Dilip Buildcon Ltd Q4 FY26 Earnings Analysis

- DBL expects significant revenue growth in FY '27, targeting around INR10,000 crore revenue, representing 30-40% growth over FY '26. (Page 7) - Order book at highest in company history (INR29,300 crore), providing strong execution visibility for growth. (Page 7) - Order inflow guidance for next year is INR10,000 crore to INR15,000 crore on a selective basis. (Page 11) - Execution to accelerate from FY '27 with major projects coming online. Q4 FY '26 expected to maintain similar margins and execution levels. (Pages 7, 11) - Growth supported by diversification across sectors and selective bidding to maintain margins. (Page 11) - Coal production expected to rise to around 30 million tons in FY '26 and 57 million tons by FY '29, contributing to volume growth. (Page 5) - No major capex expected, supporting capital efficiency while scaling volumes. (Page 16)

- FY '27 revenue expected to grow by 30%-40% to around INR10,000-15,000 crores, driven by healthy and diversified order book. - EBITDA margins targeted to increase to 12%-13% in FY '27 from current levels (~10.4%). - Profit after tax for FY '26 boosted by exceptional gains (INR577 crores) from asset monetization; normalized PAT expected to reflect operational growth. - Debt reduction targeted at INR700-800 crores in FY '27, improving profitability and financial health. - Long-term growth supported by multi-asset strategy including mining, InvIT platforms, renewables, water HAM, and transmission assets. - Stable capex around INR100 crores annually, emphasizing disciplined capital allocation. - Expect steady EPS growth aligned with improved margins, higher execution, and annuity-like revenues from asset holdings.

- No significant capex expected at the DBL stand-alone level; mainly replacement capex around INR100 crores annually. - At SPV level: - Siarmal coal mine SPV: Financially closed; capex underway with INR500 crores FD and INR350 crores equity invested; further debt to be drawn over next 2 years for equipment and coal handling plant. - Pottangi bauxite mine SPV: Estimated capex of about INR150 crores. - Solar and transmission projects: - Total equity investment from DBL parent expected around INR200-300 crores combined. - Balance funding via mezzanine debt raised at SPV/Holdco level (e.g., Solar Holdco). - No heavy or specialized equipment capex planned; basic equipment already owned. - Capex discipline maintained as per DBL 2.0 strategy with annual capex moderated to ~INR100 crores.

- No specific mention of any immediate new fundraising through debt or equity at the stand-alone DBL level. - Solar and transmission projects will have equity investment of around INR 200-300 crores by DBL; remaining funding will be raised as mezzanine (Mezz) debt at SPV/Holdco levels. - The solar and transmission equity funding is structured, with part equity and part mezzanine debt, aimed at strategic asset incubation and eventual value unlock through asset monetization. - No heavy capex expected at parent level; capex for solar and mining projects will be at SPV level. - DBL plans to reduce stand-alone debt by INR 700-800 crores next year, indicating no major fresh borrowings anticipated. - Discussions on potential listing or value unlocking of MDO (mining) business are in early stages and will depend on shareholder approval; no immediate equity fundraising planned there.

- Current order book stands at around INR29,300 crores, the highest in company's history and most diversified to date. - Company added 10 projects worth INR17,565 crores during the 9-month period ending December 31, 2025. - Order inflows for FY '26 are approximately INR17,900 crores, surpassing full-year guidance already. - Around INR15,000 crores worth of bids have been submitted and are expected to open soon, mostly from NHAI. - NHAI's overall pipeline is about INR70,000 crores, but actual conversion is uncertain. - For next year, DBL targets selective new order inflows of INR10,000 to INR15,000 crores. - The company is also bidding for INR3,000 to INR5,000 crores of projects in near term, though timing is uncertain due to tender delays.