Dhruv Consultancy Services Limited — Q2 FY26 earnings call

Call held 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

  • 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

  • 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.

Key financials

2 periods

Q2 FY26

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

H1

  • FY26 Consolidated Revenue
    ₹40.8 Cr
  • FY26 EBITDA
    ₹5.7 Cr
  • FY26 EBITDA Margin
    14%
  • FY26 Net Profit
    ₹2.6 Cr
  • FY26 PAT Margin
    6.4%

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.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · future · Medium confidence 30-35%
    We are eyeing on 30% to 35% EBITDA margin in these sectors.

    — Tanvi Auti

Order Book

  • Total Order Book Order Book · by 2030 · High confidence INR1,000 crores
    So for vision for 2030, we have a target of INR1,000 crores order book, and it can definitely go higher than that if airport projects and more larger ticket size, like we are bidding ticket size of close to INR150 crores also. So if we start receiving such good ticket size projects, then it might go up more than that, but INR1,000 crores is what we are eyeing at for 2030.

    — Tanvi Auti

  • Order Inflow Order Book · by Q4 FY26 · Medium confidence INR70-80 crores
    So in the next so INR250 crores of orders are presently being bidded, and we are hopeful that in by the end of Q4, INR70 crores to INR80 crores total projects will minimum be added with our strike rate. But now that we are expecting some improvements in ticket size also, so this can be higher as well.

    — Tanvi Auti

  • Bid Success Rate (Overall) Order Book · this financial year · Medium confidence 5-10%

    Previously 1% → 5-10%

    So right now, if you see the overall bid period also, we are we have a success rate right now of 1%, which we are now scaling up to 5% to 10% in this financial year.

    — Tanvi Auti

What to watch in Q3 FY26

EBITDA Margin Improvement

next quarter
Current H1 FY26: 13.98%
Target Progress 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.

Risks & concerns

  • Slow order book flow due to elections and past debarment

    medium

    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

  • Increased debtor days

    medium

    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

  • Global economic slowdown impacting international projects

    medium

    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

Q&A highlights

8 direct
Sustainability of H1 EBITDA margins and impact of new consultancy verticals Direct
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

Reason for fall in Q2 revenues and EBITDA margins year-on-year Direct
Yes. So it is just a spillover of last year due to the state and the central government elections. Secondly, in the last 6 months due to a debarment order from NHAI, we couldn't get any new projects that were there. But now since 4th July 2025, our projects close to INR250 crores have been bidded. And since October month, our revenues have started to build up. So the company has not -- the EBITDA margins of the revenue have not gone down very badly as such, not very substantial, but very marginally. And it will -- the Q3 and Q4 will take care of it.

Management attributed the revenue and margin decline to external factors like elections and a temporary NHAI debarment, reassuring that the situation is improving with new project wins and revenue build-up in Q3/Q4.

Asked by Gunit Singh

Increase in debtor days from FY22 to current Direct
No change in major clients as such. Yes, MSIDC has been added, but the debtor days increase has been due to lower certification of work. There have been a few projects where certain land acquisition or certain project clearances are pending due to which marginally, it has been lower due to lower certification of our bids. But I think with land acquisition issues also coming up and NHAI coming up with newer policies, this will also be sorted out. And now that we will no longer be dependent on only MoRTH or only NHAI, definitely, the debtor days will also see improvement.

Analyst flagged a significant increase in debtor days, and management provided specific reasons (lower work certification, land acquisition issues, NHAI policies) and outlined steps to improve it through client diversification.

Asked by Gunit Singh

Long-term plan to evolve into a multi-sector infrastructure consultant like AECOM or Scandex Direct
Yes. So yes, you can consider AECOM to be a role model kind of a company in infrastructure. We are definitely -- till now, we have expanded into the highway sector, and we are one of the top 5 consultants in India. In the last 3 or 4 months, you all have seen that there has been an increase in the clients as well as an increase in the sector. Our focus is now equally on the metros, the railways, the airports and urban infra sector, not just in India, but globally.

Management confirmed its aspiration to become a multi-sector, multinational consultant, detailing current diversification efforts into metros, railways, airports, and international markets, indicating a clear strategic direction.

Asked by Pradeep Agarwal

Strategy for scaling international assignments and targeted regions Direct
Yes. So presently, I would like to give you a list that in Mozambique, we are already present with a branch office present in Mozambique. Secondly, we are currently under negotiation in Ghana. Along with that, we are bidding we have been shortlisted in a few projects in Zambia. That's again in Africa. Then Cambodia also we have been shortlisted. There is Zambia and Tanzania. So these are the currently projects where projects are being talked about, and we have been shortlisted. And we are hopeful that from this Q3 onwards, we'll bring in more projects from the international sector.

Management provided specific details on its international expansion strategy, naming countries in Africa and Southeast Asia where it has a presence or is actively pursuing projects, indicating concrete steps towards global growth.

Asked by Chandresh Singh

Implementation of AI/ML-based solutions, digital twins, and project management tools Direct
So we are currently implementing building information modeling, which is just a one notch below version of digital twin. So for digital twin to be implemented, we need BIM modeling first. So our team is currently being trained for BIM modeling with Al also coming up. Al will be implemented in building information modeling. So faster design sets and faster designs can be there. There can be faster project management efficiency also. So with all this advancements being done, we will be able to take up more number of projects.

Management outlined its technology adoption roadmap, starting with BIM and AI, with a clear goal of improving efficiency, enabling faster project execution, and increasing project capacity, which is crucial for scaling operations.

Asked by Chandresh Singh

Impact of new sectors on revenue mix and target EBITDA margins Direct
Yes. So we are expecting that see, even though we are expanding in sectors, highway is going to remain the core of it because the network that highway has all over the country, no other sector has. So -- but what we are looking at from the sectoral expansion is large ticket size and good EBITDA margin projects. So the number of projects may not be very high, but the ticket size and the EBITDA margins will definitely be higher. The Union Budget itself tells us the budget allocation and the focus being given on infrastructure projects. In the last 2 or 3 budgets itself, we have seen emphasis on railways, metros and airport sector. Airport sector has been given emphasis this Union Budget, the last Union Budget itself. So with these advancements happening, companies aligning their sales and business development efforts accordingly.

Management clarified that while highways remain core, new sectors like railways, metros, and airports are targeted for higher ticket sizes and better EBITDA margins, indicating a strategic shift towards more profitable growth areas.

Asked by Priya Jain

Current employee breakdown (contract vs. permanent) Direct
So around 100 employees are on contract, but rest all are on our permanent status.

Provides insight into the company's workforce structure, indicating a significant portion of permanent employees, which can imply stability and lower attrition risk, as also mentioned by management.

Asked by Vinod Shah

3 min read 6 chapters

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.

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