Summary
Dilip Buildcon Limited - Q3 FY26 Earnings Call Summary Tuesday, February 10, 2026 05:00 PM IST
Event Participants
Executives 3 Devendra Jain (MD & CEO), Rohan Suryavanshi (Head Strategy and Planning), Sanjay Bansal (CFO)
Analysts 5 Bhavin Modi, Darshika, Sanjay Parekh, Shravan Shah, Vignesh Iyer
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Order Book | ₹29,300 crores | Highest in company history; includes ₹17,900 crores YTD inflows. |
| Revenue (Standalone) | ₹5,145 crores | -23.09% YoY for 9M FY26; impacted by lower execution due to past muted ordering. |
| EBITDA (Standalone) | ₹535 crores | -22.91% YoY for 9M FY26; margins at 10.4% due to lower operating leverage. |
| PAT (Standalone) | ₹775 crores | +193.56% YoY for 9M FY26; driven by ₹577 crore exceptional gain from InvIT transfer. |
| Net Debt (Standalone) | ₹2,100 crores | Elevated vs FY25 levels; management targets ₹700-800 crore reduction in FY27. |
| InvIT Units | ₹1,600 crores | Currently held in Anantam (₹1,400 cr) and Shrem (₹200 cr) platforms. |
| Coal Production | 30 million tons | Expected FY26 total; Siarmal and Pachhwara mines are primary drivers. |
| Capex (9M FY26) | ~₹100 crores | Disciplined allocation; significantly down from peak levels of ₹500 crores. |
Geographic & Segment Commentary
- Mining (Coal MDO): Operations are scaling steadily with Siarmal mine producing 7.01 million tons in Q3. The segment is emerging as a central EBITDA engine with a target of 57 million tons of coal production by FY29, representing 8-9% of India’s total output.
- Roads & Highways (Hybrid Annuity Model): Transitioning to a capital-efficient platform model via Anantam Highways InvIT. Seven assets have been transferred YTD, with the remaining 11 assets scheduled for monetization in two tranches by March 2027.
- New Growth Verticals: Diversifying into Water HAM, Renewable Energy, and Power Transmission. These segments contributed to the record order book and are intended to be managed through long-term asset-holding platforms to reduce cyclicality.
Company-Specific & Strategic Commentary
- DBL 2.0 Transformation: Pivoting from a volume-driven EPC center to a multi-asset infrastructure platform focused on predictable cash flows and asset ownership.
- Asset Monetization Strategy: Shifting toward holding InvIT units (expected to reach ₹3,500 crores by FY27) rather than pure divestment to build an annuity-like revenue stream for O&M and distributions.
- Operational Rationalization: Reduced employee headcount from a peak of 38,000 to 19,000 while maintaining medium-term revenue capacity to improve structural cost efficiency.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY27 Revenue | ~₹10,000 crores | Assumes 30-40% growth driven by the current record order book. |
| FY27 EBITDA Margin | 12% - 13% | Expected improvement as operating leverage normalizes with higher execution. |
| Debt Reduction | ₹700 - ₹800 crores | Targeted for FY27 through improved cash flows and asset monetization. |
| Net Debt Free Status | FY28 | Long-term target supported by the realization of InvIT unit values and MDO cash flows. |
Risks & Constraints
| Risk | Context |
|---|---|
| Execution Delays | Recent revenue declines were driven by muted awarding in previous years; future growth depends on timely “Appointed Dates” for the new ₹17,900 crore order book. |
| Leverage Perception | While net debt is ₹2,100 crores, the market may perceive it as high until the company demonstrates liquidity through InvIT unit distributions or sales. |
| Concentration of Tenders | Approximately ₹15,000 crores of bids are pending; delay in government opening of bids could impact FY27 execution timelines. |
Q&A Highlights
Order Book & Revenue Growth
- Question: How do you see execution and revenue growth in FY27 given the high order book? (Vignesh Iyer)
- Answer: DBL expects a 30-40% jump in revenue to approximately ₹10,000 crores in FY27 as the record ₹29,300 crore order book moves into active execution (Rohan Suryavanshi).
Debt and InvIT Strategy
- Question: Why hasn’t debt reduced as guided in previous quarters? (Vignesh Iyer/Bhavin Modi)
- Answer: Debt reduction was hampered by lower execution volumes and the strategic decision to hold ₹1,600 crores worth of InvIT units instead of selling them for cash. In FY27, increased execution should lead to a ₹700-800 crore debt reduction (Rohan Suryavanshi).
New Segment Equity Requirements
- Question: What are the equity requirements for the large Solar and Transmission projects? (Shravan Shah)
- Answer: Total equity is ~₹1,700 crores; however, DBL will only contribute ₹200-300 crores. The balance will be funded through Mezzanine debt at the Holdco level to be repaid via forward sales (Sanjay Bansal).
Taxation on Exceptional Gains
- Question: What is the tax implication of the ₹577 crore gain from flipping assets to the InvIT? (Shravan Shah)
- Answer: These gains are exempt under Section 47(17) of the Income Tax Act for MAT calculations; the gain flows directly to PAT (Sanjay Bansal).
Key Takeaway
Dilip Buildcon delivered a transitional third quarter, characterized by a record-high order book of ₹29,300 crores and significant strategic progress in asset monetization, despite a 23% YoY decline in 9M revenue. The company successfully listed the Anantam Highways InvIT, flipping seven assets and recording an exceptional gain that boosted PAT to ₹775 crores. While standalone net debt remains elevated at ₹2,100 crores, management emphasized that they now hold ₹1,600 crores in InvIT units, which would effectively offset most debt if liquidated. Strategic focus remains on “DBL 2.0,” shifting from pure EPC to a multi-asset platform across mining, road annuities, and renewables. With order inflows of ₹17,900 crores already secured this year, DBL is guiding for a 30-40% revenue jump in FY27 and a debt reduction of ₹700-800 crores, aiming for a net-debt-free status by FY28.
Transcript incomplete - Full Q&A regarding specific MDO margins and individual project taxation details not fully available for summary.
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