Dilip Buildcon Limited — Q4 FY26 earnings call

Call held 14 May 2026

Management summary

Dilip Buildcon reported a strong increase in consolidated PAT for FY26 despite a revenue decline, driven by record order inflows and the scaling up of its MDO business. The company is actively pursuing a strategic shift towards DBL 2.0, emphasizing long-term asset-based revenue and aiming for a net debt-free balance sheet by FY28. While facing near-term challenges from raw material inflation and temporary MDO margin pressures, management expressed confidence in its diversified order book and asset monetization strategy.

Highlights

  • Consolidated PAT for FY26 increased by 66.42% to ₹1,398 crores compared to ₹840 crores in FY25.

  • Secured total order inflows of ₹18,548 crores in FY26, significantly higher than original guidance.

  • Current order book stands at a healthy ₹28,000 crores, providing strong revenue visibility.

  • MDO business achieved 28.72 million metric tons of coal production in FY26, with a target of 57 million metric tons by FY29.

  • Strategic shift to DBL 2.0, focusing on EPC, MDO, and Assets verticals, aiming for 75% of profits from long-term assets by FY29.

Concerns

  • Consolidated revenue for FY26 declined by 20.6% to ₹8,984 crores from ₹11,317 crores in FY25.

  • MDO margins were temporarily impacted in Q4 FY26 due to delayed evacuation by the government, leading to 6 million metric tons of stock at Siarmal.

  • Raw material cost escalation (fuel, bitumen) due to geopolitical conflicts and crude oil prices are not fully passed through in contracts, impacting margins.

  • Receivables increased from ₹1,384 crores in March '25 to ₹1,783 crores in March '26, partly due to ₹400 crores from Jal Jeevan Mission projects.

Key financials

  1. Consolidated Revenue ₹8,984 Cr -20.6%YoY
  2. Consolidated EBITDA ₹1,766 Cr
  3. Consolidated EBITDA Margin 19.6%
  4. Consolidated PAT ₹1,398 Cr +66.4%YoY
  5. Standalone Revenue ₹7,005 Cr -22.2%YoY
  6. Standalone PAT ₹841 Cr +170.4%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

₹28,000 Cr

as of 2026-03-31 quantified

Pipeline

other

Bid pipeline across sectors

The order book is healthy and diversified, providing strong visibility across multiple infrastructure segments.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹7,082 Cr Cost 9%
    • Repayment Reduced debt by INR 250-300 crores from last quarter ₹250 Cr
    Now coming to our debt position. Outstanding debt as of March 31, 2026 stood at approximately INR1,800 crores at the stand-alone level and INR7,082 crores at the consol level.
  • Liquidity Liquidity disclosed The company holds InvIT units worth INR 1,600 crores, which if sold, would reduce standalone net debt to approximately INR 300 crores. Additionally, INR 1,000 crores invested in under-construction projects will generate additional InvIT units of INR 1,800 crores.
    Now against our stand-alone debt of INR1,880 crores today, we hold nearly INR1,600 crores of InvIT units on the balance sheet. Had we chosen to sell all these units, our net debt would have been roughly INR300 crores or so. But because we decided that we wanted to build a platform where we have cash flows coming in for the next 15, 20 years, we have decided to retain them as we realize we are in a very comfortable position going forward, and we have a very good order book as well.

Guidance & targets

Profitability

  • Profit contribution from long-term assets Profitability · by FY29 · High confidence 75%
    because by FY29 we anticipate three fourth of our profits to be coming from long-term assets and only one fourth to be coming from our EPC business.

    — Rohan Suryavanshi

Volume

  • Annual coal production Volume · by FY29 · High confidence 57 million metric tons
    Now we remain committed to achieving our annual coal production of around 57 million metric tons by FY29

    — Rohan Suryavanshi

Debt

  • Net debt status Debt · by FY28 · High confidence Net debt-free
    our agenda is to be a net debt-free balance sheet by FY28.

    — Rohan Suryavanshi

  • Debt Reduction Debt · FY27 · High confidence ₹600-800 crores
    We anticipate somewhere between INR600 crores to INR800 crores of debt will be reduced in this financial year.

    — Rohan Suryavanshi

MDO Revenue

  • MDO Revenue MDO Revenue · FY27 · High confidence ₹2,500 crores
    So what we anticipate from the current INR1,600 crores of revenue in this year, we expect revenue to increase to about INR2,500 crores or so in FY27

    — Rohan Suryavanshi

  • MDO Revenue MDO Revenue · FY28 · High confidence ₹3,000+ crores
    which will further increase to about INR3,000 plus INR100 crores in FY28.

    — Rohan Suryavanshi

  • MDO Revenue MDO Revenue · FY29 · High confidence ₹4,000 crores
    And eventually, I think in FY29, we should be somewhere in the range of around INR4,000 crores of revenue coming from this sector.

    — Rohan Suryavanshi

EPC Revenue

  • EPC Revenue Growth EPC Revenue · FY27 · High confidence 30-40%
    now FY27 revenue target from -- if we look at FY26 number, we mentioned it will be a 30% to 40% growth from this number.

    — Rohan Suryavanshi

EPC Profitability

  • EPC EBITDA Margin EPC Profitability · FY27 · High confidence 11-12%
    Now in terms of our EBITDA, we are targeting that same 11%, 12% EBITDA that we have mentioned.

    — Rohan Suryavanshi

Order Inflow

  • New Order Inflow Order Inflow · FY27 · High confidence ₹10,000-12,000 crores
    we are also targeting about INR10,000 crores, INR12,000 crores of new order inflow to come in this financial year

    — Rohan Suryavanshi

InvIT Assets

  • Remaining HAM assets transfer InvIT Assets · by March 2027 · High confidence All remaining HAM assets
    We also remain on track to transfer the remaining HAM assets in phases through March 2027.

    — Rohan Suryavanshi

  • InvIT units value from 11 HAM assets InvIT Assets · by March 2027 · High confidence ₹1,800 crores
    The next tranche of 11 assets is expected to require less than INR200 crores of incremental investment while generating InvIT units valued at around INR1,800 crores

    — Rohan Suryavanshi

Interest Cost

  • Interest cost outflow Interest Cost · FY27 · High confidence ₹375-400 crores
    our total interest cost outflow will be close to between Rs. 375-400 crores.

    — Sanjay Bansal

What to watch in Q1 FY27

MDO Revenue Growth

FY27
Current ₹1,600 crores (FY26)
Target ₹2,500 crores (FY27)

Why it matters

MDO is a key pillar of DBL's new strategy, and achieving this growth target is crucial for long-term profitability visibility.

So what we anticipate from the current INR1,600 crores of revenue in this year, we expect revenue to increase to about INR2,500 crores or so in FY27

Risks & concerns

  • Inflationary pressures from raw material costs

    medium

    Geopolitical conflict and elevated crude oil prices lead to higher costs for fuel, bitumen, and transportation, impacting margins as contracts do not allow 100% pass-through.

    Management acknowledged

  • Project execution delays

    medium

    Delays in project approvals, land acquisition, and receivable cycles continue to impact execution timelines.

    Management acknowledged

  • Delayed evacuation in MDO business

    medium

    Government delays in coal evacuation and unavailability of racks have led to 6 million metric tons of stock at Siarmal mine, temporarily impacting MDO margins.

    Management acknowledged

  • Increased receivables

    medium

    Receivables increased from ₹1,384 crores to ₹1,783 crores, partly due to ₹400 crores from Jal Jeevan Mission projects, indicating potential working capital strain.

    Analyst acknowledged

  • Competitive intensity and bidding

    low

    Bidding remains high in certain segments, which can affect project profitability.

    Management acknowledged

Q&A highlights

6 direct
MDO revenue and margin outlook Direct
So what we anticipate from the current INR1,600 crores of revenue in this year, we expect revenue to increase to about INR2,500 crores or so in FY27, which will further increase to about INR3,000 plus INR100 crores in FY28. And eventually, I think in FY29, we should be somewhere in the range of around INR4,000 crores of revenue coming from this sector.

Management provided specific revenue targets for the MDO segment for the next three fiscal years, outlining the growth trajectory of this new vertical.

Asked by Shravan Shah

Standalone business guidance (revenue, EBITDA, order inflow, debt reduction) Direct
now FY27 revenue target from -- if we look at FY26 number, we mentioned it will be a 30% to 40% growth from this number. ... Now in terms of our EBITDA, we are targeting that same 11%, 12% EBITDA that we have mentioned. ... we are also targeting about INR10,000 crores, INR12,000 crores of new order inflow to come in this financial year... We anticipate somewhere between INR600 crores to INR800 crores of debt will be reduced in this financial year.

Management provided comprehensive guidance for the standalone EPC business for FY27, including revenue growth, EBITDA margins, new order inflows, and debt reduction targets.

Asked by Shravan Shah

Solar and Transmission business structure and equity commitment Direct
Basically, the idea of Dilip Buildcon in transmission and solar is to raise around 85% equity commitment through these projects from the investor who will be putting in equity during construction. So the commitment from DBL side would be 15% of the total equity requirement in these projects. In terms of EBITDA margin, in transmission, it is upward of 24%. IRR would be high teens in both the projects.

Management detailed the funding structure for new solar and transmission projects, clarifying DBL's equity contribution and expected returns, which are key to understanding the new asset-building strategy.

Asked by Vignesh Iyer

MDO margin outlook and current challenges Direct
See, the margin that you are talking about that has come down in the mining business temporarily right now is primarily because the evacuation by the government could not be done on time. So there is at the Siarmal mine, right now, we have about 6 million metric tons of stock, which is lying at site because of delayed evacuation by the government and because of unavailability of racks.

Management explained the specific reasons for the temporary dip in MDO margins, attributing it to government-related evacuation delays and stock buildup, and expressed confidence in future normalization and improvement.

Asked by Vignesh Iyer

Receivables increase despite revenue decline Direct
So basically, it will happen partly this quarter and partly next quarter. So, the increase in receivable from FY25 to '26 is mainly on account of this INR400 crores receivable from the Jal Jeevan Mission projects.

Management clarified the reason for the increase in receivables, attributing a significant portion to pending payments from Jal Jeevan Mission projects, which is a common concern in the sector.

Asked by Ishita Lodha

Raw material cost escalation pass-through mechanism Partial
So basically, for every contract, there is an inflation formula from which we get the impact of the increase in pricing of these raw material or the items, but this formula may not give you 100% increase because you can see the increase in the HSD and bitumen prices sharply. But the formula gives partly adjusted through the formula. But the balance is impact on the margins.

Management acknowledged that while contracts have inflation clauses, they do not fully cover sharp increases in raw material costs like HSD and bitumen, indicating a potential margin impact.

Asked by Vignesh Iyer

Total InvIT units value after future transfers Direct
Sir, about INR3,000 crores, INR3,300 crores in between that will be total InvIT value that we'll have including the seven assets that we've done and these 11 that will go, so I mean, against the total 18 assets that we have that we will be putting in the InvIT, we will have InvIT units worth between INR3,000 crores to INR3,300 crores.

Management provided a clear estimate of the total InvIT unit value the company expects to hold after transferring all planned HAM assets, offering long-term visibility on asset monetization.

Asked by Subhankar Ojha

3 min read 7 chapters

Detailed narrative

Strategic Shift to DBL 2.0 and Long-Term Vision

Dilip Buildcon is undergoing a strategic shift, termed DBL 2.0, dividing the company into three verticals: EPC, MDO, and Assets. This new direction aims for three-fourths of profits to come from long-term assets by FY29, with only one-fourth from the EPC business. The EPC segment will primarily serve as an 'incubation engine' for building assets, while MDO and asset businesses provide long-term revenue visibility and profitability for 15-50 years.

Strong Order Inflow and Diversified Order Book

The company secured a record order inflow of ₹18,548 crores in FY26, surpassing its original guidance. This has resulted in a robust current order book of ₹28,000 crores, which is highly diversified across multiple infrastructure segments. The bid pipeline stands at over ₹80,000 crores, indicating strong future growth potential and visibility up to FY30.

MDO Business Scaling Up and Margin Outlook

The MDO business demonstrated significant growth, with consolidated coal production reaching 28.72 million metric tons in FY26. The company targets an annual coal production of 57 million metric tons by FY29. MDO revenue is projected to grow from ₹1,600 crores in FY26 to ₹2,500 crores in FY27, ₹3,000+ crores in FY28, and ₹4,000 crores in FY29. While Q4 FY26 margins were temporarily impacted by government-related evacuation delays, management expects normalization and long-term improvement due to economies of scale and higher revenue share post-coal handling plant commissioning.

InvIT Monetization and Asset Strategy

DBL currently holds InvIT units worth ₹1,600 crores (₹1,400 crores in Anantam Highways InvIT and ₹200 crores in Shrem InvIT). An additional ₹1,000 crores invested in under-construction projects are expected to generate ₹1,800 crores in new InvIT units, leading to a total InvIT unit value of ₹3,000-3,300 crores. The company plans to transfer the remaining 11 HAM assets by March 2027, which are expected to create ₹1,500-1,600 crores in net equity value.

Debt Reduction and Balance Sheet Strengthening

The consolidated debt stood at ₹7,082 crores as of March 31, 2026, with standalone debt at ₹1,800 crores. The company aims to be net debt-free by FY28 and plans to reduce debt by ₹600-800 crores in FY27. The cost of borrowing is around 9% on average, and interest cost outflow for FY27 is projected to be ₹375-400 crores. Management emphasized that the InvIT holdings provide significant assets against the debt, making the position comfortable.

New Ventures: Solar and Transmission

DBL is venturing into solar and transmission projects, committing 15% of the total equity requirement, with 85% coming from investors. These projects are structured as separate SPVs, with an expected IRR in the high teens. The equity commitment for solar is ₹1,200 crores and for transmission is ₹400 crores. Commissioning for these projects is expected within two years from their start date.

Sector Environment and Challenges

The infrastructure sector offers strong long-term opportunities, supported by sustained government focus. However, near-term challenges include inflationary pressures from geopolitical conflicts and elevated crude oil prices, competitive bidding, and delays in project approvals, land acquisition, and receivable cycles. Management noted that while contracts have inflation formulas, they do not fully cover sharp increases in raw material costs, leading to some margin impact.

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