DBL values transmission and solar assets at ₹9,743 crore in Alpha deal

Dilip Buildcon Limited signed definitive agreements in Q2FY27 with Alpha Alternatives Fund Advisors LLP and its associates for transmission and solar assets valued at ₹9,743 crore, against a project cost of ₹8,405 crore, while retaining over ₹6,612 crore of engineering, procurement and construction work.

What do DBL's Alpha agreements cover?

DBL's agreements cover the Mekhali transmission project in Karnataka and a 1,363 megawatt alternating-current (MW AC) solar portfolio in Madhya Pradesh. The agreements were signed during Q2FY27 with Alpha Alternatives Fund Advisors LLP and its associates, which DBL describes collectively as the Alpha Group.

The announcement values the transmission and solar assets at ₹9,743 crore against a combined project cost of ₹8,405 crore. Management separately said the transactions had established ₹1,917 crore of value in the assets, but the release does not give a project-level valuation, cost split or calculation reconciling that statement with the combined asset value.

The projects are part of a broader change in DBL's order book mix. Renewable energy and power transmission together accounted for 27% of the ₹33,081 crore order book at September 30, 2026, ahead of roads and highways at 15.6%.

How will DBL and Alpha fund the projects?

Alpha will co-invest for 49% of the equity during construction and fund approximately ₹820 crore of the combined equity requirement of about ₹1,680 crore. DBL will initially retain the remaining 51% equity interest while the projects are developed and built.

Alpha is to acquire DBL's remaining 51% stake after commissioning under the definitive agreements. The structure therefore provides for a construction-period equity partner and a post-commissioning sale of DBL's residual interest, rather than an immediate sale of the entire stake.

Management said on November 12, 2026 that its model is to develop projects, execute the engineering, procurement and construction (EPC) work, bring in a partner to share equity commitments and recycle capital after commissioning. The release does not disclose the commissioning dates, consideration for the sale of the 51% stake, or separate equity allocations for the Karnataka and Madhya Pradesh projects.

What EPC work will DBL retain under the Alpha deal?

DBL will retain EPC work worth over ₹6,612 crore across the Alpha-linked transmission and solar projects. Alpha is scheduled to own DBL's remaining stake after commissioning, but DBL will continue as the disclosed construction contractor during the project-development and execution phase.

DBL has disclosed a different ownership model for its entry into petroleum and gas. It received a Grant of Authorisation from the Petroleum and Natural Gas Regulatory Board for the Paradip-Raipur liquefied petroleum gas pipeline, a 25-year regulated-tariff concession in which DBL will hold 100% of the special purpose vehicle (SPV).

The two arrangements show that DBL is using more than one asset structure. The Alpha projects combine co-investment, EPC execution and a planned exit, while the Paradip-Raipur pipeline remains wholly owned by DBL's SPV under the terms disclosed in the release.

How do the Alpha projects fit DBL's order book and operations?

DBL's order book rose 19% during Q2FY27 to a record ₹33,081 crore at September 30, 2026, from ₹27,691 crore at June 30, 2026. It was also 15% above ₹28,830 crore at March 31, 2026, following fresh order inflow of ₹7,321 crore in Q2FY27.

H1FY27 order inflow was ₹7,589 crore, equivalent to 76% of the lower end of DBL's reiterated FY27 order-inflow guidance of ₹10,000 crore to ₹12,000 crore. DBL said projects awarded in Q4FY26, worth approximately ₹15,000 crore, were in mobilisation and are expected to begin contributing from Q3FY27.

Gross EPC revenue was ₹1,499 crore in Q2FY27, compared with gross mining revenue of ₹433 crore and consolidated income from infrastructure investment trusts of ₹37 crore. Mining SPVs recorded ₹795 crore of revenue in H1FY27 at a 25% earnings before interest, tax, depreciation and amortisation (EBITDA) margin.

Coal production increased 27% sequentially to 6.1 million tonnes in Q2FY27 from 4.79 million tonnes in Q1FY27, taking H1FY27 output to 10.89 million tonnes. DBL reiterated a target of approximately 57 million tonnes of annual coal production by FY29, at which level it expects the mining business to generate around ₹1,000 crore of annual operating cash flow.

What are DBL's debt and working-capital targets?

DBL's standalone net debt was ₹2,146 crore at September 30, 2026, up ₹40 crore from ₹2,106 crore at June 30, 2026. The Q2FY27 increase was lower than the ₹226 crore increase in Q1FY27, and standalone net debt-to-equity was 0.31 times.

Consolidated net debt stood at ₹8,950 crore at September 30, 2026, while consolidated finance costs declined 39% year on year to ₹496 crore in H1FY27 from ₹818 crore. DBL has reaffirmed its target to become net-debt-free on a standalone basis by FY28.

DBL said its planned transfer of remaining hybrid annuity model (HAM) assets to Anantam Highways Trust, Alpha's equity co-investment and improved collections support that FY28 target. It also expects working-capital needs to ease as second-half execution and collections progress, targeting approximately 120 working-capital days by the end of FY27.

Conclusion

The Alpha agreements put a defined co-investment and post-commissioning sale structure around DBL's Mekhali transmission project and Madhya Pradesh solar portfolio. The stated ₹9,743 crore asset valuation, approximately ₹820 crore of Alpha equity funding and over ₹6,612 crore of retained EPC work connect asset monetisation with continued construction execution.

The next disclosed markers are the expected Q3FY27 contribution from approximately ₹15,000 crore of projects awarded in Q4FY26, progress toward FY27 order inflow of ₹10,000 crore to ₹12,000 crore, and the working-capital target of about 120 days by FY27-end. DBL's planned HAM asset transfer and its FY28 standalone net-debt-free target also remain relevant to the stated capital-recycling plan.