Ganesh Infra. — Q1 FY26 earnings call

Call held 23 Jul 2025

Management summary

Ganesh Infraworld Ltd. delivered a strong Q1 FY26, with revenue growing 34% YoY to ₹180.7 crores and significant margin expansion across EBITDA and PAT. The company secured new orders worth ₹206 crores and expanded its strategic footprint by incorporating a subsidiary in Dubai to tap into the Middle East EPC market. Full utilization of IPO proceeds by quarter-end is expected to drive further growth in subsequent quarters.

Highlights

  • Revenue grew by a robust 34% year-on-year to ₹180.7 crores in Q1 FY26.

  • EBITDA margin improved by 190 basis points to 11.2%, reflecting strong operational efficiency.

  • PAT margin expanded by 70 basis points to 8.1%, indicating enhanced profitability.

  • Secured a significant new order of ₹206 crores for civil works in Andhra Pradesh, reinforcing its position in EPC projects.

  • Established GRV Global LLC in Dubai, UAE, marking entry into the high-potential Middle East EPC market.

Key financials

  1. Revenue ₹180.7 Cr +34%YoY
  2. EBITDA ₹20.3 Cr +62%YoY
  3. EBITDA Margin 11.2%
  4. PAT ₹14.6 Cr +46%YoY
  5. PAT Margin 8.1%

What they filed

Q1 FY27: revenue up 10.5%, net profit up 20.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue95 149 159 181 210 +121%215 +44%226 +42%200 +10%
EBITDA9 16 14 21 26 +189%29 +81%29 +107%30 +43%
Net profit7 11 12 15 18 +157%19 +73%19 +58%18 +20%
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.

Order book

high confidence

Total value

₹1,185 Cr

as of 2025-06-30 quantified

Inflow this quarter

₹206 Cr

Execution

Average project execution timeline for existing order book.

Composition

Mix 3 segments
  • Civil Infrastructure 48.3%
  • Road and Rail Infrastructure 10.4%
  • Water Infrastructure 41.3%

Share of order book by segment

Pipeline

deal pipeline tcv

Bidding pipeline for new orders.

The company has a strong order book providing solid revenue visibility and a robust bidding pipeline, with expectations of 25-30% conversion for new orders.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Debt disclosed
    • New borrowing Applied for debt enhancement from banking limits, expected to come in near future. ₹40 Cr
    We continue to maintain a healthy debt-to-equity ratio of 0.21x, reflecting our disciplined approach to capital allocation and risk management.
  • M&A GRV Global LLC Joint venture · Announced · Consideration ₹[object Object] (undisclosed)

    To become a globally competitive EPC player and enter the high-potential Middle East EPC market.

    In line with our vision to become a globally competitive EPC player, we are in the process of incorporating a subsidiary, GRV Global LLC in Dubai, UAE. This will mark Ganesh Infraworld's entry into a high-potential Middle East EPC market, where we aim to pursue opportunities in water, electrical, and civil infra projects.
  • Liquidity Liquidity disclosed IPO proceeds from last year have been fully invested into working capital by the end of Q1 FY26, expected to provide full benefits from the next quarter.
    So, we have infused that capital into working capital in phase wise manner in different quarters. And by the end of this quarter, we have actually invested the full money in the Company in working capital. So, the Company will now enjoy full working capital benefits in the sales, order executions and profitability.

Guidance & targets

Segment Contribution

  • Water segment share of total orders Segment Contribution · by year end · High confidence 60-65%

    From 41% today

    But what we understand is at present the water orders are approximately 41%. But when you compare water orders on June quarter, it was at 9%. And we estimate water to increase further from 41% to approximately 60% to 65% by the year end.

    — Abhay Kumar Singh

Order Book

  • Conversion rate for new contracting orders Order Book · gradually · Medium confidence 20-25%
    But if we see the conversion in new orders with respect to contracting, then under contacting the conversion should be around 20 to 25%.

    — Abhay Kumar Singh

Profitability

  • PAT margin improvement from subcontracting to contracting Profitability · gradually · Medium confidence 2%
    So, if a Company moves from subcontracting to contracting, the business says or industry says improvement of profitability by 2%. So, 2% on absolute basis.

    — Abhay Kumar Singh

Revenue Split

  • H1 vs H2 revenue contribution Revenue Split · FY26 · High confidence H1 35%, H2 65%
    Generally, if we see historical record also, H1 is almost like 35% and H2 is almost 65% looking at the seasonality of the industry.

    — Abhay Kumar Singh

Strategic Expansion

  • Number of new JVs Strategic Expansion · this financial year · Medium confidence 4-5
    So, this financial year, we are predicting approximately four or five more JVs to come, but definitely this will depend upon the success.

    — Abhay Kumar Singh

What to watch in Q2 FY26

Impact of full IPO proceeds utilization on growth

next quarter
Current IPO proceeds fully invested by Q1 FY26 end
Target Better growth than 33% YoY in Q2 FY26

Why it matters

Management expects full benefits of IPO capital to drive enhanced sales and profitability from Q2 FY26.

So, 100% utilization of the money will be available for growth in the next quarter. So, logically, the next quarter should be better than the current quarter.

Risks & concerns

  • Lower conversion rate for new contracting orders compared to subcontracting

    medium

    Management stated that conversion for new orders/contracting is 20-25%, lower than subcontracting, but expects it to improve gradually as the company transitions.

    Management acknowledged

  • Receivables issues in the water infrastructure industry (JJM scheme)

    low

    Management noted that the industry faces cash flow issues under the JJM scheme, but Ganesh Infraworld is not affected as its water orders are under AMRUT and it entered the segment later.

    Analyst acknowledged

Q&A highlights

8 direct
Receivables in water-related orders and balance sheet Direct
So, we are presently not facing any issues with water-related orders. Basically, we are executing water under the AMRUT scheme. ... The increase in debtors is all on account of increase in sales actually.

Clarified that despite increased receivables, it's due to growth and not specific issues with water orders (AMRUT vs JJM), which is a common industry concern.

Asked by Vishvender Singh

Bidding pipeline and order book outlook Direct
As of now, the Company is having an order book of Rs. 1,185 crores approximately and we have an order pipeline of approximately Rs. 5,000 crores. ... if you correctly say the conversion should we approximately 25% to 30%.

Provided specific figures for the bidding pipeline and expected conversion rate, giving visibility on future order inflows.

Asked by Vishvender Singh

Growth outlook and impact of IPO proceeds Direct
since we have received IPO proceeds in the month of December. So, we have infused that capital into working capital in phase wise manner in different quarters. And by the end of this quarter, we have actually invested the full money in the Company in working capital. So, the Company will now enjoy full working capital benefits in the sales, order executions and profitability.

Explained how the full deployment of IPO proceeds will fuel future growth and profitability from the next quarter.

Asked by Amit Shah

Dubai subsidiary and international market entry Direct
So, we have just made a Company in Dubai to explore the opportunity. ... So, as of now, we have not identified any projects or any work but we are in discussions with various parties for projects there and we are exploring.

Addressed the rationale behind international expansion, emphasizing exploration and strategic positioning rather than immediate project wins.

Asked by Heet Mehta

Sustainability of EBITDA margins Direct
So, if we can see, there is a 2% better profitability in water compared to civil. Since our majority of the sales were coming from civil last year, and since this year, we have taken 40% of the water. That is why the EBITDA margin has improved and the Company vision to increase the water segment to 60% to 65% by year end.

Linked margin improvement directly to the increasing contribution of the higher-margin water segment, providing confidence in sustainability.

Asked by Vishvender Singh

Margin trajectory from subcontracting to contracting Direct
So, if a Company moves from subcontracting to contracting, the business says or industry says improvement of profitability by 2%. So, 2% on absolute basis. ... But this will improve gradually because at present the Company has order book in subcontracting, which the Company will complete in 18 to 20 months.

Provided a quantitative estimate of margin improvement from a strategic shift, while also clarifying the gradual nature of this transition.

Asked by Ritesh Randhawa

Fundraising plans Direct
So, at present, we have sufficient capital to take the execution for the current financial year. We are not in much requirement of working capital or CAPEX in current financial year. But yes, we have applied for some enhancement in debt. So, we have approximately limits of Rs. 40 crores from banking limits at present.

Addressed capital needs, indicating sufficient internal resources for current year and minor debt enhancement for comfort, not substantial new fundraising.

Asked by Devang Joshi

Water infrastructure sub-segments and new project wins Direct
So, yesterday we had actually put one order of Rs. 203 crores for sewerage treatment infrastructure in Dharavi. ... we are doing water treatment plants, we are doing sewerage treatment plants, we are doing water distribution, transmission, both.

Detailed the specific areas of focus within the water infrastructure segment and confirmed a recent significant project win in Dharavi.

Asked by Amit Shah

2 min read 6 chapters

Detailed narrative

Strong Q1 FY26 Financial Performance

Ganesh Infraworld Ltd. reported a robust Q1 FY26, with revenue growing 34% year-on-year to ₹180.7 crores. This growth was accompanied by significant margin expansion, with EBITDA increasing by 62% YoY to ₹20.3 crores, leading to an EBITDA margin of 11.2% (up 190 basis points from 9.3% in Q1 FY25). Profit after tax (PAT) also saw a 46% YoY increase to ₹14.6 crores, with the PAT margin expanding by 70 basis points to 8.1%.

Strategic Expansion into Middle East

In line with its vision to become a globally competitive EPC player, Ganesh Infraworld is establishing a subsidiary, GRV Global LLC, in Dubai, UAE. This move marks the company's entry into the high-potential Middle East EPC market, targeting opportunities in water, electrical, and civil infrastructure projects. While no specific projects have been identified yet, the company is in discussions and expects to contribute capital to the subsidiary this quarter to facilitate exploration.

Robust Order Book and Bidding Pipeline

The company's order book stands strong at ₹1,185 crores as of June 30, 2025, providing solid revenue visibility for upcoming quarters. This includes ₹572.69 crores in civil infrastructure, ₹123 crores in road and rail, and ₹490 crores in water infrastructure. Ganesh Infraworld also secured a new order worth ₹206 crores for balance of plant civil works in Andhra Pradesh during Q1 FY26. The bidding pipeline is approximately ₹5,000 crores, with an expected conversion rate of 25-30%.

Focus on High-Margin Water Infrastructure

The water infrastructure segment is a strategic priority, having scaled up nearly tenfold year-on-year. Currently, water orders constitute approximately 41% of the order book, with a target to increase this to 60-65% by year-end. This focus is driven by the water segment's 2% higher profitability compared to civil projects, which is expected to further enhance overall EBITDA margins. The company is involved in water treatment plants, sewerage treatment plants, water distribution, and transmission projects.

Transition from Subcontracting to Direct Contracting

Ganesh Infraworld is strategically transitioning from a subcontracting model to direct contracting with PSUs and government entities. This shift is anticipated to improve PAT margins by an absolute 2%. While the current order book is largely subcontracting with an 18-20 month completion timeline, the company plans to secure 3-5 orders in JV format this year before directly bidding for projects next financial year. This transition is expected to gradually contribute to higher profitability.

Capital Allocation and Liquidity Management

The company maintains a healthy debt-to-equity ratio of 0.21x. IPO proceeds received last year have been fully invested into working capital by the end of Q1 FY26, which is expected to provide full benefits for sales and order execution from the next quarter. While current capital is sufficient for FY26 execution, the company has applied for a minor debt enhancement of approximately ₹40 crores from banking limits for additional comfort.

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