Bigbloc Construction Limited (BIGBLOC.NS) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Bigbloc Construction Q2 and H1 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Saboo. Thank you, and over to you, sir.

Hello. Good afternoon, everyone. It is my pleasure to welcome you all to Bigbloc Construction Limited Earnings Conference Call for the second quarter and half year ended September 30, 2025. Thank you for joining us today. I'll take you through our financial and operational performance for the quarter and half year, followed by key business updates. During the quarter, business conditions showed gradual improvement despite a prolonged monsoon that impacted construction activity across some regions. As demand picked up towards the end of the quarter, we witnessed a steady recovery in volumes. The positive momentum combined with improved capacity utilization supported our overall performance for the quarter. For Q2 FY '26, consolidated revenue from operations was INR 673 million, reflecting a growth of 30.3% compared to the same period last year and 19.5% sequentially. The improvement was largely driven by higher sales volume, which increased 43.7% year-on-year and 18.3% quarter-on-quarter to 198,555 cubic meters. For the first half of FY '26 revenue from operations was INR 1,237 million, a growth of 19.8% over the corresponding period of last year. On the profitability front, EBITDA for Q2 FY '26 was INR 19 million with a margin of 2.8%, while for H1 FY '26 EBITDA was INR 32 million with a margin of 2.6 percentage. The sequential improvement in margins was driven by better capacity utilization and stable input cost. The company continues to focus on optimizing logistics and improving process efficiency to enhance profitability. From an operational standpoint, overall capacity utilization improved to 62% in Q2 FY '26 compared to 53% in the previous quarter. The improvement was broad-based, reflecting higher activity levels across subsidiaries. At our joint ventures SIAM Cement BigBloc Construction Technologies, utilization for AAC wall panels increased to 43% from 36% in the preceding quarter. The wall panel business continues to gain traction as acceptance of large format wall installations grows among developers and contractors. On the strategic front, the company remains focused on ramping up utilization levels across facilities and scaling its AAC wall panel operations. The upcoming commissioning of the construction chemicals facility at Umargaon in the second half of FY '26 will further diversify the product portfolio and strengthen Bigbloc's position as an integrated building materials company. Furthermore, renewable energy continues to play an increasingly important role in our operations. At SIAM Cement BigBloc Construction Technologies, nearly 50% of the power requirements are now being met through solar energy. This initiative aligns with our long-term focus on reducing dependence on conventional energy and enhancing the environmental sustainability of our businesses. At the industry level, construction activity is expected to strengthen in the second half of FY '26, supported by the government's focus on affordable housing and infrastructure development. The recent modernization in input prices and improvement in liquidity across the real estate sector are also expected to weigh demand for AAC blocks and wall panels. Looking ahead, our priorities remain centered on improving capacity utilization, increasing adoption of AAC wall panels and expanding our product portfolio with construction chemicals. With the demand trends turning favorable post monsoon, we are confident of delivering an improved performance in the coming quarter. With that, I conclude my remarks. And now we can open the floor for questions and answers.

[Operator Instructions] Our first question is from the line of [ Dipam Gala ], who is an investor.

Congratulations on the good set of revenue growth. I just wanted to know that how is the Gujarat market performing for us? Like can you give me the numbers for H1 for StarBigBloc?

So you need specific numbers for StarBigBloc?

Yes.

Given the capacity utilization for the StarBigBloc plant, which was at 19% in Q2 of FY '26.

Okay. And how has that performed revenue-wise?

So revenue-wise on a quarter-on-quarter basis, it has been improving and 90% is sort of an optimum utilization for the StarBigBloc plant.

Okay. And what is the realization that we are getting as of now in the market?