Capacit'e Q4 FY26: Steady margins, stronger cash flows, and an order book that sets up FY27

Capacit'e Infraprojects ended FY26 with stable operating profitability and a sharper focus on cash generation. Consolidated revenue from operations for FY26 came in at INR2,623 crore, up 12% year-on-year. EBITDA excluding other income rose to INR427 crore, up 13%, with EBITDA margin holding at 16.3%. Profit after tax for FY26 stood at INR193 crore, down 5% versus FY25, mainly because other income fell to INR21 crore from INR58 crore in the previous year.

Q4 FY26 numbers reflected a similar pattern. Revenue from operations was INR712 crore, up 6% YoY, and EBITDA improved to INR109 crore from INR86 crore, lifting margin to 15.3% from 12.8%. However, PAT declined to INR45 crore from INR53 crore. Management attributed the drop primarily to the sharp reduction in other income to INR1.5 crore in Q4 FY26.

FY26 performance: growth with margin stability

Capacit'e continues to position itself as a focused EPC player in buildings and factories, with presence across residential, commercial, institutional and mixed-use building construction. In FY26, the company’s operating metrics stayed within the margin band it has consistently highlighted.

A key operational disclosure was the improvement in cash generation. Net cash from operating activities increased to about INR223 crore in FY26 compared to INR52 crore in FY25, as working capital movements were meaningfully better than the prior year. In the investor presentation, management highlighted a 43-day reduction in working capital days including retention debtors. In the concall, management also noted that working capital days excluding retention reduced by more than 50 days.

The quarter numbers also reinforced how the earnings profile can swing with other income. In Q4 FY26, EBIT and PAT were lower year-on-year despite higher EBITDA, because other income in the quarter dropped sharply.

Order book: public sector-heavy mix with high-rise execution

As of March 31, 2026, Capacit'e reported an order book of INR13,498 crore. FY26 order inflow was INR4,446 crore, exceeding the company’s full-year guidance of INR3,500 crore.

The order book mix remains tilted toward government and public sector clients. Capacit'e disclosed that 57% of its order book is public sector and 43% is private sector. From a category perspective, institutional projects account for 62% of the order book, residential 29%, and mixed use 9%. The execution profile also remains high-rise heavy, with 60% of projects above 40 floors.

Management expects revenue growth to accelerate in FY27 and beyond, supported by order book quality and liquidity headroom. In the concall, management also stated that the top 10 projects contribute about 92% of topline, indicating that execution intensity and timing of a few large projects can meaningfully influence quarterly outcomes.

FY27 outlook: cautious on commodities, confident on order inflow

Management offered specific forward commentary on three major themes: growth, margins, and balance sheet actions.

On growth, management guided for about 20% revenue growth year-on-year for FY27, and reiterated that the current order book supports this guidance with headroom.

On margins, management highlighted a key risk. The company has pass-through arrangements in private sector projects, but government contracts rely on escalation based on indices. Management said the escalation indices have not matched actual increases for certain inputs, especially electrical items and aluminium-related components. As a prudent measure, the company factored an INR10 crore provision in procurement cost in FY26. Management stated that if escalation receivables match the increases over the next two quarters, the provision could be reversed.

Reflecting this uncertainty, management guided FY27 EBITDA margin at 15.5% to 16.5% excluding other income, and indicated that if global uncertainties ease, guidance could be restored to 16.5% to 17.5%.

On capital allocation and balance sheet, the company highlighted two levers. First, monetisation of non-core assets. Capacit'e realised INR44 crore during FY26 from sale of non-core properties and expects to realise INR50 crore in FY27. In the concall, management added that it started with around INR200 crore of such assets, has already sold about INR60 crore overall to date, and expects the remaining about INR90 crore to be monetised over roughly the next 24 months.

Second, funding costs. The investor presentation highlighted a reduction in interest rates for fund-based limits from about 12.5% to 9.65% over the last two years, and a reduction in non-fund-based commission and charges from about 2.5% to 1.20%. Management said the benefit should be more visible in FY27. The company also reported a bank credit rating upgrade to BBB+/Stable.

Capex remains part of the execution plan. In the concall, management stated capex additions of INR147.33 crore in FY26 and guided FY27 capex of about INR165 crore, mainly toward aluminium formwork and jump-form.

Key takeaways

Capacit'e’s FY26 narrative is not just about topline growth. It is also about improving cash conversion and lowering funding friction in a working-capital heavy business. The company ended the year with a larger order book, stable EBITDA margins, and significantly better operating cash flow.

The FY27 setup appears anchored by the order book and a guided 20% revenue growth trajectory, while margin guidance reflects caution around commodity inflation and the pace at which government escalation indices catch up to actual costs. Balance sheet actions, especially working capital improvement and non-core asset monetisation, remain central to management’s stated priorities under its Vision 2028 framework.