Bharat Global Developers Limited — Q1 FY26 earnings call

Call held 2 Sep 2025

Management summary

Kore Digital reported a strong Q1 FY26 with consolidated revenue of ₹156.99 crores, up 2.09% YoY and 35% QoQ, driven by infrastructure projects. EBITDA saw a remarkable 167% YoY growth to ₹119.93 crores, and EPS improved significantly to ₹11.4. The company made progress on the Samruddhi Mahamarg project and successfully entered defense manufacturing, anticipating an initial order. Management provided FY26 revenue guidance of ₹700-800 crores and projected 50% growth for FY27, while also addressing concerns about social media negativity.

Highlights

  • Consolidated revenue reached ₹156.99 crores, marking a 2.09% year-on-year growth and 35% sequential growth over Q4 FY25.

  • EBITDA grew significantly by 167% year-on-year to ₹119.93 crores.

  • EPS showed a substantial improvement to ₹11.4, up from ₹4.40 in the prior year's quarter.

  • Progress on the Samruddhi Mahamarg optical fiber corridor, with Part-1 completion expected by November 2025 and revenue from December 2025.

  • Successful entry into defense manufacturing with unique 3D-printed metal components, anticipating an initial order of ₹7-10 crores.

  • Strategic partnership with Crest Digital Private Limited to expand presence in building solutions and micro-sales.

Concerns

  • Ambiguity in net profit reporting, with the transcript stating 'net profit was Rs. 155 crores, Y-o-Y to Rs. 13.51 crores', which contradicts the overall positive growth narrative.

  • Ongoing challenge with negative social media campaigns impacting investor sentiment and stock price, despite management's efforts to address it.

Key financials

  1. Revenue ₹156.99 Cr +2.1%YoY
  2. EBITDA ₹119.93 Cr +167%YoY
  3. Net Profit ₹13.51 Cr
  4. EPS ₹11.4 +159.1%YoY

What they filed

Q4 FY26: revenue down 75.7%, net profit down 88.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ4 FY23Q2 FY24Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q4 FY26
Revenue15 15 92 119 40 +166%157 +945%34 −63%29 −76%
EBITDA3 4 11 19 6 +94%20 +352%6 −41%6 −67%
Net profit2 3 8 13 2 −9%14 +350%2 −68%2 −88%
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

Pipeline

deal pipeline tcv

Project pipeline currently under execution and anticipated revenue opportunity for FY26.

Management noted a project pipeline under execution and a significant revenue opportunity for the current fiscal year, particularly in the defense sector.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹150 Cr either from banks or from investors
    • Defense sector scale-up (factory and machinery) ₹150 Cr
    In January-February, we will be going for that. ... In January, February, March, last quarter, we will be looking for some good funds either by debts from bank or from our investors. ... I may take about Rs. 150 crores, either from banks or from my fellow investors.
  • Debt Debt disclosed
    The Government of India gives a guarantee of Rs. 100 crores to the banks if I am taking the CAPEX. ... I already have the power of Rs. 50 crores.
  • M&A Crest Digital Private Limited Joint venture · Announced

    To expand presence in building solutions and micro-sales side.

    Expected to meaningfully enhance business volume and strengthen market outreach.

    We are also pleased to share the Kore Digital Limited enter into strategic partnership with Crest Digital Private Limited, a Brookfield company, to expand our presence in the building solutions and micro-sales side. The alliance is expected to meaningfully enhance our business volume and strengthen our market outreach.

Guidance & targets

Revenue

  • FY26 Revenue Projection Revenue · FY26 · High confidence ₹700-800 crores
    Even now it is Rs. 700-Rs. 800. There is some miscommunication and Rs. 1,000 figure has come. We have very little time. It cannot be done. Rs. 1,000 will not be there. I am telling you now, Rs. 1,000 is the opportunity. Rs. 700 is the real.

    — Ravindra Doshi

  • FY27 Growth Revenue · FY27 · High confidence 50%
    I guarantee 50%. 100% is a blessing from God. All of us will be benefited.

    — Ravindra Doshi

Project Completion

  • Samruddhi Mahamarg Part-1 Completion Project Completion · November 2025 · High confidence November 2025
    Part-1 of the project scheduled for completion by November 2025.

    — Ashutosh Biyani

Revenue Commencement

  • Samruddhi Mahamarg Project Revenue Revenue Commencement · December 2025 · High confidence December 2025
    Revenue contribution from this project is expected to be commenced from December 2025.

    — Ashutosh Biyani

Order Value

  • Defense Initial Order Order Value · Medium confidence ₹7-10 crores
    So, we can expect somewhere Rs. 7-Rs. 10 crores the first order.

    — Ravindra Doshi

What to watch in Q2 FY26

Samruddhi Project Part-1 Completion

next quarter
Current Scheduled for completion
Target Completion by November 2025

Why it matters

Timely completion is crucial for the project's overall progress and subsequent revenue generation.

Part-1 of the project scheduled for completion by November 2025.

Risks & concerns

  • Negative social media campaigns affecting investor sentiment and stock price

    medium

    Management noted difficulty in combating unsubstantiated claims on social media, which impacts investor perception and stock valuation, despite verifiable financial performance.

    Both acknowledged

  • General market sentiment being bad

    medium

    Management mentioned that market sentiment is generally poor, which could affect fundraising efforts for CAPEX, although they have alternative funding options.

    Management acknowledged

Q&A highlights

6 direct
Samruddhi Project Revenue Breakdown and Commencement Direct
This Rs. 156 is entirely out of our infrastructure projects, construction work and part of it Rs. 10-Rs. 12 crores are from the leasing. Entire thing is from the infrastructure projects. ... Milestone revenue will be paid by Airtel, Vodafone, Jio and others. ... It will start from December.

Clarified the source of current revenue (earthwork around Samruddhi, paid by contractors) versus future telecom-related milestone revenue (paid by operators) and its timeline.

Asked by Preetam Gaikar

Defense Sector Entry, Technology, and Competition Direct
It is called direct laser deposition metal. It generates 100% density part. ... This is first time used in India and world over this technology is introduced few years back only. ... Sir, we don't have any competitor here.

Provided details on the unique technology used for defense manufacturing, highlighting its competitive advantage and the absence of direct competitors in India.

Asked by Prakash Irani

Defense CAPEX Funding and Timeline Direct
In January-February, we will be going for that. ... I may take about Rs. 150 crores, either from banks or from my fellow investors. ... The Government of India gives a guarantee of Rs. 100 crores to the banks if I am taking the CAPEX.

Outlined the plan to raise ₹150 crores for defense manufacturing scale-up in Q4 FY26, including potential funding sources and government support.

Asked by Prakash Irani

FY26 Revenue Target Clarification Direct
Even now it is Rs. 700-Rs. 800. ... Rs. 1,000 is the opportunity. Rs. 700 is the real.

Clarified the company's firm revenue projection for FY26 (₹700-800 crores) versus a larger 'opportunity' figure (₹1,000 crores) that was previously mentioned.

Asked by Prakash Irani

Social Media Negativity and Stock Price Impact Partial
I had informed this to cyber cell. When Cyber cell went to take action, they found out that the people who post these things, their Twitter account is now in the name of their servant. ... I will do my work, I lose nothing. ... If I am paying say Rs. 10 crores in income tax, is it not the proof enough?

Management acknowledged the challenge of negative social media campaigns and their impact on investor sentiment, emphasizing the verifiability of their financial performance despite such claims.

Asked by Bakulchandra Bhagat

FY27 Growth Outlook Direct
I guarantee 50%. 100% is a blessing from God. All of us will be benefited.

Management provided a strong, confident outlook for 50% growth in FY27, indicating high visibility for future business.

Asked by Prakash Irani

Telecom Tender Bids and Future Wins Direct
Tenders, we have already participated, but L1, L2, L3 position has not come so far. ... Next quarter call, definitely, I will have at least one or two positive results. Good, big tenders.

Indicated active participation in large telecom tenders and an expectation of securing significant new contracts in the upcoming quarter.

Asked by Prakash Irani

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Kore Digital reported a strong start to FY26 with consolidated revenue reaching ₹156.99 crores, representing a 2.09% year-on-year growth and a 35% sequential increase over Q4 FY25. EBITDA saw a significant surge of 167% year-on-year, totaling ₹119.93 crores. The company's net profit for the quarter was ₹13.51 crores, and EPS demonstrated a substantial improvement to ₹11.4, up from ₹4.40 in the same quarter last year, indicating robust operational performance.

Samruddhi Mahamarg Project Progress

Progress on the Samruddhi Mahamarg optical fiber corridor continues, with Part-1 of the project scheduled for completion by November 2025. Revenue contribution from this specific project is anticipated to commence from December 2025. The current Q1 revenue of ₹156.99 crores primarily stems from earthwork and construction activities *around* the Samruddhi project, paid by contractors like Navayuga, rather than the main road itself, which is already completed. Future milestone-based telecom revenue will be paid directly by operators such as Airtel, Vodafone, and Jio.

Entry into Defense Manufacturing

Kore Digital has successfully diversified into defense manufacturing, submitting 3D-printed full-density metal components for an imported weapon system to leading Indian defense organizations. The company utilizes direct laser deposition metal technology, which is currently unique in India and produces 100% dense parts, offering a significant first-mover advantage with no direct competitors. Management anticipates an initial order in the range of ₹7-10 crores, with the Indian defense sector presenting massive opportunities.

Strategic Partnerships and Acquisitions

The company has entered a strategic partnership with Crest Digital Private Limited, a Brookfield company, aimed at expanding its presence in building solutions and micro-sales, which is expected to enhance business volume and market outreach. Furthermore, recent integrations of acquisitions including Franken Telecom, Wolter Infratec, and KDL Realinfra are strengthening the company's capabilities in civil and telecom infrastructure, accelerating delivery timelines, and broadening its service offerings.

Future Outlook and Growth Drivers

Management provided a clear FY26 revenue projection of ₹700-800 crores, distinguishing it from a broader ₹1,000 crores revenue opportunity. For FY27, the company expressed high confidence, guaranteeing 50% growth. KDL is actively participating in large telecom tenders and expects to announce at least one or two significant wins in the next quarter, leveraging accelerated investments in fiberization and 5G readiness within the Indian telecom infrastructure sector.

Investor Sentiment and Social Media Concerns

Management addressed concerns regarding negative social media campaigns impacting investor sentiment and the company's stock price. They highlighted the difficulty in countering unsubstantiated claims, noting past attempts to involve cyber authorities were hampered by anonymous or untraceable sources. The company reiterated that its financial performance is transparent and verifiable through official records like GST and income tax filings, asserting that such negativity does not affect their core business operations or growth trajectory.

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