NACDAC Infrastructure: Building on Strong H1 FY26 Performance and Strategic Expansion

NACDAC Infrastructure Limited, a key player in India's burgeoning infrastructure sector, has reported a stellar performance for the first half of FY26, showcasing robust growth across its key financial metrics. The company, specializing in a comprehensive range of civil and structural services, including multi-story buildings, electrical works, steel structures, and bridges, has demonstrated significant operational efficiency and strategic foresight. This period's results underscore NACDAC's commitment to quality and timely project execution, positioning it as a formidable entity in the country's infrastructure development landscape.

The financial highlights for H1 FY26 are particularly impressive. The company's revenue surged by an astounding 221% year-on-year, reflecting a substantial increase in project execution and order book conversion. This growth was complemented by a remarkable 154% rise in Profit After Tax (PAT) and a 107% increase in EBITDA, indicating strong profitability and operational leverage. These figures not only surpass previous half-year results but also set a positive tone for the full financial year, with management expressing confidence in beating last year's performance. The company's strategic focus on larger projects and efficient utilization of IPO funds for working capital have been pivotal in driving this accelerated growth.

Strategic Pillars Driving Growth

NACDAC's success is not merely a reflection of market tailwinds but a result of its well-defined strategic initiatives. The company's core offerings encompass construction of multi-story buildings, electrical works (both Low-Tension & High-Tension), steel structure works, and various types of bridges. A significant portion of its revenue, approximately 75%, is derived from building work, with steel structure works contributing the remaining 25%. This diversified yet focused approach allows NACDAC to cater to a broad spectrum of infrastructure needs.

Geographically, NACDAC has established a strong presence across six states: Uttarakhand, Uttar Pradesh, Delhi, Bihar, Jharkhand, and Telangana. The company is actively expanding its footprint, with ongoing bids for projects in new regions like Madhya Pradesh, Lucknow, and Jaipur (Rajasthan). This geographical expansion is a key component of its growth strategy, aiming to diversify its customer base and tap into new market opportunities.

Client Focus and Operational Excellence

A cornerstone of NACDAC's strategy is its strong emphasis on government and semi-governmental clients. The company maintains robust relationships with entities like NBCC and Indian Railways, preferring them due to the transparent bidding systems and more reliable cash flows compared to private builders, where payment cycles can be more challenging. This client-centric approach has not only secured a steady stream of projects but also enhanced the company's credibility in the public sector.

Operational excellence is another hallmark of NACDAC. The company boasts a working capital cycle of 60-75 days, which is considered efficient for the infrastructure industry. This efficiency is further bolstered by its commitment to quality, evidenced by certifications in Quality Management, Occupational Health and Safety, and Environmental Management System. These certifications underscore NACDAC's dedication to maintaining high standards and continuous improvement in its project delivery.

Future Outlook and Management Confidence

Looking ahead, NACDAC's management is highly optimistic about its future prospects. The company has a strong order book, valued at 118.26 crore as of March 2025, with the current work order book around 90-95 crore as of October 30th. This robust pipeline provides significant revenue visibility for the coming months. For the next financial year, NACDAC is targeting revenues between 65-70 crore, indicating continued growth expectations.

To support this growth, the company plans to invest approximately 1-1.5 crore in new machinery and technology upgrades over the next 12 months. This investment is aimed at enhancing operational efficiency, introducing modern techniques, and ultimately improving project margins. Importantly, management has stated that it is not planning any additional fundraising for the next one year, relying on its internal accruals and efficient capital management to fuel its expansion. This disciplined approach to capital allocation, coupled with a strategic shift towards larger projects and a strong focus on government clients, positions NACDAC Infrastructure Limited for sustained growth and value creation for its shareholders.