Cemindia Projects Ltd (CEMPRO) Q1 FY27 Earnings Call: Order Book Crosses Rs.31,000 Cr, Guides 25% Revenue Growth

Cemindia Projects Ltd held its Q1 FY27 earnings call on July 28, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Revenue Growth of 6% with Margin Expansion in Q1 FY27

• Rs.2,721 Cr operating income — Q1 FY 2026-2027 revenue grew 6% YoY from Rs.2,576 Cr in Q1 FY 2025-2026, though below the 25% full-year guidance run rate (Segment 2).
• 10.5% EBITDA margin — Rs.285 Cr EBITDA, up 9% YoY, with margin expanding from 10.1% in Q1 FY 2025-2026, supported by cost cushions and a government agency that reduced performance guarantees from 10% to 5% (Segments 2, 13).
• Rs.141 Cr PAT — Net profit grew 3% YoY from Rs.137 Cr in Q1 FY 2025-2026, yielding a PAT margin of 5.2% (Segments 2, 3).
• Rs.8,519 Cr order inflow in Q1 FY 2026-2027 — A ~3x jump from Rs.2,900 Cr in Q1 FY 2025-2026, with an additional Rs.1,247 Cr secured in July 2026 and Rs.990 Cr in L1 status, aggregating ~Rs.10,756 Cr of new orders (Segments 2, 3).
• Rs.31,000 Cr order book — Work in hand as of Q1 FY 2026-2027, up from Rs.18,000-20,000 Cr previously, providing strong revenue visibility with an execution cycle of 3 years (Segments 3, 5).

Rs.90,000 Cr Bid Pipeline with Diversified Segment Exposure

• Rs.90,000 Cr bid pipeline — Visible pipeline across tender, NIT, and bid-submitted stages, with a hit ratio of ~15% (down from 20% as tender volume increased) (Segments 12, 15).
• ~Rs.13,500 Cr implied order potential — At 15% hit ratio on the Rs.90,000 Cr pipeline, management targets >Rs.25,000 Cr in total order inflows for FY 2026-2027, with Rs.8,000 Cr already secured in Q1 (Segments 15, 5).
• ~50% group company exposure in pipeline — Close to 50% of the Rs.90,000 Cr bid pipeline comes from group companies; the current order book is split ~50-50 between Adani Group and external clients, with Adani contributing ~Rs.6,000 Cr of Q1 orders (Segments 21, 7, 3).
• Six segments at Rs.15,000-20,000 Cr each — Marine, underground metro, airports, data centers, highway/bridges, and water segments each represent roughly equal opportunity sizes in the pipeline (Segment 12).
• Marine segment pipeline of Rs.15,000 Cr — Tenders pending for Vadhavan, Oman, UAE, Bangladesh, Tuticorin Outer Harbor, and Vizag; management noted "three main players in marine maritime infrastructure" with occasional entrants expanding the field to 5 competitors (Segments 6, 15).
• Export share of order book at 2-3% — International exposure remains modest, with the Bangladesh transmission tower project (receivables of Rs.170-178 Cr) expected to complete by September-October 2026 (within Q3 FY 2026-2027) (Segments 13, 7).

25% Revenue Growth Guided for FY27 and FY28 Despite Q1 Softness

• 25% revenue growth guidance for FY 2026-2027 — Management maintained the target despite Q1 revenue of Rs.2,721 Cr coming in slightly below expectations, implying ~Rs.12,500 Cr for the full year (Segments 16, 20).
• 25% growth also guided for FY 2027-2028 — The pace is seen as sustainable for the next few years, with management confirming the target for the next fiscal year as well (Segments 16, 14).
• Rs.10,000-12,000 Cr of orders yet to contribute — Four large projects (Munger, Pune Metro, Delhi Metro, Mor Stagger) had zero revenue in Q1 FY 2026-2027; revenue is expected to begin after monsoon in Q2 and ramp in Q3-Q4 FY 2026-2027 (Segments 17, 5).
• Vadhavan port project delayed — Execution has not started due to external issues beyond the company's control, with government actively involved but no timeline for resumption (Segment 8).
• Delhi Metro and Pune Metro to contribute from Q3 FY 2026-2027 — Both underground metro projects are under mobilization and expected to begin contributing in the second half of the fiscal year (Segment 13).
• Abu Dhabi project ramping up — Currently at half of required progress, with another 2-3 months needed to reach full pace; the project is a key contributor to the international portfolio (Segment 17).

Double-Digit Margins Sustained with Healthy Balance Sheet

• 10%+ EBITDA margin maintained — Management expects to sustain double-digit margins going forward, supported by cost cushions and a government agency reducing performance guarantees from 10% to 5% (Segments 13, 2).
• Gross debt at Rs.1,000 Cr, net debt at Rs.700 Cr — As of June 30, 2026 (end of Q1 FY 2026-2027), with net debt-to-equity ratio of 0.28 (Segments 7, 8).
• Net working capital at 120 days — Trade receivables (including retention) at 69 days, inventory at 30 days, and work-in-progress at 107 days as of Q1 FY 2026-2027; working capital days guided at 110-120 days for FY 2026-2027 (Segments 12, 8, 15).
• Debt expected to grow 10-20% in FY 2026-2027 — To support 25% top-line growth, with management expecting gross debt to increase from Rs.1,000 Cr, though the current order book can be executed using existing borrowing limits (Segments 15, 17).
• Q1 FY 2026-2027 capex of Rs.80-81 Cr — Full-year capex guidance maintained at Rs.350-400 Cr for FY 2026-2027, though large-diameter tunnel projects requiring tunnel boring machines (TBMs) could push this beyond Rs.1,000 Cr (Segments 8, 14).

Rs.5,000 Cr QIP as Precautionary Measure for Future Growth

• Rs.5,000 Cr QIP approved but unlikely in FY 2026-2027 — Management stated the enabling resolution is a "precautionary measure" with no immediate need for equity given the current order book; timing depends on market conditions and near-term order visibility (Segments 12, 14, 20).
• Fundraise to support organic and inorganic growth — Proceeds would fund modern equipment capex (Rs.4,000-5,000 Cr organic capex requirement) and potential acquisitions, with the final split dependent on orders received (Segments 10, 17).
• Existing order book executable without QIP equity — The Rs.30,000-31,000 Cr order book can be executed using current working capital and borrowing limits; no incremental equity from the fundraise is needed for existing orders (Segment 17).
• Normal EPC business model is self-sufficient — Current operations (marine, roads, industrial buildings, airports) do not require equity funding; the QIP is only needed for large capital-intensive opportunities such as a Rs.10,000 Cr road tunnel requiring heavy capex (Segments 14, 15).
• 20-25% growth target achievable without additional equity — Management confirmed the current order book and inflows make the growth target doable for the next couple of years without needing the QIP (Segment 14).

Data Center Entry and Technology-Led Execution Strategy

• 320-400 MW data center portfolio under execution — Ongoing projects include three 140 MW and two 30 MW facilities in Navi Mumbai, plus a civil structure job in Vizag (electromechanical may follow), with work underway for nearly one year (Segment 11).
• New sectors being explored — Management has entered the data center segment and is exploring high-speed rail and nuclear power as new sectors, while declining to expand into transmission and distribution (T&D) (Segments 10, 4).
• Technology as core focus for next 1-2 years — Management aims to double execution progress (e.g., from 10 meters to 20 meters per unit time) through faster machines and digital monitoring, with AI for construction methods and project planning (Segments 19, 3).
• Project sizes have scaled 3-10x over five years — From Rs.300-400 Cr to Rs.1,000-3,000 Cr per project, though the nature of work remains unchanged (Segment 19).
• Government shift to underground road tunnels — Management cited "government's shift from elevated to underground road tunnels" with specific opportunities in Bangalore, Mumbai, Goregaon, and below the Brahmaputra river, driving order traction in underground metro and road tunnels (Segments 6, 5).
• Industry-wide labor shortage acknowledged — Management noted the challenge is "not a company-specific issue" and they are managing it effectively, with no material impact on execution guidance (Segment 9).