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    DHRUV

    DHRUV
    Services·17 Nov 2025
    Management Summary

    Dhruv Consultancy Services reported Q2 FY26 revenue of INR19.40 crores and H1 FY26 revenue of INR40.80 crores, with H1 EBITDA margin at 13.98%. The company achieved significant milestones in new empanelments and entered the aviation sector, diversifying its service portfolio. However, revenue and margins saw a year-on-year decline in Q2, and debtor days increased, though management expects improvement in Q3 and Q4 with new order inflows and strategic diversification.

    Highlights

    5
    • Consolidated revenue for Q2 FY26 stood at INR19.40 crores, reflecting steady business momentum.

    • Half-yearly FY26 consolidated revenue reached INR40.80 crores, supported by stable execution.

    • Achieved a healthy H1 FY26 EBITDA margin of 13.98% and Q2 FY26 EBITDA margin of 10.95%.

    • Secured multiple new empanelments, including ATCC Class-1 Consultant by PWD and A category by MSIDC, expanding eligibility for larger projects.

    • Successfully entered the aviation sector with a project valued at INR1.63 crores, diversifying sectoral presence.

    Concerns

    3
    • Q2 FY26 revenue fell by 40% year-on-year, and EBITDA margins also saw a marginal decline compared to H1 FY26 (10.95% vs 13.98%).

    • Debtor days increased from 55-60 days in FY22 to around 100 days currently, attributed to lower work certification and land acquisition issues.

    • Order book flow was slow due to elections and a past debarment order from NHAI, though it is now picking up.

    What Changed2

    vs Q3 FY26

    Guidance items6 → 4 (-2)Risks discussed5 → 3 (-2)
    Key financials

    Metrics

    10

    Periods

    2

    Headline

    5
    • H1 FY26 Consolidated Revenue
      ₹40.8 Cr
    • H1 FY26 EBITDA
      ₹5.7 Cr
    • H1 FY26 EBITDA Margin
      14.0%
    • H1 FY26 Net Profit
      ₹2.6 Cr
    • H1 FY26 PAT Margin
      6.4%

    Q2 FY26

    5
    • Consolidated Revenue
      ₹19.4 Cr
    • EBITDA
      ₹2.13 Cr
    • EBITDA Margin
      10.9%
    • Net Profit
      ₹1.01 Cr
    • PAT Margin
      5.2%

    Guidance & targets

    4
    CategoryTargetPriority
    Profitability
    EBITDA Margin
    30-35%
    Medium
    Order Book
    Total Order Book
    INR1,000 crores
    High
    Order Book
    Order Inflow
    INR70-80 crores
    Medium
    Order Book
    Bid Success Rate (Overall)
    5-10%
    Medium

    EBITDA Margin Improvement

    next quarter
    CurrentH1 FY26: 13.98%
    TargetProgress towards 30-35% in new sectors

    Why it matters

    Tracking the impact of new high-margin projects and diversification strategy on overall profitability.

    We are eyeing on 30% to 35% EBITDA margin in these sectors.

    How to verify

    key_financials.metrics[label='EBITDA Margin']

    Risks & concerns

    3
    RiskSeverity

    Slow order book flow due to elections and past debarment

    Order book flow was slow due to state and central government elections and a temporary NHAI debarment, but is now picking up with new project wins.Management acknowledged

    medium

    Increased debtor days

    Debtor days increased from 55-60 days to ~100 days due to lower work certification, land acquisition issues, and new NHAI policies, but expected to improve with diversification.Analyst acknowledged

    medium

    Global economic slowdown impacting international projects

    The international market, particularly in Africa, has been slow in 2025 due to general slowness in the world economy, causing delays in project progress.Management acknowledged

    medium

    Q&A highlights

    8

    “So answering your question, the EBITDA margin has reduced, but it's not a big significant reduction. It is marginally less. And as has been the trend now last year due to elections and this year also, the order book flow is a bit slow, which is now picking up for the month of October. So Q3 and Q4 will definitely take it up. And there is not a much drop in the EBITDA margin as such. Now with the new orders coming in, in the new sector as well, the reason of entering into new sectors and new geographies is because we want an increase in EBITDA margin.”

    Analyst questioned the sustainability of current margins given new ventures, and management clarified that new sectors are intended to *increase* margins, not dilute them, and that Q3/Q4 will see improvement.

    asked by Vinod Shah

    3 min read6 chapters

    Detailed Narrative

    01

    Q2 and H1 FY26 Financial Performance Overview

    Dhruv Consultancy Services reported a consolidated revenue of INR19.40 crores for Q2 FY26, with an EBITDA of INR2.13 crores and a PAT of INR1.01 crores, resulting in margins of 10.95% and 5.19% respectively. For the first half of FY26, consolidated revenue stood at INR40.80 crores, with EBITDA at INR5.70 crores (13.98% margin) and net profit at INR2.60 crores (6.38% margin). Management noted a marginal reduction in EBITDA margins and a 40% YoY fall in Q2 revenues, attributing it to election-related slowdowns and a temporary NHAI debarment, with expectations for Q3 and Q4 to be stronger.

    02

    Strategic Diversification and New Empanelments

    The company has actively pursued strategic diversification, securing empanelment as an ATCC Class-1 Consultant by the Public Works Department for traffic census and classification services, valid for three years. Additionally, Dhruv was empanelled under the A category by MSIDC for DPR preparation of road projects valued over INR36,000 crores, complementing existing PMC assignments. A significant milestone was the entry into the aviation sector in October 2025, with an appointment by MADC for consultancy services on link taxiways in MIHAN, Nagpur, valued at INR1.63 crores over 20 months. The company also secured empanelment with the Odisha Bridge and Construction Corporation Limited for road and bridge supervision, expanding its geographical reach to Eastern India.

    03

    Order Book and Execution Outlook

    Dhruv's current unexecuted order book stands at approximately INR200 crores, expected to be executed over 2.5 to 3 years. The company has bidded for tenders worth INR250 crores, with results awaited, and anticipates adding INR70-80 crores in new projects by Q4 FY26. Management expressed confidence that Q3 and Q4 will see improved order flow, driven by new empanelments and a focus on larger ticket-size projects, particularly in state infrastructure and the aviation sector. The overall bid success rate is targeted to improve from 1% to 5-10% this financial year.

    04

    Working Capital Management and Debtor Days

    The company noted an increase in debtor days from 55-60 days in FY22 to approximately 100 days currently. This rise was attributed to lower certification of work, land acquisition issues in some projects, and new policies from NHAI. Management stated that while delays used to occur, they have significantly reduced, with payments typically received within an average of 120 days. They expect debtor days to improve as the company diversifies away from sole dependence on MoRTH and NHAI and expands into new client bases and geographies.

    05

    International Expansion and Technology Adoption

    Dhruv is actively expanding its international footprint, with a branch office in Mozambique and ongoing negotiations/shortlistings in Ghana, Zambia, Cambodia, and Tanzania, aiming for more international projects from Q3 onwards. The company is also investing in technology, implementing Building Information Modeling (BIM) and training its team for BIM with AI integration, which is a step towards digital twin implementation. These advancements are expected to enhance design speed, project management efficiency, and enable the company to undertake a greater number of projects.

    06

    Workforce and Attrition Management

    The company maintains a workforce of over 400 professionals, with approximately 100 employees on contract and the rest on permanent status. Management highlighted a low attrition rate of 3-4%, significantly below the industry average of 20%, attributing this to a strong talent acquisition team. This stability in human capital is seen as a key factor in delivering engineering excellence and managing project execution effectively.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.