Nacdac Infra.
Q3 FY25 Earnings Call Analysis
Construction
fundraise: Nocapex: Yesrevenue: Category 2margin: Category 3orderbook: Yes
💰fundraise
Any current/future new fundraising through debt or equity?
- NACDAC Infrastructure Limited is **not planning any Follow-on Public Offering (FPO) or further equity fundraising** in the near future.
- The company currently has **sufficient funds to manage new projects worth up to 100 crores** with existing resources.
- Working capital needs are presently funded through a combination of **IPO proceeds and short-term borrowings**, which will likely continue in the same manner.
- No plans for additional fundraising or capital expenditure beyond the current machinery investment of around 1-1.5 crores in the next 12 months.
- The company has fully deployed 96% of IPO funds into working capital, enabling them to bid for and execute more projects efficiently.
🏗️capex
Any current/future capex/capital investment/strategic investment?
- NACDAC plans to invest around ₹1-1.5 crores in machinery and technology upgrades in the next 12 months.
- The company is focused on purchasing modern building machineries in the coming year to stay updated with technology.
- No additional fundraising such as FPO or IPO is planned for the near future; current funds and short-term borrowings are sufficient for working capital needs.
- IPO funds have already been fully deployed primarily for working capital, enabling bidding on more projects and expansion.
- Strategic priority includes expanding order book and completing projects ahead of schedule to improve profitability and shareholder value.
📊revenue
Future growth expectations in sales/revenue/volumes?
- NACDAC Infrastructure targets significant revenue growth for FY26, aiming to increase from around Rs. 50 crores last year to between Rs. 65-70 crores.
- The company expects the positive trend in total income and net profit to continue, driven by a strong order book and ongoing project executions.
- Current order book stands at approximately Rs. 92-95 crores, with 75%-76% from government projects and the rest from private sector.
- Expansion plans include bidding in new states like Rajasthan and Madhya Pradesh, alongside existing operations in Uttar Pradesh, Uttarakhand, Delhi, Haryana, and Bihar.
- The company is focused on completing projects ahead of schedule to boost revenues and profits.
- Continued investments in machinery and technology upgrades (around Rs. 1-1.5 crores planned) aim to improve operational efficiency and margins.
- Overall, the company expects robust growth supported by increased bidding activity, diversified geography, and enhanced capacity.
📈margin
Future growth expectations in earnings/operating earnings/profits/EPS?
- NACDAC Infrastructure targets revenue growth from approximately Rs. 50 crores in FY25 to around Rs. 65-70 crores in FY26.
- EBITDA margins currently around 8.3-8.4%, above the industry average of 7%, with plans to improve margins further through new machinery and modern techniques.
- Net profit increased by 154% in H1 FY26, with continued strong profitability expected as the order book is robust (~Rs. 90-95 crores).
- Operational efficiency to improve with full utilization of existing machinery and planned capital expenditure of Rs. 1-1.5 crores in machinery upgrades.
- Growth driven by multi-state project execution, expansion into new geographies (e.g., Rajasthan, Madhya Pradesh), and a mix of government and private sector projects.
- Focus on timely project completion to enhance revenue recognition and profitability.
- No plans for immediate fundraising; working capital funded by IPO proceeds and short-term borrowings.
📋orderbook
Current/ Expected Orderbook/ Pending Orders?
- Current order book stands at approximately Rs. 90-95 crores (as of late 2025).
- Around 75%-76% of the order book is from the government sector, with the rest from the private sector.
- The average project execution cycle is about 18 months.
- Projects worth Rs. 150 crores are currently under evaluation, with results expected within 45 days.
- The company has started bidding in new states like Rajasthan and Madhya Pradesh, expanding beyond existing operations in Uttar Pradesh, Uttarakhand, Delhi, Haryana, and Bihar.
- Plans to target projects within a 250-300 kilometer radius including Madhya Pradesh, Haryana, Delhi, Uttarakhand, UP, and Rajasthan improving multi-state operations.
- The company is focusing on bidding larger projects typically in the range of Rs. 20-37 crores rather than smaller ones.
