Q1 2027 G R Infraprojects Ltd Earnings Call Transcript
Key Points
- Revenue from operations grew 32.71% year-over-year to INR2,423 crores in Q1 FY27, driven by strong execution across transport, power transmission, and oil and gas sectors.
- Order book remains robust at approximately INR25,300 crores as of July 1, 2026, with bids worth INR32,000 crores pending opening, providing strong revenue visibility.
- The company maintains a healthy balance sheet with a standalone debt-to-equity ratio of 0.03, among the best in the sector, and a net worth of INR9,074 crores.
- Management is diversifying into high-growth sectors like power transmission, oil and gas, logistics, and warehousing, with a target of INR20,000 crores in order inflows for FY27.
- The government's new toll-cum-annuity model and BoT framework are expected to revive private participation in highways, creating additional opportunities for the company.
- The company received PCOD for Amritsar Bathinda and Yamuna Bridge projects, and expects appointed dates for three projects worth INR7,250 crores by October-November 2026, which will boost execution.
- Consolidated PAT increased to INR358 crores in Q1 FY27, up from INR244 crores in the same quarter last year, aided by an exceptional gain from dilution in an associate.
- The company is expanding its manufacturing capacity for transmission towers, which will support its power transmission business and potential international expansion.
- Management expects to transfer 3-4 assets to the InvIT this year, unlocking value and generating cash flows for further investments.
- The company is targeting INR400 crores in revenue from the BharatNet project in FY27, with O&M activities already underway and CapEx expected to start in H2.
- Adjusted EBITDA margin declined to 11.01% in Q1 FY27 from 12.17% in the same quarter last year, due to higher construction and material costs, particularly from crude-linked inputs like diesel.
- Working capital days increased to 148 days at the end of June 2026 from 128 days at the end of FY26, driven by higher debtor and inventory days, partly due to oil and gas receivables.
- The company faces margin pressure in power transmission projects due to rising aluminum and copper prices, with no escalation clauses to offset these costs.
- The BharatNet project is delayed due to pending right-of-way (ROW) approvals, with CapEx work expected to start only in October, impacting revenue recognition.
- The BESS project is facing delays in battery procurement due to geopolitical issues and dollar-rupee movement, which could affect project timelines and margins.
- Management's FY27 revenue growth guidance remains conservative at 15-20%, despite Q1 growth of 32.71%, due to monsoon patterns and potential delays in appointed dates.
- Trade receivables increased to INR2,655 crores, including INR1,784 crores from HAM projects, indicating slower cash conversion from these assets.
- The company is not exploring the hydrogen rail program, missing out on a potential growth opportunity in the railway sector.
- Other income was lower in Q1 due to InvIT distributions being in the form of capital repayment rather than interest/dividend, impacting reported profitability.
- The company faces intense competition in road sector bids, with 15-20 bidders per project, which could pressure margins and win rates.
Ladies and gentlemen, good day, and welcome to the G R Infraprojects Limited Q1 FY27 earnings conference call hosted by HDFC Securities Limited.
This conference call may contain 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. These statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
From the management, we have Mr. Ajendra Kumar Agarwal, Managing Director; Mr. Anand Rathi, Group CFO; and Mr. Ankit Maheshwari, Deputy CFO.
I now hand the conference over to Mr. Parikshit Kandpal from HDFC Securities. Thank you, and over to you, sir.
Thank you, [Anurag]. So I'll just hand over the call to the management without taking much time. So Ajendra-ji will start the proceedings with a brief overview of the industry, followed by a financial
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