Globe Civil Projects Limited — Q1 FY26 earnings call

Call held 25 Aug 2025

Management summary

Globe Civil Projects Limited reported a solid Q1 FY26 with consolidated revenue of ₹67.70 crores and an EBITDA margin of 17.55%. The company secured ₹450 crores in new orders post-IPO, bringing its total order book to ₹1,000 crores. Management targets 20-25% revenue growth for FY26 and the next three years, with plans to initiate dividend payments this financial year.

Highlights

  • Strong Q1 FY26 financial performance with revenue of ₹67.70 crores and EBITDA margin of 17.55%.

  • Significant new order inflow of ₹450 crores post-IPO, boosting the total order book to ₹1,000 crores.

  • Successful IPO of ₹119 crores on July 1st, 2025, providing capital for growth and debt reduction.

  • Management plans to initiate dividend payments this financial year.

  • Strategic focus on high-profitability, complex projects and direct contracts (reducing JV reliance) to improve margins by 1-2%.

Concerns

  • Q1 revenue is typically lower due to seasonality (rainy season, slow approvals at financial year start).

  • Project approvals from government departments remain a key risk, though actively mitigated by management.

Key financials

  1. Revenue ₹67.7 Cr
  2. EBITDA ₹11.88 Cr
  3. EBITDA Margin 17.6%
  4. PAT ₹5.05 Cr
  5. PAT Margin 7.5%
  6. EPS ₹1.16

What they filed

Q1 FY27: revenue up 37.0%, net profit up 40.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue124 67 94 101 143 +16%92 +37%
EBITDA14 12 13 14 15 +6%15 +31%
Net profit6 5 6 7 6 −8%7 +40%
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

₹1,000 Cr

as of 2025-08-25 quantified

Inflow this quarter

₹450 Cr

Execution

Execution timeline for the Rs. 1,000 crores order book is from 18 months to 30 months, with an average of two years from starting.

Composition

Mix 3 project types
  • Central University of Punjab (academic building, hostel, BC residence, campus development) ₹172.99 Cr 38%
  • IIT Kanpur (Kotak School of Sustainability) ₹61.78 Cr 13.6%
  • Haryana Cricket Association (International Cricket Stadium) ₹220.2 Cr 48.4%

Share of order book by project type, derived from disclosed amounts

Pipeline

qualified rfp

Planning to bid for projects worth ₹300-400 crores next month.

The company has a robust and diversified order book, with nearly 90% comprising funded central government projects, ensuring strong cash flow visibility. New orders are primarily direct contracts, which are expected to improve margins.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Debt disclosed
    Sir, IPO has come in 1st July, now the funds are with the company that will improve our profitability and reduce our debt also. In this year, we will give some dividend also.
  • Liquidity Liquidity disclosed The company completed a successful IPO of ₹119 crores on July 1st, 2025, which is expected to improve profitability and reduce debt. All three new projects worth ₹450 crores have secured funding approval from clients.
    This disciplined growth journey led to a pivot milestone and our successful IPO of Rs.119 crores and listing on NSE and BSE on July 1st, 2025. ... All three projects we have received since listing are prestigious projects and all three have received funds approval from their clients.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 20-25%
    20-25% growth is what we are targeting and that is the guidance for '26.

    — Vipul Khurana

  • Revenue Growth Revenue · next 3 years · High confidence 20-25%
    Steady growth of 20-25% which we are targeting right now and that is our guidance for the next three years.

    — Vipul Khurana

  • Double Turnover Revenue · four to five years · Medium confidence Double turnover
    In four to five years, we will be able to double our turnover.

    — Vipul Khurana

Profitability

  • EBITDA and PAT Margin Profitability · Ongoing · Medium confidence Maintain, potentially increase by 1-2%
    On a similar pattern, we will be able to maintain the EBITDA and PAT margin, that will also increase because now the projects are coming directly to our company not through JVs, so, that will also add some percentage by 1% or 2% by this.

    — Management

Finance Costs

  • Reduce Finance Costs Finance Costs · Ongoing · High confidence Reduction
    We are targeting to reduce our finance costs. We are continuously negotiating with our banks for reduction in LOI and non-fund-based limit commissions.

    — Raghav Aggarwal

Dividend

  • Dividend Payout Dividend · this year (FY26) · High confidence Will give dividend
    Yes, we will definitely be giving dividend in coming quarters. This quarter is also pre-IPO quarter only. So, we are planning from this year to give some dividend also.

    — Management

What to watch in Q2 FY26

Dividend Declaration

coming quarters (FY26)
Current Not declared for Q1 FY26 (pre-IPO)
Target Declaration of dividend for FY26

Why it matters

Verifies management's commitment to shareholder returns post-IPO.

Yes, we will definitely be giving dividend in coming quarters. This quarter is also pre-IPO quarter only. So, we are planning from this year to give some dividend also.

Risks & concerns

  • Departmental Approvals for Projects

    medium

    Approvals from various government departments (building, fire, etc.) are a key risk that can delay project execution, though management actively mitigates this through personal effort.

    Management acknowledged

  • Raw Material Cost Inflation

    low

    Inflation in raw material costs is largely mitigated by the inclusion of escalation clauses in most of the company's projects.

    Management acknowledged

  • Seasonality in Project Execution

    low

    Q1 is typically low due to the rainy season and slow approvals at the start of the financial year, while Q4 is heavy. This is managed by having projects in different stages and locations.

    Management acknowledged

  • NGT Bans on Construction

    low

    Construction bans due to NGT (e.g., in Delhi during Oct-Dec) can affect projects, but the impact is diversified by having projects in multiple states and regions.

    Management acknowledged

Q&A highlights

7 direct
NIT Delhi Project Completion Timeline Direct
The NIT Delhi project, 80% project is almost complete, and out of four buildings, three buildings have already been handed over, in the next two to three months we will be able to finish that project. ... September, but yes, in October, November, we will be able to deliver it.

Clarifies the revised completion timeline for a significant ongoing project, indicating a slight delay from the initial September target.

Asked by Aniket Madhwani

Dividend Policy Post-IPO Direct
Yes, we will definitely be giving dividend in coming quarters. This quarter is also pre-IPO quarter only. So, we are planning from this year to give some dividend also.

Confirms management's intention to initiate shareholder returns through dividends in the current financial year, a key signal for new investors post-IPO.

Asked by Lahu Gore

Differentiation and Technology Adoption Direct
Our approach is we ourselves are fully involved in the business and we have selective bidding. You only bid projects that are complex in nature and which have high profitability. ... we are again using all the softwares available and all the new machineries available with us. Recently, we got a stadium project in which Precast is there. So, it has a new technology machinery which we have been using for the Precast segment.

Highlights the company's competitive advantages, including selective bidding for complex, high-margin projects, strong client relationships, and adoption of advanced construction technologies like precast.

Asked by Abhishek Sharma

Key Risk Management (Approvals & Inflation) Direct
Risk in our segment is approval from the department. ... That is a key risk which we mitigate and do personal effort and try to get it as soon as possible. ... But inflation in all our most projects we have escalation clause. So, inflation is beaten by that escalation clause.

Identifies critical operational risks (approvals) and financial risks (inflation) and explains the specific mitigation strategies employed by the company.

Asked by Abhishek Sharma

Project Mix and Margins of New Orders Direct
Our EBITDA and margins are in line with what we are giving right now and we will be able to achieve those EBITDA in these projects also. So, these are all direct contracts and no JV expenses and other things are involved in this. So, we hope to get a good margin and good EBITDA from this project.

Provides insight into the profitability expectations for the recently secured ₹450 crores in new orders, emphasizing the benefit of direct contracts over JVs for margin improvement.

Asked by Vinod Shah

Geographic Expansion Strategy Direct
We do not have focus to any new state. But Northeast, we are not planning and other like Kerala, Tamil Nadu. So the focus is not to expand into the states but expect to get good projects, good EBITDA. ... our focus is to manage the work properly. So the closer it is to Delhi, we can manage properly. If the project is near the airport, so we can fly and go to the site and control it better rather than having it in interior or far from like 500 Kms from airport where we have to land and it takes two days to get to the site, will be difficult for us to control.

Clarifies the company's cautious approach to geographic expansion, prioritizing project control and profitability over entering new states, especially those far from existing hubs or with logistical challenges.

Asked by Priya Shinde

Quarterly Earnings Volatility and Seasonality Direct
Quarter earnings, I mean, mostly it is not seasonal as per se. Some projects like, in the rainy season, if it is in the foundation, it gets affected, other projects in which we are in finishing state does not get affected. So, ours is not seasonality, but yes, first quarter is typically low, and the last quarter is typically heavy. That is the only seasonality which we have. And around October, November, December, say in Delhi, we have sometimes projects that are banned due to NGT.

Explains how the company manages inherent seasonality and external factors like NGT bans through project diversification across different stages and geographies to maintain consistent quarterly earnings.

Asked by Vinod Shah

2 min read 5 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Globe Civil Projects Limited commenced FY26 with a consolidated revenue of ₹67.70 crores in Q1. The company reported an EBITDA of ₹11.88 crores, translating to a healthy EBITDA margin of 17.55%. Profit after tax (PAT) stood at ₹5.05 crores, with a PAT margin of 7.46%, and earnings per share (EPS) for the quarter was ₹1.16. Management noted that Q1 is typically a lower quarter due to seasonality and slower approvals at the start of the financial year.

Robust Order Book and Recent Inflows

The company's total order book currently stands at ₹1,000 crores, providing strong revenue visibility. In the 55 days since its IPO on July 1st, 2025, Globe Civil Projects secured new orders worth approximately ₹450 crores. These significant wins include a ₹172.99 crore EPC contract for Central University of Punjab, a ₹61.78 crore contract for IIT Kanpur's Kotak School of Sustainability, and a ₹220.2 crore project for the Haryana Cricket Association to build an International Cricket Stadium.

Strategic Growth and Operational Excellence

Globe Civil Projects emphasizes a disciplined and profitable growth strategy, selectively bidding for complex projects with high profitability. The company has streamlined operations by exiting the trading business, with contractual EPC work now contributing nearly all profits. Management highlighted its turnkey expertise spanning MEP, HVAC, firefighting, and architectural work, enabling comprehensive solutions. The company also focuses on repeat customers and direct contracts, which are expected to improve margins by 1-2%.

Post-IPO Capital Management and Shareholder Returns

Following a successful IPO of ₹119 crores and listing on July 1st, 2025, the company's funds are expected to enhance profitability and reduce debt. Management is actively negotiating with banks to reduce finance costs and commissions. Importantly, the company plans to initiate dividend payments this financial year, marking a commitment to shareholder returns post-IPO.

Geographic Focus and Risk Mitigation

The company operates across 11 states, with a focus on important regions like Maharashtra, Delhi, Punjab, and Haryana. While open to good projects in any state, the primary focus is on managing work properly, preferring projects closer to Delhi or near airports for better control and profitability. Key risks such as departmental approvals are mitigated through proactive engagement, and inflation in raw material costs is largely offset by escalation clauses in most projects.

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