Univastu India Limited — Q3 FY26 earnings call

Call held 19 Jan 2026

Management summary

Univastu India reported a strong order book of ₹1053 crores, with significant new wins in Q3 FY26, including a ₹390 crore Mumbai metro order. The company is strategically shifting towards high-margin tech-based EPC projects and expanding into new areas like data centers and net-zero construction through partnerships. Management provided revenue targets of ₹200 crores for FY26 and ₹300 crores for FY27, along with PAT margin guidance of 9-11% for projects.

Highlights

  • Current order book of ₹1053 crores provides strong revenue visibility for 36 months.

  • Significant new order inflow including a ₹390 crore Mumbai metro order from L&T and ₹46 crore swimming pool orders.

  • Shift towards 70% tech-based EPC projects is expected to improve EBITDA margins.

  • Strategic entry into data center development through a JV with a Swedish company and net-zero projects via Univastu Bootes Infra LLP.

  • Management expressed confidence in achieving ₹200 crores revenue for FY26 and ₹300 crores for FY27.

Concerns

  • Analyst raised concerns about receivables risk and negative operating cash flow in the current EPC business, which management addressed by stating focus on priority projects with financial closure.

  • Higher trade payables were noted on the balance sheet date, though management explained it as a revolving scenario converting to cash flows.

What they filed

Q1 FY27: revenue up 258.6%, net profit up 150.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue42 42 40 29 48 +14%56 +33%109 +173%104 +259%
EBITDA8 8 8 7 8 +0%10 +25%14 +75%15 +114%
Net profit4 5 4 4 5 +25%6 +20%10 +150%10 +150%
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

Total value

₹1,053 Cr

as of 2026-01-19 quantified

Inflow this quarter

₹390 Cr

Execution

36 months to complete the order book of 1053 crore.

Composition

Mix 4 contract types
  • Standalone 85.4%
  • Consolidated 14.2%
  • Tech-based EPC 70%
  • Traditional EPC 30%

Share of order book by contract type· categories overlap, and sum to 199.6%

Pipeline

qualified rfp

Upcoming tenders worth ₹500 crore for 2026 and 2027, and tunnel business order book expected next financial year.

The company has a very healthy order book, with all orders in place and work started, providing strong revenue visibility for the next 36 months.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Debt disclosed
    • New borrowing Increased bank guarantee limit; opted for non-fund-based preferential share issue instead of fund-based debt.
    Mr. Pradeep Khandagale: We increased the bank guarantee limit in this quarter, and we have both the options to increase the debt or the bank guarantee, and the requirement of bank guarantee is high. So, we have not opted for the fund-based limit, we are... we opted for the non-fund-based limit. So, for the fund-based, we...opted for the preferential share
  • M&A Open Luxury Time Products Limited Acquisition · Closed

    Good dealer network in Pan-India.

    Mr. Pradeep Khandagale: So, we acquired two companies in Univastu. One is Open Luxury Time Products Limited. It is the first luxury, wall clock of India. And we acquired this company because the company has, good dealer network in Pan-India.
  • M&A Setubandhan Infrastructure Limited Acquisition · Closed

    Big order of bio-mining projects and waste processing management.

    And the second company we acquired is Setubandhan Infrastructure Limited. The COC bank already, ordered with us, and the initial order is pending in the favor of us. In Setubandhan, there is a... big order of the bio-mining, projects, and it's a complete waste processing management Project.
  • M&A Univastu Bootes Infra LLP Joint venture · Integrated

    Focuses exclusively on net-zero projects in North Indian states.

    Univastu India Limited holds 51% share of profit.

    Univastu Bootes Infra LLP, which is operational in the North Indian states. This is basically a limited liability partnership between Univastu India Limited, holding 51% share of profit. And, Bootes Impex, which holds 49% share of profits.
  • M&A Univastu Nuos IoT Systems Private Limited Joint venture · Formed

    To implement wireless BMS technology in metro projects.

    Univastu holds 51% stake.

    Univastu Nuos IoT systems, has been formed. Here, Univastu holds 51% stake. And, another company, Falcon, holds 49% stake in this.
  • M&A Swedish company (for Data Center JV) Joint venture · Pending regulatory

    To develop, design, integrate, and execute data centers in India, leveraging Swedish expertise in net-zero data centers.

    Financial closure is in progress; percentage of JV will be finalized post-closure.

    Mr. Pradeep Khandagale: Commercial arrangement with the Swedish company is not finalized yet, because the financial closure is in progress. Once the financial closure is complete, and the MOU took place with the Maharashtra government or any other company, then the financial arrangement will close.
  • M&A Valecha Partnership · Signed

    For tunnel ventilation systems, leveraging Valecha's expertise.

    Mr. Pradeep Khandagale: The partnership with Valecha is for the tunnel ventilation system. Valecha has a good expertise in tunnel, and Univastu want to...extend his expertise in the tunnel system. So, we have done the partnership with the Valecha.
  • Liquidity Liquidity disclosed Management discussed trade payables as a revolving scenario, converting to cash flows, and focusing on projects with financial closure to manage working capital.
    Mr. Girish Deshmukh: Yes, yes. So, basically what happens is, we follow this mechanism of, Percentage of completion method. So, and since we have already discussed that we... the... I mean, majority of the projects that we have received in the current year are under active consideration. So, what happens is, So, as on 30th of September. As we discussed earlier, the Jalgaon project, the Karad project, and the swimming pool-related projects. So, so these were being actively executed. So, there... there obviously is a cash flow mismatch. So, the Trade payables that appear to be higher on a particular balance sheet date, so, maybe in the next month. No, it has happened, I can say, but just as an example, I'm saying that these are getting converted into our cash flows, like, we have unbilled revenue, which got converted into our cash inflow. Similarly, the trade payables, they have got converted into our cash outflow.

Guidance & targets

Revenue

  • Total Revenue Revenue · FY26 · Medium confidence ₹200 crore
    Mr. Pradeep Khandagale: Yes, we are targeting 200 crore, image too in total financial year.

    — Mr. Pradeep Khandagale

  • Total Revenue Revenue · FY27 · High confidence ₹300 crore
    Mr. Pradeep Khandagale: Yes, FY27, definitely we, achieved 300 crore.

    — Mr. Pradeep Khandagale

Profitability

  • PAT Margin Profitability · next 3 years · Medium confidence 9-11%
    Mr. Pradeep Khandagale: The projects which we bid and we got are, expected to 10% to 11% PAT... 9% to 11% PAT, and the margin will not, Margin will around 9-11% PAT. And the same for the next year as well. Because the pipeline is for the next 3 years.

    — Mr. Pradeep Khandagale

Order Inflow

  • Pipeline for upcoming tenders Order Inflow · 2026 and 2027 · Medium confidence ₹500 crore
    Mr. Girish Deshmukh: You know, actually, apart from whatever we have in hand, we also have a future order pipeline, active participation in upcoming tenders, worth 500 crore. For 2026 and 27.

    — Mr. Girish Deshmukh

What to watch in Q4 FY26

Order book execution velocity

Next quarter
Current 1053 crore order book over 36 months
Target Progress in line with 36-month timeline

Why it matters

Ensuring timely execution of the large order book is crucial for revenue recognition and growth.

Mr. Pradeep Khandagale: What is the timeline of execution of 1053 and 100 crore swimming pools? The timeline is, 36 months, to complete the order book of 1053 crore.

Risks & concerns

  • Receivables risk and negative operating cash flow

    medium

    Analyst raised concern about receivables and negative operating cash flow in EPC business; management stated focus on priority projects with financial closure.

    Analyst acknowledged

  • Higher trade payables

    low

    Management explained higher trade payables as a revolving scenario that converts to cash flows, not a persistent issue.

    Analyst downplayed

Q&A highlights

7 direct
Receivables risk and negative operating cash flow Direct
For the receivables, the projects which Univastu also target.All are the, Priority segment projects, so the receivable is not an issue, and if you... See our past record. We...Take the projects where the priority is there, and financial closure is already done by the department. So all the projects which Univastu do have, the financial closure is, already done by the department.

Addresses a critical working capital concern in the construction sector by explaining the company's project selection strategy.

Asked by Mr. Aagam Shah

Rationale for preferential share issue vs. debt Direct
The reason of the warrant is, Univastu not wants to raise the more debt on the company. That's why a promoter is investing money in the company. And the post-conversion, promoter stake will, increase around 4%.

Clarifies the company's capital raising strategy, emphasizing debt avoidance and promoter confidence.

Order book composition (traditional vs. tech-based EPC) Direct
Yes, Order Book is a mixed tech-based EPC. It's a mixed tech-based EPC. 30% is the regular, traditional EPC, and 70% is the tech-based EPC.

Highlights the company's strategic shift towards higher-margin, technology-driven projects, which is a key growth driver.

Trade payables being high Partial
So, as on a particular date, obviously, it appears as though there are higher trade payables. But eventually, this is a, you know, revolving scenario on a day-to-day basis. So, as such, actually, I can say that the trade payables are not higher. We take the provision, Trade payables includes also the approvals of various expenses that we take.

Explains the nature of trade payables in the construction business, indicating they are part of a revolving cash flow cycle rather than a persistent issue.

Scope of MOU with Urban Systems for data center Direct
The exact scope of the MOU is, urban system, urf will, bring their expertise in the data center integration, and we are, going to develop a data center in Mumbai.

Provides clarity on a new strategic business area and partnership for data center development.

Timeline for 1053 crore order book execution Direct
The timeline is, 36 months, to complete the order book of 1053 crore.

Gives a clear timeframe for the execution of the current order book, crucial for revenue visibility.

Data center JV with Swedish company Direct
In data center, we will going to do complete EPC. Including civil and technology, HVAC, everything. That's why we, do a JV with the, Swedish company.

Details the comprehensive scope of the data center JV, indicating full EPC capabilities and strategic technology partnership.

Order book for tunnel business Direct
Currently, there is no order book of tunnel business. We recently, had a meeting and took the approval to form a company of tunnel business, and the order book will come in the next financial year

Indicates a new segment being pursued with future order book potential, signaling diversification.

3 min read 6 chapters

Detailed narrative

Company Overview and Strategic Focus

Univastu India Limited is a Pune-based technology-driven EPC and infrastructure company with a strong presence in metro rail, urban infrastructure, commercial buildings, and net-zero construction. The company integrates civil construction with IoT-enabled building management systems. A key strategic focus is on technology-based improvements in the infrastructure segment, with 70% of the current order book comprising tech-based EPC projects, compared to 30% traditional EPC. The company aims for geographical diversification, having expanded to Meghalaya and Gujarat, and is targeting projects in the southern side of India.

Order Book and Execution Visibility

The company reported a healthy current order book of ₹1053 crores as of January 19, 2026, with all orders in place and work commenced. This order book is expected to be completed over the next 36 months, providing strong revenue visibility. Recent significant inflows include a ₹390 crore Mumbai metro order from L&T and ₹46 crore swimming pool orders. The order book is predominantly government-backed, with 100% of orders being from government entities or L&T, whose main customer is also the government.

New Business Initiatives and Partnerships

Univastu is actively pursuing new growth avenues, including net-zero projects through its subsidiary, Univastu Bootes Infra LLP, which holds a 51% profit share. The company has also formed Univastu Nuos IoT Systems Private Limited, holding a 51% stake, to implement wireless Building Management Systems (BMS) in metro projects. A significant new initiative is a joint venture with a Swedish company for the development, design, integration, and execution of data centers in India, with financial closure currently in progress. Additionally, Univastu holds an exclusive partnership with Myrtha Pools for Olympic-grade swimming pool projects and a partnership with Valecha for tunnel ventilation systems.

Financial Outlook and Targets

While specific numerical financials for Q3 FY26 were not provided, management indicated significant growth in revenues and PAT for H1 FY26 compared to H1 FY25. The company is targeting a total revenue of ₹200 crores for FY26 and expects to achieve ₹300 crores for FY27. Project-level PAT margins are guided to be in the range of 9-11% for the next three years, reflecting the focus on high-margin tech-based EPC projects. The company also has a future order pipeline of upcoming tenders worth ₹500 crores for 2026 and 2027.

Capital Allocation and Funding Strategy

Univastu has opted for a preferential share issue to raise funds, increasing its bank guarantee limit, rather than taking on more debt, with a promoter stake increase of around 4% post-conversion. This strategy aims to avoid increasing the company's debt burden. The company's approach to SPVs is primarily for technical growth and expertise acquisition, not debt avoidance. Management also addressed concerns about higher trade payables, explaining them as a revolving scenario that converts into cash flows, indicating a managed working capital cycle.

Management and Certifications

The company is led by Mr. Pradeep Khandagale, Chairman & Managing Director, a civil engineer with 20 years of experience. The management team includes experienced board members like Mr. Narendra Bhagatkar (35+ years in military engineering) and Major General Dr. Vijay Pawar (41+ years in military service, focusing on safety). Univastu holds various certifications, including ISO 9000, 14001, OHSAS 18001, and licenses from CIDCO and PWD Madhya Pradesh, underscoring its commitment to quality and compliance.

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