Dilip Buildcon (DBL) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly consolidated PAT of ₹2,658 Mn in Q2 FY25, up 3.6x YoY, despite a 13.6% decline in consolidated revenue to ₹24,613 Mn; standalone PAT rose 7.8% YoY to ₹1,290 Mn.

• Won a new tunnel project in Kerala worth ₹11,364 Mn and completed four major projects totaling ₹36,037 Mn in H1 FY25 across Tamil Nadu, Uttar Pradesh, and Karnataka.

• Secured first optical fiber laying order with BSNL (INR 1,625 crore, 70% share), expanding into new segments.

• Divested 100% equity in 10 HAM projects to Shrem InvIT and 26% equity in 7 HAM projects to Alpha Alternatives, resulting in significant exceptional gains.

• Strategic partnership with Alpha Alternatives for construction, financing, and monetization of road projects, with Alpha investing up to ₹20,000 Mn.

Financial highlights

• Standalone Q2 FY25 revenue declined 10.3% YoY to ₹21,769 Mn; EBITDA down 24% YoY; PAT up 7.8% YoY to ₹1,290 Mn.

• Consolidated Q2 FY25 revenue fell 13.6% YoY to ₹24,613 Mn; EBITDA margin improved to 20.3%; PAT surged 263% YoY to ₹2,658 Mn.

• H1 FY25 consolidated revenue down 3% YoY to ₹55,950 Mn; EBITDA up 33% YoY; PAT up 374% YoY to ₹4,060 Mn, aided by exceptional items of ₹1,580 Mn.

• Standalone EBITDA margin at 10.2% in Q2 FY25, down from 12.09% YoY; standalone PAT margin at 5.9%.

• Basic EPS (consolidated) for Q2 FY25 was ₹18.18, up from ₹5.01 in Q2 FY24.

Outlook and guidance

• Standalone revenue expected to decline ~10% in FY25 due to weak order inflow; EBITDA margin guidance maintained at 11%-12%.

• Consolidated margins projected to be higher than last year; management expects strong order inflows across all segments and aims to accelerate growth.

• Order inflow target for FY25 remains ₹150,000-160,000 Mn, with optimism for H2 as large orders are yet to be bid.

• Net debt-free target postponed to FY27 due to delayed order inflow and receivables; debt reduction remains a priority.

• Ongoing focus on project execution, divestment, and strategic partnerships to strengthen the balance sheet and drive growth.