Ganesh Infra. — Q2 FY26 earnings call

Call held 18 Nov 2025

Management summary

Ganesh Infraworld reported a strong Q2 FY26 with revenue growing 121% YoY to Rs. 210 crores and EBITDA up 171% to Rs. 25.7 crores, driven by robust execution and strategic order wins. The company made a significant entry into mining infrastructure with a Rs. 708 crore order, diversifying its revenue streams and strengthening its long-term visibility. Improved financial performance led to a credit rating upgrade and crossing the Rs. 1,000 crore market capitalization milestone.

Highlights

  • Revenue for Q2 FY26 grew 121% YoY to Rs. 210 crores, demonstrating strong execution.

  • EBITDA for Q2 FY26 increased 171% YoY to Rs. 25.7 crores, with EBITDA margins improving by 230 basis points to 12.3%.

  • Secured a landmark Rs. 708 crore order for mining infrastructure, marking a strategic entry into a new vertical with long-term revenue visibility.

  • Credit rating upgraded to BBB+ with a stable outlook and short-term rating to A2, reflecting strong financial performance and robust balance sheet.

  • Crossed a market capitalization of Rs. 1,000 crore during the quarter, a significant milestone and reflection of investor confidence.

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹210 Cr
    YoY +121%
  • EBITDA
    ₹25.7 Cr
    YoY +171%
  • EBITDA Margin
    12.3%
  • PAT
    ₹18.1 Cr
    YoY +156%
  • PAT Margin
    8.6%

H1

  • FY26 Revenue
    ₹390.6 Cr
    YoY +70%
  • FY26 EBITDA
    ₹46.4 Cr
    YoY +110%
  • FY26 EBITDA Margin
    11.9%
  • FY26 PAT
    ₹32.7 Cr
    YoY +91%
  • FY26 PAT Margin
    8.4%

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

₹2,262 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹1,359.72 Cr

Composition

Mix 4 segments
  • Civil Infra 39%
  • Water Infra 23%
  • Mining 30%
  • Civic Utilities 8%

Share of order book by segment

Pipeline

other

Current bid book

The order book is robust and diversified, providing strong revenue visibility and strategic entry into new high-growth segments.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Debt disclosed
    We continue to maintain a healthy financial profile with a low debt-to-equity ratio of 0.35x, which positions us well for sustainable future growth.
  • M&A Ganesh Netsoft JV Networks Joint venture · Closed

    Entry into railway communication infrastructure

    Secured a Rs. 62.12 crore EPC order in railway communication infrastructure through this newly formed JV.

    a Rs. 62.12 crore EPC order in railway communication infrastructure through our newly formed JV, Ganesh Netsoft JV Networks.
  • Liquidity Liquidity disclosed Working capital is not a challenge due to current debt-to-equity ratio, sanctions from lenders, and planned preferential issue of shares to suffice requirements for at least FY27. Profits are also being plowed back.
    So working capital is not at all looking as a challenge to us. And for the future projects which we are bidding or which we are planning to bid, so for that definitely some amount of working capital will be required for which we have already gone ahead for the fundraising through the preferential issue of shares. So that will suffice the requirement for at least FY'27. And then profits are getting plot back and the net worth of the Company is increasing.

Guidance & targets

Profitability

  • H2 FY26 Performance Profitability · H2 FY26 · Medium confidence Much better
    But yes, with these results, I can assure you that again Q3 and Q4 will be much better, which is always there in the Infra industry.

    — Vibhoar Agrawal

  • Mining Segment EBITDA Margin Profitability · Future (with own fleet) · Medium confidence Improvement
    the margin profile should improve a little bit once we have our own fleet of machineries, which we have plans to do it in the future.

    — Vibhoar Agrawal

Revenue

  • H2 FY26 Revenue Contribution Revenue · H2 FY26 · High confidence 60%
    H1 contributes to somewhere around 40% of the total revenue and H2 is 60%.

    — Vibhoar Agrawal

Order Inflow

  • Order Book Conversion Rate Order Inflow · Medium confidence 25%
    So in general, we take it as the conversion rate to be somewhere around 25%

    — Vibhoar Agrawal

Working Capital

  • Working Capital Days in Mining Working Capital · High confidence 45-50 days
    Like in mining project, the working capital days will be somewhere around 45 to 50 days.

    — Vibhoar Agrawal

Order Book

  • Order Book Mix (Subcontracting vs. Direct) Order Book · Eventually · Medium confidence 40% subcontracting, 60% direct
    end of the day we will end up in say 40% subcontracting and 60% direct orders. So, such a ratio will automatically come out.

    — Vibhoar Agrawal

Fundraising

  • Sufficiency of Preferential Issue Fundraising · FY27 · High confidence Suffice for requirements
    So that will suffice the requirement for at least FY'27.

    — Vibhoar Agrawal

Market context

  • Cash Flow from Operations Cash Flow · H2 FY27 · High confidence Positive
    No, as of now, I think the cash flow from operations shall get positive from H2 FY'27 because no new fund raise or any big event is planned in the books.

    — Vibhoar Agrawal

What to watch in Q3 FY26

Cash flow from operations

H2 FY27
Current Negative (implied)
Target Positive

Why it matters

Indicates the company's ability to generate cash from its core operations, crucial for self-sustaining growth.

No, as of now, I think the cash flow from operations shall get positive from H2 FY'27 because no new fund raise or any big event is planned in the books. And all the projects which we have right now in hand are profitable. So, I think this thing will improve in H2 FY'27 only.

Risks & concerns

  • Receivables getting stuck in government infra projects.

    medium

    Analysts raised concerns about receivables in government projects. Management stated that over 40% of their order book is now OpEx in nature (like mining), which has more consistent payments, and they are not involved in problematic segments like Jal Jeevan Mission.

    Analyst mitigated by strategy

  • Risks associated with fast growth and scaling up.

    medium

    Analysts questioned the risks of rapid expansion. Management acknowledged inherent risks but emphasized a cautious approach, focusing on existing clients, familiar geographies, and building team bandwidth to ensure controlled growth.

    Analyst acknowledged and managed

  • Sector-wide execution delays due to monsoon.

    low

    Analysts noted that the sector generally performed poorly due to monsoon, causing execution delays. Management acknowledged facing similar challenges but highlighted their strong performance due to a significantly larger order book.

    Analyst acknowledged but managed

Q&A highlights

8 direct
Strong Q2 performance despite monsoon impact on the sector. Direct
if you go by the books, then last year, our closing order book for FY'25 was somewhere close to Rs. 450 crores only. And we have got so many orders within this financial year. So, this particularly Q1 and Q2 contributes to generally 40% of our total revenue for the entire financial year.

Management explains the company's outperformance relative to the sector, attributing it to a significantly larger order book compared to the previous year, rather than just Q2 execution.

Asked by Agastya Dave

Margin vs. receivables trade-off in the sector, especially for water EPC companies. Direct
if I can define what Ganesh Infraworld is into right now as on 30th of September, so the definition would be that we are into, right now our order book consists of more than 40% order which is of operating expense in nature... So, that way we are quite safe in the biggest order which we have booked.

Management clarifies their strategy to mitigate receivables risk by focusing on OpEx-nature projects (like mining) where payments are more consistent, and avoiding segments like Jal Jeevan Mission where other companies faced issues.

Asked by Agastya Dave

Expected EBITDA margin in the new mining segment. Direct
It will be similar only. EBITDA margins will be similar to what we have performed, what we have been achieving in the last quarter. And the margin profile should improve a little bit once we have our own fleet of machineries, which we have plans to do it in the future.

Provides insight into the profitability expectations for the new strategic mining segment and potential for future margin expansion.

Asked by Siddhartha Barman

Cyclicality reduction in business due to mining orders. Direct
No, it will be same only because the cyclic thing is majorly because of the climatic condition. And the effect of the climatic condition is similar in both mining and non-mining.

Clarifies that while mining offers long-term visibility, it doesn't significantly reduce the overall business cyclicality tied to climatic conditions.

Asked by Siddhartha Barman

Working capital requirements for new large orders, especially mining. Direct
right now the first project which we have got, so we have not bought any major machineries for the same because this project, what we have done, we have hired the machineries locally... for the future projects which we are bidding or which we are planning to bid, so for that definitely some amount of working capital will be required for which we have already gone ahead for the fundraising through the preferential issue of shares. So that will suffice the requirement for at least FY'27.

Addresses concerns about funding large projects, detailing current strategy of hiring equipment and future plans for preferential issue to cover working capital needs.

Asked by Aniket Madhwani

Risks associated with fast growth and scaling up. Direct
Definitely, risk is always there. Risk and reward goes hand in hand. But yes, our vision is quite clear and we are not scaling very fast by opportunity whatever risk is coming to us. Rather, what we are doing, we are speaking to our old clients and we are speaking to the older geographies only.

Management acknowledges growth risks but explains their cautious approach, focusing on existing client relationships and geographies, and building team bandwidth to manage expansion.

Asked by Smit Jain

Shift from subcontracting to direct orders and potential conflict with old clients. Direct
No, because we are not stopping the work with them. Because if we work for them, then their projects, those are huge projects... We get to know all the technologies also. Plus how such a big project is managed, that is also understood. Plus working capital is also less in it. So, we definitely want to keep that flavor always in our portfolio.

Management clarifies that they will continue subcontracting for large clients due to strategic benefits (learning, lower working capital) while also pursuing direct orders.

Asked by Smit Jain

Cash flow from operations turning positive. Direct
No, as of now, I think the cash flow from operations shall get positive from H2 FY'27 because no new fund raise or any big event is planned in the books. And all the projects which we have right now in hand are profitable. So, I think this thing will improve in H2 FY'27 only.

Provides a clear timeline for when the company expects its cash flow from operations to turn positive, linking it to project maturity and no further large fundraising.

Asked by Smit Jain

2 min read 6 chapters

Detailed narrative

Strong Q2 & H1 FY26 Financial Performance

Ganesh Infraworld reported robust financial results for Q2 FY26, with revenue growing 121% YoY to Rs. 210 crores and EBITDA increasing 171% YoY to Rs. 25.7 crores, achieving an EBITDA margin of 12.3%. For H1 FY26, revenue stood at Rs. 390.6 crores (up nearly 70% YoY) and PAT at Rs. 32.7 crores (up over 91% YoY), with H1 EBITDA margin at 11.9% (up 230 bps YoY). This performance reflects strong execution and the benefits of scale.

Strategic Entry into Mining Infrastructure

The company secured its largest-ever single order, a Rs. 708 crore landmark contract from Kandoi Transport for operation and maintenance of heavy mining equipment at the Nigahi coal field in Madhya Pradesh. This strategic entry into mining infrastructure provides long-term revenue visibility and diversifies the company's engineering and infrastructure solutions portfolio. Over 40% of the current order book is now of an operating expense (OpEx) nature, which helps mitigate receivables risk.

Robust and Diversified Order Book

As of September 30, 2025, Ganesh Infraworld's order book stood at Rs. 2,262 crores, providing strong revenue visibility for coming quarters. The order book is diversified across civil infra (39%), water infra (23%), mining (30%), and civic utilities (8%), which includes telecommunication railway projects. The company also has a healthy bid book of approximately Rs. 2,800 crores, indicating a strong pipeline for future growth.

Improved Financial Profile and Credit Rating

The company's strong financial performance led to an upgrade in its credit rating by Infomerics to BBB+ with a stable outlook, and its short-term rating moved to A2. This upgrade reflects a robust balance sheet with a low debt-to-equity ratio of 0.35x. Additionally, Ganesh Infraworld crossed a market capitalization of Rs. 1,000 crore during the quarter, marking an important milestone and reflecting investor confidence.

Cautious Growth Strategy and Working Capital Management

Management emphasized a cautious growth approach, focusing on niche projects, existing client relationships, and building team bandwidth to manage expansion effectively. To address working capital needs for future large orders, the company has secured sanctions from various private lenders, NBFCs, and PSU banks. A planned preferential issue of shares is expected to suffice working capital requirements until at least FY27, with profits also being plowed back into the business.

Industry Environment and Future Outlook

The Indian infrastructure sector remains strong, supported by government capital investment of over Rs. 11.21 lakh crores for FY26. The water infrastructure sector continues to be a national priority with the Jal Jeevan Mission extended until 2028, while mining is projected to grow at a CAGR of 19% through 2030. The company expects cash flow from operations to turn positive from H2 FY27 as projects mature and no new large fundraising events are planned.

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