GPT Infraprojects Limited — Q2 FY26 earnings call

Call held 7 Nov 2025

Management summary

GPT Infraprojects reported strong H1 FY26 financial performance with consolidated revenue growing 11.7% to INR 591 crores and PAT up 32.3% to INR 45 crores. The company maintains a healthy order book of INR 3,591 crores, providing significant revenue visibility. However, Q2 FY26 experienced a sequential revenue dip and increased short-term borrowings due to monsoon-related operational disruptions, which management expects to normalize by March 2026.

Highlights

  • Consolidated revenue for H1 FY26 increased by 11.7% to INR 591 crores compared to INR 529 crores last year.

  • Consolidated EBITDA for H1 FY26 grew 32.8% to INR 89 crores, up from INR 67 crores last year.

  • Consolidated PAT for H1 FY26 rose 32.3% to INR 45 crores, compared to INR 34 crores in H1 FY25.

  • Robust unexecuted order book of INR 3,591 crores provides strong revenue visibility for 3x FY25 revenues.

  • Secured a new INR 195 crores order from TIPSP (Ivory Coast) with an expected EBITDA margin of 18-20%.

Concerns

  • Q2 FY26 saw a sequential decline in revenue performance due to heavy monsoon impact in operating areas.

  • Short-term borrowings increased temporarily due to monsoon-related execution and invoicing delays, impacting working capital.

  • 51% of promoter shares are pledged for working capital limits, though an application for reduction is under evaluation.

Key financials

  1. Consolidated Revenue ₹591 Cr +11.7%YoY
  2. Consolidated EBITDA ₹89 Cr +32.8%YoY
  3. Consolidated PAT ₹45 Cr +32.3%YoY
  4. Consolidated EBITDA Margin 15.1%

What they filed

Q1 FY27: revenue down 3.5%, net profit down 4.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue288 278 381 313 279 −3%284 +2%415 +9%302 −4%
EBITDA31 34 39 37 40 +29%38 +12%59 +51%48 +30%
Net profit15 21 22 25 21 +40%20 −5%30 +36%24 −4%
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.

Segment breakdown

Share of Revenue (H1 FY26)
₹578.9 Cr Total
  • Infrastructure ₹543 Cr 93.8%
  • Sleeper ₹35.9 Cr 6.2%

Order book

high confidence

Total value

₹3,591 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹195 Cr

Execution

to be executed over two and a half odd years

Composition

  • Infrastructure (segment) ₹3,153 Cr
The unexecuted order book provides strong visibility, representing 3x FY25 revenues, with a target of INR 2,000 crores in order inflow for the current year.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Steel girder fabrication workshop ₹25 Cr
    We are looking at we have recently also set up a steel girder fabrication workshop with a capacity of 10,000 metric tons, an outlay of almost INR25 crores.
  • Debt Debt disclosed
    So short-term borrowings have temporarily gone up. Like I said, because of the monsoon, there was some delay in the, what do you call, execution and some of the invoicing as well to the customers. So it has slightly increased in the working capital days. This we expect to again normalize back to the March '25 number by the end of the year.
  • Liquidity Liquidity disclosed Short-term borrowings increased due to monsoon-related execution and invoicing delays, impacting working capital days. Management expects normalization by March '26. Promoters have pledged 51% of shares for working capital limits, with an application for reduction under evaluation.
    So short-term borrowings have temporarily gone up. Like I said, because of the monsoon, there was some delay in the, what do you call, execution and some of the invoicing as well to the customers. So it has slightly increased in the working capital days. This we expect to again normalize back to the March '25 number by the end of the year.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 20%
    In both the standalone and consolidated numbers, we have set a target of 20% growth this fiscal year.

    — Atul Tantia

Profitability

  • EBITDA Margin Profitability · long-term · High confidence 13-14%
    We are confident of maintaining a long-term EBITDA margin of 13%, which we have guided historically as well.

    — Atul Tantia

Order Inflow

  • Order Inflow Order Inflow · FY26 · High confidence INR 2,000 crores
    We are targeting INR2,000 crores for the year.

    — Atul Tantia

Order Book Execution

  • Order Book Execution Timeline Order Book Execution · next 2.5 years · High confidence 2.5 years
    This order bill represents is to be executed over two and a half odd years of INR3,600 crores. So, that should be executed in the next two and a half years.

    — Atul Tantia

Order Growth

  • Order Growth Order Growth · next three years · High confidence 20%
    The next three years, we should be at a 20% order growth. So plus minus a couple of business points. But I think that 20% is something that is quite achievable in the next three years.

    — Atul Tantia

Project Margin

  • Ivory Coast Project EBITDA Margin Project Margin · project duration · High confidence 18-20%
    On the question of margin, it would be around 18% to 20%.

    — Atul Tantia

Capacity Utilization

  • Optimum Capacity Utilization Capacity Utilization · Medium confidence 70-75%
    And what would be your optimum? 70-75%.

    — Atul Tantia

What to watch in Q3 FY26

Short-term borrowings normalization

by March 2026
Current Increased due to monsoon
Target Normalized to March '25 levels

Why it matters

Indicates improvement in working capital management and reduced financial stress.

This we expect to again normalize back to the March '25 number by the end of the year.

Risks & concerns

  • Monsoon impact on execution and working capital

    medium

    Heavy monsoon led to execution delays and increased short-term borrowings, impacting Q2 revenue and working capital days. Expected to normalize by March 2026.

    Management acknowledged

  • Competition in domestic order book

    medium

    High competition in the domestic market necessitates a disciplined approach to bidding, focusing on margin protection over aggressive growth.

    Management acknowledged

  • Promoter share pledge for working capital

    medium

    51% of promoter shares are pledged for working capital limits; an application for reduction has been submitted to consortium banks and is under evaluation.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
Softer Q2 revenue performance Direct
Yes, so the softer execution this quarter was mostly on account of monsoon, as you might be aware. At this time, the monsoon has slightly delayed and there was almost 20% increase in rainfall for the country as a whole, and specifically in the area that we normally operate, whether it is Bombay, whether it is Bengal and UP as such.

Explains the reasons for the sequential revenue decline in Q2, attributing it to external weather factors and indicating a temporary impact.

Asked by Raihan Sayyed

ROE and ROC moderation Partial
So, ROE and ROC are not moderated, because it is not an analyzed number that has been given. So, if you analyze it, it will become -- it is 25% odd in terms of ROC and 20% -- close to 80% to 90% in terms of ROE.

Analyst questioned a perceived moderation in return ratios, which management clarified, providing higher internal estimates, suggesting the analyst's data might be unanalyzed.

Asked by Raihan Sayyed

Drivers of margin improvement in Q2 FY26 Direct
So it's mostly on account of last quarter there was some foreign exchange loss in some of the foreign exchange subsidies in terms of mark-to-market loss. That is no longer there. And also, stronger execution for the domestic sleeper business also helped with the margin improvement.

Provides specific reasons for the improved EBITDA margin in Q2, including the absence of prior forex losses and better domestic execution, indicating operational efficiencies.

Asked by Guru Darshan D

Aggressiveness in growth targets (25-30% vs 20%) Direct
We bid for contracts at that number. In case the contracts don't meet our hurdle rate, we are happy to let them go because we are of the view that in the long-term, we should be very mindful of the margin front. ... 20% is quite a healthy number to grow at.

Management explains its strategic approach to growth, prioritizing margin protection and selective bidding over aggressive top-line expansion, highlighting a disciplined capital allocation philosophy.

Asked by Darshil Pandya

Execution of Ivory Coast project in a new country Direct
So, Ivory Coast is a country which is neighboring to Ghana. We already have a presence, like you mentioned, in Ghana. We have a full team there and they will be able to manage the entire affairs. They will also help us save on some of the overhead costs as well.

Clarifies the strategy for executing a project in a new geography by leveraging existing regional presence and teams, mitigating risks associated with new market entry.

Asked by Shivom Revankar

Increase in short-term borrowings Direct
So short-term borrowings have temporarily gone up. Like I said, because of the monsoon, there was some delay in the, what do you call, execution and some of the invoicing as well to the customers. So it has slightly increased in the working capital days. This we expect to again normalize back to the March '25 number by the end of the year.

Addresses concerns about rising short-term debt, attributing it to temporary monsoon-related disruptions and providing a timeline for normalization, which is crucial for working capital management.

Asked by Darshil Pandya

Status of promoter share pledge Direct
So the pledge of 51% shares of the promoters is towards the working capital limits of the company and not for any other purpose. We have already applied to the consortium banks to reduce that. And it is being evaluated by the consortium as we speak.

Provides transparency on the purpose of promoter share pledge and indicates active steps being taken to reduce it, addressing a potential investor concern regarding corporate governance and financial health.

Asked by Pranav Pal

Percentage of older order book in JVs Evasive
I don't have an answer to that off-hand. We can come back to you on a one-to-one basis.

Management was unable to provide a direct answer to a specific question about the composition of its order book, which could be a point of follow-up for analysts.

Asked by Pranav Pal

2 min read 6 chapters

Detailed narrative

H1 FY26 Financial Performance Highlights

GPT Infraprojects delivered a strong H1 FY26 performance, with consolidated revenue growing 11.7% YoY to INR 591 crores, up from INR 529 crores in the previous year. Consolidated EBITDA saw a significant increase of 32.8% to INR 89 crores, while consolidated PAT rose 32.3% to INR 45 crores. This growth was primarily driven by the infrastructure segment, which contributed approximately 94% of total revenues.

Impact of Monsoon on Q2 Execution and Working Capital

Q2 FY26 experienced a sequential decline in revenue, which management attributed to the impact of heavy monsoon, particularly in key operating regions like Bombay, Bengal, and UP. This weather-related disruption also led to a temporary increase in short-term borrowings and extended working capital days. The company expects these short-term borrowings to normalize by March 2026 as execution picks up post-monsoon.

Robust Order Book and Future Growth Outlook

The company maintains a healthy unexecuted order book of INR 3,591 crores as of September 30, 2025, providing strong revenue visibility equivalent to 3x its FY25 revenues. Management has set a target of 20% revenue growth for FY26 and aims for INR 2,000 crores in order inflow for the year. The current order book is expected to be executed over approximately 2.5 years, supporting sustained growth.

Strategic International Expansion and Margin Focus

GPT Infraprojects secured a new INR 195 crores order from TIPSP in Ivory Coast for a conveyor belt system, marking a strategic move into higher-margin international projects. This project is anticipated to yield an 18-20% EBITDA margin. The company plans to leverage its existing presence and team in neighboring Ghana to facilitate execution, aiming to diversify its portfolio and enhance overall margins, while maintaining a long-term EBITDA margin guidance of 13-14%.

Capital Expenditure and Operational Efficiency

The company recently invested approximately INR 25 crores in commissioning a steel girder fabrication workshop. This new facility contributed to an increase in depreciation but is expected to enhance operational capabilities and support future projects, including the Ivory Coast order, by enabling in-house supply. Current capacity utilization is around 50%, with an optimum target of 70-75%.

Promoter Share Pledge and Debt Management

To support working capital requirements, 51% of promoter shares are currently pledged. Management has applied to the consortium banks for a reduction in this pledge, and the request is currently under evaluation. This action, alongside the expected normalization of short-term borrowings post-monsoon, highlights the company's focus on prudent financial management and capital structure optimization.

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