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Univastu India LtdQ4 FY27

Univastu India Ltd Q4 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: 89P/E: 15.9Market Cap: ₹248 CrSector: Construction

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3
Future Growth Expectations for Univastu India's Sales/Revenue/Volumes: - Significant revenue growth projected in FY25 and FY26, supported by a healthy order book of ₹1,053 crore. - Expected PAT margins are around 9-11% for the current and next financial year due to strong project pipeline. - Expansion into new segments like net-zero projects, data centers, wireless Building Management Systems (BMS), and sports infrastructure (including Commonwealth and Olympic-level swimming pools). - Secured large government and infrastructure orders with financial closure already done, minimizing receivables risk. - Strategic collaborations and JVs with companies like Urban Systems (Swedish company) for sustainable net-zero data centers are expected to open additional revenue streams. - Entry into tunnel infrastructure via partnership with Valecha, targeting future growth markets. - Geographic diversification with increasing orders from Maharashtra, Gujarat, Madhya Pradesh, and northern India.

Margin guidance

Category 2
  • The company expects a strong growth momentum in revenues and profitability in FY26 and FY27.
  • Swimming pool segment margins are projected at around 9-11% PAT.
  • Overall PAT margin guidance is around 10% for current and next financial years, subject to order finalization.
  • Univastu aims to achieve ₹300 crore revenue by FY27.
  • The company targets ₹200 crore order intake in total for the financial year.
  • Growth is driven by a healthy current order book of ₹1053 crore and a focus on tech-based EPC projects (~70% of the order book).
  • New business areas such as data centers, metro BMS, net-zero projects, and IoT-enabled systems are expected to contribute to revenue growth.
  • The company plans to continue strengthening its balance sheet with preferential share issues rather than additional debt.
  • Long-term joint ventures and strategic partnerships (e.g., with Swedish company, Bootes Infra) are expected to boost future profitability.

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Fundraise plans

Yes
  • The company initially indicated plans to raise funds through debt in the quarterly concall.
  • Subsequently, Univastu opted for a preferential share issue instead of increasing debt.
  • The rationale for this choice was to increase bank guarantee limits (non-fund-based limits) rather than fund-based limits.
  • Promoters are investing via fully convertible warrants to avoid additional debt, which will increase promoter stake by about 4%.
  • The commercial financial arrangement related to the Swedish JV company is not finalized, pending financial closure.
  • No specific mention of immediate future new fundraising apart from the preferential share issue and promoter investment.

Order book

Yes
  • Current order book stands at ₹1,053 crore.
  • Approximately ₹900 crore of orders are on a standalone basis, and ₹150 crore on a consolidated basis.
  • Recent significant order includes a ₹390 crore order from L&T for MEP services.
  • Swimming pool orders amount to ₹46 crore in the current financial year.
  • Active participation in upcoming tenders worth around ₹500 crore is ongoing for FY26 and FY27.
  • Targeting robust revenue growth in the second half of FY26 owing to active project execution.
  • No current order book for tunnel business; orders expected in the next financial year following company formation.
  • Order book is a mix of 30% traditional EPC and 70% tech-based EPC projects.

Capex plans

Yes
  • Univastu has signed a Memorandum of Understanding (MOU) with a Swedish company, Urban Systems, for development, design, integration, and execution of data centers in India. This will be executed as a long-term joint venture (JV), with the Swedish company handling design and Univastu managing complete EPC (civil, technology, HVAC, etc.).
  • Univastu has formed a JV called Univastu Bootes Infra LLP for net-zero projects in northern India, with 51% Univastu and 49% Bootes shareholding.
  • The company has created a new entity, Univastu Nuos IoT Systems Private Limited, focusing on wireless Building Management Systems (BMS) and IoT-enabled solutions.
  • Plans include increased investments in tech-based EPC, data centers, net-zero sustainable projects, metro projects, and sports infrastructure, aligned with government initiatives.
  • Financial closure and final JV share percentages are pending for the data center project, indicating ongoing capital deployment.

How does Univastu India Ltd rank vs peers in Construction?

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1Univastu India Ltd
Rev 3Mar 2

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