Dilip Buildcon borrowings rise to Rs 2,521.781 crore in Q2

Dilip Buildcon Limited reported standalone total borrowings of Rs 2,521.781 crore at 30 September 2026, an increase of Rs 17.8421 crore during the quarter, while its filing did not disclose standalone net debt or an FY28 net-debt-free target. Dilip Buildcon’s Q2 profit after tax was Rs 52.2281 crore.

Did Dilip Buildcon’s debt increase slow in Q2?

Yes. Dilip Buildcon’s total borrowings increased by Rs 17.8421 crore between 30 June 2026 and 30 September 2026, compared with an increase of Rs 226.5428 crore in the preceding quarter from 31 March 2026. Borrowings were Rs 2,277.3961 crore at 31 March, Rs 2,503.9389 crore at 30 June and Rs 2,521.781 crore at 30 September.

The filing defines total borrowings as long-term and short-term borrowings. At 30 September, non-current borrowings were Rs 275.9051 crore and current borrowings were Rs 2,245.8759 crore, against Rs 109.6188 crore and Rs 2,167.7773 crore, respectively, at 31 March. The six-month increase of Rs 244.3849 crore included a Rs 166.2863 crore increase in non-current borrowings.

Dilip Buildcon’s debt-equity ratio was 0.37 times at 30 September, compared with 0.36 times at 30 June and 0.33 times at 31 March. Total equity rose by Rs 84.6923 crore over the six months to Rs 6,908.1866 crore, while total borrowings rose by Rs 244.3849 crore.

Did Dilip Buildcon disclose net debt or an FY28 target?

No. Dilip Buildcon did not report a standalone net-debt measure or an FY28 standalone net-debt-free target in the supplied filing for the quarter and half year ended 30 September 2026. The filing reports gross borrowings, cash and cash equivalents, bank balances and other financial assets as separate balance-sheet items.

Cash and cash equivalents stood at Rs 20.253 crore on 30 September, up from Rs 12.0176 crore on 31 March. Bank balances other than cash and cash equivalents were Rs 270.3979 crore, down from Rs 325.3866 crore, but the filing does not state whether these balances are unrestricted or available for repayment of borrowings.

The balance sheet also included loans of Rs 705.6061 crore and other current financial assets of Rs 1,673.1223 crore at 30 September, compared with Rs 401.4614 crore and Rs 1,505.8526 crore at 31 March. Since the document does not classify these items as cash or debt offsets, it does not support a calculation of net debt from the disclosed data.

Which asset transfers could affect Dilip Buildcon’s funding?

Dilip Buildcon disclosed project-stake transfer arrangements with future conditions, but did not report a completed Mekhali Power Transmission Limited sale during Q2. On 8 September 2026, it executed a definitive agreement with Alpha Alternatives Fund Advisors LLP and its associates, under which the parties will fund the project’s equity requirement in a 51:49 ratio.

Alpha Group will pay a premium for 49% upon achievement of the commercial operation date, or COD, and has agreed to acquire Dilip Buildcon’s remaining 51% stake at an overall enterprise value of Rs 2,914 crore. The proposed balance-stake acquisition remains subject to authority approval and pre-agreed closing adjustments.

For hybrid annuity model, or HAM, projects, Dilip Buildcon and its wholly owned subsidiaries signed a non-binding term sheet with Alpha Group on 1 November 2023 for a 26% divestment in 18 project subsidiaries. The transfers, which include equity, unsecured loans and non-convertible debentures, are to occur progressively after provisional commercial operation date, or PCOD, subject to approvals from the National Highways Authority of India and project lenders.

During the quarter ended 30 September, Dilip Buildcon divested partial equity stakes and non-convertible debentures in three HAM projects for Rs 4.4278 crore and recorded a gain of Rs 19.37 lakh. In the quarter ended 30 June, it transferred interests in eight HAM projects for Rs 10.2354 crore and recorded a loss of Rs 96.12 lakh, changing from a Q1 loss to a Q2 gain.

How did Dilip Buildcon’s Q2 profit and half-year cash flow change?

Dilip Buildcon’s Q2 profit after tax increased to Rs 52.2281 crore from Rs 38.7093 crore in the preceding quarter and Rs 40.8478 crore in the quarter ended 30 September 2025. Revenue from operations was Rs 1,685.7371 crore, lower than Rs 1,929.5662 crore in Q1 but above Rs 1,416.6432 crore a year earlier.

For the half year ended 30 September 2026, revenue from operations rose to Rs 3,615.3033 crore from Rs 3,426.5561 crore a year earlier. Half-year profit after tax fell to Rs 90.9374 crore from Rs 163.5349 crore, while the latest period included an exceptional loss of Rs 76.75 lakh compared with exceptional items of Rs 139.89 crore in the prior-year half year.

Net cash generated from operating activities was Rs 136.4571 crore in the six months ended 30 September, compared with cash used of Rs 943.9991 crore in the prior-year period. Trade receivables increased by Rs 331.5795 crore and loans increased by Rs 304.1447 crore, while trade payables increased by Rs 158.9161 crore and other current liabilities by Rs 172.5705 crore.

Investing activities used Rs 197.2638 crore in the latest half year, compared with cash generated of Rs 238.0275 crore a year earlier. Financing activities generated Rs 14.0536 crore, including Rs 166.2863 crore of net proceeds from long-term borrowings and Rs 64.8133 crore from current maturities of long-term borrowings, while interest paid was Rs 214.2487 crore.

Conclusion

Dilip Buildcon’s gross standalone borrowing increase slowed materially in the September quarter, but total borrowings remained Rs 244.3849 crore above the 31 March level at Rs 2,521.781 crore. The company also reported higher Q2 profit after tax and positive half-year operating cash flow, although receivables and loans both increased during the six-month period.

The next disclosed milestones are the COD-linked premium and approval requirements in the Mekhali Power Transmission Limited arrangement, and PCOD, National Highways Authority of India and lender approvals for progressive HAM-project transfers. The filing does not state a standalone net-debt measure or an FY28 net-debt-free target, so any update on those matters would require a subsequent company disclosure.