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    Ducon Tech

    DUCON
    Capital Goods·13 Feb 2026
    Management Summary

    Ducon Infratechnologies reported a total income of INR 94.31 crores for Q3 FY26 with an EBITDA margin of 6.19%, and INR 321.18 crores for 9M FY26. The company is actively pursuing growth through early investments in carbon capture R&D and the launch of its iQ Energy AI platform. While management expressed confidence in future growth, they maintained their policy of not disclosing order book figures, and acknowledged challenges related to working capital and an ongoing arbitration case.

    Highlights

    6

    • Total Income for Q3 FY26 stood at INR 94.31 crores.

    • EBITDA for Q3 FY26 was INR 5.84 crores with an EBITDA margin of 6.19%.

    • Net profit for Q3 FY26 was INR 2.31 crores with a net profit margin of 2.45%.

    • Total Income for 9M FY26 stood at INR 321.18 crores, with EBITDA of INR 20.82 crores (6.48% margin) and Net profit of INR 9.1 crores (2.84% margin).

    • Successful lab validation and ongoing pilot testing for in-house developed carbon capture technology.

    • Launch of iQ Energy AI platform to improve operational efficiency and optimize plant performance.

    Concerns

    3

    • Management explicitly states a policy of not disclosing order book value.

    • Negative cash flow from operations and high receivables due to the EPC business model's milestone-based payments.

    • Ongoing international arbitration case with BHEL, with details not disclosed.

    Key financials

    Metrics

    10

    Periods

    2

    Q3 FY26

    5
    • Total Income
      ₹94.31 Cr
    • EBITDA
      ₹5.84 Cr
    • EBITDA Margin
      6.2%
    • Net Profit
      ₹2.31 Cr
    • Net Profit Margin
      2.5%

    9M FY26

    5
    • Total Income
      ₹321.18 Cr
    • EBITDA
      ₹20.82 Cr
    • EBITDA Margin
      6.5%
    • Net Profit
      ₹9.1 Cr
    • Net Profit Margin
      2.8%

    Order Book

    high confidence

    Execution

    Project execution cycles vary significantly, from 5-6 months for small orders (INR 5-10 crores) to 1 year for INR 20 crores projects, and 2-2.5 years for larger projects (INR 100-150 crores).

    "Management maintains a policy of not disclosing order book value, citing the nature of their business and competition in the narrow segment, but states they have a healthy order backlog and repeat business."

    Source:
    Q&A

    Capital allocation

    1
    medium confidence
    CategoryHeadline
    Debt

    Debt disclosed

    Guidance & targets

    2
    CategoryTargetPriority
    Revenue
    Accelerated Revenue Growth
    Accelerated revenue
    		Low
    Growth
    Overall Company Growth
    Much bigger in size
    		Low

    iQ Energy AI Platform Commercial Launch & Revenue

    in another couple of months
    CurrentTesting with existing clients, AI model training ongoing.
    TargetActual product launch and initial revenue contribution.

    Why it matters

    This new technology offering represents a potential new revenue stream and diversification for the company.

    And we will be actually going out full maybe in another couple of months where we will be actually soliciting customers.

    How to verify

    detailed_narrative

    Risks & concerns

    4
    RiskSeverity

    Project Execution Delays

    Execution delays can occur due to client-side issues (e.g., civil work, readiness of other equipment), impacting billing and project timelines. — Management acknowledged

    medium

    Working Capital Intensity for CCUS Projects

    CCUS projects may require higher upfront working capital, though management aims to minimize this through payment terms. — Analyst acknowledged

    medium

    Negative Cash Flow from Operations and High Receivables

    The EPC business model's milestone-based payments and retention lead to negative cash flow from operations and high receivables, which are realized upon project completion. — Analyst acknowledged

    medium

    Arbitration Case with BHEL

    An international arbitration case with BHEL is ongoing, with management expressing confidence in their position but providing limited details. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “this particular investment was made in a company called [Ganpati Infra 0:09:02]. Basically, you would be aware this Ducon is a result from company of a demerger, which has happened in 2018.”

    Clarifies the nature and origin of a specific investment on the balance sheet, linking it to the company's demerger history.

    asked by Udit Gupta

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 and 9M FY26 Financial Performance Overview

    Ducon Infratechnologies reported a total income of INR 94.31 crores for Q3 FY26, with an EBITDA of INR 5.84 crores, translating to an EBITDA margin of 6.19%. The net profit for the quarter was INR 2.31 crores, achieving a net profit margin of 2.45%. For the nine months ended December 31, 2025, the company's total income stood at INR 321.18 crores, with an EBITDA of INR 20.82 crores (6.48% margin) and a net profit of INR 9.1 crores (2.84% margin).

    02

    Strategic Positioning and Market Opportunities

    Ducon positions itself as a technology-driven EPC company in environmental engineering, clean energy, industrial infrastructure, and process industries. The company is strengthening capabilities in advanced emission control systems, clean energy solutions, digital optimization platforms, and carbon capture technologies. Management highlighted a supportive macro environment driven by infrastructure expansion, energy transition investments, and tightening environmental norms, particularly impacting thermal power plants, steel producers, and cement companies.

    03

    Advancements in Carbon Capture, Utilization, and Storage (CCUS)

    The company has made early R&D investments in solvent-based carbon capture, which has successfully completed lab validation and is currently undergoing pilot testing. Ducon is developing this technology in-house and plans to establish a demonstration plant with a client. Management sees significant potential in CCUS, reinforced by the Government of India's recent budgetary allocation of INR 20,000 crores towards carbon capture, expecting this policy validation to accelerate the CCUS ecosystem.

    04

    Launch of iQ Energy AI Platform

    During the quarter, Ducon launched its iQ Energy AI platform, designed to enhance operational efficiency, optimize plant performance, and reduce downtime. This platform aims to support utilities managing rising demand from AI-driven data centers and industrial loads. The company is currently testing the platform with 1-2 existing clients and expects a full commercial rollout in "another couple of months".

    05

    Order Book and Execution Dynamics

    Management stated that it is company policy not to disclose the specific value of its order book, but confirmed a 'healthy order backlog' with significant repeat business. Project execution timelines vary widely, from 5-6 months for small orders (INR 5-10 crores) to 1 year for INR 20 crores projects, and up to 2-2.5 years for larger projects (INR 100-150 crores). Execution can be impacted by client-side delays or the readiness of interfacing equipment.

    06

    Working Capital, Debt Management, and IP Ownership

    The company experiences negative cash flow from operations and high receivables, which is attributed to the milestone-based payment structure and retention common in the EPC business model. Management stated that these amounts are realized upon project completion. Ducon has 'reduced existing debt quite a bit' and aims to continue further debt reduction. The company also clarified that it owns the intellectual property for its technologies, including the CCUS solvent, and does not pay any royalties or technology fees.

    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.