Ganesh Infra. — Q4 FY25 earnings call

Call held 29 Apr 2025

Management summary

Ganesh Infraworld reported a strong Q4 and full FY25, driven by robust revenue growth and a significant pivot towards the high-potential water infrastructure segment. The company's order book stands at INR 891 crores, with water projects growing 29x YoY, and a healthy bid pipeline of INR 1,200 crores. While PAT margins saw a slight QoQ dip due to growth investments, management expects improvement as the water segment's contribution increases, supported by a prudent balance sheet and plans for direct tender participation.

Highlights

  • Q4 FY25 Revenue grew 6.3% QoQ to INR 158.6 crores, demonstrating robust performance.

  • Full FY25 PAT margin of 7.4% and EBITDA margin of 9.7% reflect operational resilience.

  • Water infrastructure order book surged 29 times year-over-year to INR 318 crores, aligning with national priorities.

  • Current order book of INR 891 crores provides strong revenue visibility for the next 12-18 months.

  • Prudent debt-to-equity ratio of 0.21 and INR 36 crores unutilized IPO proceeds for working capital ensure financial stability.

Concerns

  • Slight QoQ PAT margin decline of 0.4% (from 7.7% in March 2024 to 7.4% in March 2025) attributed to investments in growth and team expansion.

  • Receivables have grown in absolute numbers due to business growth, though working capital days remain stable at ~75 days.

Key financials

3 periods

Headline

  • Net Worth
    ₹180 Cr

Q4 FY25

  • Revenue
    ₹158.6 Cr
    QoQ +6.3%
  • EBITDA
    ₹14.4 Cr
  • EBITDA Margin
    9.1%
  • PAT
    ₹11.6 Cr
  • PAT Margin
    7.3%

FY25

  • Revenue
    ₹538.2 Cr
  • EBITDA
    ₹52 Cr
  • EBITDA Margin
    9.7%
  • PAT
    ₹48.1 Cr
  • PAT Margin
    7.4%

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

₹891 Cr

as of 2025-03-31 quantified

Inflow this quarter

₹314 Cr

Execution

Average execution timeline for the entire order book would be somewhere around 18 months.

Composition

Mix 3 segments
  • Civil infrastructure 49.8%
  • Road and rail 14.4%
  • Water infrastructure 35.7%

Share of order book by segment

Pipeline

L1 awaiting loa

Bid book pipeline for future projects

The order book is strong and well diversified, offering good visibility for future revenue streams, with a significant increase in the water infrastructure vertical.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹11 Cr
    Like, for example, this year we have gone for a capex of INR11 crores. So, this type of capex may be expected in the future years also, maybe some numbers up or down.
  • Debt Debt disclosed
    For FY25, we maintain a debt-to-equity ratio of 0.21, reflecting a prudent approach to capital structure and risk management. This balanced and diversified portfolio positions us to navigate sector-specific cycles while tapping into India's broad infrastructure growth story.
  • M&A Dubai Subsidiary Joint venture · Announced

    Projecting to grow our existing business of Ganesh Infraworld abroad and for that we are actually finding some opportunities in the state of Dubai, UAE, Saudi Arabia and other Middle East countries.

    So, that is a subsidiary we have opened in Dubai. So, right now we have not started any business or anything in that company, but we are projecting to grow our existing business of Ganesh Infraworld abroad and for that we are actually finding some opportunities in the state of Dubai, UAE, Saudi Arabia and other Middle East countries.
  • Liquidity Liquidity disclosed INR 36 crores unutilized from IPO proceeds, projected to be deployed in the current year as a working capital investment for growth.
    And as far as the funding is concerned, so we have a reserve of approximately INR36 crores unutilized from IPO proceeds, which we have projected to get it deployed in the current year as a working capital investment for the growth.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence double-digit growth
    So, we don't see any issues in a double-digit growth for this year in the revenues.

    — Vibhoar Agrawal

  • Revenue Growth CAGR Revenue · long run (5-7 years) · Medium confidence 20-25%
    And we expect a good return of approximately 20%-25% growth rate in the long run of 5 to 7 years.

    — Abhay Singh

  • Total Revenue Revenue · FY27 · High confidence INR 1,000 crores
    Thank you, Manali ji with giving a confidence to INR1,000 crores number in FY27.

    — Abhay Singh

Profitability

  • PAT Margin Profitability · FY27 · High confidence better margin level

    From 7.4% today

    And therefore, the number of PAT percentage should increase from 7.4% of the existing level to a better margin level.

    — Abhay Singh

Order Book

  • Projects to participate in Order Book · FY26 · High confidence INR 2,000-3,000 crores
    I mean, depending on our participation, financial capability, I think we shall be participating in at least INR2,000 crores to INR3,000 crores worth of projects. ... Yes, definitely, within this financial year '25 to '26.

    — Vibhoar Agrawal

Headcount

  • Engineer Headcount Headcount · end of FY26 · High confidence 120

    From 80 today

    So, I think this should increase by 50% by end of this year. ... Okay. So, around 120.

    — Abhay Singh

Working Capital

  • Working Capital Days Working Capital · near future · High confidence 75 days
    So, working capital days right now is approximately 75 days in March 2025. ... So, we are definitely trying to maintain this because as of now we are not seeing any behavioral change in the customers with respect to payment or something like that.

    — Abhay Singh

What to watch in Q1 FY26

Revenue Growth

next quarter
Current Double-digit growth expected for FY26
Target Confirmation of double-digit revenue growth

Why it matters

Verifying the company's ability to translate its strong order book and pipeline into actual revenue growth.

So, we don't see any issues in a double-digit growth for this year in the revenues.

Risks & concerns

  • Shifting government focus from Jal Jeevan Mission (JJM)

    medium

    Analyst noted other companies facing reduced government focus and budget cuts in JJM. Management acknowledged corrections in JJM but highlighted increased funding and focus on AMRUT 2.0 and PM GatiShakti, which include water and urban development projects.

    Analyst downplayed

  • Irregularities in JJM project execution

    low

    Management stated that some irregularities might occur due to the massive scale of infrastructure development across the country, but reaffirmed the government's continued priority on water and clean sewerage systems.

    Management acknowledged

  • Slight QoQ PAT margin decline

    low

    PAT margin declined by 0.4% QoQ. Management attributed this to investments in growth, hiring, team expansion, and the shift in project focus, expecting revival in the next year as water projects contribute more.

    Analyst acknowledged

Q&A highlights

7 direct
Government focus on water sector and impact on Ganesh Infraworld Direct
Like, yes, you are right that there have been some corrections in the budgeting of JJM. But parallel to JJM, there is a mission going on in the name of AMRUT. AMRUT 1.0 is already completed. And recently, government has allocated a good amount of fund in AMRUT 2.0.

Addresses analyst concern about shifting government focus from water, clarifying that while JJM might have corrections, AMRUT 2.0 and PM GatiShakti provide new opportunities for water projects, which Ganesh is actively pursuing.

Asked by Agastya Dave

Future margins and execution mix with increased water segment contribution Direct
So, sir, execution mix has already started reflecting from the month of March, particularly from March we have started executing newer orders, which are primarily the water sector. And overall, I think the reflection will be there maybe from the first quarter itself. And as far as the margins are concerned, Double digit margin will not be, I am not, I mean, we cannot say exactly double digit margin, but yes, it will be somewhere very close to a double digit margin only.

Provides clarity on the expected timeline for margin improvement due to the shift towards higher-margin water projects, indicating a potential move towards double-digit margins from Q1 FY26.

Asked by Agastya Dave

Capex and working capital management for growth Direct
So, I would like to highlight with the numbers what is happening to answer your query. So, we are seeing a growth. And with respect to capex since we are moving or having an annual budget which is low capex heavy, so basically we are not planning for major capex. We are majorly going with rental fixed assets at the location-specific, project-specific places, and definitely purchasing some fixed assets. Like, for example, this year we have gone for a capex of INR11 crores. So, this type of capex may be expected in the future years also, maybe some numbers up or down.

Explains the company's asset-light model for growth, relying on rental assets and minimal capex, which is crucial for understanding capital efficiency in a growth phase.

Asked by Agastya Dave

Order book pipeline, win rate, and future bidding plans Direct
So, our bid book would be somewhere around maybe INR1,200 crores. ... And how much of this is from the water vertical? More than 80%. ... I mean, depending on our participation, financial capability, I think we shall be participating in at least INR2,000 crores to INR3,000 crores worth of projects. ... Yes, definitely, within this financial year '25 to '26.

Quantifies the significant bidding pipeline, especially in the water sector, and outlines aggressive plans for new project participation, providing strong visibility for future order inflows and revenue.

Asked by Rahil

Seasonality of revenue booking Direct
So, we see the most dull quarter at September quarter. September quarter basically faces two issues. One is the seasonal rainy season and second the projects in particularly in East India has lots of holidays on respect of religious holidays. And so September is the quarter where we see the lowest revenue and we see higher revenue in the quarter of December and March. So, December and March are the best and June is a bit low and September is the worst.

Provides critical insight into the company's revenue seasonality, which helps investors model future quarterly performance more accurately.

Asked by Rahul Ranka

Growth in receivables and working capital days Partial
So, the debtors is approximately around 79 days when if we see the numbers, the numbers have grown definitely because of the growth in the business of the company. So, if you see the revenue has also grown. In the March quarter last year, the revenue was INR51 crores and this quarter we have done 158 and that is why the debtors in numbers has definitely grown. However, if we see the number of days, so as on March 25, the number of days stands at 79 days.

Acknowledges the absolute increase in receivables but clarifies that working capital days (debtor days) have remained stable, suggesting that the growth is proportional to revenue expansion rather than a deterioration in collection efficiency.

Asked by Sahil

Strategy to move from subcontracting to direct tenders and margin impact Direct
So, as of now, we have not done or executed any direct tenders by ourselves. So, we are trying to test the same through JV route. However, the market study which we have done, so we understand that there should be a difference of approximately 4% in the PAT level if you go directly with the government.

Outlines the strategic shift towards direct tenders, initially through JVs, and quantifies the potential margin upside (4% PAT level difference), which is a key driver for future profitability improvement.

Asked by Sahil

Engineer headcount growth plans Direct
So, I think this should increase by 50% by end of this year. ... Okay. So, around 120.

Indicates significant investment in human capital to support growth and the transition to direct tenders, providing a measurable target for team expansion.

Asked by Rahil

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in Q4 and FY25

Ganesh Infraworld Limited reported a Q4 FY25 revenue of INR 158.6 crores, marking a 6.3% quarter-on-quarter growth. The company achieved an EBITDA of INR 14.4 crores with a margin of 9.1%, and a PAT of INR 11.6 crores, translating to a PAT margin of 7.3%. For the full fiscal year 2025, revenue stood at INR 538.2 crores, with an EBITDA of INR 52 crores (9.7% margin) and a PAT of INR 48.1 crores (7.4% margin). Net worth significantly expanded to INR 180 crores, reflecting successful capital raises and internal approvals.

Strategic Pivot to Water Infrastructure Driving Growth

The company is strategically increasing its presence in the high-growth water infrastructure segment, which saw its order book grow 29 times year-over-year to INR 318 crores. This aligns with government initiatives like the Jal Jeevan Mission and AMRUT 2.0. Recent wins include an INR 185 crores water project in Gwalior and an INR 129 crores water management contract in Kolkata, validating the company's enhanced execution capabilities across the water value chain.

Robust Order Book and Future Pipeline

Ganesh Infraworld's current order book stands at INR 891 crores, providing strong revenue visibility. The composition includes INR 444 crores from civil infrastructure, INR 128 crores from road and rail, and INR 318 crores from water infrastructure. The company also has a bid book of approximately INR 1,200 crores, with over 80% originating from the water vertical. Management plans to participate in new tenders worth INR 2,000-3,000 crores within FY26, expecting a double-digit revenue growth for the year.

Prudent Capital Management and Low Capex Model

The company maintains a prudent balance sheet with a debt-to-equity ratio of 0.21 for FY25. It operates on a low capex-heavy model, with FY25 capex at INR 11 crores, primarily utilizing rental fixed assets for project-specific needs. Working capital days are stable at approximately 75 days as of March 2025, and INR 36 crores of unutilized IPO proceeds are earmarked for working capital investment to support growth.

Transition to Direct Tenders for Margin Expansion

Ganesh Infraworld is actively working towards transitioning from a subcontractor model to bidding for direct tenders. This involves building internal capabilities in tender, planning, and costing departments. The company plans to initially pursue direct tenders through joint ventures to gain experience, with a market study indicating a potential 4% difference in PAT level when directly engaging with the government. This strategic shift is expected to drive future margin expansion.

Team Expansion and Operational Efficiency

To support its growth trajectory and strategic shift, the company is significantly expanding its team. The number of engineers on payroll increased from approximately 65 (pre-IPO) to 80 as of March 31st, 2025, with another 40-45 engineers in the process of joining. Management expects the engineer headcount to increase by 50% to around 120 by the end of FY26, reflecting investments in building a qualified team for higher-value projects.

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