Nacdac Infra.

Q3 FY25 Earnings Call Analysis

Construction

Full Stock Analysis
fundraise: Nocapex: Yesrevenue: Category 2margin: Category 3orderbook: Yes
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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.
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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.
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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.
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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.
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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.