Globe Civil Projects Limited — Q2 FY26 earnings call

Call held 26 Nov 2025

Management summary

Globe Civil Projects Limited reported robust Q2 FY26 results with total income growing 40% QoQ to ₹94.78 crores and net profit increasing 18.32% QoQ to ₹5.98 crores. The company's order book stands at approximately ₹950 crores, bolstered by recent wins of ₹450 crores, providing strong revenue visibility. Management is focused on operational efficiencies, larger project acquisitions, and reducing finance costs to achieve 20-25% revenue growth and expand EBITDA margins from the current 14%.

Highlights

  • Q2 FY26 total income rose 40% quarter-on-quarter to ₹94.78 crores, demonstrating strong growth momentum.

  • H1 FY26 net profit stood at ₹11.03 crores, achieving a 6.84% margin and EPS of ₹2.13.

  • The consolidated pending order book surpassed ₹1,000 crores, ensuring multi-year revenue visibility.

  • Secured major EPC orders worth ₹450 crores in recent months, including significant projects in education and sports infrastructure.

  • Management is confident in achieving 20-25% revenue growth for FY26 and aims to expand EBITDA margins from the current 14%.

Concerns

  • Working capital requirements remain high due to retention money (5% for NBCC projects) and initial project mobilization.

  • The market is acknowledged as competitive, requiring strategic bidding for margin expansion.

Key financials

2 periods

Q2 FY26

  • Total Income
    ₹94.781 Cr
    QoQ +40%
  • EBITDA
    ₹12.967 Cr
    QoQ +18.3%
  • Net Profit
    ₹5.975 Cr
    QoQ +18.3%

H1 FY26

  • Total Income
    ₹162.479 Cr
  • EBITDA
    ₹24.5 Cr
  • Net Profit
    ₹11.025 Cr
  • Net Profit Margin
    6.8%
  • EPS
    ₹2.13

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

₹950 Cr

as of 2025-11-26 quantified

Inflow this quarter

₹450 Cr

Execution

spread over the next 2 years to 2.5 years

Composition

  • Institutional, Educational, Sports, Public Utility, Stationary Development Infrastructure (segment)
  • Central Government EPC Contracts (project type)

Pipeline

other

Targeting new orders of Rs. 200-300 crores in 1-2 months, and another Rs. 200-300 crores by end of March.

The order book provides multi-year revenue visibility and is primarily composed of fully funded central government EPC contracts.

Source: Prepared remarks

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 20-25%
    We are targeting the growth of 20%-25% on the previous year.

    — Vipul Khurana

Margin

  • EBITDA Margin Margin · Ongoing · High confidence 15-16%

    From 14% today

    As of now, we have EBITDA around 14%. So, that is maintainable and we are expecting to increase that also. ... targeting to maintain this 14% and to add another 1% or 2%.

    — Raghav Aggarwal

Order Book

  • Order Book Value Order Book · End of FY26 · Medium confidence ₹1,000-1,100 crores
    We are targeting around Rs. 1,000 crores. That means we will execute another around Rs. 250 crores in this six months, considering the 20% growth, 250 to 300 growth, we will build in the next two quarters. So, we are targeting 20% growth. So, another Rs. 300 crores will make our order book around Rs. 1000 to 1100 Crores.

    — Raghav Aggarwal

Order Inflow

  • New Order Wins Order Inflow · Next 1-2 months · High confidence ₹200-300 crores
    So, we are targeting a Rs. 200 crores-Rs. 300 crores project within a period of 1 or 2 months. And then another 200-300 by end of March.

    — Raghav Aggarwal

What to watch in Q3 FY26

H2 FY26 Revenue Growth

FY26
Current Q2 FY26 total income up 40% QoQ
Target Achieve 20-25% revenue growth for FY26

Why it matters

Verifying if the company can accelerate execution in H2 to meet its annual revenue growth guidance.

We are targeting the growth of 20%-25% on the previous year. So, which will be in the next quarter and the 4th Quarter as well, overall growth we are talking about from the last year

Risks & concerns

  • Working capital intensity due to retention money

    medium

    Retention money (e.g., 5% for NBCC projects) creates a working capital hold, which management acknowledges and factors into their bidding strategy.

    Analyst acknowledged

  • Competitive market impacting margin expansion

    medium

    Management acknowledges the market is competitive but is confident in their strategy of targeting larger projects and direct bidding to expand margins by 1-2%.

    Management acknowledged

  • Regulatory approval delays for projects

    low

    Management states central government projects have very fast approvals and they pre-qualify projects for funding, mitigating this risk for their portfolio.

    Analyst downplayed

Q&A highlights

8 direct
H2 FY26 execution, cash flow, and interest payment Direct
The Rs. 1,000 crore project pipeline is spread over the next 2 years to 2.5 years. So, second half is always better for us and everybody in the industry in terms of revenue. So, we are hoping to increase our revenue because the new project has started and the revenue has already been started from the new project. So, of course, it's going to be better from the 2nd Quarter and the fourth will be even better. And Raghav, can you answer about the interest part and the cash flow?

Analyst sought clarity on future execution pace and financial health, which management addressed by confirming H2 strength and ongoing efforts to reduce finance costs.

Asked by Tapankumar Doshi

Current order book and pipeline Direct
Pending order book as of August-September was Rs. 1,000 crores. And after this, we have completed some Rs. 40 crores-Rs. 50 crores. So, it is around Rs. 950 crores as on date. ... So, we are hoping to get at least one work of Rs. 200 crores-Rs. 300 crores, if not more.

Provides specific, updated figures for the order book and future order inflow expectations, crucial for revenue visibility.

Asked by Disha

Strategy for increasing EBITDA margin Direct
So, we are targeting for bigger projects because the bigger project has better margins. Instead of doing Rs. 50 crore projects or Rs. 60 crore or Rs. 100 crore projects, we are targeting Rs. 200 crores-Rs. 300 crores-Rs. 400 crores single projects at a single place. So, that will increase our margins. But there is a scope of 1% or 2%.

Details management's strategic approach to margin expansion, focusing on project size and direct bidding.

Asked by Tapankumar Doshi

Regulatory approval delays for government projects Direct
Approvals are very fast as you know we are mostly doing central government projects and central government project. The focus is on developer center is really focused in executing the project. ... And we are choosing all our projects. So, we do pre work before bidding that project is funded or not, the funds are available or not.

Addresses a common industry concern, with management explaining their mitigation strategy and focus on central government projects.

Asked by Tapankumar Doshi

Working capital dynamics, receivables, and retention money Direct
Yes, retention money. Earlier in CPWD, they were having a 2.5% retention money, but now most of the projects like we are doing is NBCC and all. So, they have a 5% retention money and there are 1 or 2 projects where we cannot take the retention money back on BG also. So, in these projects, there is an amount always held up with them. So, that is also a big reason for working capital hold.

Highlights a key challenge in the construction sector and how the company accounts for it in its bidding strategy.

Asked by Tushar

Expansion into newer states and segment focus Direct
Just now we had bid in Goa, a new state, so we are open to different, we are just looking for a good opportunity for a good project rather than a state. So we keep on adding the state wherever we get a good opportunity. ... And then again, we are targeting sports infrastructure as specific as we hoping that industry, that part of segment will grow in future.

Reveals the company's flexible expansion strategy and identification of sports infrastructure as a key growth area.

Asked by Tushar

Strategic thought process behind forming new joint ventures Direct
Behind new joint venture, joint venture is only formed for the eligibility criteria. If we don't meet the eligibility criteria and if you think that we can get a good project and good prices by forming a joint venture, so we form a joint venture and sometimes we execute ourselves and sometimes we divide our work depending on the nature of the project and terms and condition between the joint venture.

Clarifies the rationale for JVs, indicating a shift towards direct execution as the company's eligibility improves.

Asked by Tushar

Maintaining quality with an expanding order book and project management systems Direct
We have a particular method of quality control which we adopt at all projects and we don't compromise on that. We have a third party safety agency which we deploy on all our projects so that safety and quality is not compromised. ... So number of the projects is still the same we are increasing the size of the projects. So our focus, we have ample team to maintain that quality and we are looking for bigger projects.

Addresses concerns about scalability and quality control, outlining the company's robust systems and strategy of focusing on larger projects.

Asked by Neelam

2 min read 6 chapters

Detailed narrative

Q2 & H1 FY26 Financial Performance Overview

Globe Civil Projects Limited delivered strong growth in Q2 FY26, with consolidated total income rising 40% quarter-on-quarter to ₹94.78 crores. EBITDA improved to ₹12.97 crores, an 18.32% QoQ increase, while net profit also grew 18.32% QoQ to ₹5.98 crores. For H1 FY26, the company reported a total income of ₹162.48 crores, EBITDA of ₹24.5 crores, and a net profit of ₹11.03 crores, achieving a 6.84% net profit margin and an EPS of ₹2.13.

Robust Order Book and Strategic Inflow

The company's consolidated pending order book has exceeded ₹1,000 crores, providing multi-year revenue visibility, with the current order book standing at approximately ₹950 crores as of November 26, 2025. In recent months, Globe Civil secured major EPC orders totaling ₹450 crores. These wins include a ₹173 crore order for Central University, Punjab, a ₹222 crore International Cricket Stadium in Haryana, a ₹61 crore project for Kotak School at IIT Kanpur, and a ₹13 crore project at NIT Delhi.

Operational Efficiency and Margin Expansion Strategy

Management is focused on strengthening execution excellence and accelerating scale through disciplined and margin-accretive growth. They aim to maintain the current EBITDA margin of around 14% and expand it by an additional 1-2%. This will be achieved by targeting larger projects (₹200-400 crores each), bidding directly rather than through joint ventures, and continuously working to reduce overall finance costs and improve cash flow through advance material procurement.

Working Capital Management and Cash Flow

The company's project portfolio primarily consists of fully funded central government EPC contracts, which ensure predictable cash flows and reduced working capital risk. While retention money (e.g., 5% for NBCC projects) does create a working capital hold, this is factored into their bidding strategy. Working capital deployed from the IPO and continuous efforts to reduce finance costs contribute to ample cash flow availability.

Growth Outlook and Segment Diversification

Globe Civil Projects is targeting 20-25% revenue growth for FY26, with the second half of the fiscal year expected to be stronger as newly awarded projects mobilize. The company is expanding its focus on institutional, educational, sports, and public infrastructure segments. They are actively pursuing new orders, with a pipeline targeting ₹200-300 crore projects in the next 1-2 months and another similar amount by March, aiming for a 2x-3x order book to revenue ratio.

Project Approvals and Quality Control

Management highlighted that central government projects, which form the bulk of their portfolio, benefit from very fast regulatory approvals. They conduct pre-work to ensure projects are funded before bidding. To maintain quality and safety with an expanding order book, the company employs a particular method of quality control, deploys third-party safety agencies, and focuses on increasing the size of projects rather than just the number, leveraging its experienced team.

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