Sonu Infratech Limited: H1 FY26 Performance Highlights Robust Growth and Strategic Expansion

Sonu Infratech Limited, a prominent player in India's infrastructure sector, has reported a strong financial performance for the first half of fiscal year 2026 (H1 FY26). The company, known for its comprehensive civil and mechanical construction services, demonstrated significant growth across key financial metrics, underscoring its operational efficiency and strategic market positioning. This period's results reflect the impact of an acquisition completed in the last 12 months, with H1 FY26 and FY25 figures presented on a consolidated basis.

For H1 FY26, Sonu Infratech Limited recorded a revenue from operations of ₹71.94 crore, marking a substantial 59% year-on-year growth. This impressive top-line expansion was complemented by a robust increase in profitability. The company's EBITDA surged by 71% to ₹13.28 crore, while Profit After Tax (PAT) grew by an equally strong 68% to ₹5.46 crore. These figures highlight the company's ability to leverage higher volumes and operational efficiencies to drive bottom-line growth.

The profitability margins also saw a healthy improvement. The EBITDA margin expanded by 131 basis points, reaching 18.73% in H1 FY26, up from 17.42% in H1 FY25. Similarly, the PAT margin improved by 44 basis points to 7.60% from 7.16% in the previous corresponding period. This margin expansion indicates effective cost management and a strategic focus on higher-value projects.

Strategic Project Portfolio and Future Outlook

Sonu Infratech Limited continues to build a strong project portfolio, which is a cornerstone of its growth strategy. The company is actively engaged in an ongoing ₹157 crore NHAI project and is vigorously pursuing new opportunities. This includes bidding for two significant projects in Madhya Pradesh: a ₹310 crore joint venture and another ₹151 crore project. The bidding process for these MP projects is expected to commence on December 1st, with conversion anticipated within three to four months.

Management expressed confidence in achieving a 30-35% Compound Annual Growth Rate (CAGR) over the next three years. For the full fiscal year 2026, the company projects an overall revenue of approximately ₹210 crore. Looking further ahead, the estimated revenue for FY27 is around ₹250 crore, with an ambitious long-term vision to achieve a turnover of ₹1000 crore in approximately five years from FY25. This growth is expected to be driven by a strong order book, active bids, and a continued focus on timely project execution.

Diversification and Operational Excellence

The company's business segments are diversified, encompassing civil construction, building development, mechanical scaffolding, plant maintenance, and repairs and maintenance. Industrial projects currently constitute about 40-50% of the overall business, with road projects forming another significant portion. Sonu Infratech is strategically expanding its presence, including bidding in the solar sector and actively pursuing projects with NHAI and the Madhya Pradesh Public Works Department (PWD).

To support its growth and enhance operational capabilities, the company is committed to investing in its asset base. Recent investments include ₹14.66 crore in plant and machinery, such as a crusher and hyva trucks, specifically for the ₹157 crore MP project. These investments are financed through term loans and commercial vehicle loans, aligning with the company's strategy to expand its owned fleet of construction equipment and improve execution capabilities.

Management Insights and Risks

While the financial performance has been strong, management also addressed certain challenges. The company reported negative operating cash flow in H1 FY26, primarily due to capital tied up in inventory and issues with receivables. Management is actively negotiating with parties to reduce receivables and optimize stock utilization, expecting the operating cash flow to turn positive by FY26. Working capital risk and project delays were identified as the biggest risks in the sector, which the company is proactively managing.

In a significant corporate development, the company announced the sad demise of Mr. Manish Pandey, its Chief Financial Officer, on December 18, 2025. This unexpected loss is acknowledged as an irreparable blow to the company. Furthermore, Sonu Infratech is planning a transition from the NSE SME platform to the main board, expected to be completed in April within the next 4-6 months, a move that could enhance its market visibility and investor base.

Sonu Infratech Limited's H1 FY26 performance reflects a company in a strong growth phase, strategically expanding its project pipeline and operational capabilities. Despite facing challenges like managing working capital and the recent loss of a key executive, the company's focus on high-value projects, diversification, and robust execution positions it well to capitalize on India's burgeoning infrastructure opportunities and deliver sustained value to its stakeholders.