Dhruv Consultancy Services Limited — Q1 FY26 earnings call

Call held 14 Aug 2025

Management summary

Dhruv Consultancy Services delivered a strong Q1 FY26, with revenue growing 6.89% to ₹21.4 crores and net profit soaring 81% to ₹1.6 crores, driven by significant EBITDA margin expansion to 16.72%. The company successfully initiated international expansion with a project in Saudi Arabia and secured key domestic contracts. While acknowledging delays in international project execution and seasonal impacts on revenue recognition, management expressed confidence in continued margin improvement and long-term growth strategies.

Highlights

  • Consolidated revenue grew 6.89% YoY to ₹21.4 crores.

  • EBITDA increased 30.18% YoY to ₹3.58 crores, with margins expanding to 16.72% from 13.75%.

  • Net profit surged 81% YoY to ₹1.6 crores, achieving a 7.46% margin.

  • Diluted EPS grew 52% to ₹0.84.

  • Secured first international private sector project in Saudi Arabia and strengthened domestic presence with major railway and expressway wins.

Concerns

  • International project execution can be slow, with some projects taking up to 2 years for approvals and work permits.

  • Monsoon season can cause delays in revenue recognition for PMC projects due to difficulties in conducting surveys and investigations.

Key financials

  1. Revenue ₹21.4 Cr +6.9%YoY
  2. EBITDA ₹3.58 Cr +30.2%YoY
  3. EBITDA Margin 16.7%
  4. Net Profit ₹1.6 Cr +81%YoY
  5. Net Profit Margin 7.5%
  6. Diluted EPS ₹0.84 +52%YoY

What they filed

Q1 FY27: revenue down 26.1%, net profit down 397.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue33 22 28 21 19 −41%-6 −126%8 −70%16 −26%
EBITDA4 4 4 3 2 −47%-29 −854%-9 −301%-4 −213%
Net profit2 2 2 2 1 −47%-31 −1542%-0 −103%-5 −397%
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.

Capital allocation

high confidence
  • Debt Debt disclosed
    • Repayment Most loans closed in the last 3 to 4 months, no new debt planned.
    • Other Surety bonds approved by NHI to replace performance bank guarantees, reducing margin money requirements (previously 15-50%) and collateral, leading to reduced finance costs and unlimited bidding capacity.
    So yes, we can expect further improvement as most of our loans have been closed in the last 3 to 4 months, and we don't plan to take any new debt at present.

Guidance & targets

International Expansion

  • Entry into Saudi Arabia (Vision 2030 aligned project) International Expansion · Q1 FY26 · High confidence First project in Saudi Arabia
    Quarter 1 FY '26 began on a strong note marked by strategic wins and operational progress. This quarter, we made a notable entry into the international private sector with our first project in the Saudi Arabia are more aligned with the Vision 2030 of KSA.

    — Tanvi Auti

International Order Size

  • Potential order size from international market International Order Size · Future (ongoing) · Medium confidence Up to INR100 crores, with some bids up to INR250 crores
    Yes, it can go up to INR100 crores also. There are a few bids that are submitted to the tune of INR100 crores also. So even a single order of INR100 crores can be expected from the international market. And it is a big range, it is from INR3 crores, INR4 crores, INR5 crores to INR100 crores, INR250 crores also we have bided.

    — Tanvi Auti

Profitability

  • EBITDA margin Profitability · Going ahead · High confidence Further improvements
    Yes. So we can expect further margin improvements going ahead. The main reason for this margin improvement is the addition of private sector projects.

    — Tanvi Auti

Debt

  • Finance costs Debt · Going ahead · High confidence Further improvement/reduction
    So yes, we can expect further improvement as most of our loans have been closed in the last 3 to 4 months, and we don't plan to take any new debt at present.

    — Tanvi Auti

Other

  • Replicate highway sector success in two other sectors (railways, airports) to become top 2-3 consultants Other · By 2030 · Medium confidence Top two or three consultants in railways and airports
    So, by 2030, we have kept two visions. By 2030, we see ourselves replicating the success that we had in the highway sector to two other sectors... By 2030, we are confident that we replicate this entire success of the highway sector into two more sectors by becoming one of the top two or three consultants for these sectors.

    — Tanvi Auti

Order Book

  • Government contracts for bundled packages Order Book · Ongoing · High confidence 200-300 km packages

    From 40-50 km packages today

    So, government is now coming up with bundled packages rather than a 40-kilometer or a 50-kilometer project. They are giving a 200-kilometer, 300-kilometer package to one consultant.

    — Pandurang Dandawate

Market context

  • Global infrastructure consultant with presence in at least eight regions and four continents Other · By 2050 · Low confidence Global infrastructure consultant
    And by 2050, we have a vision to become a global infrastructure consultant player, wherein we have our presence in at least eight regions of the world. And we have our offices in at least four continents there.

    — Tanvi Auti

What to watch in Q2 FY26

Progress on International Orders (Mozambique, Ghana, Zambia, Tanzania, Nigeria, UAE, Vietnam)

Next quarter (Q2 FY26)
Current Work permit received for Mozambique, branch office opened. Shortlisted in Ghana, Zambia, Tanzania, Nigeria. Few assignments in UAE. Business development team in Vietnam.
Target Further orders/wins in these regions.

Why it matters

International expansion is a key growth driver and margin enhancer, and progress in these new markets is crucial for the company's strategic objectives.

We are working in Mozambique right now. We have just received our work permit last week. And we have opened a branch office there in the name of Dhruv Consultancy. So now once the work permit is there, further orders would come in. We are presently also expanding internationally, we have submitted EOI and has been shortlisted in Ghana, in Zambia, in Tanzania, in Nigeria. Also a few Middle East private sector assignments in UAE as well.

Risks & concerns

  • Political instability and slow project execution in international markets (Africa)

    medium

    Projects can take up to 2 years for approval; mitigated by focusing on funded projects from EXIM Bank, ADB, World Bank to ensure payments.

    Management acknowledged

  • Monsoon impact on revenue recognition for PMC projects

    low

    Monsoons make it difficult to carry out surveys and investigations, leading to slow delays in revenue recognition, particularly in Q1/Q2.

    Management acknowledged

Q&A highlights

8 direct
Update on International Orders and Status Direct
Yes. At present, we are working on the Saudi Arabia project. We are working in Mozambique right now. We have just received our work permit last week. And we have opened a branch office there in the name of Dhruv Consultancy. So now once the work permit is there, further orders would come in.

Provides specific updates on international expansion, including new market entry (Mozambique) and progress on work permits, indicating future order potential.

Asked by Thomas John

Potential Size of International Orders Direct
Yes, it can go up to INR100 crores also. There are a few bids that are submitted to the tune of INR100 crores also. So even a single order of INR100 crores can be expected from the international market. And it is a big range, it is from INR3 crores, INR4 crores, INR5 crores to INR100 crores, INR250 crores also we have bided.

Clarifies the potential for significantly larger project values in international markets, with bids up to ₹250 crores, which is a substantial increase from typical domestic projects.

Asked by Thomas John

Delays in International Project Execution Direct
It goes up to 2 years also. So the projects that we are getting are being shortlisted right now. We have submitted those tenders in somewhere in start of 2023. So it's a slow process, but yes, the margins are pretty good.

Acknowledges the long lead times and bureaucratic hurdles in international projects, which can impact the pace of revenue recognition despite attractive margins.

Asked by Thomas John

Adoption of AI in Infrastructure Consulting Direct
So all these surveys and investigations are AI-driven and it generate reports through artificial intelligence. Secondly, design proof checking... Al does it in 5 minutes. So we have that facility now, so we can take up more projects in less number of staff.

Highlights the company's use of AI for efficiency in surveys, investigations, and design proof-checking, enabling them to handle more projects with fewer staff and improve scalability.

Asked by Thomas John

Seasonality of Orders and Revenue Recognition Direct
Q3, the orders pick up at the end of Q2, September, October and revenue flow comes into -- maximum revenue comes in Q3, Q4 that has been our trend for the past 22 years... if there are monsoons, then it is difficult to carry out surveys and investigation. So hence, there is a slow delay when it comes to monsoon in terms of revenue recognition.

Explains the seasonal nature of their business, with Q3 and Q4 being the strongest for revenue, and monsoon impacting Q1/Q2 due to operational difficulties.

Asked by Thomas John

Mitigation of Foreign Exchange, Geopolitical, and Regulatory Risks Direct
In Africa, there is political instability and all those things, but only way of mitigating that is funded projects because we are going through EXIM Bank or ADB or African Development Bank and World Bank. So they take care of our payments and not the local authority. So that is how our payments are not stuck.

Details the strategy of focusing on funded projects from multilateral agencies to mitigate payment and political risks in volatile international markets.

Asked by Dhruv Shah

Sustainability of Margin Improvements Direct
Yes. So we can expect further margin improvements going ahead. The main reason for this margin improvement is the addition of private sector projects. In the past few years or maybe 10 years, I think we have been working only with NHI and more. Now with the addition of a good client base, we are working with IRB. We are working with GR infra, HCC, these big names as a consultant as well.

Explains that margin improvements are sustainable due to increased focus on higher-margin private sector and international projects, diversifying from government-centric work.

Asked by Aditi Roy

Impact of Surety Bonds on Finance Costs Direct
Minister of Transport and Highways and also NHI has come up with an option of using surety bonds in place of performance bank guarantee. This has changed the dynamics of our finances and economical cost... So surety bonds will definitely reduce our finance cost and we have now unlimited bidding capacity because of this instrument approved by the NHI.

Highlights a significant regulatory change that will positively impact finance costs and increase bidding capacity by reducing the need for bank guarantees and associated margin money.

Asked by Pandurang Dandawate

2 min read 6 chapters

Detailed narrative

Strong Q1 FY26 Financial Performance

Dhruv Consultancy Services reported a robust Q1 FY26, with consolidated revenue growing 6.89% year-on-year to INR21.4 crores. EBITDA saw a significant increase of 30.18% to INR3.58 crores, leading to an improved margin of 16.72% from 13.75% in the prior year. Net profit surged by 81% year-on-year to INR1.6 crores, translating to a healthy margin of 7.46% and diluted EPS of INR0.84, up 52%. These results reflect consistent execution and strategic diversification.

Strategic International Expansion and Project Pipeline

The company made a notable entry into the international private sector with its first project in Saudi Arabia, aligning with Vision 2030. Operations have commenced in Mozambique following the receipt of a work permit and the opening of a branch office. Dhruv Consultancy is also shortlisted in Ghana, Zambia, Tanzania, and Nigeria, with business development efforts underway in Vietnam to capitalize on Giga funding for infrastructure projects. International orders can range up to INR100 crores, with some bids submitted for up to INR250 crores, indicating potential for larger project values.

Domestic Project Wins and Sector Diversification

Domestically, Dhruv strengthened its presence in core infrastructure consulting with major wins in railway and expressway projects. This includes an INR1.94 crores detailing engineering contract under the Sagarmala initiative by IPRCL, and projects for the Jhansi Expressway and Bundelkhand Ganga expressway extension. The company is also actively bidding for seven to eight ropeway projects and three to four airport projects, with results expected in Q2 FY26, highlighting efforts to diversify beyond highways.

Enhanced Efficiency through AI Adoption

Dhruv Consultancy is leveraging AI to enhance operational efficiency across its services. AI-driven tools are used for geotechnical and traffic surveys, generating reports through artificial intelligence. Furthermore, AI significantly reduces the time required for design proof-checking from 15-20 days to just 5 minutes. This technological adoption allows the company to undertake more projects with fewer staff, improving scalability and readiness for international markets requiring 4D/5D models.

Capital Allocation and Finance Cost Optimization

The company has successfully reduced finance costs, primarily due to a preferential issue in the last financial year and the closure of most loans in the past 3-4 months, with no new debt planned. A significant development is the approval of surety bonds by NHI, which will replace performance bank guarantees, thereby reducing margin money requirements (previously 15-50%) and collateral. This is expected to lead to further finance cost reductions and unlimited bidding capacity.

Long-Term Growth Vision

Dhruv Consultancy has outlined an ambitious long-term vision. By 2030, the company aims to replicate its highway sector success in two additional sectors, railways and airports, aspiring to be among the top two or three consultants in these areas. Looking further ahead to 2050, the vision is to become a global infrastructure consultant with a presence in at least eight regions and four continents, supported by multiple subsidiaries and branch offices.

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