Summary
Univastu India Limited - Q2 FY26 Earnings Call Summary Monday, January 19, 2026
Event Participants
Executives 2 Girish Deshmukh (Chief Financial Officer), Pradeep Khandagale (Chairman & Managing Director)
Analysts 4 Aagam Shah, Pritesh (Full names for others not specified in transcript)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Order Book | ₹1,053 crores | Significant growth vs previous year; includes ₹900 crore standalone and ₹150 crore consolidated orders. |
| Revenue (H1 FY26) | Not specified (Absolute) | Reported as “significant growth” YoY due to momentum in Jalgaon and Karad sports complexes. |
| PAT Margin | 9% - 11% | Guidance maintained for the next 3 years; tracking toward 10% target. |
| Net Worth (Consolidated) | ₹87 crores | Strengthened by operational performance and recent capital initiatives. |
| Tech-Based EPC Mix | 70% | Shift away from traditional civil work (30%) toward higher-margin tech-driven projects. |
| Promoters Stake | +4% (Post-conversion) | Expected increase following the conversion of preferential warrants. |
Geographic & Segment Commentary
- Maharashtra: Remains the core hub with major projects including the Navi Mumbai Metro, Jalgaon and Karad sports complexes, and a 100-bed hospital in Pune. Strategic focus is now shifting toward Mumbai Metro MEP and BMS orders.
- North India (Haryana/Jhansi): Executed through Univastu Bootes Infra LLP (51% stake); includes the Gita Museum Jyotisar and International Habitat Center. Focus is exclusively on net-zero construction and sustainable infrastructure.
- Gujarat & Meghalaya: Newly added geographies in Q3 FY26 following recent order wins. Gujarat involvement includes high-speed metro electrical work via L&T.
- International/Niche (Swimming Pools): Pan-India exclusive partnership with Myrtha Pools (A&T Europe). Secured a ₹100+ crore Commonwealth Games pool order in Ahmedabad; targeting the 2036 Olympics infrastructure.
Company-Specific & Strategic Commentary
- Wireless BMS Innovation: Pioneered the world’s first wireless, IoT-enabled Building Management System in Mumbai Metro projects. This technology eliminates traditional wiring, reducing installation complexity and costs.
- Data Center Expansion: Signed a 2-year MOU with Swedish firm Urban Systems for net-zero data center design and execution. The company plans to undertake full EPC for a major data center in Mumbai.
- Strategic Acquisitions: Acquired Opal Luxury Time Products for its pan-India dealer network to launch IoT-enabled clocks and Setubandhan Infrastructure for its waste processing/bio-mining capabilities.
- Tunneling JV: Formed a 49% associate partnership with Valecha Infrastructure to enter the tunnel ventilation and infrastructure segment, with bidding expected to commence in FY27.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue | ₹200 crores (FY26) | Target for the full financial year based on H2 execution momentum. |
| Revenue | ₹300 crores (FY27) | Expected growth driven by large-scale L&T metro orders and swimming pool projects. |
| Order Pipeline | ₹500 crores (FY26-27) | Currently pursuing active tenders in Mumbai Metro and urban infrastructure. |
| Execution Timeline | 36 Months | Timeframe for the liquidation of the current ₹1,053 crore order book. |
Risks & Constraints
| Risk | Context |
|---|---|
| Receivable Risk | Management claims low risk as 100% of non-pool orders are government-backed with pre-secured financial closures. |
| Cash Flow Mismatch | Negative operating cash flow reported in H1 due to high unbilled revenue from projects in “active execution” phases. |
| Working Capital | High trade payables noted by analysts; CFO attributed this to the percentage of completion (POC) accounting method and timing of milestone payments. |
Q&A Highlights
Order Book & L&T Relationship
- Question: What is the nature of the recent large order win? (Aagam Shah)
- Answer: Secured a ₹392 crore MEP/BMS order from L&T for Mumbai Metro. Total L&T order book now exceeds ₹400 crores, leveraging the company’s proprietary wireless BMS technology (Pradeep Khandagale).
Swimming Pool Business
- Question: What is the potential for the Commonwealth Games and Olympic orders? (Pritesh)
- Answer: Univastu is the sole India distributor for Myrtha Pools (used in every Olympics since 1996). Recently won a ₹100+ crore Ahmedabad pool order; confirming 100% success rate in these specialized tenders due to exclusive tech (Pradeep Khandagale).
Fundraising Rationale
- Question: Why choose preferential shares over debt? (Analyst)
- Answer: To avoid over-leveraging the balance sheet. Preferential warrants help meet high bank guarantee requirements for large tenders while keeping debt low (Girish Deshmukh/Pradeep Khandagale).
Data Center MOU
- Question: What is the role of the Swedish partner? (Analyst)
- Answer: Urban Systems provides design and integration expertise for net-zero/sustainable data centers. Univastu will handle the full EPC execution (Pradeep Khandagale).
Key Takeaway
Univastu India Limited reported a transformative quarter marked by its transition from a traditional civil contractor to a tech-driven EPC firm, with 70% of its ₹1,053 crore order book now comprised of technology-heavy projects. The company successfully leveraged its proprietary wireless IoT BMS technology to secure a substantial ₹392 crore metro order from L&T. Strategically, the firm is diversifying into high-margin niches, including Olympic-grade swimming pools through its exclusive Myrtha partnership and net-zero data centers via a Swedish collaboration. While H1 FY26 saw negative operating cash flows due to project ramp-ups, management guided for ₹200 crore revenue in FY26 and ₹300 crore in FY27 with stable PAT margins of 9-11%. Investors should monitor the successful conversion of unbilled revenue into cash and the finalization of the tunneling JV’s first contract.
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