Globe Civil Projects Limited — Q3 FY26 earnings call

Call held 20 Feb 2026

Management summary

Globe Civil Projects reported stable Q3 FY26 standalone total income of INR93.76 crores and net profit of INR6.53 crores. The company maintains a robust order book of INR850 crores, providing strong future revenue visibility. While FY26 revenue growth is expected to be 15% due to pollution-induced delays in Delhi NCR, management targets 20-25% growth for subsequent years, focusing on high-margin government and sports infrastructure projects. Efforts are underway to reduce the working capital cycle from 100-105 days to 75-80 days.

Highlights

  • Q3 standalone total income of INR93.76 crores and net profit of INR6.53 crores, translating to a net profit margin of 6.96%.

  • 9M standalone total income of INR248.14 crores and net profit of INR17.57 crores, demonstrating stable performance.

  • A healthy order book of INR850 crores as of January 31, 2026, provides strong revenue visibility.

  • Management is targeting a 20-25% year-on-year revenue and profitability growth for future periods, focusing on good projects with healthy margins.

  • All current projects are running smoothly, with no penalties incurred for delays, which are attributed to external factors like pollution.

Concerns

  • FY26 revenue growth guidance has been revised downwards to 15% from the initial 20-25% target, primarily due to pollution-related work stoppages in Delhi NCR.

  • Execution timelines for projects in Delhi NCR are extended from a normal 18-30 months to 26-28 months due to government-mandated construction bans.

  • The Haryana Cricket Association project is delayed due to pending approvals, impacting immediate execution.

Key financials

3 periods

Headline

  • Total Income (Standalone)
    ₹93.757 Cr
  • Net Profit (Standalone)
    ₹6.528 Cr
  • Net Profit Margin (Standalone)
    7%
  • EPS (Standalone)
    ₹1.1

Q3

  • EBITDA Margin
    15.9%
    QoQ -0.19%

9M Standalone

  • Total Income
    ₹248.137 Cr
  • Net Profit
    ₹17.567 Cr

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

₹850 Cr

as of 2026-01-31 quantified

Execution

Normal execution timeline is from 18 months to 30 months, but Delhi NCR projects extend to 26-28 months due to pollution-related work stoppages.

Composition

Mix 2 geographies
  • North India 90%
  • Delhi NCR 70%

Share of order book by geography· categories overlap, and sum to 160%

Pipeline

under evaluation

INR500 crores of projects under evaluation/bidding, expected to open in 1-2 months.

Management focuses on selective bidding for good projects with healthy margins rather than prioritizing strike rate, aiming for yearly targets.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹14 Cr
    • Machinery investment, including scaffolding and shuttering material, to reduce rental costs and improve execution efficiency. ₹14.2 Cr
    Raghav Aggarwal: And capex is remaining. We have a object of around INR14 crores for capex, out of which around INR10 crores, INR11 crores, INR10 crores is still available for capital expenditure. ... Vipul Khurana: These machinery we used to purchase regularly. ... Raghav Aggarwal: Majorly we are buying scaffolding shuttering material from this, which we are taking on rentals also.
  • Debt Debt disclosed
    Raghav Aggarwal: So as per the IPO proceeds objects, the there was nothing for the debt reduction. ... Raghav Aggarwal: We have ample funds as of now. We are not targeting any new borrowings except the borrowings for non-fund based limits like bank guarantee that is one of the major borrowing that we are required in our projects. So for working capital we are not targeting any further increase in the near term. And in future if we see that we have major projects then we can go for the more debts otherwise we have ample funds available as of now to execute all these projects.
  • Liquidity Cash ₹15 Cr Out of INR119 crores IPO proceeds, INR15 crores balance in FDRs, INR20-25 lakhs balance from working capital allocation, and INR10-11 crores still available for capex. Ample funds available to execute current projects.
    Raghav Aggarwal: Yes the proceeds from the IPO as per the object we have also uploaded a monitoring agency report on the portal also. So we out of INR119 crores around INR15 crores is the balance we have in our FDRs. And major object was INR75 crores for the working capital which is almost utilized there is a balance of around INR20 lakhs to INR25 lakhs. ... Raghav Aggarwal: We have ample funds as of now.

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · Medium confidence 15%

    Previously 20-25% → 15%

    Raghav Aggarwal: Last year our standalone revenue was around INR325 crores. And we were like to maintain 20 to 25% growth every year-on-year. But this year due to some pollution issues and major projects in Delhi, we are still expecting a 15% growth.

    — Raghav Aggarwal

  • Revenue Growth (Medium-term) Revenue · Year-on-year · High confidence 20-25%
    Vipul Khurana: Medium growth for revenue and profitability? we are expecting we can we can easily achieve 20% growth every year year-on-year.

    — Vipul Khurana

Profitability

  • Profitability Growth (Medium-term) Profitability · Year-on-year · High confidence 20%
    Raghav Aggarwal: 20% growth every year in the revenue and similarly in the profitability also.

    — Raghav Aggarwal

Order Inflow

  • Expected Order Inflow (This Year) Order Inflow · This year · Medium confidence INR200-400 crores
    Raghav Aggarwal: Every day there are number of projects that we can bid. It is about to choose which project is good and this year we have already received around INR500 crores projects in our order book and another INR200 crores, INR300 crores, INR400 crores projects we are expecting this year.

    — Raghav Aggarwal

  • Sports Infrastructure Project Wins Order Inflow · This year · Medium confidence 1-2 more projects
    Vipul Khurana: And we are expecting in this year to get at least one or two more sports projects.

    — Vipul Khurana

Order Book

  • Book-to-Bill Ratio Order Book · High confidence 3

    Previously 2 → 3

    Raghav Aggarwal: Current book-to-bill ratio is approximately about two. And we are targeting to have it around three.

    — Raghav Aggarwal

Working Capital

  • Working Capital Cycle Working Capital · Medium term · High confidence 75-80 days

    Previously 100-105 days → 75-80 days

    Raghav Aggarwal: With the actually -- we are in the EPC phase, one the EPC cycle gets over, we are expecting to reduce the working capital cycle to 75 days 80 days at least.

    — Raghav Aggarwal

Order Book Composition

  • Government vs Private Project Mix Order Book Composition · Next 4-5 years · High confidence 70% government, 30% private
    Vipul Khurana: And we would remain similar to this only, next to four five years also, we want to keep it at 70-30, more focus on government projects and less on private projects.

    — Vipul Khurana

What to watch in Q4 FY26

FY26 Revenue Growth Achievement

Next quarter (FY26 results)
Current 15% expected
Target Confirmation of 15% growth or further revision

Why it matters

To assess the actual impact of pollution and project delays on the company's top-line performance for the full fiscal year.

Raghav Aggarwal: But this year due to some pollution issues and major projects in Delhi, we are still expecting a 15% growth.

Risks & concerns

  • Pollution-related work stoppages in Delhi NCR

    high

    Government-mandated construction bans (GRAP 3/4) in Delhi NCR lead to project delays and extended execution timelines, impacting revenue growth for FY26.

    Management acknowledged

  • Delays in project approvals

    medium

    Projects like the Haryana Cricket Association work are delayed due to pending approvals, affecting the start of execution.

    Management acknowledged

  • Working capital intensity of EPC projects

    medium

    EPC projects inherently have a longer working capital cycle (100-105 days), requiring significant capital, though management is targeting reduction to 75-80 days.

    Management acknowledged

  • Reliance on government receivables

    medium

    Approximately 90% of receivables are from government clients, which, while considered safe, can involve longer payment processing times (1-45 days).

    Management acknowledged

Q&A highlights

8 direct
Current order book and bidding pipeline Direct
Vipul Khurana: Current balance order book is around INR850 crores. ... we have bid around INR850 crores. Three, four, four projects we have already bidded of roughly around INR500 crores and in next two, three months we have pipeline of another bidding of INR500 crores.

Provides clear quantitative figures for the current order book and immediate bidding pipeline, crucial for revenue visibility.

Asked by Aniket Madhwani

Revision of FY26 revenue growth guidance Direct
Raghav Aggarwal: Last year our standalone revenue was around INR325 crores. And we were like to maintain 20 to 25% growth every year-on-year. But this year due to some pollution issues and major projects in Delhi, we are still expecting a 15% growth.

Highlights a material downward revision in the current fiscal year's growth target and the specific reasons behind it.

Asked by Aniket Madhwani

Impact of pollution on project execution in Delhi NCR Direct
Vipul Khurana: The pollution in in pollution they ban the construction. Construction is stopped by government orders. ... As soon as it is GRAP 3 when the pollution level goes to up to 300 they stop the construction and when the then this get GRAP 4 then this completely banned.

Explains a significant operational challenge specific to the Delhi NCR region, affecting project timelines and overall growth.

Asked by Aniket Madhwani

Utilization of IPO proceeds Direct
Raghav Aggarwal: Yes the proceeds from the IPO as per the object we have also uploaded a monitoring agency report on the portal also. So we out of INR119 crores around INR15 crores is the balance we have in our FDRs. And major object was INR75 crores for the working capital which is almost utilized there is a balance of around INR20 lakhs to INR25 lakhs. We have the -- you can check the status of the proceeds of the IPO from the monitoring report also.

Provides transparency on how the capital raised from the IPO is being deployed across working capital and capex.

Asked by Neelam Karnani

Working capital cycle and payment collection from government Direct
Raghav Aggarwal: It is around 100 days. Quite similar to what we were having in financial year '25 also. It is around 100-105 days only. It is because of the EPC projects which takes time to execute. ... Vipul Khurana: No, payments we receive every month from our clients, but when we submit the bill it takes time to check and then go to finance and then approval of the funds. So after sending the bill it takes around 1 or 45 days more.

Details the company's working capital efficiency and the process for receiving payments, which is critical for cash flow in the construction sector.

Asked by Shaurya Punyani

Target for book-to-bill ratio Direct
Raghav Aggarwal: Current book-to-bill ratio is approximately about two. And we are targeting to have it around three.

Indicates management's ambition for future order book growth relative to revenue, signaling confidence in securing new projects.

Asked by Jayesh

Strategic focus on sports infrastructure Direct
Vipul Khurana: Yeah, yeah, it's a strategy focus area because in next 5 to 7 years there's lot of sports infrastructure that's going to build across the country because of the Commonwealth and or maybe Olympics also comes to India.

Reveals a specific strategic growth area for the company, aligning with national infrastructure development trends.

Asked by Jayesh

Historical project delays and cost overruns Direct
Vipul Khurana: No, project has been delayed, but again it's mostly part of the department that has been at fault and there's no project where the penalty has been levied on us because of our delay.

Addresses concerns about project execution risks, clarifying that delays are typically due to external factors and do not result in financial penalties for the company.

Asked by Jayesh

3 min read 6 chapters

Detailed narrative

Q3 and 9M FY26 Financial Performance Overview

Globe Civil Projects reported a standalone total income of INR93.76 crores for Q3 FY26, with a net profit of INR6.53 crores and an EPS of INR1.10. The net profit margin for the quarter stood at 6.96%. For the nine months ending December 2025, standalone total income reached INR248.14 crores, generating a net profit of INR17.57 crores and an EPS of INR3.23. Consolidated total income for Q3 and 9M FY26 was INR102.09 crores and INR264.58 crores respectively, reflecting stable profitability with a Q3 EBITDA margin of 15.89%.

Order Book and Future Revenue Visibility

As of January 31, 2026, the company's outstanding order book was INR850 crores. Management indicated a bidding pipeline of approximately INR500 crores, with expectations to convert some of these into firm orders within the next 1-2 months. The current book-to-bill ratio is around 2, and the company is targeting to increase this to 3, which would further enhance future revenue visibility. Execution timelines for projects typically range from 18 to 30 months, though Delhi NCR projects face extensions.

Impact of Pollution and Project Delays in Delhi NCR

The company's FY26 revenue growth guidance has been revised downwards to 15% from the earlier 20-25% target, primarily due to pollution-related work stoppages in Delhi NCR. Government-mandated construction bans under GRAP 3 and 4 levels have caused delays in several projects, including those worth INR200 crores in KG Marg and two Unitech projects. Consequently, 18-month projects in Delhi NCR are now expected to take 26-28 months to complete. Despite these delays, management confirmed no penalties have been levied against the company.

IPO Proceeds Utilization and Capital Allocation Strategy

Out of the INR119 crores raised from the IPO, approximately INR15 crores remain in FDRs. The majority, INR75 crores, was allocated to working capital, with a small balance of INR20-25 lakhs remaining. For capex, INR14 crores were earmarked, with INR10-11 crores still available. The capex is primarily directed towards machinery and scaffolding material, including a INR14.2 crore investment, aimed at reducing rental costs and improving project execution efficiency. The company is not actively seeking new debt for working capital but remains open to it for major projects.

Working Capital Management and Receivables Profile

The current working capital cycle stands at 100-105 days, which management aims to reduce to 75-80 days as EPC projects near completion and receivables are realized. Approximately 90% of the company's receivables are from government clients, which are considered secure, although payment processing can take between 1 to 45 days post-billing. The remaining 10% of receivables are from private clients, including those like Unitech, which is under Supreme Court monitoring for payments.

Strategic Focus and Medium-Term Growth Outlook

Globe Civil Projects is strategically focusing on institutional building and housing sectors, while reducing its exposure to transport and railway projects. Sports infrastructure has been identified as a key growth area, with plans to secure 1-2 more sports projects this year, anticipating future opportunities from events like the Commonwealth and Olympics. The company maintains a medium-term target of 20-25% year-on-year revenue and profitability growth, with a preferred project mix of 70% government and 30% private due to the lower risk profile of government contracts.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Construction earnings calls