Detailed Narrative
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.
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.
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.
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.
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.
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.