Summary
Ceigall India Limited - Q3 FY 2026 Earnings Call Summary Monday, February 09, 2026 4:00 PM
Event Participants
Executives 3 Kapil Aggarwal (CFO), Ramneek Sehgal (Chairperson and Managing Director), Sudhir Hoshing (Whole-Time Director)
Analysts 4 Ketan (Avendus Spark), Nimish Pandya (Individual Investor), Parth Patel (Patel Investments), Vaibhav Shah (JM Financial)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Standalone) | ₹970 crores | +19.7% YoY; driven by post-monsoon execution ramp-up in peak construction season. |
| Revenue (Consolidated) | ₹991 crores | +19.3% YoY; reflect strong SPV performance and diversified project portfolio. |
| EBITDA (Standalone) | ₹120 crores | +14.3% YoY; margin at 12.3% for the quarter. |
| PAT (Standalone) | ₹75 crores | Margin at 7.7%; cumulative 9M FY26 PAT stands at ₹186 crores. |
| Order Book | ₹13,295 crores | Multi-year visibility; includes ₹1,403 crores of fresh inflows in Q3. |
| Standalone Debt | ₹552 crores | Reduced from ₹636 crores in March 2025; Debt/Equity ratio remains low at 0.28x. |
| Consolidated Debt | ₹1,421 crores | Includes SPV-level debt for HAM assets. |
| Cash & Bank Balances | ₹225 crores | Includes FDs as of December 31, 2025. |
Geographic & Segment Commentary
- Roads & Highways: Remains the core segment with recent wins including the ₹1,089 crore Indore-Ujjain greenfield project and emerging as L1 for the ₹2,160 crore Sahebganj-Areraj-Bettiah project in Bihar. Strategy focuses on large-scale HAM and EPC projects with early completion track records.
- Renewables & T&D: Rapidly expanding segment with a cumulative order book of ₹3,168 crores in renewables and ₹407 crores in transmission & distribution (Velgaon substation). Management targets historical EBITDA margins of 15%+, noting these are not low-margin entry bids but strategic extensions of existing utility-shifting capabilities.
- Urban Infrastructure & Metros: Diversified into metro rail with an L1 position in a ₹918 crore Jaipur Rail Corporation project. The segment leverages existing expertise in elevated viaducts and bridges currently utilized in Agra and Kanpur projects.
Company-Specific & Strategic Commentary
- Asset Monetization: Board approved 100% divestment of the Malout-Abohar-Sadhuwali HAM asset to Neo Asset for ₹177 crores, with proceeds expected by March 2026 to fund future equity requirements.
- Global Expansion: Incorporated Ceigall Global PTE Limited in Singapore to explore Southeast Asian and Middle Eastern markets; currently bidding for projects in Romania and UAE in a “calibrated” manner.
- Operational Efficiency: Seven projects completed ahead of schedule to date, enabling early completion bonuses. High technology adoption via AI tools for project monitoring and bidding.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 10% - 15% CAGR | Management maintains a conservative growth stance for FY26-27 despite exceeding targets recently. |
| Order Inflow | ~₹5,800 crores (FY27) | Targeted incremental growth of 15% over previous guidance; focus on maintaining 10-15% international mix. |
| Equity Infusion | ~₹1,360 crores (Incremental) | Includes ₹145cr for Indore-Ujjain, ₹250cr for Bihar HAM, and ₹810cr for Solar/T&D through FY28. |
| Asset Divestment | Two additional HAM assets | Targeting completion of Bathinda-Dabwali and Jalbehra-Shahbad sales by September 30, 2026. |
Risks & Constraints
| Risk | Context |
|---|---|
| Right of Way (ROW) | Delays in ROW and forest clearances have historically deferred appointed dates for projects like VRK 11 and 12, affecting execution timelines. |
| Execution in New Verticals | While management claims synergy, entering Solar and Metro segments involves distinct technical complexities and PPA-signing dependencies. |
| International Risk | Expansion into UAE and Romania involves geo-political and regulatory risks, though management plans a low-capex approach using domestic BG limits. |
Q&A Highlights
Project Timelines & Appointed Dates
- Question: When do we expect appointed dates for the five major HAM projects? (Vaibhav Shah)
- Answer: VRK 12 is expected by mid-February 2026 following forest clearance meetings. Southern Ludhiana is also expected this month. Bihar and Indore projects will follow financial closure (150-day window) once LOAs/Agreements are signed (Ramneek Sehgal).
Solar Strategy & Financing
- Question: What are the equity requirements and revenue targets for the ₹3,500 crore solar/BESS book? (Vaibhav Shah)
- Answer: Total equity for solar/T&D is ~₹810 crores with a 20% upfront requirement. Massive execution will start only after PPA signing. We use our capital recycling from HAM sales to fund these infusions (Kapil Aggarwal/Ramneek Sehgal).
Asset Divestment & Cash Flow
- Question: What is the status of HAM asset sales and how will proceeds be used? (Parth Patel)
- Answer: Malout-Abohar sale should close by March 31, 2026. Two more assets targeted by September. Proceeds primarily targeted for equity infusion in new projects to maintain low leverage (Kapil Aggarwal).
Margins in New Verticals
- Question: Are the new renewable/T&D bids low-margin for market entry? (Nimish Pandya)
- Answer: No. These bids are structured to match historical 15% EBITDA levels. The company has existing experience in these areas through utility shifting for highway projects (Ramneek Sehgal).
Key Takeaway
Ceigall India delivered a robust Q3 FY26 with standalone revenue growing 19.7% YoY to ₹970 crores, supported by an all-time high order book of ₹13,295 crores. The company is successfully transitioning from a pure-play road developer to a multi-vertical infrastructure player, with renewables and T&D now comprising over ₹3,500 crores of the portfolio. Profitability remains healthy with 12.3% standalone EBITDA margins, while the balance sheet is being optimized through a clear “capital recycling” strategy, evidenced by the ₹177 crore divestment of the Malout HAM asset. Management remains confident in achieving 10-15% annual growth while maintaining low leverage (0.28x D/E). Investors should monitor the timely signing of solar PPAs and the achievement of appointed dates for newer HAM projects to ensure sustained execution momentum into FY27.
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