• Middle East execution: Physical execution continues across roughly 30 projects, but shipping constraints and logistics costs caused around ₹400 crore in supply deferrals that will spill into Q1 and Q2. Despite delays, the company has collected ₹600–700 crore in cash from the region since March 31 and expects full-year regional revenue contribution to stay normal at around 25%.
• Domestic labor availability: Shortages caused by March festivals and state elections severely impacted April and May execution in the civil segment, though 5,000 workers have returned and the workforce is expected to normalize to 30,000 by month-end. The shortfall has not materially increased labor costs, which account for 10–12% of typical civil contract expenses.
• Growth and order pipeline: Management reaffirmed FY27 revenue growth guidance of 12–15%, backed by an order book plus L1 pipeline of ₹40,000 crore with typical contract durations of 12–24 months. T&D revenue is expected to grow 10–12% with upside potential if Middle East rehabilitation work accelerates, while civil is expected to grow faster.
• Debt and working capital: The company plans to reduce debt from around ₹6,600 crore to ₹5,500 crore by FY27 end via ₹500 crore reductions in each half, eventually aiming for below ₹5,000 crore in FY28. Net working capital days are targeted to decline from 130 days to 110 days by the end of FY27 and below 100 days in FY28.
• Margin and earnings drivers: Concrete margin guidance is deferred by a quarter until the full impact and potential rehabilitation opportunities in West Asia become clear. While core operations support normalized profit targets, ongoing legal arbitrations and claims in railways and civil could shift net earnings by ₹50–100 crore.