Markolines Pavement Technologies Q4 FY26 earnings call

Markolines Pavement Technologies Limited reported a robust financial performance for FY26, with revenues growing from ₹307 crores to ₹348.49 crores, marking a 13.51% year-on-year increase. The company's EBITDA stood at ₹48.54 crores, and PAT reached ₹26.23 crores, representing approximately a 15% increase over the previous year. This translated to an EPS growth of 17.12%, from ₹10.16 to ₹11.90, despite some impact from the West Asia crisis.

The fourth quarter of FY26 was particularly strong, contributing significantly to the annual results. Q4 revenue was approximately ₹105 crores, demonstrating a 13% quarter-on-quarter growth. The company achieved a PAT margin of 10.81% and an EBITDA margin of 18% in Q4, which are generally higher than other quarters due to the cyclical nature of the infrastructure industry and year-end financial closures.

As of March 31, 2026, Markolines holds an unexecuted order book exceeding ₹600 crores. The company also boasts a robust active pipeline of over ₹2000 crores, with a historical win ratio of at least 50% for targeted orders. Management anticipates achieving an order book of at least ₹1000 crores by the end of FY27, providing strong revenue visibility for the next 1-2 years.

The company is actively pursuing a merger with Markolines Infra, with applications already filed and completion expected by FY27. This merger is projected to create a combined entity with over ₹500 crores in revenue, enhancing operational and executional capacities. Markolines Infra, which generated ₹150 crores in FY26 with 9-10% PAT margins, will bring specialized highway operations and toll project management expertise, offering a complete suite of O&M services.

Markolines is targeting at least 30% revenue growth for FY27 on a standalone basis, driven by increased eligibility for larger projects (up to ₹500 crores). The company plans a modest Capex of approximately ₹10 crores in FY27 for new pavers and an HMP, aligning with its strategy of churning equipment every 3-4 years. The long-term vision is to become a ₹1000 crore company within a three-year timeline, leveraging its specialized maintenance capabilities and expanding into other infrastructure sectors like schools and sports.

The company operates in highway maintenance (preventive and major) and specialized construction (soil stabilization, FDR, tunneling, bridges). Highway maintenance currently contributes 65% of revenue, with specialized construction contributing 35%. Markolines positions itself as India's 'Road doctor,' offering integrated, technology-led solutions for lifecycle maintenance. The growing road network and increasing privatization of assets are driving demand for their services, with the company being a preferred partner for international funds and asset owners.