Summary
Capacit’e Infraprojects Limited - Q3 FY26 Earnings Call Summary Thursday, February 12, 2026, 11:00 AM
Event Participants
Executives 4 Alok Mehrotra (ED Finance), Nishith Pujary (ED Accounts and Taxation), Rajesh Das (CFO), Rohit Katyal (Executive Chairman)
Analysts 7 Aniket (C. R. Kothari & Sons), Deepak Poddar (Sapphire Capital), Dhananjay Mishra (Sunidhi Securities), Diwakar Rana (Prudent Equity), Pratik Singhania (Sage Investments), Rajesh Kumar Rathi (Right Shopping), Vaibhav Shah (JM Financial), Vansh Solanki (RSPN Ventures), Vasudev (Nuvama Health)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹681 crores | +13% YoY; Highest ever quarterly revenue despite NGT and election disruptions. |
| EBITDA | ₹108 crores | +20% YoY; Driven by operational efficiency and fixed cost control. |
| EBITDA Margin | 16.0% | +70 bps YoY; Within guided range; aided by higher-margin standalone projects. |
| Net Profit (PAT) | ₹50 crores | -4% YoY; Impacted by lower JV profit recognition compared to the high base of Q3 FY25. |
| Order Book | ₹13,188 crores | Record levels; Public sector accounts for 61%, Private sector 39%. |
| Order Inflow (YTD) | ₹3,909 crores | Exceeded full-year guidance of ₹3,500 crores; includes quality bids from CPWD and NBCC. |
| Gross Debt/Equity | 0.25x | Maintained fiscal discipline; Net Debt/Equity stands at 0.12x. |
| Working Capital Cycle | 164 days | Reduced by 20 days since H1; target to reach 90 days over the next 7 quarters. |
| Net Asset Turnover | 5.5x | Improved from 5.2x in FY25; reflects better utilization of core assets. |
Geographic & Segment Commentary
- MMR (Mumbai Metropolitan Region): Execution was temporarily impacted by municipal elections and extended monsoons. The MHADA BDD Chawl project delivered 2 towers YTD, with 5 more scheduled for inauguration in Q4. CIDCO projects are generating ₹45 crores monthly, expected to rise to ₹60 crores in Q4.
- NCR (National Capital Region): Significant disruptions occurred due to NGT (National Green Tribunal) environmental bans and erratic weather, resulting in an estimated ₹70-120 crores revenue loss. Signature Global project is currently at a ₹20 crore monthly run rate, expected to hit ₹30 crore once Phase 2 commences in March.
- Public Sector: Continues to be the dominant segment (61% of order book). Focus remains on central government EPC projects (CPWD, NBCC) and institutional works like auditoriums and high-end housing for government officials.
Company-Specific & Strategic Commentary
- Debt Cost Reduction: Management successfully reduced fund-based interest rates from 12.5% to 10.25%, with the lead bank further dropping rates to 9.65%. Non-fund based commissions moderated from 2.5% to 1.3%, with full impact expected in FY27 finance costs.
- Legacy Receivable Recovery: Processed ₹38 crores of the target ₹50 crores old outstanding receivables YTD. Management is utilizing asset-backed recoveries (₹90 crores in total assets held) and recently won a K-RERA matter in Bangalore to recover ₹25 crores.
- Data Center Expansion: Completed 11 data centers for the Department of Telecommunications; 2 more in Udhampur and Kolkata are nearing completion. Strategy remains selective, prioritizing margin discipline over volume in the data center space.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 18% - 20% (FY27) | Based on expanded order book and expected higher realization from JV projects. |
| Order Inflow | ~₹5,000 crores (FY26) | Revised upward from ₹3,500 crores due to strong momentum and price variations. |
| EBITDA Margin | 16.5% - 17.5% (Consol) | Standalone margins expected to remain higher at 17.5% - 18.5%. |
| Working Capital | 90 days (by FY28) | Targeted reduction of 7-10 days per quarter through better collections and asset sales. |
Risks & Constraints
| Risk | Context |
|---|---|
| Environmental/NGT | Annual construction bans in Delhi-NCR and new dust norms in Mumbai typically halt work for 30-45 days per year. |
| Labour Availability | Described as a “permanent feature”; while not currently stalling projects, scarcity commands a pricing premium. |
| Execution Delays | External factors like elections and erratic monsoons have historically caused 1-2 month productivity losses annually. |
Q&A Highlights
Execution Disruptions
- Question: What caused the execution slowdown in Q3? (Deepak Poddar)
- Answer: Primarily NGT bans in NCR and municipal elections in MMR; the company lost roughly ₹100 crores in potential revenue during the quarter due to these external factors (Rohit Katyal).
MHADA JV Revenue
- Question: Why is JV profit lower this year compared to last? (Diwakar Rana)
- Answer: Q3 FY25 included a large catch-up profit after crossing the 10% threshold; current recognition is steady at ₹1.7-2 crores per quarter but will scale with tower deliveries in FY27 (Rohit Katyal).
Working Capital & Contract Assets
- Question: How will the company reduce the high contract assets? (Aniket)
- Answer: We aim to reduce contract assets from 85% of revenue to 56% by September 2027 through focused collections and resolving old disputed amounts (Rohit Katyal).
Order Pipeline
- Question: What is the bid pipeline for government works? (Deepak Poddar)
- Answer: Pipeline is roughly ₹14,000 crores, focused on central government EPC and deposit works for NBCC; expect ₹500-1,000 crores in new wins before year-end (Rohit Katyal).
Key Takeaway
Capacit’e Infraprojects reported record quarterly revenue of ₹681 crores in Q3 FY26, despite significant external headwinds including NGT bans in NCR and election-related labor movements in MMR. The company demonstrated strong financial discipline, reducing its consolidated net debt-to-equity to 0.12x and successfully renegotiating bank interest rates down to 9.65%. Operationally, the order book stands at a robust ₹13,188 crores, with YTD inflows of ₹3,909 crores already surpassing full-year targets. Management has committed to a multi-year deleveraging and working capital normalization plan, targeting a 90-day cycle by FY28. While external regulatory and environmental stops remain a recurring risk for urban execution, the company appears well-positioned to achieve its 18-20% growth guidance for FY27 fueled by high-quality public sector and marquee private residential projects.
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