Ceigall India Limited (CEIGALL) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Ceigall India Limited's Q3 and 9 Months FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Arun Prakash from Adfactors PR. Thank you, and over to you, sir.

Thank you. Good evening, everyone. Today, we have with us Mr. Ramneek Sehgal, Chairperson and Managing Director; Mr. Sudhir Hoshing, Whole-Time Director; Mr. Kapil Agarwal, the Chief Financial Officer; and the Adfactors IR team on call. I must remind you that this conference may include forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. The statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. We will begin the call with the opening remarks from the management, after which we will have the forum open for the interactive Q&A session. I now hand over the conference to Mr. Ramneek Sehgal for the opening remarks. Thank you, and over to you, sir.

Good evening, everyone. I'm pleased to welcome you all to the quarter 3 and 9-month financial year '26 Earnings Call for Ceigall India Limited. Our financial results, investor presentation, press release have been uploaded on the stock exchanges and company's website. I trust you had an opportunity to review them. Let me begin with a brief macroeconomic backdrop. The Indian infrastructure sector continues to witness a strong momentum, supported by the sustained government spending and policy focus. The Ministry of Road Transport and Highways has increased its budgetary allotment by around 8% to approximately INR 3.1 trillion for the year '26-'27, clearly reflecting the government's continued commitment to the infrastructure development. We are seeing steady improvement in on-ground execution conditions post monsoon. Tendering activity has also picked up across highways, urban infrastructure and light segments. With infrastructure investments expected to grow at a healthy pace over the last few years, we believe the overall environment remains very constructive for the EPC players with strong execution capabilities. At Ceigall, we are well positioned to benefit from this momentum given our diversified capabilities across roads, railways, tunnels, metros, industrial infrastructure, non renewables, transmission, distribution as well. With a strong domestic opportunity pipeline and growing presence across the multiple industrial verticals, we believe we are well placed to capture upcoming opportunities and drive sustainable growth. Overall, the combination of the continued government-led infrastructure pushed improving execution environment and our expanding sectoral presence give us confidence in sustained business momentum going forward. Against this backdrop, we remain optimistic about business momentum. Alongside our strong domestic pipeline, we have also taken initial steps to expand our global footprint. During the quarter, we have incorporated Ceigall Global PTE Limited in Singapore, which will help us to explore selective opportunities in Southeast Asia, Middle East. This is a long-term strategic initiative. We will approach international markets in a calibrated manner. For the 9-month period of financial year '26, Ceigall India sustained growth momentum across the operational and strategic fronts. Building on the performance of the first half of the year, during quarter 3 financial year '26, the company achieved a strong order inflow of approximately INR 1,403 crores. The total order book stands at around INR 13,290 crores, providing solid revenue visibility for conducting quarter of financial year '26 and beyond. During the quarter, we received multiple prestigious projects award and preferred bidder position L1, further strengthening our execution pipeline. We secured a highway construction projects valued at approximately INR 1,089 crores BPC for Indore�-Ujjain Greenfield control highway in Madhya Pradesh under HAM. In addition, we received an order of 130-megawatt aggregate capacity under the Surya Mitra Krishi Feeders Scheme valued for INR 423 crores. Our subsidiary, Ceigall Infra Projects Private Limited has emerged as L1 bidder for one of the largest infrastructure contracts we have pursued, the INR 2,160 crores for laning of Sahebganj, Areraj, Bettiah stretch of NH139W in Bihar in HAM. This contract spans nearly 79 kilometers, includes about construction period plus 15 years of the post-construction operation and maintenance period, significantly enhancing our long-term revenue visibility, strengthening our foothold in the large-scale highway execution. Further, we have also emerged as L1 bidder for a project with the Jaipur Rail Corporation valued at INR 918 crores Together, these achievements reinforce our focus on consistently diversifying the order book, positioning the company for sustainable growth and resilience in an evolving infrastructure landscape. We have also made meaningful progress in diversifying beyond roads and highways. Renewables now account for cumulative orders of INR 3,168 crores. Transmission and distribution stands at INR 407 crores, the Velgaon substation project. Industrial infrastructure contributes around INR 622 crores, including the ban. This diversification is deliberate and strategic and has positioned us well for sustainable growth across the multiple infrastructure verticals. In addition to these developments, we have 8 HAM projects currently under execution as of December 2025. The company has infused INR 605.6 crores of equity in these HAM projects. And after IPO, around INR 850 crores we have infused. This strategic investment underscore our dedication to enhancing our project portfolio and ensuring the successful delivery of our projects. On operations side, Bathinda Dabwali project -- HAM project achieved pre-COD on December 22, 2025. To date, 7 of our projects have completed ahead of schedule, which has enabled us to earn early bonus completion bonus and further strengthen our execution credentials. Technology continues to be a focus area. We are actively deploying AI data-driven tools across the bidding, project monitoring to improve efficiency, strengthen controls and enhance over execution quality. Let me also briefly touch upon our capital strategy. We continue to focus on the balance sheet optimization. Stand-alone debt has reduced to INR 552 crores as of December 2025 compared to INR 336 crores in March 2025. On a consolidated basis, debt stands at INR 1,421 crores. In line with our capital recycling strategy, the Board has in principally approved a binding offer for 100% divestment of Ceigall Malout Abohar Sadhuwali HAM asset. This will help us unlocking the capital and redeploy it in our core business, EPC and new growth segments, while further strengthening our balance sheet. Overall, we remain confident about the outlook of the Ceigall, with a strong order book, increasing diversification, improving leverage metrics and supportive industry environment, we believe we are well positioned for consistent and sustainable growth. I will now hand over the call to our CFO, Kapil Agarwal, who will take you through the financial performance in detail. Thank you so much, everyone.

Thank you, Ramneek sir, and a warm welcome to everyone joining us today. It is a pleasure to discuss our performance as we close the 9 months milestone of this fiscal year. Following our strategic discussions in the previous quarter, I'm pleased to share that the third quarter has been a period of significant execution momentum, capitalization on the post-monsoon working window to accelerate our project time lines across the board. For Q3 FY '26 performance, our stand-alone revenue from operations reached INR 970 crores as against revenue from operations of INR 810 crores, registering a 19.7% year-on-year growth, showcasing our ability to scale operations effectively during the peak construction season. This brings our total stand-alone revenue for the first 9 months of the year to INR 2,575 crores, representing a steady growth of 7.6% Y-o-Y. On the profitability front, stand-alone EBITDA for Q3 FY '26 stood at INR 120 crores as against INR 105 crores for the same quarter previous year, registering a margin of 12.3%, while our PAT for Q3 FY '26 was INR 75 crores with a PAT margin of 7.7% -- for 9 months FY '26 period, our stand-alone EBITDA stood at INR 305 crores as against INR 323 crores, registering a margin of 11.8% versus 13.5% in the same period previous year. While our stand-alone PAT for 9 months FY '26 stood at INR 186 crores with a PAT margin of 7.2%. Moving to our consolidated results, which provides a more holistic view of the growing portfolio and SPV performance. For Q3 FY '26, our consolidated revenue from operations stood at INR 991 crores as against INR 831 crores, growing by 19.3% year-on-year. For the cumulative 9 months FY '26, our consolidated revenue grew by 8.7% to reach INR 2,636 crores versus INR 2,475 crores revenue for the 9 months FY '25 (sic) [ FY '26 ] . For 9 months FY '26, our consolidated EBITDA were at INR 362 crores, registering a 13.7% EBITDA margin on a consolidated. Consolidated PAT for 9 months FY '26 stood at INR 180 crores, resulting in PAT margin of 6.8% on a consolidated basis. On the operations side, our execution engine remains robust with 28 ongoing projects currently in various stages of completion. Total book has now scaled to INR 1,295 crores, providing us a multiyear revenue visibility, which makes this order book particularly strong is its diversified nature. It is no longer just about routes and highways. We now manage a sophisticated mix comprising 14 EPC projects, 8 HAM projects, 1 DBFOT project and 5 tariff-based projects. Our reach now spans critical sectors, including tunnels, railways, metros, and airport runways, transmission and distribution and renewables, effectively derisking our business from any single sector critically. Looking ahead, we are entering the final quarter of the fiscal year with a strong tailwind. The government continued commitment to infrastructure, evidenced by high LSC projects award in the recent months. Aligned perfectly with our core competence, we remain focused on lean execution, timely commissioning and maintaining a robust balance sheet. Our diverse project mix allow us to pivot towards a high-margin opportunities while contributing to the nation's infrastructure backbone. With that, I conclude my opening remarks and would request the moderator to open the floor for Q&A.

[Operator Instructions] We have the first question from the line of Vaibhav Shah from JM Financial.

Firstly, if you come to Slide 38 of the presentation. So over there, we have mentioned equity invested as of December and company's share of equity. So there is quite a significant difference for a couple of projects. One is Ludhiana Bathinda where invested equity is INR 86 crores, whereas our share is only INR 1.6 crores. And for Northern Ayodhya bypass, invested is INR 105 crores and our share is INR 28 crores. So why is there a difference of so much? So who is the other party investing?

In case of Bathinda Dabwali, Ramneek sir, he has also contributed INR 20 crores. So being a promoter of the company, he has invested INR 20 crores in Bathinda Dabwali.

No, no, in Ludhiana, Bathinda and Northern Ayodhya.

No, entire money has been put by company. Company was before IPO, yes. There is a difference.

There is some issue in the PPT, Slide 38. Must be a typo.

It's a mistake. Otherwise, the entire equity has been put by the company only.

It's in million basically against INR 105 crores equity, INR 283 has been infused. So company's share is basically what we have infused.

So what is INR 1,045 million, it is -- they are also invested?

Sir, basically, there is a 2 kind of holding. One is Ceigall, one is Ceigall Infra. So balance has been infused by Ceigall Infra. So Ceigall Infra is a subsidiary.

Okay. So it is entirely by our company only, either through stand-alone entity or CIPPL?

Yes, yes.

Okay. Okay. Sir, secondly, on the HAM projects, so a couple of HAM projects were new ones. So what would be our total equity requirement for the entire HAM portfolio?

For the earlier one, it was INR 1,391 crores total investment which was supposed to be invested in HAM projects. For recently awarded 2 projects. One is basically the Indore-Ujjain and second one is Sahebganj. So INR 145 crores is the estimated figure, which will be in Indore, Ujjain. And for Sahebganj, we are yet to receive an LOA. So the tentative amount would be close to INR 250 crores.

Okay. Okay. And sir, when do we expect to start the solar projects? What is the status of each of the projects?

So LOA we have already received. We are waiting for the PPA to be signed, and we are expecting Maharashtra PPA to be signed soon. Once we have that, we've already kind of finalized the land. The DDs of the land has already been done. We're just waiting for the PPA to happen.

And for the Reha project and another MP project?

Yes, same situation, same situation. So in one of the projects, we are expecting the LOA, otherwise, PPAs to be signed. And one of the projects, there is no land requirement because the land has to be given by the government.

Sir, out of the INR 3,500 crores order book of solar and BES, what kind of revenue are you targeting for FY '27 and FY '28.

So everything depends upon the PPA. So once we see the PPA, Ceigall has an execution capacity and have a track record of completing projects before time. So once we get the PPA signed, execution will start ASAP.

Okay. Sir, lastly, when do we expect to receive appointed dates for the 5 HAM projects, VRK 11,12, Southern Ludhiana and 2 new ones?

So VRK 11, it is expected by I think around tomorrow or day after there's a final meeting for the forest. -- once we -- that is cleared, NHAI has given a very positive sign that it will be given to us soon. For Southern, we've already requested the department and I think that's also with NHAI, we should get it in this month, and we are trying to expedite it. So these 2 appointed dates will be achieved before 31st March. And then if you talk about Bihar -- VRK 12 also immediately once we have the 11, after maybe a month or 2, we should have the VRK 12 also. And Bihar, LOA is not received yet. So once the LOA is received, we have to make an SPV. We have 45 days for that, then 150 days for financial closure. So we have ample time there. In terms of Indore, the agreement is to be signed ASAP. Once the agreement is signed, we have 150 days to furnish the SC. Once that is done, then, of course, once we have the ROW, we'll have the date.

Okay. And sir, what revenue are we targeting for next year and this year?

So of course, as we have guided our investors before also, we are targeting to achieve 10% to 15%, and we are on track.

We have the next question from the line of Ketan from Avendus Spark.

Sir, just first a clarification on the equity infusion requirement for HAM. So correct me if I'm wrong. So it is INR 1,391 crores till now is the total equity required plus the 2 new projects. And we've included till now around INR 605 crores. Am I right?

Yes. Total is INR 191 crores. We have already included INR 605 crores as on 31st December.

And that requirement will be the 2 new projects?

Yes, plus requirement for the 2 new projects.

Understood Sir, second, on your opening remarks, you mentioned that ordering activity has picked up in roads. Sir, if you could help us with how much kilometers has been awarded till date by NHAI and MOT combined in kilometers and in rupees?

So we have already won one more project, which is for 79 kilometers, and we have already quoted for 3 more projects a few days back. And every week, they are receiving the contracts. And normally, whatever contracts have been received during February, March, we should get the LOAs by 31st March, even NHAI has a target. But any number -- specific number discussing at this moment will not be correct.

No, any number till now...

But there are a lot of contracts available online, and they've already got the approval from the cabinet. So NHAI has a great target, and we are looking forward to it.

Understood. I'm just checking if you have a number which was awarded till date, like how many kilometers were awarded till now.

I mean it is not easy for us to this. We can check it on NHAI website and then we can update you maybe you can share your e-mail with Kapil.

We have the next question from the line of Rohit Mehra from SK Securities.

So my first question is related to the CapEx with the incorporation of Ceigall Global Singapore and proposed Dubai subsidiary. What level of CapEx or initial investment has been embarked in this international market, let's say, by FY '27?

So we are right now targeting EPC projects. So for these projects, normally, you need the BG limits only. And like we have already quoted one project in Romania. We have already quoted a few projects in UAE. So as such, there is no much of the equity requirement, but we will be requiring only the BG limits that we already have surplus here. And once we are lowest, they get the mobilization advance also. So as such, there is no equity requirement coming from these sites. And we are very conservative in setting up internationally.

Okay. Got it. And related to one of your projects, which was, I think, at Punjab border, right? Hello?

What is your point?

So related to that project, I just wanted to know given the strategic nature and is there any unique execution or security-related challenges impacting our progress?

No, no, I don't understand your question. Can you repeat it again?

So you have one project for the Punjab border fencing, right?

No, we don't have any project for Punjab fencing.

We have the next follow-up question from the line of Vaibhav Shah from JM Financial.

Sir, what would be the equity requirement for the solar and BES projects and same and for the HAM as well in each, how are we planning to increase the money year-wise?

So basically, Morena Solar Park, we have received the LOA today, and we are yet to finalize the model. But the equity will be close to INR 750 crores to INR 800 crores in the solar projects. And the execution time is for 2 years, definitely based on the sanctions and we get appointed date, we have to infuse only 20% as an upfront equity in solar projects. And since it is not like the HAM assets, whatever we are going to execute, we can immediately commission and start billing to the government. And that fund can be used towards the equity infusion in these projects.

And we have already sold one HAM asset, which we have announced also today, and we are expecting that equity also coming before this financial year.

So money should come in by March for the Malout Abohar HAM or by June?

Yes, our target is we should get that money before 31st March. And we have a cash approval also, and we are planning and we are already in discussion for another 2 HAMs also. So because we have already received a PCOD for the second HAM also. And otherwise, also, whenever the money is immediately required, you can refinance and get the money from that source also. So equity availability is not a problem or not a challenge for Ceigall.

So this INR 750 crores to INR 800 crores equity for the solar projects, so these needs -- typically, it would be done by FY '28, if things go on time?

It is INR 810 crores. But till the time we have the PPA, you don't have a quantity here. Once the PPA is signed, then only you have to start the execution. And you have to put it in time line. For example, if I talk about the HAM project, till the time AD is given, we never put -- like we got -- we did the FC 2 years back for this Jharkhand 11 and 12. And we are ready with the equity, but the LOA was not given clear to us. Same is the case with the solar. Till the time we have the PPAs with us, we don't have to put equity because after PPA only, we have to put the equity.

Okay. And sir, on the T&D project, what would be the equity requirement?

So total equity requirement, which we have shown was INR 1,391 crores in which INR 605 crores we have already sold. And for the new project, it's INR 395 crores and for solar, it's close to INR 810 crores.

So solar includes T&D project as well?

Yes. [indiscernible]

I didn't get you. What is that?

T&D project is going to start.

Okay. Okay. And sir, what order inflows are we targeting for next year for FY '27? And how much of that could be from international markets?

So last year, we guided our investors that we will be getting INR 5,000 crores. Against INR 5,000 crores, we have already got close to INR 8,500 crores. And this year also, our guidance would be incremental of 15%. So it should be around INR 5,800 crores. And we have already surplus of INR 3,500 crores last year. So things are good. And internationally, we are not very aggressive. We should target at least 10% to 15% coming from international. And we are still setting up the things there. So it might take time. But for India, things are very good. As I said, we have already -- whatever we committed, we were conservative and we have done better than that. And there is a lot of tendering happening in next 2, 3 months. So we are targeting to get good orders at a good IRR.

Okay. And sir, what CapEx we did in FY '26 9 months? And what are we targeting for '26 and '27?

Sir, if you look at, we are not investing much in CapEx as guided to investors as well. Ceigall is basically following a policy of buyback wherein they buy the assets and they sell it off after a certain period to the same vendors. So as far as execution is concerned, we do have ample machinery, and we are giving a few contracts on back-to-back basis also. So much CapEx investment will not be required. So it will be close to INR 25 crores to INR 30 crores, which we will be doing. That's true from our subsidiary, not from directly from Ceigall.

Okay. So for '26, it will be around INR 25-odd crores?

Yes, INR 25 crores to INR 30 crores.

Okay. And sir, lastly, just to understand how are you putting the money. So for equity for HAM projects, so incrementally, what -- so just to get a sense of the number. So you said that INR 605 crores is invested in HAM till December. So of that, entirely, it won't be seen on the stand-alone books because part of it is done through CIPPL?

Yes, part of CIPPL being a subsidiary, they are also holding shareholding in these SPVs. So part of the investment is done by CIPPL, part is done by Ceigall.

So out of INR 605 crores, what would have been already done by CIPPL which is not visible on the stand-alone books?

It's visible in -- whatever money has been invested by CIPPL, that has been given by Ceigall only in form of loan, which is reflected in the balance sheet.

Okay. Okay. Got it. And sir, what would be your cash number as of December?

Can you please pardon, I didn't get.

The cash -- what is the outstanding cash as of December? It was INR 233 crores as of September.

Including FD, it is INR 235 crores.

We have the next question from the line of Parth Patel from Patel Investments.

The first question and the first couple of questions are on the similar lines. So I think you mentioned it before that you completed the sale of -- sale to, I think, Neo assets for about INR 177 crores. So I just wanted to know what are the expected time lines for the investment for the new other projects such as Bathinda Dabwali and Jalbehra Shahbad? And secondly, from the sale of those projects, what are we planning to do? Are we planning to repay the loan or it will go towards equity requirements for the other HAM projects that we are going to onboard in the coming quarters?

Yes. Basically, for Malout Abohar, we are targeting 31st March. And for sale of other 2 assets, we are targeting 30th September. And as far as the money is concerned, our debt equity ratio is low. It is 0.28 as on 31st December, so which is pretty good. And whatever money we are going to realize, primarily, it will be used toward the equity.

Okay, sir. Got it. Secondly, the other question I had was we have received a lot of early completion bonuses for our project. So I just wanted to know Jalbehra, are we on the lines of getting an early completion bonus as we are almost at the verge of completing it?

There was an problem in Jalbehra. Moreover, there was a flood problem in Jalbehra. So government is planning to give us an EOT for that. So we are awaiting for the LT. So once we have EOT in hand, then only we will be in a position to tell the investors about the funds.

And finally, I just wanted to know that we signed the Jaipur Metro project. So I just wanted to know some bit on if you could shed some light on it.

So we are L1. We are still waiting for the LOA. And once we receive the LOA, we'll immediately start the work because 2 of the projects where Viaduct is almost on completion, which is Agra and Kanpur. So I mean, our strategy is totally waiting to start this work ASAP.

We have the next question from the line of Nimish Pandya, an individual investor.

Sir, I have a couple of questions. My first question is, sir, as we have recently forwarded into renewables and T&D with order inflows of around, as mentioned in PPT, INR 3,168 crores. Sir, are these entry-level initial deals as we have done it? Or these match our historical segment margins also of EBITDA?

Your voice is sounding. It is not clear. Can you repeat it again? Your voice is surrounding.

Am I audible now?

Yes, yes, clear.

Okay. So sir, my question is, as we have recently forwarded into renewables, right, and T&D with order inflows I mentioned in the PPT around INR 3,168 crores, right, sir?

Right.

Right. Okay. So I wanted to know, are these low-margin entry-level bids? Or do they match your historical 15% plus EBITDA margin levels?

Yes, yes, they'll match the historical EBITDA margin levels.

Okay. So these are not initial bids for the market entry, right?

No, no, no, no. Not really because we've been bidding for so long. We bid so many bids, our strike rate would be less, it doesn't matter, but we have to get the projects at our project.

Also, sir, my next question is, sir, can you let me know what is the expected time line for the next divestments like Bathinda and Dabwali and Jalbehra and Shahbad, if you could let me know.

We have already started the negotiations with a few of the investors. Good thing is market is big now, and there's a lot of liquidity to buy these assets. So we have a good number of people discussing with us. First one, we've narrowed it down. And these 2, we are targeting to close it before September. And I think it should be done. So we are targeting to close it before September.

We have the next question from the line of Sana , an individual investor.

Sir, I have a few questions. My first question is, how do you see the business mix evolving over the next 3 to 5 years?

So we started from a very small city, Ludhiana, with only road work. And over the period, we have grown in about now 12, 13 states and about 10, 11 verticals. We really feel if you don't get a work in road, we have structure work, we have metro work, we have railway, we have tunneling, now renewable and T&D also. So the target here is we should grow vertically and geography. That's the way Ceigall is growing. If you compare us with the peers in the market, at what stage we are, the number of verticals and geography-wise, we have grown. Strategically, the company is very clear that if we're not getting a work in one vertical, we're getting another vertical. That is the reason order book have been a challenge for company. And whatever we are guiding our investors, we're achieving that. So you can see that is visible. In last 3 quarters, we're always guiding 10% to 15%. Our growth is much more than that.

Okay. And sir, one more question I do have. In the newer vertical like the metro and TD, which you mentioned, what differentiates your bid strategy from established incumbents?

So metro is a very similar business, what we are doing because we've been doing viaducts, bridges, flyers. We are building one of the countries longest elevated in Danapur Bahita. So the work is almost the same. It's a structure work. And if you talk about the T&D and renewable if you see, we've been already fixing solar plants for our existing HAM project, the EPC project. And for T&D also, we've been doing a lot of projects in terms of utility shifting, line shifting, building a substation projects. So this is not a new work. So we already have a stabilized work field workforce. And it's just we are taking individual products. So that's how we do it.

That's it from my side. Thank you so much sir, and all the very best.

Pleasure. Thank you.

Ladies and gentlemen, that was the last question for today. And with that concludes the question-and-answer session. I now hand the conference over to Mr. Ramneek Sehgal for the closing comments. Thank you, and over to you, sir.

Thank you so much, everyone. I would again thank all the participants for joining the earnings calls today, making this an engaging discussion. We remain committed to pursuing our business strategies and doing everything that is right and continuing to deliver the positive results. We hope all your queries have been answered well. In case you have any other further queries, please feel free to contact the Investor Relations team at Adfactors. Thank you so much once again. Good evening.

Thank you very much. On behalf of Ceigall India Limited, that concludes this conference. Thank you for joining with us today, and you may now disconnect your lines.