Ceigall India’s FY26 close: a bigger order book, a wider playbook

Ceigall India ended FY26 with a strong execution-led quarter and a materially larger backlog, even as headline margins continued to trend lower versus FY24. In Q4 FY26, consolidated revenue from operations rose 37.1% year on year to INR 1,386.5 crore, with EBITDA at INR 223.6 crore and an EBITDA margin of 16.13%. Profit after tax for the quarter was INR 129.1 crore.

For the full year, consolidated revenue increased 17.1% to INR 4,022.4 crore. EBITDA grew to INR 585.4 crore, while PAT stood at INR 308.9 crore. Management attributed the year’s performance to steady execution in the core roads EPC business, strong order inflows across highways and urban mobility, and a deliberate push into renewable energy and power transmission.

The more structural change, however, is in the company’s scale and mix of work. As of March 31, 2026, the order book stood at INR 18,554.3 crore, translating to a book-to-bill ratio of 4.8x. The company is no longer positioned as only a roads contractor. The order book composition disclosed in the investor presentation shows renewables at 19%, metro at 6%, and transmission and distribution at 3%, alongside the still-dominant roads portfolio.

A quarter of strong awards and a larger, more diversified backlog

Q4 FY26 was a defining quarter for order wins. The company disclosed order inflow of INR 6,014.2 crore during the quarter, driven largely by roads and supplemented by renewables and a power transmission package. Key awards included the Jaipur Metro Phase II elevated viaduct and stations project and multiple packages under the NH-913 Frontier Highway in Arunachal Pradesh.

One of the most significant awards referenced by management was the Sahebganj Areraj Bettiah corridor in Bihar under Hybrid Annuity Mode, with a cumulative value of INR 2,160 crore and a construction period of two years followed by 15 years of O&M. Management described this as the largest single project received by the company to date.

The order book disclosed in the presentation provides a clear look at the company’s exposure by model. HAM forms 48% of the backlog, EPC is 30%, tariff-based projects are 21%, and DBFOT is 1%. This matters because the cash flow profile, financing needs, and risk allocation differ sharply across EPC, HAM, and tariff-based renewable or transmission projects.

Renewables and T&D: moving from intent to execution

Ceigall’s FY26 narrative placed meaningful emphasis on renewable energy and power transmission. The investor presentation lists multiple tariff-based projects, including Maharashtra solar allocations (147 MW and 190 MW), feeder solarisation projects in Madhya Pradesh, the Morena solar park project with battery energy storage, and the 400/220 kV Velgaon GIS substation.

In the earnings call, management said PPAs have been signed for the Maharashtra and Madhya Pradesh solar projects and that execution has commenced. For the Morena BESS-linked project, management clarified that only the LOA had been received, and the project would start once land and transmission connectivity are provided by the government and the PPA is signed.

Management also provided a forward-looking framing for the vertical. For FY27, guidance includes renewables contributing close to 20% to 25% of total revenue. This is a notable step-up from renewables being 19% of the order book as of March 2026, and it signals management’s expectation of faster ramp-up in execution for energy projects.

Capital recycling through HAM monetization

A second strategic lever highlighted across both documents is monetization of mature HAM assets. The investor presentation positions this as an execute, monetize, recycle approach, aimed at recycling equity from long-tenor annuity assets into new growth projects and deleveraging.

The first transaction in this roadmap is the sale of 100% equity stake in the Malout Abohar Sadhuwali HAM asset to Neo Asset Management. The presentation states that the transaction reduces consolidated debt by INR 273 crore by transferring project debt to the buyer and unlocks INR 177 crore of equity upfront. It also discloses total infused equity of INR 99.2 crore and total consideration of INR 177 crore.

The pipeline is visible as well. The presentation notes that Bathinda Dabwali and Jalbhera Shahbad are in due diligence after non-binding offers were signed. In the concall, management provided expected timing for cash inflows: Malout Abohar in the current quarter (month of May 2026 was referenced), Bathinda Dabwali in Q2, and Jalbhera Shahbad in Q3, and said these proceeds would directly upstream to standalone.

Working capital and cash flow signals to track

Despite strong reported profitability, the cash flow statement shows that consolidated net cash from operating activities remained negative in FY26 at INR 91.3 crore outflow. Working capital metrics help explain why investors are likely to keep monitoring the cash conversion cycle.

The consolidated working capital disclosure shows WIP days rising to 98 in FY26 from 60 in FY25, while debtor days stayed at 64. Creditor days increased sharply to 124, which helped pull net working capital days down to 49 from 67.

Management also addressed billing cadence and cost escalation. In the concall, management said MoRTH has issued notifications easing billing and enabling monthly payments, and that escalation compensation that was earlier linked to three months is now linked to a monthly basis. If this translates into smoother collections, it can reduce working capital volatility during heavy execution phases.

FY27 guidance: growth with conservative margins

Management’s FY27 guidance is explicit and measurable. The company guided for minimum 15% revenue growth, EBITDA margin between 11% and 12.5%, and minimum order inflow of INR 5,500 crore. The leadership repeatedly called the revenue guidance conservative, even when asked why guidance appeared modest relative to the large backlog.

On leverage, the presentation shows standalone debt reducing from INR 635.9 crore in March 2025 to INR 412.3 crore in March 2026, with standalone debt-to-equity at 0.2x. Consolidated total debt at March 2026 is disclosed at INR 1,572.3 crore, with a reconciliation that subtracts INR 262.3 crore shown as held for sale.

Takeaways

Ceigall’s FY26 close highlights a contractor evolving into a broader infrastructure platform. A backlog of INR 18,554.3 crore and Q4 FY26 order inflow of INR 6,014.2 crore provide visibility, while the mix shift toward renewables and T&D changes the growth narrative beyond roads.

The next year’s story is likely to be shaped by three measurable factors: execution ramp-up in renewables, the pace and pricing of HAM monetization, and whether working capital intensity normalizes as billing cycles shift. Management has set clear FY27 targets, and investors will likely judge delivery not just on revenue growth but on cash conversion and capital recycling discipline.