus to 30% to 40% growth from this year's number to next year's financial performance.

    — Rohan Suryavanshi

EBITDA Margin

  • FY27 EBITDA Margin EBITDA Margin · FY27 · High confidence 12-13%
    Next year, we are expecting increase in EBITDA level, and we're expecting that to be in the range of 12% to 13%. So that is what we are. So 12% plus we will be targeting.

    — Rohan Suryavanshi

  • Pottangi SPV Level EBITDA EBITDA Margin · Ongoing · Medium confidence Mid-teens
    I mean, for SPV level, we're expecting mid-teens of EBITDA levels at the SPV level also there.

    — Rohan Suryavanshi

Coal Production

  • FY26 Consolidated Coal Production Coal Production · FY26 · High confidence 30 million tons
    On a consolidated basis, DBL expects coal production of approximately 30 million tons in FY '26.

    — Rohan Suryavanshi

  • FY29 Medium Term Coal Production Coal Production · FY29 · High confidence 57 million tons
    Over the medium term, we remain on track to achieve coal production of around 57 million tons by FY '29

    — Rohan Suryavanshi

Debt Reduction

  • FY27 Debt Reduction Debt Reduction · FY27 · High confidence ₹700-800 crores
    we expect in the next year, we will reduce debt of about INR700 crores to INR800 crores.

    — Sanjay Bansal

Debt

  • Net Debt Status Debt · FY28 · Medium confidence Net debt free
    Our goal remains to be net debt free, and we are targeting FY '28

    — Sanjay Bansal

Order Inflow

  • FY27 New Order Inflow Order Inflow · FY27 · Medium confidence ₹10,000-15,000 crores
    For us, we are targeting about INR10,000 crores to INR15,000 crores of new order inflow next year, too.

    — Rohan Suryavanshi

Capex

  • FY27 DBL Parent Capex Capex · FY27 · High confidence ₹100 crores and lower
    For the next year also, there might be replacement capex, but that will also all be in that INR100 crores and lower range.

    — Rohan Suryavanshi

What to watch in Q4 FY26

FY27 Revenue Growth

FY27
Current FY26 revenue expected ₹7,000-7,500 crores
Target 30-40% growth to ₹10,000 crores

Why it matters

Verifying if the strong order book translates into accelerated revenue growth as guided by management.

Obviously, in this financial year, the numbers have been muted, but there will be a significant jump from this financial year to next financial year in terms of almost, I would say, from wherever we'll close to 30% plus to 30% to 40% growth from this year's number to next year's financial performance.

Risks & concerns

  • Muted execution volumes and lower revenue

    high

    Lower execution volumes in FY26, a direct consequence of lower order book in prior years, impacted operating leverage and ability to reduce debt.

    Management acknowledged

  • Increased working capital days

    medium

    Working capital days increased from 75 to 132 due to significantly reduced revenue, which impacted the denominator for the calculation.

    Analyst acknowledged

  • Regulatory delays in InvIT asset transfers

    medium

    NHAI approval issues for two projects led to a delay in transferring 9 planned assets to the Anantam InvIT, with revised timelines now extending into FY27.

    Management acknowledged

Q&A highlights

6 direct
Execution pace and revenue growth for FY27 Direct
I'm happy to say that at least we are expecting around INR10,000 crores of revenue in next financial year, given the healthy order book that we have. Obviously, in this financial year, the numbers have been muted, but there will be a significant jump from this financial year to next financial year in terms of almost, I would say, from wherever we'll close to 30% plus to 30% to 40% growth from this year's number to next year's financial performance.

Analyst sought clarity on the impact of the record order book on future revenue growth, and management provided specific FY27 revenue and growth targets.

Asked by Vignesh Iyer

Debt reduction target for FY26 and FY27 Partial
No, sir. Like I said in my opening remarks, we are expecting debt levels to remain around this level only where it is currently, given the muted execution that has happened. When we had originally started the year, we were expecting INR8,500 crores of revenue, but that has obviously reduced greatly and which has impacted our operating leverage, and hence, which has impacted profitability and the ability to reduce debt. But like I said, next year, we are looking to reduce debt of INR700 crores to INR800 crores.

Analyst questioned if the FY26 net debt target of ₹1,500 crores was on track, and management clarified it would remain elevated due to execution issues but provided a new reduction target for FY27.

Asked by Vignesh Iyer

Increase in working capital days Direct
So Vignesh, the inventory -- if you can see the balance sheet, the inventory has not increased from 31st March 2025. It remained almost same or even lesser than 31st March 2025. However, you can see the revenue of the company reduced significantly. So basically, the denominator reduced, per day sales reduced, okay? So that is why the increase in the number of days in the creditors, in the debtors and the inventory.

Analyst identified a significant increase in working capital days, a key metric for construction companies, and management explained it as a consequence of reduced revenue rather than increased inventory.

Asked by Vignesh Iyer

FY27 EBITDA margin guidance Direct
Shravan ji, the margins for this quarter, quarter 4, will remain in line with what has been done for this year. Next year, we are expecting increase in EBITDA level, and we're expecting that to be in the range of 12% to 13%. So that is what we are. So 12% plus we will be targeting.

Analyst sought clarity on future margin trajectory, and management provided a specific EBITDA margin target for FY27, indicating expected improvement.

Asked by Shravan Shah

Order inflow pipeline and expectations for March end Partial
Shravan ji, honestly, that will depend on how the bidding is and how aggressive other players are at, because we have always maintained that we want to be working on our own margins, and which is why we diversified across all these sectors so that our margins don't take a hit and we can make use of all our equipment and the capex that we had done over the past years. ... it is extremely difficult for us to be able to comment with certainty of how much will actually translate in the next 45 days. We can only say we are looking and we are – there are about INR3,000 crores to INR5,000 crores of projects that we are looking at.

Analyst pressed for specific order win expectations by March end, but management gave a cautious, qualitative response, highlighting competitive bidding and project delays.

Asked by Shravan Shah

InvIT asset monetization strategy (hold vs encash) Direct
Our strategy is to hold those assets. The distribution that we will get from there once all that materializes, whether it's our internal debt reduction or to invest in further new projects, that will be the idea to grow that InvIT platform. The idea is very clear. We will not be looking to monetize that on a short-term basis. The whole idea of setting up that platform with the financial investor was to think of how can we grow that InvIT platform into one of the larger ones in India.

Analyst questioned the long-term strategy for InvIT units, and management clarified their intent to hold and grow the InvIT platform rather than short-term encashment.

Asked by Shravan Shah

Tax implications of exceptional gain from InvIT divestment Direct
So basically, the financials are made basis the old tax design. The total tax for 9 months is taken at INR113 crores. First of all, let me tell you for the MAT calculations, the gains on account of flipping asset to InvIT and getting units, that is exempt under Section 47(17) of the Income Tax Act. So there is no income tax on the gains. The income tax will be basis other business and other profits, other than this capital gain.

Analyst sought clarification on the tax treatment of the significant exceptional gain, and management confirmed its tax-exempt status, explaining the PAT increase.

Asked by Shravan Shah

Delay in InvIT asset transfer timeline Direct
So basically, we had idea to transfer 9 assets, 8 assets of Dilip Buildcon and 1 asset of Alpha bought from outside, but the NHAI approval could not receive, one project of ours and one project of Alpha they bought from market. So we could flip only 7 assets. So one asset left from the first 8 and the 10 subsequent assets will basically transfer this quarter this year. The coming financial year, so quarter 1, we are expecting 3 assets of DBL will be flipped to InvIT and balance assets in quarter 4.

Analyst questioned the delay in InvIT asset transfers, and management provided specific reasons (NHAI approvals) and revised timelines for future transfers.

Asked by Darshika

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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.

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