Summary
Bigbloc Construction Limited - Q3 FY26 Earnings Call Summary Wednesday, January 21, 2026 4:00 PM
Event Participants
Executives 1 Mohit Saboo (CFO)
Analysts 4 Ajit Sethi, Ashvath Rajan, Jayshree Bajaj, Srijan Kaushik
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹72.8 crore | +28.1% YoY, +8.2% QoQ; highest ever quarterly revenue driven by 38% YoY volume growth. |
| Sales Volume | 2,14,643 cubic meters | +38.0% YoY; strong post-monsoon recovery in construction activity across key markets. |
| EBITDA | ₹8.1 crore | +31.8% YoY; margin expanded to 11.1% from 10.8% YoY and 2.8% in Q2 FY26. |
| Profit After Tax (PAT) | ₹0.4 crore | Returned to profitability following a loss in the previous quarter due to better absorption of fixed costs. |
| Capacity Utilization (Consolidated) | 67% | +500 bps QoQ from 62%; driven by increased demand and deeper client penetration. |
| Capacity Utilization (JV - SIAM) | 51% | +800 bps QoQ from 43%; includes a 10% utilization specifically for AAC wall panels. |
| Unit Realization | +2-3% | Marginal improvement QoQ; management expects further gains as market demand strengthens. |
| Renewable Energy Share | 36% | +1000 bps QoQ from 26%; reflects commitment to ESG and long-term energy cost reduction. |
Geographic & Segment Commentary
- AAC Blocks (Core): Utilization reached 67% consolidated, with the Ahmedabad plant (StarBigBloc) operating at 80-85% capacity. The Vapi plant is at 68-70%, while the Ramosadi facility is at 51% with a target of 80% in the next two quarters.
- AAC Wall Panels (JV): Currently at 51% fungible utilization (10% panel specific), management is targeting 30-40% panel-specific utilization over the next 3-4 quarters. The product is gaining traction in industrial and commercial projects due to its 6-meter height capability.
- Construction Chemicals: Contributed 5% to 7% of Q3 revenue. Trial runs at the Umargaon facility have been successful, with commercial production expected to scale up soon to diversify the product portfolio.
Company-Specific & Strategic Commentary
- Order Win: Secured a significant purchase order from Larsen & Toubro (L&T) for AAC blocks, validating product quality for large-scale infrastructure and institutional projects.
- MP Expansion: Commencing a new greenfield project in Madhya Pradesh with a capacity of 2.0 to 2.5 lakh cubic meters per annum. Land has been acquired, and negotiations with machinery suppliers from China are underway for a total capex of ₹75-80 crore.
- Carbon Credits: Approximately 1.0 to 1.5 lakh credits are pending issuance for the Umargaon and StarBigBloc plants. While the market is currently slow, the Wada plant is also in the process of registration.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Capacity Utilization | 63-64% (FY26) / 70%+ (FY27) | Expected Q4 FY26 utilization to trend higher than Q3; FY27 growth driven by market penetration. |
| EBITDA Margin | 15% - 20% | Management views this range as “easily sustainable” in the long term as demand recovers. |
| New Capacity Completion | Q4 FY27 (approx. 12 months) | The MP plant will take 10-12 months for operationalization once construction begins in Q4 FY26. |
Risks & Constraints
| Risk | Context |
|---|---|
| Competition & Pricing | Pricing power was historically impacted by intense competition and a real estate slowdown, though realizations saw a 2-3% uptick this quarter. |
| Regulatory/Compliance | Auditor qualification regarding Ind AS 19 (employee benefits) exists; management clarifies they perform actuarial valuations annually rather than quarterly. |
| Market Liquidity (Carbon) | Carbon credit issuance faces administrative delays at Verra and low market liquidity, delaying potential non-operating income. |
Q&A Highlights
Realization and Margins
- Question: What drove the EBITDA improvement of ₹4 crore on a revenue increase of only ₹5 crore? (Prasan)
- Answer: Combined effect of 2-3% increase in realizations and a 10-12% jump in capacity utilization since Q1, which significantly lowered fixed costs per unit (Mohit Saboo).
Wall Panel Adoption
- Question: What are the barriers to reaching 60%+ utilization in the wall panel segment at the JV plant? (Jayshree Bajaj)
- Answer: The segment is new; currently, panel utilization is 10% while blocks fill the rest of the 51% total utilization. Management expects panel share to reach 30-40% within 4 quarters as developers adopt the 6-meter format (Mohit Saboo).
New Capex Details
- Question: Can you provide details on the Madhya Pradesh expansion? (Srijan Kaushik)
- Answer: The plant will have a capacity of 2 to 2.5 lakh cubic meters with a capex of ₹75-80 crore, with execution expected over the next 12 months (Mohit Saboo).
Government Schemes
- Question: Is the company benefiting from the PM Awas Yojana (PMAY) allocation? (Srijan Kaushik)
- Answer: Yes, the company supplies to PMAY, Sarva Shiksha Abhiyan in Gujarat, and various infrastructure projects in Maharashtra and MP (Mohit Saboo).
Key Takeaway
Bigbloc Construction delivered a record performance in Q3 FY26, achieving its highest-ever quarterly revenue of ₹72.8 crore, a 28.1% YoY increase. The company successfully returned to profitability with an EBITDA margin of 11.1%, driven by a recovery in construction demand and improved consolidated capacity utilization of 67%. Strategically, the firm is pivoting toward higher-margin segments, with construction chemicals now contributing 5-7% of revenue and AAC wall panels gaining traction in the JV facility. A major ₹75-80 crore expansion in Madhya Pradesh is set to commence, targeting a 2.5 lakh cubic meter capacity increase within 12 months. While audit qualifications on employee benefit accounting persist, management remains confident in achieving 70%+ utilization and 15-20% sustainable EBITDA margins by FY27, backed by anchor orders from clients like L&T and strong participation in government housing schemes.
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