Dilip Buildcon (DBL) Q2 25/26 earnings summary

Executive summary

• Order inflow guidance for FY 2026 is INR 15,000 crore, with INR 5,500 crore secured YTD despite weak NHAI ordering; 6 new projects worth ₹5,665 crore secured and 3 HAM projects worth ₹2,442 crore completed.

• Significant progress in coal MDO operations, with Siarmal and Pachhwara mines on track for 32 million metric tons production in FY 2026 and a mining order book at ₹94,027 crore.

• Diversification into solar energy, with a 100 MW project won and a target of 1 GW in the next two years; new project wins in metro, water supply, and industrial corridors highlight diversification.

• Anantam Highways InvIT listed, with 7 of 18 assets transferred and major equity divestments in HAM projects; InvIT units valued at INR 1,400 crore.

• Audited standalone and consolidated financial results for Q2 and H1 FY26 were approved, with unmodified audit opinions issued by statutory auditors.

Financial highlights

• Consolidated Q2 FY26 revenue: INR 1,926 crore (down 21.7% YoY); H1 revenue: INR 4,546 crore (down 18.8% YoY).

• Standalone Q2 FY26 revenue: INR 1,417 crore (down 34.9% YoY); H1 revenue: INR 3,427 crore (down 24.4% YoY).

• Consolidated Q2 EBITDA margin: 24.45% (INR 471 crore), up 414 bps YoY; H1 EBITDA margin: 21.8%.

• Standalone Q2 EBITDA margin: 10.8% (INR 153 crore), up 0.6pp YoY; H1 EBITDA margin: 10.4%.

• Consolidated Q2 PAT: INR 214 crore (down 19.6% YoY); H1 PAT: INR 485 crore (up 19.8% YoY).

Outlook and guidance

• FY 2026 revenue guidance revised to INR 8,000 crore (from INR 8,500 crore); FY 2027 revenue expected at INR 10,000 crore.

• Order inflow target of INR 15,000 crore for FY 2026, with optimism to exceed this; long-term order book supported by coal MDO contracts with tenures of 25–55 years.

• EBITDA margin expected at 10-11% for FY 2026, improving next year with higher revenue.

• Debt reduction delayed; FY 2026 net debt to remain at INR 1,500 crore, targeting INR 1,000 crore by FY 2027; long-term goal to be net debt free by FY 2028.

• Ongoing focus on asset monetization and InvIT platform to recycle capital and reduce leverage.