Metrics raised 1
- FY27 capex target raised to ₹193 crores (from ₹165 crores previously)
Event Participants
Executives
4 Rajesh Das, Alok Mehrotra, Nishit Pujari
Analysts
9 Vinay Chaudhary, Rohit Gupta, Vasudev Ganatra, Vaibhav Shah, Vedant Kabra, Prateek Bhandari, Dhananjay Mishra, Gunit Singh, Deepak Poddar, Rahul Kumar
*Note: Analyst list includes 10 participants, ordered alphabetically.
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹629 crores | Up 7% YoY from ₹589 crores; impacted by labor shortages and project delays including IIT Bombay permissions |
| EBITDA | ₹99 crores | Down 3% YoY from ₹102 crores; impacted by ₹10 crores additional provision for non-ferrous metal inflation |
| EBITDA Margin | 15.7% | Down 150 bps YoY from 17.2%; guided range of 15.5%-16% maintained |
| EBIT | ₹80 crores | Down 8% YoY from ₹87 crores |
| EBIT Margin | 12.5% | Down from prior year levels due to provisioning impact |
| PAT | ₹40 crores | Down 15% YoY from ₹47 crores; included ₹6.5 crores from non-core asset sale |
| PAT Margin | 6.2% | Down from prior year levels of 8.0% |
| Order Book | ₹13,535 crores | As on June 30, 2026; public sector 55%, private sector 45% |
| Order Inflow (Q1 FY27) | ₹1,071 crores | Q1 inflow entirely from private sector; FY27 target of ₹4,500-5,000 crores on track |
| Gross Debt | ₹522 crores | Increased due to ~₹150 crores of payments shifted by 10 days; expected to reduce on yearly basis |
| Capex (Q1 FY27) | ₹52.26 crores | FY27 capex target of ₹193 crores; includes formwork (₹121 crores), plant & machinery (₹66 crores), IT (₹5.43 crores) |
| Promoter Share Pledge | 50 lakh shares | Reduced from 85.5 lakh shares as of March 31, 2026; full release targeted by end FY27 |
Geographic & Segment Commentary
MADA BDD Project: Total project value at TCC level is
₹17,000 crores including escalation; MADA has handed over 50% of rehab (34 buildings). Capacit'e's 35% share translates to ~₹2,625-2,800 crores order book at subcontractor level. Four buildings expected to open in Q2, adding ~₹6 crores per building per month (₹3.1 crores per slab casting). Q2 revenue expected at ~₹60 crores, rising to ₹75 crores+ in Q3/Q4.CIDCO Project: Balance order value of ~₹2,000 crores plus escalation (total ~₹2,500 crores with escalation). Client has identified locations for handover of remaining 50% area (of 1.62 crore sq ft total). Extension received to March 2028. FY27 revenue target of ~₹600 crores; current certified billing at ₹300 crores, targeting ~₹60 crores per month. Q1 was impacted by labor shortages but July has improved significantly.
NBCC Project: Revenue momentum building significantly; target of ₹60 crores per month from current levels, up from less than ₹15 crores per month last year. Q2 revenue expected at ~₹150 crores from this project. Crossed the 20% margin threshold and now booking profits as guided.
Signature Global: Targeting ~₹22 crores monthly revenue; currently have 1,000+ workers on site. Q1 was impacted by industry-wide labor shortage, but July/August showing significant improvement.
IIT Bombay: ₹550 crores fast-track 24-month contract delayed due to tree cutting permissions; execution has started with first building handed over and design approved. Q1/Q2 revenue impact of ₹65-70 crores from this project alone.
Company-Specific & Strategic Commentary
Provisioning for Commodity Inflation: Company took additional ₹10 crores provision in Q1 FY27 (₹20 crores cumulative over Q4 FY26 and Q1 FY27) for non-ferrous metal cost escalation not yet reflected in government inflation indices (CPWD DSR). Management is highly confident of reversal in Q3/Q4 as indices catch up; based on 7-8 years historical coverage data.
Order Inflow Strategy: FY27 target of ₹4,500-5,000 crores; Q1 inflow of ₹1,071 crores (entirely private sector). Identified bid pipeline of ₹22,000 crores public and ₹5,000 crores private for Q2-Q3. Management expects to cross 50% of upper band of order inflow target in Q2 itself. L1 positions on Sidco Maha Awas VRs housing and Chhatrapati Metro Commercial Complex expected to convert this month.
Debt Reduction & Working Capital: Eight-quarter net debt-free target on track. Working capital days reduced by 43 days in FY26; expect 25-30 days further reduction in FY27. Contract assets plus debtors at ~78% of revenue as of March 31, 2026, down from 220% post-COVID; targeting leadership position by March 2028.
Capex & Digitalization: FY27 capex of ₹193 crores (formwork ₹121 crores, plant & machinery ₹66 crores, IT ₹5.43 crores). SAP implementation going live in Q3 FY27. Net debt may increase ₹45-50 crores due to equipment purchases despite term loan repayments of ₹102 crores.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 20% YoY for FY27 | Confidence driven by Q2 ramp-up: NBCC at ₹60 crores/month, CIDCO, IIT Bombay starting, Downtown project adding ~₹55 crores Q2, Vadala (Raymonds) starting Q2-end. Presenting as ₹850 crores+ quarterly run-rate for Q3/Q4 |
| EBITDA Margin | 15.5%-16% for FY27 | Excluding other income; provision reversal in Q3/Q4 could provide upside to margins |
| Order Inflow | ₹4,500-5,000 crores FY27 | Q1 inflow at ₹1,071 crores; expect crossing 50% of upper band in Q2 alone; Q3 pipeline to be finalized by end of Q2 |
| Capex | ₹193 crores FY27 | Q1 spent ₹52.26 crores; bifurcation: formwork ₹121 crores, plant & machinery ₹66 crores, IT ₹5.43 crores |
| Gross Debt | Reduction on yearly basis | Q1 increase due to timing (~₹150 crores payments shifted 10 days); term loan repayments of ₹102 crores in FY27; equipment purchases may add ₹45-50 crores net to debt |
| Net Working Capital | Reduction of 25-30 days in FY27 | Following 43-day reduction in FY26; contract assets + debtors trending lower as % of revenue |
| Promoter Pledge | Full release by end FY27 | Reduced from 85.5 lakh shares to 50 lakh shares; on track |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity Price Volatility | Non-ferrous metals (aluminium +35-40%, copper) escalation not reflected in government inflation indices; ₹20 crores cumulative provision taken. If indices don't catch up, additional provisioning may be needed in Q3. Literal risk: CPWD DSR currently reflecting only ~14% escalation vs ~40% actual price increase on raw materials |
| Labor Shortages | Q1 FY27 impacted by industry-wide shortage (labor dipped to 50% in May, ~30% shortfall in June); normalized as of August call. NGT construction ban in Delhi NCR (Nov-Jan) is annual event; management has factored 20 days of impact but AQI could extend to 40 days affecting all players |
| Project Start Delays | IIT Bombay ₹550 crores delayed one quarter due to tree cutting permissions; land handover delays at CIDCO; approvals pending for Greater Vale project (order booked Q4 FY26, ~₹2,500 crores, zero revenue recognized yet) |
| Competitive Execution Gap | Analyst noted slower revenue growth trajectory (22% FY25 → 12% FY26 → 7% Q1 FY27) despite record order book; management attributes to new project ramp-ups and non-controllable factors |
Q&A Highlights
Revenue Execution & Ramp-Up
- Question: Where is execution lagging given strong order inflow but slower conversion? (Vinay Chaudhary, Invexa Capital)
- Answer: Delays in IIT Bombay (₹550 crores contract) due to tree cutting permissions, land handover issues at CIDCO, and NBCC ramp-up starting from current quarter. IIT design approved and execution started; first building handed over. NBCC revenue to increase threefold. Execution to "double up or more" in next 1-2 quarters. FY27 revenue guidance of 20% growth confirmed with ₹850 crores+ quarterly run-rate for Q3/Q4. (Rohit Katyal)
Provision Reversal Potential
- Question: Can the ₹20 crores cumulative provision (Q4 FY26 + Q1 FY27) be reversed in coming quarters? (Vinay Chaudhary, Invexa Capital)
- Answer: Aluminium prices up 35-40%, copper similarly; CPWD just published new DSR, but escalation index will take 1-2 quarters to catch up. Based on 7-8 years of history, "large portion" expected to reverse in Q3/Q4. Provision is for materials to be purchased over next 3-4 quarters where current escalation doesn't cover costs. No additional provisioning expected in Q2. Caveat: depends on inflation indices catching up to actual prices. (Rohit Katyal)
MADA & CIDCO Order Backlog Clarification
- Question: What is outstanding order value for MADA BDD project and when will it be included in order book? (Rohit Gupta, RKG Online Services)
- Answer: TCC level project value ~₹17,000 crores including escalation; 50% rehab handed over (34 buildings) valued ₹7,500-8,000 crores at parent level. Capacit'e's 35% share at subcontractor level. Revenue booked in standalone books; only profit share from TCC in consolidated. For CIDCO, balance order value ~₹2,000 crores plus escalation (total ~₹2,500 crores); full 1.62 crore sq ft scope to be handed over within next two quarters. (Rohit Katyal)
Debt & Working Capital Trajectory
- Question: Where does gross debt stand and how will it trend by March 2027? (Vaibhav Shah, JM Financial)
- Answer: Gross debt at ₹522 crores, increased due to ~₹150 crores payment timing shift (10 days). On yearly basis, debt will reduce; net debt reduction on track. Eight-quarter net debt-free target maintained. Capex may increase term loans by ₹45-50 crores net of ₹102 crores repayments. Working capital reduced 43 days in FY26; expect 25-30 days further reduction in FY27. (Rohit Katyal)
Contract Assets Comparison & Reduction Plan
- Question: Why are contract assets at 50-55% of revenue vs peers' 14-15%? What is normal vs stressed? (Gunit Singh, Counter Cyclical PMS)
- Answer: Contract assets plus debtors at ~78% of revenue as of March 31, down from 220% post-COVID peak (₹325 crores stuck). ₹300 crores unbilled at CIDCO due to milestone structure; ₹200 crores at MADA. All amounts are current, cyclical milestone-based billings, not aged. Management expects "very positive surprise" by March 2027 and leadership position by March 2028 vs pre-COVID March 2019 levels. (Rohit Katyal)
Provisioning Future Outlook & EBITDA Definition
- Question: Will provisioning recur? And is EBITDA margin calculation excluding other income? (Deepak Poddar, Sapphire Capital)
- Answer: No provisioning expected in Q2; will wait for Q3 escalation indices. Q4 FY26 and Q1 FY27 provisions were prudent given geopolitical-driven non-ferrous spike. EBITDA margin guidance of 15.5-16% excludes other income ("otherwise both of us would be happy"). Provision reversal depends on easing of geopolitical tensions and index movement. (Rohit Katyal)
Bid Pipeline & Mumbai 3.0 Opportunities
- Question: What is the bid pipeline for FY27 and any Mumbai 3.0 opportunities? (Dhananjay Mishra, Centrum Broking)
- Answer: Identified pipeline of ₹22,000 crores public and ₹5,000 crores private for Q2-Q3. Bid pipeline only includes tenders with administrative approvals and formal NIT publication plans. Cannot disclose specific project names due to restrictions. Q3 pipeline to be uploaded by end of Q2. (Rohit Katyal)
Capex Allocation & Formwork Strategy
- Question: Where is the ₹28 crores difference from earlier ₹165 crores capex guidance to now ₹193 crores? (Prateek Bhandari, AART Ventures)
- Answer: Bifurcation: formwork ₹121 crores (down from earlier ₹150 crores), plant & machinery ₹66 crores, IT ₹5.43 crores. Equipment increase driven by executing 15+ high-rise buildings requiring high-speed lifts, hoists, heavier cranes for composite structures (like IIT Bombay). Term loan repayments of ₹102 crores in FY27; net debt impact of ₹45-50 crores from equipment purchases. (Rohit Katyal)
Q1 Order Inflow Composition & H2 Targets
- Question: What is the public/private split of Q1 order inflow? (Prateek Bhandari, AART Ventures)
- Answer: Q1 was entirely private sector. Q2 expected to see equivalent from public sector. Negotiations ongoing with "seriously high-level quality private sector" clients. Order inflow target remains ₹4,500-5,000 crores; expect to cross 50% of upper band in Q2 alone. (Rohit Katyal)
Capacity Utilization Catch-Up
- Question: How will Delhi NCR construction ban (Nov-Jan) impact achieving 20% growth given only 7% Q1 growth? (Vedant Kabra, AVN Capital)
- Answer: NGT ban impact factored at 20 days average for FY27. Q2 July has been "strong"; NBCC, CIDCO, MADA, IIT all ramping. Downtown project (announced Q4 FY26) to deliver ~₹55 crores in Q2 alone. Number of projects contributing meaningful revenue peaks in Q3/Q4. If AQI stays at 400-500, ban could extend to 40 days impacting everyone. (Rohit Katyal)
Labour Situation & Project-Specific Run Rates
- Question: How is labor progressing at CIDCO and Signature Global projects? (Vasudev Ganatra, Nuvama)
- Answer: Labor requirement is now "fully in place" after dipping to 50% in May. CIDCO: received extension to March 2028; need certified revenue of ~₹1,000 crores+ escalation over next 18 months; four balance locations handed over from Q2 through Q3. Signature Global: 1,000+ workers on site, targeting ₹22 crores monthly; significant improvement from July. (Rohit Katyal)
Key Takeaway
Capacite Infraprojects reported subdued Q1 FY27 with revenue at ₹629 crores (+7% YoY) and PAT at ₹40 crores (-15% YoY), impacted by industry-wide labor shortages, project start delays (IIT Bombay, CIDCO land handover), and a prudent ₹10 crores provision for non-ferrous metal inflation not yet reflected in government indices. The company maintains its FY27 guidance of 20% revenue growth (₹3,100+ crores), 15.5-16% EBITDA margin, and ₹4,500-5,000 crores order inflow, backed by a ₹13,535 crores order book (5x revenue) and a ₹27,000 crores bid pipeline for Q2-Q3. Management expects execution to "double up" from Q2 with NBCC ramping to ₹60 crores/month, CIDCO to ₹600 crores annual run-rate, and MADA contributing ₹75 crores+ per quarter by Q3. The ₹20 crores cumulative commodity provision is expected to substantially reverse in Q3/Q4 as inflation indices catch up. Working capital remains a key focus with 25-30 days further reduction targeted and a net debt-free position within eight quarters. Key watch items include escalation index movement relative to metal prices, NGT construction ban duration in Q3, and conversion of L1 positions (Sidco Maha Awas, Chhatrapati Metro) into firm orders.