GPT Infraprojects Navigates Monsoons with Strong H1 FY26 Performance

GPT Infraprojects Limited has released its Q2 and H1 FY26 earnings, showcasing a resilient performance despite seasonal challenges. The company reported a consolidated revenue of INR 603.3 crore for H1 FY26, marking a robust 13.2% year-on-year growth. While Q2 FY26 saw a slight sequential decline in revenue, attributed primarily to the impact of the monsoon season, the overall half-year figures reflect strong operational efficiencies and strategic execution. Consolidated Profit After Tax (PAT) for H1 FY26 surged by an impressive 31.7% year-on-year, reaching INR 45.3 crore, underscoring the company's ability to enhance profitability.

The infrastructure segment continues to be the backbone of GPT Infraprojects, contributing approximately 94% of the standalone revenue. For H1 FY26, the infrastructure segment generated INR 554.41 crore, driven by strong execution in key contracts such as the Prayagraj Ganga Bridge and Raniganj Bypass. The concrete sleeper segment, while smaller, also contributed positively with INR 35.39 crore, representing 6% of standalone revenue. The management emphasized that the softer execution in Q2 was largely due to the delayed and intensified monsoon, particularly in their operating regions of Bombay, Bengal, and Uttar Pradesh. However, they remain confident in making up for this in the latter half of the fiscal year.

Operational Excellence and Strategic Growth

GPT Infraprojects' operational performance saw significant improvements, with consolidated EBITDA growing by 27.9% year-on-year in Q2 FY26 to INR 42.6 crore, and by 32.6% in H1 FY26 to INR 88.6 crore. The EBITDA margin expanded to 14.7% for H1 FY26, a 220 basis points improvement over H1 FY25. This margin expansion is partly attributed to stronger execution in the domestic sleeper business and the absence of foreign exchange mark-to-market losses experienced in the previous quarter. The management is confident in maintaining a long-term EBITDA margin of 13-14%, aligning with their historical guidance.

The company's strategic focus on maintaining a robust and healthy order book is evident. As of September 30, 2025, the unexecuted order book stands at INR 3,591 crore, representing approximately three times the FY25 revenues and providing strong visibility for the next two and a half years. Order inflows for the year reached INR 696 crore, with a target of INR 2,000 crore for the full fiscal year. A notable win includes a INR 195 crore order from Terminal Industriel Polyvalent de San Pedro for a conveyor belt system in the port of Ivory Coast. This international project is expected to yield higher EBITDA margins of 18-20%, leveraging the company's existing team and presence in neighboring Ghana.

Forward Outlook and Investor Confidence

GPT Infraprojects is targeting a 20% revenue growth for the current fiscal year, with the second half expected to be significantly stronger, typically contributing 60% of the annual revenue. To support this growth, the company recently commissioned a steel girder and component manufacturing facility at Village Majinan, West Bengal, with an initial capacity of 10,000 MT per annum. This backward integration is crucial for leveraging internal capabilities and optimizing project execution, especially for large-scale infrastructure projects.

Management addressed concerns regarding short-term borrowings, explaining that the increase was temporary due to monsoon-related delays affecting invoicing and working capital. They expect these borrowings to normalize by March 2026. The company also clarified that the pledge of 51% of promoter shares is for working capital limits and they have applied to consortium banks for its reduction. GPT Infraprojects' disciplined capital allocation, strong project execution capabilities, and strategic focus on margin sustainability position it well for continued growth in the Indian and international infrastructure sectors.