Bondada Engineering: Powering India's Infrastructure Growth with Stellar H1 FY26 Performance

Bondada Engineering Limited, a prominent player in India's infrastructure landscape, has reported an exceptional financial performance for the first half of fiscal year 2026 (H1 FY26). The company, known for its integrated infrastructure solutions across diverse sectors, showcased robust growth driven by strategic execution and an expanding project pipeline. The consolidated financial results highlight significant advancements in revenue, profitability, and operational efficiency, painting a promising picture for investors.

For H1 FY26, Bondada Engineering's revenue from operations surged to INR 1,216.7 crore, marking an impressive 153.2% year-on-year growth. This substantial increase underscores the company's ability to capitalize on market opportunities and deliver on its commitments. Profitability metrics also witnessed remarkable improvements, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) climbing to INR 143.03 crore, an astounding 182.1% increase compared to the previous year. The net profit followed suit, soaring by 150.9% to INR 92.56 crore, reflecting enhanced operational leverage and cost management. The EBITDA margin stood at a healthy 11.8%, while the net profit margin was 7.6%, indicating strong underlying business fundamentals.

Segmental Performance and Strategic Diversification

The company's revenue mix for H1 FY26 clearly illustrates the dominance of its renewable energy segment, which contributed 78% of the total revenue, amounting to INR 955.0 crore. The telecom sector accounted for 14% of the revenue (INR 170.0 crore), while products contributed 8% (INR 91.0 crore). This composition highlights Bondada Engineering's successful pivot towards high-growth, sustainable sectors.

Bondada Engineering's strategic initiatives are centered around expanding its footprint in core and emerging sectors. In renewable energy, the company is actively involved in Solar IPP (Independent Power Producer) and EPC (Engineering, Procurement, and Construction) projects, alongside Operations & Maintenance (O&M) services. A significant milestone is the 2 GW IPP project secured from the Andhra Pradesh government, which is currently in the land pooling phase. The company is also making substantial strides in Battery Energy Storage Systems (BESS), aiming to establish 2 GW capacity across India on an IPP/BOO (Build, Own, Operate) model, recognizing its potential as a trillion-dollar market.

In the telecom sector, Bondada Engineering continues to be a leader in EPC and O&M services, including tower construction, fiber laying, and network maintenance. The company's expertise is also being leveraged in Indian Railways for Kavach Infra (4G dedicated network) and railway signaling projects. Beyond these, Bondada Engineering is strategically diversifying into Data Centres and Defence & Aerospace, leveraging its existing capabilities and forming partnerships for future growth.

Operational Efficiency and Future Outlook

The company's operational efficiency has seen notable improvements, particularly in its working capital cycle. Debtor days have reduced from 125 in FY25 to 107 in H1 FY26, and the overall net working capital cycle improved from 111 days to 89 days. This demonstrates effective management of collections and inventory, contributing to better liquidity. Despite a negative operating cash flow of INR 43 crore in H1 FY26, it represents a significant improvement from INR 140 crore negative in the previous year, with management actively working towards achieving positive cash flow by March 2026.

Bondada Engineering's order book remains robust, standing at approximately INR 5,989 crore as of October 28, 2025. This includes INR 4,573 crore from renewable energy, INR 998 crore from telecom, INR 228 crore from Indian Railways, and INR 190 crore from products. Additionally, the company has INR 2,628 crore in L1 orders awaiting Letters of Award (LOA) and INR 7,531 crore in submitted tenders. This strong pipeline provides excellent revenue visibility and underpins the management's confidence in achieving its ambitious targets.

Management's Vision and Confidence

Management has articulated a clear vision for 2030, aiming to achieve 25 GW of renewable energy capacity and become a $1 billion revenue company. The company expects to close FY26 with an order book between INR 8,500 crore and INR 9,000 crore. They are confident in sustaining and potentially improving EBITDA, PBT, and PAT margins by 100 basis points due to economies of scale and large-scale operations. The strategic entry into data centers and defence, while nascent, is expected to contribute significantly to future revenue streams, with initial CapEx for defence estimated at INR 75-100 crore. Bondada Engineering is poised for sustained growth, driven by its diversified portfolio, operational excellence, and a forward-looking strategic approach.