Capacit'e Infraprojects Limited: Building on a Strong Foundation in Q2 FY26

Capacit'e Infraprojects Limited, a prominent player in India's construction sector, has delivered an impressive performance in the second quarter and first half of the financial year 2026. Despite the inherent challenges of the monsoon season, the company reported its highest-ever Q2 results, underscoring its robust operational capabilities and strategic acumen. This strong showing reflects a consistent upward trajectory, building on the benchmarks established in the previous fiscal year.

For Q2 FY26, Capacit'e recorded a total income of ₹650.4 crores, marking a significant 24% year-on-year growth. The first half of FY26 saw total income reach ₹1,250 crores, an increase of 13% compared to H1 FY25. Profit After Tax (PAT) for Q2 stood at ₹51.1 crores, up 14% year-on-year, with a PAT margin of 7.9%. The company's EBITDA for Q2 FY26 was ₹108.3 crores, achieving a healthy margin of 16.8%, which is well within its guided range of 16.5% to 17.5%. This financial resilience, coupled with accelerated project execution, positions Capacit'e for continued growth.

Financial Highlights at a Glance (Consolidated)

Strategic Execution and Order Book Momentum

Capacit'e's operational prowess is evident in its robust order book and strategic project pipeline. The company's standalone order book stood at an impressive ₹11,991 crores as of September 30, 2025. Furthermore, year-to-date order bookings have already reached ₹3,464 crores, nearly achieving its full-year guidance of ₹3,500 crores well ahead of schedule. This strong order inflow, fueled by repeat business from marquee clients and new strategic wins, is a testament to the company's technical and execution strengths.

Management has provided clear guidance for the upcoming quarters, targeting ₹725 crores in execution for Q3 FY26 and ₹850 crores for Q4 FY26, aiming for a full-year execution of ₹2,810 crores. This accelerated execution momentum is expected to continue into the second half of FY26, driven by a robust project pipeline. The company's multi-year portfolio optimization strategy is yielding measurable benefits, including a sharp rise in average order size, rationalization of projects under execution, higher revenue contribution per project, and enhanced management efficiency.

Financial Discipline and Future Outlook

Capacit'e's commitment to financial discipline is reflected in its healthy balance sheet and improved liquidity. The company's gross debt as of September 30, 2025, stood at ₹405 crores, down from ₹417 crores on March 31, 2025. This translates to a healthy gross debt-to-equity ratio of 0.22x and a net debt-to-equity ratio of 0.11x. The reduction in gross debt by ₹12 crores during H1 FY26 aligns with the company's focus on reducing fund-based debt in the medium to long term.

Working capital management has also seen significant improvement, with a reduction of 14 days in working capital during H1 FY26. The company aims to further reduce debtor levels by an additional 20-25 days in the remaining period of the current fiscal, with a long-term goal of returning to pre-COVID debtor levels by FY27-end. This focus on optimizing working capital and debt levels is crucial for sustaining growth and enhancing shareholder value.

Looking ahead, Capacit'e Infraprojects has articulated a clear Vision 2028, aiming to surpass ₹4,000 crores in revenue with a 20%+ CAGR, while maintaining its industry-leading EBITDA margins of 16.5%-17.5%. The company's strategic focus on high-rise and super high-rise buildings, coupled with its selective approach to government projects (prioritizing those with assured funding), positions it favorably in the competitive landscape. The management's proactive stance on adopting new technologies to mitigate labor challenges further strengthens its long-term growth prospects.

Capacit'e Infraprojects Limited is not just constructing buildings; it is building a legacy of trust, performance, and value creation for all stakeholders. The company's consistent growth, disciplined financial management, and strategic vision underscore its potential for sustained success in the Indian construction industry.