GPT Infraprojects Q4 FY26 earnings call

GPT Infraprojects reported a strong close to FY26, with consolidated revenue growing 8.9% YoY to INR 414.7 crores in Q4 and 8.6% to INR 1,290 crores for the full year. Consolidated EBITDA for Q4 surged by 53% YoY to INR 59.2 crores, with margins expanding by 400 basis points, primarily driven by the commencement of operations at the Ghana factory. For the full fiscal year, consolidated PAT increased by 21.5% to INR 97.3 crores, and the company maintained a healthy Return on Capital Employed (ROCE) of 20.9%.

The company achieved its highest-ever annual order inflow, securing INR 2,422 crores, which surpassed its internal projection of INR 2,000 crores. This robust inflow boosted the total order book to INR 4,476 crores as of March 31, 2026, representing approximately 3.5 times its FY26 revenues. The order book is well-diversified across railways, bridges, roads, flyovers, and allied infrastructure sectors, with significant wins including a INR 481 crores share in a Northern Railway bridge project and a INR 470 crores share in an MCGM flyover project.

GPT Infraprojects made strategic moves to enter high-growth and high-margin business verticals. The acquisition of Alcon Builders and Engineers Private Limited, an EPC signaling contractor, for INR 151.83 crores (cash consideration) provides a 'plug-and-play' entry into a segment with approximately 20% EBITDA margins. Additionally, the company secured its first HAM contract in Rajasthan for an elevated bypass project valued at INR 669 crores (51% share), diversifying its project portfolio in the road and highway space.

The company commercially operationalized its manufacturing facility in Ghana in March 2026, which is expected to contribute positively to future margins. Furthermore, GPT Infraprojects established a new factory for fabricating steel girders in Singur, West Bengal, with an initial capacity of 10,000 tons per annum, with plans for further capacity enhancement. These operational expansions are aimed at improving execution efficiencies and supporting margin stability.

Q4 revenue growth was notably subdued, particularly in March, primarily due to the West Bengal elections, which affected execution activities and led to migrant labor movement. Management expects to recover this delayed execution in the first half of FY27. Regarding raw material costs, the company confirmed that most contracts include price escalation formulas linked to WPI/SAIL/RINL, and government agencies like NHAI are ensuring timely reimbursement of additional burdens, mitigating potential margin pressure.

While QIP proceeds in FY25 were utilized to reduce debt by INR 125-130 crores, debt levels increased in FY26 due to drawdowns for large EPC contracts and the cash consideration for the Alcon acquisition. However, management anticipates that strong cash flows in the coming years will help bring debt back to previous levels. The Board declared a third interim dividend of INR 1 per share, bringing the total dividend for FY26 to INR 2.75 per share, consistent with the company's dividend policy.