Dilip Buildcon Limited — Q4 FY25 earnings call

Call held 9 May 2025

Management summary

Dilip Buildcon reported a mixed Q4 and FY25, with stand-alone performance showing declines in revenue and profitability, primarily due to muted order inflows. However, consolidated results, bolstered by HAM asset monetization and strong coal MDO operations, showed significant PAT growth. The company is focused on deleveraging, with plans to reduce consolidated debt by over INR2,000 crores and become net debt-free within two years, while targeting 10-15% consolidated revenue growth for FY26.

Highlights

  • FY25 Consolidated PAT increased 4x from INR201 crores to INR840 crores, driven by HAM assets and coal business.

  • Siarmal MDO production reached 18 million metric tons in FY25, exceeding the revised target of 15 million metric tons.

  • Consolidated debt at DIPL level reduced by INR200 crores in FY25, with an additional INR100+ crores reduction this year.

  • Management targets 10-15% consolidated revenue growth and increased consolidated PAT for FY26.

  • Commitment to become a net debt-free company within the next 2 years, with plans to repay INR366 crores of DIPL debt this year.

  • INR850 crores capex for a coal handling plant at Siarmal, starting next quarter and completing in 2 years.

Concerns

  • Q4 FY25 stand-alone revenue decreased 21% YoY to INR2,315 crores.

  • Q4 FY25 stand-alone EBITDA decreased 41% YoY to INR209 crores.

  • FY25 stand-alone revenue decreased 14.55% YoY to INR9,004 crores.

  • Muted order inflows of INR2,100 crores in FY25 due to low ordering activity from government agencies.

  • FY26 stand-alone revenue expected to decline by 5%-7%.

Key financials

  1. Consolidated Revenue FY25 ₹11,317 Cr -6%YoY
  2. Consolidated EBITDA FY25 ₹2,151 Cr +51%YoY
  3. Consolidated PAT FY25 ₹840 Cr +318%YoY
  4. Stand-alone Revenue FY25 ₹9,004 Cr -14.5%YoY
  5. Stand-alone EBITDA FY25 ₹903 Cr -30%YoY
  6. Stand-alone PAT FY25 ₹311 Cr -26%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

₹14,923 Cr

as of 2025-03-31 quantified

Execution

executable over 2-3 years, with about INR7,000 crores from this order book alone in FY26

Composition

Mix 2 contract types
  • Coal MDO (O&M) ₹2,800 Cr 43.8%
  • Coal MDO (EPC for CHP & Infra) ₹3,600 Cr 56.3%

Share of order book by contract type, derived from disclosed amounts

Pipeline

L1 awaiting loa

Bids put in for INR10,000-15,000 crores; overall opportunity of upwards of INR1 lakh crores

Order book was clarified to include Coal MDO orders, which were previously omitted, leading to a more accurate representation.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹850 Cr
    • Coal handling plant construction at Siarmal ₹850 Cr
    So, the coal handling plant capex is around INR850 crores. And we will start constructing coal handling plant from next quarter, and it will complete in 2 years' time. So, before the scheduled completion date.
  • Debt Debt disclosed
    • Repayment Consolidated debt (DIPL level) reduced in FY25 ₹200 Cr
    • Repayment Further consolidated debt reduction this year (FY26) ₹100 Cr
    • Repayment DIPL debt repaid in April (FY26) ₹120 Cr
    What is also very interesting is that at the DIPL level at the consolidated level, where CPPIB had also put in capital, we have reduced in FY '25 that number by about INR200 crores of debt reduced there. Plus, in this year already from the start till now, we have already reduced another INR100-plus crores. In total, from last financial to right now, where we stand, about INR300-plus crores of debt has been reduced at the DIPL level. Besides that, let me also add that in this year, we will completely pay off the whole DIPL debt. Besides that, paying off the debt of DIPL, which is in the range of about INR400-odd crores, we will also be reducing stand-alone debt in this financial year of about INR500 crores. The revenue, like I mentioned in the financial year earlier, will see some hit, but even with that, we will still be reducing our stand-alone debt. Our EBITDA also, like I mentioned, because of reducing, will be a little on the muted side. But consolidated, if I could talk about even consolidated debt, on a consolidated level, our debt will reduce by more than INR2,000 crores. And the revenue like I mentioned earlier, will increase at a 10%-15%, and the PAT will also increase. So, when I keep speaking that we need to like now keep looking at rebuild, we are looking to make a more leaner company. We're looking to make sure that the debt at the stand-alone level reduces completely, and that exercise is on. Even on the consolidated level, only during the construction time, we will be keeping and the rest, the assets will continue moving year on year. ... Sir, it was INR484 crores. And within this year, means April, we paid around INR120 crores. So, balance debt is INR366 crores precisely. Yes, yes. We are planning to repay entire debt of DIPL this year.
  • M&A Shrem InvIT Divestment · Closed · Consideration ₹[object Object] (mixed)

    Asset monetization and deleveraging

    Realized INR136 crores from unit sales and received INR120 crores cash distribution in FY25. Holding 6 crore units for INR70-80 crores annual cash distribution.

    As previously discussed, we have successfully concluded the Shrem InvIT deal during this financial year. Under this agreement, we have received the full consideration, both in cash and InvIT units. On an opportunity basis, we have sold 1.27 crores unit and realized around INR136 crores in the last financial year. This is in addition to a cash distribution of INR120 crores received from Shrem InvIT during the last financial year. As of March 25, we are holding around 6 crores units, which could generate annual cash distribution ranging from INR70 crores to INR80 crores from the Shrem InvIT.
  • M&A Alpha InvIT Divestment · Closed

    Asset monetization and deleveraging

    26% stake in 8 assets transferred (7 COD, 1 pre-COD), with annuity payments commenced.

    Moving on to our InvIT partnership with Alpha, we are progressing in line with our strategic plan. So far, we have transferred a 26% stake in 8 assets out of a total of 18 assets included in the deal. Among these, 7 assets have achieved COD and 1 asset has achieved pre-COD and accordingly, annuity payments have commenced, concluding the first tranche of the Alpha deal. The remaining 10 assets are under construction as scheduled and will be divested upon achieving COD.
  • M&A Publicly listed InvIT Divestment · Pending regulatory

    Further asset monetization

    Draft offer document filed in March '25, approvals expected this quarter.

    The formation process of our publicly listed InvIT is progressing well. The InvIT has filed draft offer document in March '25, and we are expecting the approvals within this quarter.
  • Liquidity Liquidity disclosed Working capital cycle came down by end of FY25 due to Jal Jeevan Mission payments, expected to be in similar range next year.
    The Jal Jeevan Mission payments thankfully have come at the end of the financial year, which provided relief to all the players because they were stuck for a while and had led us for an elevated working capital cycle. Luckily, the overall working capital cycle came down by the end of financial year. We are expecting the next year's working capital cycle to also be in a similar range only.

Guidance & targets

Revenue

  • Stand-alone Revenue Decline Revenue · FY26 · High confidence 5%-7%
    Assuming some order inflows in the next few months, we expect around 5%-7% decline in stand-alone revenue for this fiscal with an operating margin of around 10%-11%.

    — Rohan Suryavanshi

  • Consolidated Revenue Growth Revenue · FY26 · High confidence 10%-15%
    However, at the same time, we are expecting a 10%-15% growth in consolidated revenues.

    — Rohan Suryavanshi

Margin

  • Stand-alone Operating Margin Margin · FY26 · High confidence 10%-11%
    Assuming some order inflows in the next few months, we expect around 5%-7% decline in stand-alone revenue for this fiscal with an operating margin of around 10%-11%.

    — Rohan Suryavanshi

Profitability

  • Consolidated PAT Growth Profitability · FY26 · Medium confidence continue to grow
    And if you look at even this year's consolidated PAT, that consolidated PAT will continue to grow even furthermore next year.

    — Rohan Suryavanshi

Debt

  • Net Debt Status Debt · next 2 years · High confidence net debt 0
    That is very much there that we will be a net debt 0 company in the next 2 years.

    — Rohan Suryavanshi

  • DIPL Debt Repayment Debt · this financial year · High confidence entire DIPL debt
    Besides that, let me also add that in this year, we will completely pay off the whole DIPL debt.

    — Rohan Suryavanshi

  • Stand-alone Debt Reduction Debt · this financial year · High confidence INR500 crores
    Besides that, paying off the debt of DIPL, which is in the range of about INR400-odd crores, we will also be reducing stand-alone debt in this financial year of about INR500 crores.

    — Rohan Suryavanshi

  • Consolidated Debt Reduction Debt · FY26 · High confidence more than INR2,000 crores
    But consolidated, if I could talk about even consolidated debt, on a consolidated level, our debt will reduce by more than INR2,000 crores.

    — Rohan Suryavanshi

Order Inflow

  • New Order Inflow Order Inflow · FY26 · High confidence INR15,000-20,000 crores
    So, we are looking at about a INR20,000 crores order inflow this year. INR15,000 crores to 20,000 crores at least what we're expecting because last 2 years have been quite muted.

    — Rohan Suryavanshi

Production

  • Siarmal MDO Production Production · FY26 · Medium confidence 25 million metric tons

    Previously 18 million metric tons → 25 million metric tons

    We are well equipped to exceed our targets for next year as well, and we hope to achieve production volume of about 25 million metric ton as compared to the target of 18 million metric ton.

    — Rohan Suryavanshi

Capex

  • Coal Handling Plant Capex Capex · next 2 years · High confidence INR850 crores
    So, the coal handling plant capex is around INR850 crores. And we will start constructing coal handling plant from next quarter, and it will complete in 2 years' time.

    — Sanjay Kumar Bansal

Interest Cost

  • Interest Cost for INR8,500 Cr Revenue Interest Cost · FY26 · High confidence around INR400 crores
    So basically, for the revenue of INR8,500 crores, we are expecting interest cost around INR400 crores.

    — Sanjay Kumar Bansal

Asset Transfer

  • Alpha InvIT Asset Transfer Asset Transfer · March 2026 · High confidence 7 assets
    7 assets we are expecting by March, 26% can be transferred.

    — Sanjay Kumar Bansal

What to watch in Q1 FY26

Publicly Listed InvIT Approval

this quarter
Current Draft offer document filed March '25
Target Approvals received

Why it matters

Successful approval and launch of the InvIT is crucial for further HAM asset monetization and deleveraging.

The formation process of our publicly listed InvIT is progressing well. The InvIT has filed draft offer document in March '25, and we are expecting the approvals within this quarter.

Risks & concerns

  • Muted Ordering Activity

    high

    Low ordering activity from government agencies in FY24, FY25, leading to revenue decline and a projected 5-7% decline in stand-alone revenue for FY26.

    Management acknowledged

  • Execution Delays and Project Quality Concerns

    medium

    Government projects faced challenges with financial closure and progress due to bids at 'ridiculous numbers' by new/smaller players, prompting a rethink and stricter qualification criteria.

    Management acknowledged

  • Working Capital Cycle Stress

    medium

    Jal Jeevan Mission payments were problematic for 9-10 months, keeping stand-alone debt elevated, though payments were realized by year-end, bringing down the cycle.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
Order Inflow & Mix Direct
So currently, already that bids have been put in, about INR10,000, INR15,000 crores of orders, where bids have already been put out, and we're awaiting, we're opening. In terms of the split between different sectors, that I'm unable to give you, and that's not something that the company anyway shares. ... Yes, we are looking at a mix of HAM, BOT, EPC, all of it because we also have a large partnership with Alpha, where there is a steady inflow and predictable inflow of equity coming in.

Clarifies the current bidding pipeline and the company's strategy to pursue a diversified mix of contract types (HAM, BOT, EPC).

Asked by Shravan Shah

Jal Jeevan Mission Debtors Evasive
Let me just look into -- sir, we can take that offline. It's not -- I don't think so at the end of...

Management declined to provide specific figures for outstanding debtors from the Jal Jeevan Mission, which was previously a source of working capital stress.

Asked by Deepak Purswani

Coal MDO Order Book Discrepancy Direct
So that was a mistake, error on our part that revenue, which was going to come, was not being added to the order book. So, it's only that revenue that is being added to the order book right now.

Clarified a previous misrepresentation in the order book by explaining that Coal MDO orders were not included earlier but are now, providing a more accurate picture of the total order book.

Asked by Deepak Purswani

Government Ordering Delays & Criteria Direct
I think there has been a rethink within the government that this whole process, they don't want to make a repeat of the 2009, '10, '11 era, where a lot of players came in and the government got great deals, but none of those deals actually materialized. ... So, I think there has been a rethink in the government that you don't want to have that because then it's a problem that they will have to again solve, whether it's for banks or whether it will be for the industry. And ultimately, the net loser in that whole scheme is the government. If you have to recapitalize the banks, if you have to solve for projects that are not done, escalated cost of projects. So, I think all of that rethinking is happening, precisely which where there is an improvement in the qualification criteria that they are doing now. And it's better that these projects are now going to be awarded once that qualification criteria is done.

Provided context on the reasons for muted government ordering activity, attributing it to a strategic shift by the government to tighten qualification criteria and avoid past issues with project execution by smaller players.

Asked by Deepak Purswani

Coal Handling Plant (CHP) Capex & Coal Grade Direct
So, the coal handling plant capex is around INR850 crores. And we will start constructing coal handling plant from next quarter, and it will complete in 2 years' time. ... G11 grade coal we are expecting.

Detailed the planned INR850 crores capex for a coal handling plant at Siarmal, its timeline, and the specific grade of coal to be extracted, providing clarity on future operational enhancements.

Asked by Prateek Bhandari

DIPL Debt Repayment Direct
Sir, it was INR484 crores. And within this year, means April, we paid around INR120 crores. So, balance debt is INR366 crores precisely. Yes, yes. We are planning to repay entire debt of DIPL this year.

Confirmed the current DIPL debt balance and reiterated the commitment to fully repay it this financial year, reinforcing the company's deleveraging strategy.

Asked by Shravan Shah

NHAI Ordering Pickup Direct
Sir, we're expecting second quarter onwards, it should pick up significantly.

Provided a timeline for the expected pickup in NHAI ordering, which is crucial for the company's core road construction business.

Asked by Parikshit Kandpal

MDO Revenue & EBITDA Disclosure Partial
Sir, basically, I have given you the PAT number. So you are wanting the different, different EBITDA from all the subsidiary would be very difficult. So, we will submit the audited accounts and we'll upload on the website. So please refer there once it is approved by the shareholders.

Management declined to provide separate revenue and EBITDA figures for the MDO business, stating it would be difficult and available in audited accounts, limiting segment-level transparency.

Asked by Shravan Shah

2 min read 6 chapters

Detailed narrative

Q4 and FY25 Performance Overview

Dilip Buildcon reported a challenging Q4 and FY25 on a stand-alone basis, with revenues declining 21% and 14.55% YoY respectively, and EBITDA and PAT also seeing significant drops. However, consolidated performance was stronger, with FY25 consolidated PAT increasing fourfold to INR840 crores and EBITDA growing 51% to INR2,151 crores. This consolidated growth was primarily driven by completed HAM assets and robust coal MDO operations, offsetting the stand-alone EPC segment's headwinds.

Order Inflow and Industry Outlook

The company experienced muted order inflows in FY25, securing INR2,100 crores, contributing to a total order book of INR14,923 crores executable over 2-3 years. Management noted a broader industry slowdown in ordering activity but anticipates a significant pickup from Q2 FY26 onwards, targeting INR15,000-20,000 crores in new orders for FY26. This optimism is supported by government plans for 10,000 km of highways in FY26 and stricter bidding criteria to ensure project quality, which is expected to moderate competition.

Deleveraging and Capital Structure

Dilip Buildcon is aggressively pursuing deleveraging. Consolidated debt at the DIPL level was reduced by INR200 crores in FY25, with an additional INR100+ crores reduction this year, totaling over INR300 crores. The company plans to fully repay the remaining INR366 crores of DIPL debt this financial year and reduce stand-alone debt by INR500 crores, aiming to be a net debt-free company within the next two years. Consolidated debt is targeted to reduce by more than INR2,000 crores.

HAM Asset Monetization

The company successfully concluded the Shrem InvIT deal in FY25, realizing INR136 crores from unit sales and receiving INR120 crores in cash distribution. The Alpha InvIT partnership saw 26% stake transfer in 8 assets (7 COD, 1 pre-COD), with annuity payments commenced. A draft offer document for a publicly listed InvIT was filed in March '25, with approvals expected this quarter, signaling further asset monetization efforts.

Coal MDO Operations

The coal MDO business demonstrated strong performance, with Siarmal exceeding its FY25 production target at 18 million metric tons (vs. 15 million metric tons target) and aiming for 25 million metric tons in FY26. Pachhwara MDO achieved peak production of 6.9 million metric tons. To enhance operational efficiency, the company plans an INR850 crores capex for a coal handling plant at Siarmal, with construction starting next quarter and completing in two years.

Strategic Diversification and Future Growth

Beyond roads, DBL is actively exploring opportunities in irrigation, water distribution, metro, railways, airports, tunneling, and optical fiber laying, participating in bids worth over INR1 lakh crores. The company is also evaluating opportunities in international markets, including a coal block in Mozambique, and is closely looking at the transmission sector. This diversification strategy aims to capitalize on high-growth sectors and build a more risk-balanced profile.

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