BRGoyal Infrastructure Ltd Q2 FY2026 Concall Summary

Key Takeaways

• Record H1, margin inflection begins: H1 FY26 revenue hit a company-record ₹342 crores, while EBITDA margin improved to 8.03% as higher-ticket projects and toll collection contracts lifted profitability.
• Order book nearly doubled, giving two-year visibility: The unexecuted order book grew 73% YoY to ₹1,535 crores, and management expects to execute ₹400–₹450 crores of it this year and ₹800–₹900 crores next year.
• Wastewater entry opens a new growth vector: The company entered the wastewater treatment segment in FY26, winning projects in Tamil Nadu and bidding for two large Bihar packages worth ₹300–₹400 crores each, with results expected in 1–2 months.
• A government payment reform de-risks water-project receivables: A new central-government mechanism now pays contractors directly for water projects, removing state-government payment risk, a change implemented around September 2025.
• What to watch next quarter: Whether the two Bihar wastewater bids are won, the pace of margin expansion toward the 11%–13% FY26 target, and the conversion of the ₹2,500 crores bid pipeline into the expected ~₹500 crores of new orders.

Revenue Growth & Seasonality

• H1 outperformance driven by execution and toll: Revenue of ₹342 crores in H1 was the highest ever, driven by higher ticket size, efficient execution, and higher toll collection contracts.
• H2 is structurally larger: Per industry pattern, 55%–60% of annual revenue arrives in H2 versus 40%–42% in H1, because H1 includes a three-month review season; last year H1 was ₹212 crores, and the company achieved ₹330 crores in H1 FY26.
• Full-year revenue target set: Management expects FY26 turnover of ₹700–₹750 crores, implying roughly 35%–40% top-line growth, and is targeting ₹900 crores for FY27.
• RMC utilization follows the same seasonal rhythm: H1 utilization was lower at 33% because rains reduce third-party consumption by local builders; H2 utilization increases automatically with existing tie-ups, with the ratio at 35% in H1 and 65% in H2.

Dasharath Tomar: "Sir, the INR1,535 crores orders, we are expecting that in the current year, around INR400 crores to INR450 crores orders will be executed in the first year of 2026. And next year, around INR800 crores to INR900 crores orders will be executed in this."

Order Book & Bid Pipeline

• Order book provides two-year visibility: The ₹1,535 crores unexecuted order book grew 73% YoY; execution timelines range 12–36 months depending on the project stage, with the majority toward an 18-month timeline.
• New orders won in H1: Between April and September 2025, the company received new orders worth ₹582.45 crores gross across roads, buildings, wastewater treatment, and toll collection contracts.
• Bid pipeline is deep: Approximately ₹2,500 crores of projects have already been bid or submitted, including ~₹700–₹750 crores of water and wastewater work; the general strike rate is 15%–20%, so management expects around ₹500 crores of new orders in the near future.
• Order book target for March 2026: Management expects the order book to reach around ₹2,000 crores by 31 March 2026.
• Bihar wastewater bids are the nearest catalyst: Two bids of ₹300–₹400 crores each have been submitted in a joint venture with technically qualified partners; B.R. Goyal will execute all work and book all revenue directly; bid results are expected after the election period, in roughly 1–2 months.

Margin Trajectory & Profitability Drivers

• EBITDA margin improved to 8.03% in H1: The improvement was driven by efficient working capital management, advance procurement of raw material leading to supplier discounts, and higher execution in road and toll segments.
• PAT jumped on mix and execution: PAT rose to ₹16 crores from ₹6 crores, driven by higher execution volumes, higher-margin toll collection contracts, and improved realization.
• Big-ticket projects are the margin engine: Management attributes the margin improvement to an increased share of big-ticket government projects and higher-margin toll collection contracts, and expects EBITDA margins of 11%–13% on a consolidated basis for FY26.
• FY27 margin ambition steps up further: Management expects EBITDA margins to grow to 15%–20% in FY27, with the base case at 13%–14% and upside if better orders come in water-infra.
• Toll collection adds recurring, high-margin income: The toll collection business contributed meaningfully to profitability and margin stability as a recurring income stream, with an expected IRR of around 30% from toll projects.
• RMC and capex support cost control: RMC operations reduced dependency on external vendors, contributing to cost savings and quality consistency; ₹13.5–₹16 crores was invested in plant, machinery, construction equipment and vehicles to ensure smooth and fast project execution.

Yash Goyal: "IRR yes we do look for an IRR, because when we talk about EPC or when we talk about toll, the IRR we expect from a toll project is around 30%."

Wastewater & Water Infrastructure

• Wastewater treatment is a strategic new segment: The company entered the wastewater treatment segment in FY26, calling it a strategic milestone into sustainable infrastructure, and strengthened its presence in Southern India through project wins in Tamil Nadu.
• Focus is wastewater-only for now: Management confirmed the company is focused on wastewater only and is not working on desalination plants or that technology at present.
• Government payment reform de-risks the segment: A change implemented around September 2025 means the central government now directly pays contractors for water projects, taking money from state governments, which ensures payment surety.
• No exposure to troubled central schemes: The company did not participate in Jal Jeevan or AMRUT bids because of past payment issues; current Tamil Nadu projects are for the World Bank.
• Long-term revenue mix target: Management aims for ~60% from road contracts, ~10% from buildings, ~15%–20% from toll collection, and ~15%–20% from wastewater over the long term.

Yash Goyal: "So, now what government has did is the central government is taking the money from the state government and the central government is directly paying to the contractors. So, there is a surety of payment which is to be done."

Balance Sheet & Working Capital

• Debt increased to fund capex, not working capital: Debt increased by ₹7 crores primarily due to ₹16 crores of capex; IPO proceeds of ₹8 crores were used, and the balance ₹8 crores was funded by a term loan of ₹7 crores for equipment and commercial purposes.
• Working capital cycle remains stable: Receivables increased in absolute terms due to higher turnover but not as a percentage; the working capital cycle remains 45–60 days, and mobilization advance clauses apply as soon as work orders are received, so no major working capital debt is required.
• Bank guarantee limit set to expand sharply: The maximum bank guarantee limit will increase from ₹100 crores to ₹325 crores within this year; the fund base may increase by 5%–10%.
• Three big-ticket projects started after June: Major investment was deployed into three large work orders that started after June; revenue booking has begun on all three.

Strategy: EPC First, HAM Second

• Primary focus remains EPC, with HAM as a secondary priority: The company is planning to bid in HAM but states its focus is primary EPC and secondary HAM, because its scale is increasing so it can bid single orders of ₹500–₹600 crores in road projects directly.
• Bidding capacity is growing: In roads, the company can bid single orders of ₹500–₹600 crores; in buildings, single orders above ₹100 crores; in toll, single orders of ₹2,000 crores.
• Solar EPC is under exploration: The company is exploring EPC contract opportunities for solar plant installation and is meeting with corporate players; it is not focusing on a new wind power unit, with the existing wind mill from 2006–2007 continuing only for depreciation and income tax benefits.
• Green construction materials in early stages: The company has started working on green steel or FRP from waste material and is trying to use these wherever government approval exists and green material requirements apply.

Yash Goyal: "So, we are planning a bid in HAM. And we are executing those projects. But, sir, what happens is that our focus is primary EPC and secondary HAM. Because our scale is increasing so that we can bid single orders of INR1000 crores, INR1500 crores directly."

Guidance & Commitments

Key Metrics