Q1 26/27

Aug 10, 2026

Summary

Q1 FY27 revenue grew 10.2% standalone and 15.7% consolidated YoY, with standalone margins improving. First HAM monetization and an INR 18,568 crore diversified order book support growth, while FY27 revenue guidance is at least 15%.

Ladies and gentlemen, good day and welcome to the Ceigall India Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Smit Patel from Adfactors PR. Thank you and over to you, sir. Thank you. Good morning, everyone. Welcome to Q1 FY27 earnings conference call of Ceigall India Limited. Today we have with us Mr. Ramneek Sehgal, Chairman and Managing Director, Mr. Kapil Aggarwal, CFO, and Mr. Saravanan, Whole-Time Director. Before I hand over for opening comments, let me mention a cautionary statement that this conference may include forward-looking statements about the company which are based on beliefs, opinions and expectations of the company as on the date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. We will begin the call with the opening remarks from the management, after which we will have forum open for Q&A session. I now hand over the conference to Mr. Ramneek Sehgal for his opening remarks. Thank you and over to you, sir. Hi. Good morning, everyone and thank you for joining us for the Ceigall India's Quarter One Financial Year 27 earning conference call. I hope all of you are doing well. Joining on today's call is Mr. Kapil Aggarwal, our CFO, Mr. A. Saravanan, our Whole-Time Director, along with our investor relation team. Our financial results, investor presentation, press release have already been shared with the stock exchanges and are also available on our website. I hope all of you have had an opportunity to review them. The first quarter of financial year 27 has been another encouraging quarter for Ceigall. For the last few quarters we have spoken about the strategy of building a diversified platform with continuing to strengthen our leadership in transportation, infrastructure, renewable energy, T&D sector. I am happy to share that we have made a good progress on those priorities during the quarter, while continuing to deliver healthy operational performance. One of the most important development during the quarter was the successful monetization of the first hybrid annuity model or HAM, as said through a divestment of Malout-Abohar-Sadhuwali project. This is important milestone for the company as it validates the capital recycling strategy that we have been working towards over the last few years. Our approach is very clear. We want to execute quality assets, create value through efficient project delivery, monetize mature assets at the right stage, redeploy the capital to new opportunities. We believe this disciplined approach will support future growth while maintaining a strong balance sheet and improving overall capital efficiencies. Since our IPO, we have steadily diversified into the niche sector that address country's evolving energy requirement. While continuing to maintain steady growth in highway sector, we have expanded our presence in renewable energy space across solar plus BESS as well as transmission distribution. This diversification reflects our strategy of leveraging our strong execution capabilities to build a presence in high growth sectors, create sustainability long-term value. During the quarter we have signed a PPA for a solar plant at Morena, emerged as L1 for one of the standalone battery storage projects. These developments further strengthen our confidence in the renewable energy platform that we have been building over the last year. Our execution momentum also remained healthy during the quarter. We have signed a concession agreement of Ambala Chandigarh Zirakpur HAM. Subsequent to the quarter end we received the appointed dates of VRK 11 and 12, Indore Ujjain Greenfield HAM projects, enabling commencement of the execution. We also emerged as L1 bidder in a joint venture for a highway project in Odisha. These developments provide additional execution visibility, further strengthen our projects pipeline. Another aspect that gives us confidence in the continued evolution of our order book. Today our order book is not only robust in size but also much more diversified than was few years ago. In addition to highway and expressways, it now includes metro rail, renewable energy, transmission and distribution, industrial infrastructure and other specialized and social projects. The diversification allows us participate in multiple growth opportunities while reducing dependence on a single segment of the infrastructure sector. Looking ahead, we continue to remain optimistic about the opportunities in renewable transmission and distribution sector, along with the existing infrastructure projects. The government continued focus on energy transmission distribution, transportation, urban infrastructure together with the strong execution capacities, diversified order book and disciplined approach towards the capital allocation, give us confidence in our ability to deliver sustainable growth over the long term. Before I conclude, I would like to thank our clients, business partners, lenders, shareholders, most importantly our employees for the continuous trust and the support. Their commitment has been instrumental in helping us achieving these milestones. With that, I would now like to hand over the call to our CFO, Mr. Kapil Aggarwal, who will take you through the financial performance of the quarter in the greater detail. Thank you. Over to you, Kapil. Thank you, Sir. Good morning, everyone. Thank you for joining us today. It is a pleasure to discuss our financial performance for the first quarter of FY27. The first quarter is generally a seasonal quarter for the construction industry due to the onset of the monsoon in several parts of the country. Despite this, we delivered a healthy operation and financial performance, reflecting our disciplined execution capability and continued focus on operational efficiency. On a standalone basis, revenue from operations for Q1 FY27 stood at INR 901 crores as against INR 818 crore in Q1 FY26, registering a 10.2% year-on-year growth. Standalone EBITDA for the quarter stood at INR 121 crore as against INR 94 crore in the corresponding quarter of the previous year, with EBITDA margin improving to 13.4% from 11.4% in Q1 FY26. Our standalone profit after tax for Q1 FY27 stood at INR 75 crore compared to INR 56 crore in the corresponding quarter last year, resulting in a PAT margin of 8.4% as against 6.8% in Q1 FY26. Moving to our consolidated financial performance, revenue from operations for Q1 FY27 stood at INR 970 crore as against INR 838 crore in the corresponding quarter of the previous year, registering a 15.7% growth year-on-year. On the operation side, our execution engine continues to remain strong with 39 ongoing projects across multiple infrastructure segments, providing healthy execution visibility over the coming years. As on June 30, 2026, our order book stood at INR 18,568 crore, providing strong multiple-year revenue visibility. Today, our order book spans 19 EPC projects, 10 HAM projects, one DBFOT project, and nine tariff-based renewable and transmission projects, reflecting our continued diversification beyond roads and highways into sectors such as renewable energy, transmission and distribution, metro rail, and industrial infrastructure. With this, I conclude my remarks and would request the moderator to open the floor for question and answer session. Thank you, everyone. Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Vaibhav Shah with JM Financial. Please go ahead. Yeah. Sir, firstly, on some HAM projects. We saw in Southern Ayodhya Bypass, the execution fell significantly in Q1 to around 42 odd crore. Any particular reason for that? Can you repeat your question, please? In Southern Ayodhya Bypass, the execution has fallen in Q1 to almost 42 odd crores. Any particular reason, any issues we are facing, or just something else, monsoon or something? No, no. It is going proper. There is nothing. Now from last one and a half months there has been rain. Otherwise, progress is steady. We have been achieving all our milestones beforehand, before time. It is just sometimes you do not achieve the milestone. Payment can only be made only once the milestone is achieved. Okay. Sir, what kind of execution are we expecting from VRK 11 and 12 in FY27? We are targeting we should at least do 20%-25% of both the projects. Okay. And same for Southern Ludhiana and Southern Ayodhya? Southern Ayodhya, yes. It is there. For Ludhiana, the land is only 62% available with us, so that is a challenge. Otherwise, it is doable. For Ludhiana, we can do 25%-30% in this year? For Ludhiana, you should take at least 15% this year. Okay, 15%, due to land issue. Yeah. Okay. Any update on the Rewa solar project? When do we expect to start? When will PPA be done? PPA signed, they have to provide us a transmission. There were three things required for this project. One is PPA, one is land, and one is transmission. They have provided the PPA. Land is there. Third is the transmission line. I think they have already taken out the tenders for transmission line, and we are expecting that to happen soon. Once that is there, we are ready to start. It's an easy project. Why? Because you have to build everything in one location. Number two, for PM KUSUM, we've already started projects in Maharashtra and Madhya Pradesh, and those projects are progressing very well. Okay. And sir, lastly, on equity requirement, what investments are we assuming for HAM and solar for FY27 and FY28? I will give a little brief. At the time of IPO, the equity we have put was INR 253 crores. As on today's date, it is INR 692 crores, where we have put INR 439 crores more. This year, our balanced equity commitment is INR 859 crores, and FY28 is INR 744 crores. We will be putting INR 859 crores in FY27. Yes, yes. Of which HAM and solar breakup? You have a HAM and solar breakdown? 310 is solar. 310 is solar. 296 is HAM. 550 is highway HAM. For FY 2028? 2028 is 302 for solar and 296. Okay. And remainder for HAM. And 444 for HAM. Yeah. Okay. Thank you, sir. Those are my questions. Pleasure. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Krish Bhatia with Anand Rathi Group. Please go ahead. Thank you. The first question is on the- I am sorry to interrupt, Krish. You are not audible. Could you please use your phone on the answer mode in case it is on answer? A little bit. Is it better now? Yes, please. No problem. Perfect. Okay. That's better now. Yes, please. Sure. The government has said that it has 113 highway projects to be awarded by 2027. How much of these do you expect to be awarded within this year and what will be the Sorry, your voice is not clear. The line for the participant has dropped. We move to the next participant, that is Mahesh Patil with ICICI Securities. Please go ahead. Yeah, hi sir. My first question is on the margins. We have posted good margins of more than around 13.5% this quarter against our guidance of around 11%-12.5% for the full year. So what led to this improvement, and can we see similar margins in the upcoming quarters, or was there any one-off this quarter? Basically, we have started three new projects in this quarter. Two are Maharashtra solar projects, MH1 and MH2, and the road projects, HAM projects in Indore. Basically, another three projects are about to start, for which we already get order opportunity rate in the first quarter of the July. It will basically improve the numbers as well, going forward in future. Okay. We still maintain our guidance at 11%-12.5%, right? Hello, can you repeat it once again? I am asking, are we still maintaining our guidance at 11%-12.5%? Yeah. We are going to maintain this. Okay. And sir, about order inflow, I think we guided for around INR 55 billion of order inflow for this year. We have done around six, right? We have guided our investors for INR 6,000 crores. We have already got close to INR 600 and the rest is achievable and still in the year. Okay, sir. Thank you. The next question comes from the line of Parth Thakkar with JM Financial. Please go ahead. Thank you for the opportunity. Sir, I would like to ask when can we expect the AD for the two new HAM projects? Our FC date due for Bihar is, I think, next month. The Punjab project is close to November. I mean, we have already tied up with the banks, and once the FC is done, maximum 2 or 3 months after that, we should start the work. We can expect the AD for both by fourth Q? Yes, fourth quarter, we should expect. I mean, Bihar, we can expect by third quarter. Otherwise in fourth quarter, definitely we will get the ADs of both those projects. What is the amount of CapEx we have done in this quarter, and how much it will be expected for the full year? Close to INR 14 crores we have done the CapEx in this quarter. That was primarily a launcher which has been purchased in Danapur. From the IPO proceeds, we have already procured more than INR 100 crore worth of machinery. As and when any specialized machinery is required, then only we will go for buying. Otherwise, we do have ample machine for execution of these projects. What would be the full year CapEx guidance? Close to INR 30-35 crores. Are we still maintaining our revenue growth guidance of 15%? Earlier we used to say it should be between 10%-15%. This year it should be minimum 15%. Okay. What would be an equity invested in HAM and Solar in this quarter? This quarter particularly, the quarter which is gone or the new quarter which is right now? No. In financial year to date. INR 23 million. INR 23 crore we have invested in the first quarter. Is this cumulative, both HAM and Solar? Yes. Okay. Those are my questions. Thank you. Thank you so much. Participants, please press star and one to ask a question. The next question comes from the line of Chaitrika Deshpande, an individual investor. Please go ahead. Hello, good morning, and thank you for the opportunity, sir. My first one- Good morning. Over the next three years, what will be the biggest driver of shareholder value? Will it be revenue growth, margin expansion, asset monetization or higher ROCE? Good question. We have almost 11 verticals in the company. We always target to build at 25% IRR at the project level. If you see, we have already sold one asset, which is Malout-Abohar-Sadhuwali, which has given much more the IRR what we committed or we guided our investors. Our order book is robust for next four years. You can see that. We have good capacity to build more projects. Our projects which are going to get completed, we are very clear that we are going to sell those projects. We have already done that in past. We already sold Malout-Abohar-Sadhuwali, which happened in the first quarter. If we maintain our EBITDA margins or the EPC level and we make money on our equity, you also can see we have already guided before, our return on equity would be great as compared to the peers in the market. Okay. And sir, our Q1 order inflow was relatively modest. Is this mainly a timing issue, or do you expect a strong acceleration in Q2 or Q3? Normally, the order inflow comes in Q3 and Q4. If you see last year in Q4, we got almost 45% of the order book. Okay. And sir, should we expect working capital intensity to improve in FY 2027 or will higher execution keep it elevated? Definitely there will be an improvement in FY 2027 looking at the relaxation given by the government. And it will improve further in FY 2028 as well. And one more, one last question, sir. How do you see margins and returns in renewable compared to our traditional and road EPC business? So, we have guided our investors the same kind of margin, but of course, we are trying to achieve better. Okay, that is all from my side. Thank you, sir. Thank you so much. The next question comes from the line of Vaibhav Shah from JM Financial. Please go ahead. Sir, thanks for the follow-up. Sir, you mentioned that you will be investing roughly INR 550 crores as equity in HAM projects. But if you look at the status of the HAM projects, we may be doing two are awaiting AD, and another two will be starting now, VRK 11 and 12. Also for Southern Ayodhya, we are expecting some slowdown in execution this year because of land challenge. Then, how much equity are we investing in this? We will be investing 70%, 80% for the VRK projects in this year itself? 50%. Can you hear us? Vaibhav, if you look at the sanction, the sanction requires us to infuse 50% of such equity in VRK 11 and 12. This is what we have considered in the total commitments. If you look at, there are other projects also which are going on like Northern Ayodhya, Southern Ayodhya, Ludhiana-Baddi, in which we are yet to infuse the equity. As and when the progress will achieve, we will accordingly infuse the equity in those projects as well. In totality, we will be infusing INR 550 crores, which is across all eleven of our HAM projects. Incrementally, right? Incrementally. Because I was calculating roughly 70% for both VRK projects, then Northern Ayodhya, Southern Ayodhya, entire equity, and also 70% in Southern Ludhiana, and 15 in Dorogen. Then also I was getting roughly INR 430, INR 440 odd crores incremental. So I was confused. Ludhiana-Baddi, we are targeting INR 253 crores. Then Southern Ayodhya Bypass, we are targeting INR 61 crores and INR 53 crore in another project. VRK 11 and 12, we are targeting INR 97 and INR 139 crores. Southern Ludhiana bypass, we are targeting INR 238 crores. In Dorogen, we are targeting INR 60 crores, INR 50 crores we are targeting in Sahibganj project. Jelekul, we are targeting another INR 16 crores. In totality, this comes to INR 550. Okay. Sir, secondly, on depreciation, we saw a sharp fall from around 13 odd crores last quarter in Q1 to 9.5 crores. Incrementally, what would be the run rate and what was the reason for this fall in depreciation amount in month view? If you look at the block, whether it is constant, it is basically charged at the same rate. Reduction, of course, due to some of the assets which have been sold in the previous financial year. There is a WDV which we are charging on the assets. This will be the recurring event going forward? If we are going to buy a few assets more during the year, definitely this will increase. Otherwise, if you look at the same level, it will keep on reducing every year. Okay. And sir, last year on other income, we saw a sharp fall from 15 odd crores last year to 9.5 crores in this year, our first quarter. So even this will be recurring or we may see some increase in other income? Other income, if you look at, is primarily on account of royalty which we were getting in the earlier years. Right now, we are not charging royalty. Plus FDR, if you look at, in the previous financial year, we were having proceeds from IPO on which we were getting a redundant form of an interest on a deed. So we don't have that surplus now. We have 100% utilized the IPO proceeds in the last quarter of the FY 2026. So whatever FDs we have, we are close to almost INR 320 crore FDs lying in the books of accounts. So as per the rate of interest, we are getting the interest in the books of accounts. So this will be a defined number, right? This will be on the same line, what we have shown in the first quarter. Okay. Thank you, sir. Okay. The next question comes from the line of Yash Parekh, an individual investor. Please go ahead. Hi. Am I audible? Yes, you are. Yeah. Hi. Please go ahead. Hi. Thank you so much for the opportunity. My question was regarding the commercial papers. Recently they have approved the issuance of commercial papers of around INR 100 crores on a private placement basis. Sir, as a shareholder, I would like to understand, what is this commercial paper intending to fund, and how does raising short-term commercial paper fit with the long tenure nature of our HAM and EPC project cash flows? Commercial paper, we are going to carve out from our working capital requirements. The reason being, we are getting a better ROI on commercial paper. It will be close to 6.8%-7% as against WCDL, where we are getting a rate of 7.5%-7.8%. This will reduce our finance cost, and moreover, we will be entering into the market by issuing some commercial paper, which will give more benefits to the company and visibility to the company. Okay. Sir, could you elaborate on the near-term pipeline, what it looks like in the two international markets, and whether we should expect meaningful revenue contribution from the Ceigall Global Pte. Ltd. or the UAE entity within FY 2027 and FY 2028? We are very conservative going global. We have quoted few tenders. One was in Romania and a few are in Dubai. Because of this war situation, we are a little more conservative now, and our order book is robust in India. We want to take baby steps there. We are bidding for three more projects, which I can't tell you on this line. Once we bid, we can share that. Otherwise, our order book is robust in India. We want to grow internationally, but again, very conservatively. Thank you. Okay. Sir, last question from my end. Consolidated ROE has fallen sharply to 14% in FY 2026. Even though ROCE has been comparatively more stable, somewhere around 19%-20% over the same period. Is this decline in ROE purely a function of the equity-based expanding post-IPO and post-QIP type capital raises, or is there a genuine decline in return on the incremental capital deployed that we should be concerned about? This was primarily on account of raising equity share capital only. If you look at it, we were close to INR 2,098 crore equity share capital at the end of FY 2026. My base has increased, which has reduced my ROE. Okay. That's it from my end. Thank you so much for answering my questions. Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to Mr. Ramneek Sehgal for the closing remarks. Thank you very much, everyone. I would once again like to thank all the participants for joining us today and making this an engaging and insightful discussion. We appreciate your continued interest and confidence in Ceigall India Limited. As we move forward, we remain committed to disciplined execution, prudent capital allocation, creating sustainable long-term value for all our stakeholders. We hope we have been able to address all your queries. In case you have any further questions, please feel free to connect with our investor relation teams at Adfactors PR. Thank you once again. Have a good day, guys. Thank you. Thank you, sir. Ladies and gentlemen, on behalf of Ceigall India Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.