BRGoyal Infrastructure Ltd Q4 FY2026 Concall Summary

Key Takeaways

• Revenue surged 61% YoY, but order book dipped: Revenue hit ₹820 cr on strong EPC execution and toll collection, yet the disclosed order book fell to ₹1,235 cr as the company pivots to bidding for larger-scale projects.
• Margins expanded 105 bps to 9.13%: Operating leverage, a better project mix, and procurement efficiencies drove the improvement, with management targeting a further rise to 10–11% in FY27.
• A deliberate pivot to bigger, funded projects: The company is now bidding for projects up to ₹700 cr individually, prioritizing central and state agencies with allocated funds to avoid payment delays, even if it means a temporarily lower reported order book.
• Wastewater is the new growth vector, but credentials are the bottleneck: Two Bihar projects worth ~₹500 cr already bid, yet the company must build a track record via subcontracting before it can bid directly and hit its 20–25% revenue mix target.
• What to watch next quarter: Whether the ₹1,500–2,000 cr of bids already submitted convert into orders, the pace of the planned PPP/HAM entry, and any progress on direct wastewater credentialing.

Revenue Growth & Profitability

• Broad-based execution surge: Revenue grew 61% YoY to ₹820 cr, driven by higher EPC execution, an increasing contribution from toll collection contracts, expansion into new geographies, and initial execution in the wastewater treatment segment.
• PAT jumps 77.8%: PAT reached ₹44.92 cr, supported by strong revenue growth and the margin expansion.
• EPC margin levers: EPC margin improved from 12–13% last year to 14% this year, while toll collection EBITDA margin moved from 3% to 4%, lifting the blended margin from ~9% to 9.13%.
• Cash flow turns positive: IPO funds deployed last year have started generating returns, converting to positive cash flow in the current year, with management expecting this to continue.
• Working capital cycle is tight at 30–45 days: The shift over the last 7–8 years to centrally funded projects (NHAI, NHIDCL, MoRTH) means payment issues rarely arise.

Yash Goyal: "We don't think we are conservative in out bidding we think we shouldn't unnecessarily have an order book of INR5,000 crores and then not be able to execute the work for 5, 10 years. Then there's no point in taking the order."

Order Book & Bidding Strategy

• Order book declined to ₹1,235 cr from ₹1,313 cr: The drop reflects faster execution (₹811 cr executed) and a strategic shift to bidding for higher-scale projects, not a slowdown in government tenders.
• ₹1,500–2,000 cr in bids already submitted: This pipeline, across projects of ₹800 cr, ₹600 cr, and ₹300 cr, has not yet opened and is excluded from the current order book, along with any orders received after March 31.
• Bid capacity is scaling up: The company can now bid for ₹600–700 cr individual road orders and ~₹150 cr building orders, while toll collection bidding capacity is unlimited based on net worth.
• Selectivity is a deliberate choice: The company prioritizes bidding where central funds are allocated (National Highway, MPBDC, UPDA) to avoid payment delays, deliberately avoiding municipal corporations with uncertain annual plans.
• Execution capacity expansion is the second priority: Management is actively looking for good opportunities in Maharashtra and UP to increase execution bandwidth for existing projects.

New Verticals & Diversification

• Wastewater is the headline new vertical: The company entered wastewater treatment and underground sewage infrastructure during FY26, targeting 20–25% of future revenue from this segment.
• Credentialing is the near-term bottleneck: Lacking direct credentials, the company is currently doing wastewater work on a subcontracting or name-lending basis, aiming to close orders quickly to build a track record for direct bidding.
• Two Bihar projects already bid: The company bid for two BUIDCO projects worth ~₹500 cr, placing L2 in one and L3 in the other.
• PPP and HAM entry planned this fiscal: Already qualified for PPP projects, the company can bid up to ₹1,000 cr in a joint venture and plans to bid this year, eyeing the central government's renewed push on BOT projects.
• TOT model on the radar: Management is looking at large toll collection contracts under the TOT model, where a single bid of ₹1,500–2,000 cr covers 15–20 toll plazas with an upfront payment and a 15–20 year collection period.
• Open to anything infrastructure-related: Management positioned the company as a diversified infrastructure player, open to transmission lines or any adjacent sector over the next 3–4 years.

Yash Goyal: "The problem with wastewater is right now that we don't have credentials. So, we are doing it on a subcontracting basis or on a, like, name lending basis."

Revenue Mix & Margin Targets

• FY27 revenue mix target set: Management aims for 35–40% road & building EPC, 20–25% wastewater, and 35–40% toll collection contracts, a shift from FY26 where toll collection grew its share while EPC road & building growth was equivalent to the prior year.
• EBITDA margin target of 10–11% for FY27: This is up from the 9.13% achieved in FY26, with the improvement expected to come from continued operating leverage and a richer project mix.
• Annual growth ambition of 20–25%: Management expects to maintain this growth rate every year, with FY27 revenue potentially reaching ~₹1,000–1,200 cr, though it declined to commit to a specific figure due to geopolitical uncertainty.

Other Updates

• Maiden dividend recommended: The board recommended a maiden dividend of 0.25% per share (2.5% of face value ₹10).
• Preferential issue approved: The board approved a preferential issue of convertible warrants up to ₹13.09 cr, with the fund requirement expected to arise after 10–12 months.
• Credit rating upgrade: India Ratings upgraded the short-term banking loan facility rating to IND A2 from IND A3+.
• Virtuoso Infra Meditech stake: A 10% stake was acquired in a real estate company with a ~3–3.5 lakh sq ft saleable area project in Indore, estimated to generate ~₹150 cr in revenue over 2–2.5 years.
• Plotted project inventory held back: Unsold inventory of 1.8 lakh sq ft in a completed, RERA-compliant Indore project was deliberately held back from sale, with management planning to sell some in the current year and seeing a turnaround within one to two years.

Guidance & Commitments

Key Metrics