Concall AI

Bharat Global Developers Limited — Q4 FY25 earnings call

Call held 12 Jun 2025

Management summary

Kore Digital reported a strong Q4 FY25, achieving significant targets and projecting substantial growth for FY26, with revenue guidance of INR 600-700 crores and 8-10% PAT margins. The company is actively diversifying into the defense sector, anticipating new orders and government funding, and has invested INR 55-60 crores in new equipment. However, the previous quarter saw negative growth due to bad debt write-offs, and the Samruddhi project faces a 6-month delay, impacting immediate revenue recognition.

Highlights

Achieved a "very high and prestigious target" in its second year.
Projected revenue of INR 600-700 crores for FY26, with management confidence.
Anticipates 100% YoY growth for the next two years, followed by 50%.
Diversifying into the defense sector with potential for significant orders and government funding.
Acquired INR 55-60 crores in new machinery and right of way to support growth.

Concerns

Experienced "negative growth" last quarter due to write-off of bad debts from the past five years.
Samruddhi Highway project opening delayed by 6 months, impacting revenue timelines.
Cash balance decreased from INR 40 crores last financial year to INR 2 crores this year, though management also stated being "flooded with cash" recently.
Acknowledged "reconciliation issue" due to new subsidiaries and different accounting teams.

Key financials

3 periods

FY26 Guidance

PAT Margin
8%

End of FY24

Cash Balance
₹40 Cr

End of FY25

Cash Balance
₹2 Cr

What they filed

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

₹ Cr · quarterly

Line item	Q4 FY23	Q2 FY24	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q4 FY26
Revenue	15	15	92	119	40 +166%	157 +945%	34 −63%	29 −76%
Expenses	12	11	81	100	34	137	27	23
EBITDA	3	4	11	19	6 +94%	20 +352%	6 −41%	6 −67%
Margin	22%	29%	12%	16%	16%	13%	19%	22%
Other income	0	0	0	0	0	0	0	0
Interest	0	0	0	0	0	0	0	0
Depreciation	0	0	1	2	4	2	3	4
Profit before tax	3	4	10	17	2 −33%	18 +333%	3 −71%	3 −84%
Tax rate	26%	25%	25%	25%	-1%	24%	17%	45%
Net profit	2	3	8	13	2 −9%	14 +350%	2 −68%	2 −88%
EPS	3.01	2.93	6.28	10.38	1.73	11.24	2.00	1.26

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.

Capital allocation

high confidence

Capex Capex disclosed
- Purchase of machines and right of way ₹55 Cr
It is for purchase of machines and purchase of right of way. Because my network is my asset. And there was a huge objection from our investors that you are not capitalizing the asset. So, that is why we have started. We have learned and we have started. So, definitely we have bought the machines.
Debt Debt disclosed

See, basically when work is increasing, assets are increasing, then debts are also increasing. There is nothing new about it. And then this is almost zero debt company. So, funding is done from debt only, from my vendors only.
M&A Defense Production Subsidiary Joint venture · Pending regulatory

To handle defense production

One more subsidiary is coming that will be handling the defense production. It is in pipeline. By end of year, you will see in March, you will see the results from that also.
M&A Crest Digital Joint venture · Signed

To lay telecom poles across 100 kilometers for Samruddhi project

So, for that, we have joined hands with Crest Digital. So, they will be doing it. So, that is the news which I have already given.
M&A IBS Joint venture · Signed

For small cell and in-building systems

There is a company specializing in small cell and in building, what was that name? IBS, in building systems. Those things too we have joined hands with them for getting it done.
Liquidity Cash ₹2 Cr Cash balance at end of FY25 was INR 2 crores, down from INR 40 crores in FY24. However, management recently received INR 20 crores from Vodafone and states the company is 'flooded with cash'.

Closing cash balance in your last financial year was INR40 crores. And this year it has come down to INR2 crores. ... On March we did not get the expected payment but we have we have flooded with cash. As of now. I have just Vodafone paid me INR20 crores.

Guidance & targets

Revenue

Total Revenue Revenue · FY26 · High confidence INR 600-700 crores

Previously INR 800-1000 crores → INR 600-700 crores

Yes, INR600-INR700. I am very comfortable. I have no issue with that. I can commit.

— Ravindra Doshi
YoY Revenue Growth Revenue · Next two years (FY26, FY27) · High confidence 100%

for next two years 100% I can guarantee. After that it may be 50% but 50% is also big.

— Ravindra Doshi
YoY Revenue Growth Revenue · After next two years (FY28 onwards) · Medium confidence 50%

— Ravindra Doshi

Profitability

PAT Margin Profitability · Current financial year (FY26) · High confidence 8%-10%

About 8%-10%.

— Ravindra Doshi

New Business

Defense Sector Orders New Business · This year (FY26) · Medium confidence some orders

This year you will see some orders.

— Ravindra Doshi

Funding

Government Funding for Defense Project Funding · If defense project is secured · Medium confidence INR 100 crores

Once I get the defense project, along with that I will get a INR100 crores funding also, government backed.

— Ravindra Doshi

Project Completion

Samruddhi Highway Project Completion (Full) Project Completion · Within two years · High confidence two years

No. It will take two years.

— Ravindra Doshi
Samruddhi Highway (Mumbai-Shirdi Connection) Project Completion · By December 2025 · High confidence December

Sir, by December only.

— Ravindra Doshi

What to watch in Q1 FY26

Samruddhi Highway Mumbai-Shirdi Connection Completion

By December 2025

Current Delayed by 6 months

Target Completion by December 2025

Why it matters

This specific stretch is crucial for revenue generation from the Samruddhi project and a key milestone for the company.

Sir, by December only.

Risks & concerns

Negative Growth due to Bad Debt Write-offs
medium

The company experienced negative growth last quarter due to the write-off of bad debts accumulated over the past five years.

Management acknowledged
Samruddhi Highway Project Delays
medium

The opening of the Samruddhi Highway project is delayed by 6 months, impacting the timeline for revenue recognition from this significant project.

Management acknowledged
Market Manipulators and Negative Rumors
medium

A group of market manipulators is spreading false allegations online, which could affect investor sentiment, though management prefers to ignore them.

Analyst downplayed
Geopolitical and Political Instability
low

Geopolitical and political conditions could lead to a variance of plus/minus INR 100-150 crores in targets.

Management acknowledged
Accounting and Consolidation Challenges
low

Challenges in consolidating new subsidiaries and coordinating different accounting teams led to delays in financial reporting.

Management acknowledged

Q&A highlights

7 direct

FY26 Revenue Projections and Samruddhi Delay Direct

That is right. Slightly there is a delay in opening of Samruddhi, I guess. So we are six months behind the schedule, but I am still hopeful that we have many other things in pipeline and with that we will be able to achieve the target.

Clarifies the impact of Samruddhi delay on revenue targets and confirms the revised FY26 revenue expectation of INR 600-700 crores.

Asked by Akash Israni

Diversification and New Verticals Direct

we are diversifying in defense. And that is where if we are able to succeed, INR10,000 crores is just peanuts. And we are in pipeline, we are doing some product, in next 2-3 days it will be sent for approval.

Reveals a significant strategic shift into defense with high potential, indicating new growth avenues beyond core telecom infrastructure.

Asked by Akash Israni

Purpose of New Subsidiaries Direct

basically our business runs in 2-3 different models. One is, we only take the order, complete it and deliver forget. Second is, we take permissions from government, construct and sell it off. And third is, we take the permission, we own the project and we take revenue long term, 15 to 20-25 years, we get paid. So, that is the lease model.

Explains the rationale behind the new subsidiary structure, clarifying the company's diverse operational and revenue models.

Asked by Hardik Gandhi

Fixed Asset Investments Direct

It is for purchase of machines and purchase of right of way. Because my network is my asset. And there was a huge objection from our investors that you are not capitalizing the asset. So, that is why we have started. We have learned and we have started. So, definitely we have bought the machines.

Confirms significant capital expenditure on machinery and right-of-way, addressing investor concerns about asset capitalization and supporting future growth.

Asked by Hardik Gandhi

Increasing Trade Payables Direct

See, basically when work is increasing, assets are increasing, then debts are also increasing. There is nothing new about it. And then this is almost zero debt company. So, funding is done from debt only, from my vendors only.

Clarifies that the increase in trade payables is a natural consequence of business growth and asset expansion, while maintaining a low overall debt profile.

Asked by Krishnendu Banerjee

Accounting Reconciliation Issues Direct

Sir, the thing is there are four different teams. They keep quarreling with each other. So, we have to rectify it and give a result. All this is new for us. I am a novice in consolidation and all those things. So, due to that, the result has been delayed for four days, five days, two days were holiday and all the companies have to complete the compliance of the entire company and then to get the different chartered accountants together and rectify it, it took time.

Explains the reason for delays in financial reporting, attributing it to complexities arising from new subsidiaries and consolidation challenges.

Asked by Krishnendu Banerjee

Response to Market Manipulators/Rumors Partial

My answer is that when an elephant walks, then dogs bark. It is better to ignore. Running after them is not and then they specifically don't use exact words on which they can take legal action. The problem is there. It is not that my legal team has not looked into.

Addresses concerns about negative online sentiment, with management choosing to largely ignore it, citing difficulty in legal action and the time-consuming nature of pursuing such claims.

Asked by Ayan Das Gupta

Kore Digital's Competitive Moat Direct

I have been in this line for the past 30 years. So when we started, at the junior manager level and supervisor level, today all the GMs are Presidents and Vice Presidents. So those old links and contacts are also less. ... So what happens is that the personalization are also very useful in business.

Highlights the company's long-standing industry experience, strong network of contacts, and personalized business approach as key competitive advantages.

Asked by Abhishek Sahu

3 min read 7 chapters

Detailed narrative

Q4 FY25 Performance Overview

Kore Digital concluded FY25 with a strong performance, though the previous quarter saw negative growth attributed to the write-off of five-year-old bad debts. Management highlighted achieving a "very high and prestigious target" in its second year, indicating overall positive momentum despite the one-off accounting adjustment. The company is focused on maintaining a strong growth trajectory moving forward, projecting 100% YoY growth for the next two years.

Samruddhi Project Update and Delays

The Samruddhi Highway project, a significant revenue driver, has experienced a 6-month delay in its opening, pushing back revenue recognition. Specifically, the Mumbai-Shirdi connection is now expected by December 2025, while the full project completion is anticipated to take two years. This delay impacts the immediate revenue projections but management remains confident in achieving its revised FY26 targets of INR 600-700 crores.

Diversification into Defense Sector

Kore Digital is strategically diversifying into the defense sector, leveraging Deep-Tech metal 3D printing for product development. Management expects to send a product for approval within "2-3 days" and anticipates securing "some orders" this financial year, potentially attracting INR 100 crores in government funding. This new vertical is seen as a "really, really big" opportunity with significant long-term revenue potential, with management aspiring to reach INR 100,000 crores in this segment.

Capital Expenditure and Funding

The company invested INR 55-60 crores in new machinery and right-of-way, crucial for expanding its network and operations. Management clarified that this investment addresses prior investor concerns about asset capitalization. Despite an end-of-FY25 cash balance of INR 2 crores, management stated being "flooded with cash" recently, citing a INR 20 crores payment from Vodafone, indicating sufficient liquidity for current needs and no immediate requirement for additional capital.

Subsidiary Structure and Accounting

Kore Digital has established new subsidiaries to manage its diverse business models, which include taking orders, constructing and selling projects, and long-term lease models (15-25 years). The company faced "reconciliation issues" and delays in financial reporting due to the complexities of consolidating multiple new entities with different accounting teams, a challenge management is actively addressing. A new subsidiary for defense production is also in the pipeline.

Future Growth Outlook and Tenders

Management projects 100% YoY revenue growth for the next two years (FY26 and FY27), followed by 50% growth thereafter, with a guaranteed revenue of INR 600-700 crores for FY26 and PAT margins of 8-10%. The company is actively participating in five new tenders for telecom and road projects, expecting at least one to be successful, which will contribute to future growth and project pipeline. The core business is expected to reach INR 600-700 crores.

Response to Market Rumors and Competitive Moat

Management addressed concerns about negative online rumors and market manipulators, stating a policy of largely ignoring such claims due to the difficulty and time-consuming nature of legal action. The company's competitive moat is attributed to its 30 years of industry experience, strong network of contacts (including senior retired officers), and a personalized approach to business, which helps secure projects and maintain strong government relations.

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

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