Cemindia Projects Ltd Q2 FY26 Earnings Analysis

- The company targets revenue growth of about 20% to 25% annually, maintaining this range for FY '26 and looking similarly towards FY '27 and '28. - Order inflow for FY '26 is expected around INR 15,000 to 16,000 crores, with 35% contributed by the parent Adani Group. - The existing order book of approximately INR 18,820 crores is expected to be executed over 1.5 years. - The company aims to focus on larger ticket size orders (usually over INR 300-500 crores), which lead to better margins and reduced competition. - Growth is supported by expanding into new segments like airports, data centers, and increased participation across multiple infrastructure categories beyond marine. - The organization has adequate capacity (manpower and machinery) and strong knowledge base, enabling it to sustain at least 25% growth without major constraints. - Operating leverage benefits are balanced by competitive bidding strategies to secure more jobs.

- The company targets a revenue growth of 20% to 25% annually, maintaining a strong growth trajectory. - EBITDA margins are expected to remain steady around 10%, with efforts to improve gradually. - PAT margins have shown consistent improvement, from 3.6% to 5.4%, and management views 5% PAT as healthy for the industry, with potential for further growth. - Operating leverage benefits are moderated due to previous bad projects but stabilized EBITDA at around 10% in recent quarters. - Bidding strategy balances growth and margins; pursuing larger projects with potentially better margins and less competition. - Expected capex around INR 280-300 crores for FY '26 supports expansion and growth capacity. - Earnings growth will benefit from a larger order book, increased order sizes, and improved efficiency as execution scales. - Parent company orders constitute a significant portion (~30-35%) of the order pipeline, supporting sustained growth.

- Planned capex for FY '26 is around INR 280 crores to INR 300 crores. - INR 89 crores of capex was already spent in Q1 of FY '26. - Capex depends on the projects received; it could be higher if more work is secured. - No specific details disclosed about capex-related to future investments or strategic moves. - Support and access to plant and machinery from Adani Group are available if needed, indicating possible capital expansion aligned with knowledge and project needs.

- The company currently has close to INR 6,000 crores of credit limits, with about 90% utilization. - Gross debt as of June 30, 2025, stands at INR 960 crores. - Interest costs have reduced due to better terms like interest-free advances and reduced bank guarantee charges. - Management expects optimization of financing costs post Adani Group's parental leverage, which should reduce absolute interest costs and debt cost as a percentage of revenue. - No explicit mention of immediate new fundraising through debt or equity in the discussed section. - Capex for FY '26 is planned around INR 280-300 crores, with some flexibility depending on new orders, but no direct linkage to new fundraising stated. - Future financing cost improvements are expected but no clear details on fresh debt or equity issuance.

- Current order book stands at approximately INR18,820 to INR18,880 crores, expected to be executed over 1.5 years (Page 7, Page 13). - Total order inflow guidance for FY '26 is around INR15,000 to INR16,000 crores, with INR4,000 to INR5,000 crores already secured (Page 7, Page 8). - Out of the order pipeline/opportunities worth INR87,000 crores, the win rate is approximately 20%, translating to about INR16,000 crores of potential orders (Page 6, Page 7). - Orders secured in Q1 FY '26 were INR2,900 crores, plus INR1,300 crores secured in July 2025, totaling around INR4,300 crores so far (Page 3). - Company is also L1 (leading bidder) in orders worth INR1,400 crores currently (Page 3, Page 7).