SRM Contractors Ltd Q2 FY26 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- FY 2026 revenue is expected in the range of INR 900 to INR 1,000 crores with high double-digit EBITDA margins.
- Consolidated revenue guidance (including SRM and MIPL) for FY 2026-27 is around INR 2,000 to 2,200 crores.
- Order book as of November 2025 stands at INR 1,635 crores, expected to grow by INR 700 crores by mid-January 2026, reaching ~INR 2,400-2,500 crores.
- Pipeline of projects worth INR 3,000 crores anticipated to convert into confirmed orders by early 2026.
- MIPL expected to contribute INR 350 crores to INR 450 crores in revenue consolidated with SRM.
- Revenue run rate for the quarter is estimated at INR 350-400 crores consolidated.
- Growth strategy includes expanding in Maharashtra and Northeast India, and foraying into HAM projects with better margins.
- International expansion planned in GCC and African markets with no fixed budget yet.
- Margins are targeted at 18%-20% EBITDA and 10%-12% PAT for the near term.
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Fundraise plans
Yes- SRM Contractors Limited is planning a Qualified Institutional Placement (QIP) very soon to raise funds.
- The approximate amount targeted to be raised through QIP is around INR110 crores.
- The QIP is intended to support additional capex and working capital requirements due to growth and expansion plans.
- No specific mention of new debt fundraising was made in the provided text, but the company has existing sanctioned bank limits totaling INR225 crores, with an unutilized limit of approximately INR150 crores after recent enhancements.
- The QIP proceeds are primarily for funding expansion, including projects under the HAM model and international growth initiatives.
See what SRM Contractors Ltd management said on order book — free account, 30 seconds.
Capex plans
Yes- The company plans to incur capex of INR70 crores in FY26, with INR48 crores already spent in H1 FY26.
- Additional capex of around INR110 crores is projected, primarily to support future growth and working capital needs.
- The company is considering a Qualified Institutional Placement (QIP) to raise funds for this capex and working capital.
- Capex is related to expansion into new geographies such as Maharashtra and Gujarat.
- For HAM projects, promoter capex requirement is approximately 15-20% of the total project cost (e.g., INR70 crores capex for a INR500 crores HAM project).
- Investment in establishing offices and teams in northeast and international expansions (Abu Dhabi branch, GCC, African markets) is part of strategic growth initiatives.
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Margin guidance
Category 3- SRM Contractors Limited projects consolidated revenues of INR 2,000 to 2,200 crores for FY 2026-27, with continued growth through FY 2029.
- EBITDA margins are expected to remain in the higher double-digit range, with guidance of 18%-20% margins this year.
- PAT margins projected around 10%-12%, improving as EBITDA margins expand.
- Order book expected to grow from current INR 1,635 crores to around INR 2,400-2,500 crores by January 2026.
- The company will see Q3 revenues, including MIPL, in the range of INR 350-400 crores per month.
- Strategic expansions into HAM projects and international markets (GCC, Africa) expected to contribute to growth.
- A planned QIP of approximately INR 110 crores will support capex and working capital needs to sustain growth.
- Focus on margin-accretive projects and operational efficiencies aims to maintain sustainable profitability.
Order book
Yes- As of November 14, 2025, SRM Contractors' order book stands at INR1,635 crores.
- By mid-January 2026, the company expects to add INR700 crores worth of new projects, increasing the order book to approximately INR2,400-2,500 crores.
- The company has a robust bid pipeline of over INR3,000 crores, with a conversion expectation of about 50%, implying potential confirmed orders of around INR1,500 crores.
- Additionally, the order book consolidated with MIPL is expected to contribute INR350 crores to INR400 crores monthly ARR revenue.
- The total consolidated revenue guidance for FY27 is around INR2,000-2,200 crores, reflecting both SRM and MIPL order inflows.
- The pipeline includes HAM projects, slope stabilization, road works, and international bids (e.g., Uganda) positioning SRM for growth and geographical diversification.
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What SRM Contractors Ltd's management said in earlier quarters
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