Dilip Buildcon Q2 core profit rises 24% as gains fade

Dilip Buildcon Limited reported a 24% year-on-year increase in consolidated profit before exceptional items and tax to Rs 176.42 crore in Q2 FY27, supported by 17% revenue growth to Rs 2,250.36 crore. DBL’s reported profit after tax fell to Rs 101.01 crore because exceptional gains dropped to Rs 1.75 crore from Rs 122.30 crore a year earlier.

Why did DBL’s reported Q2 profit decline?

DBL’s reported consolidated profit after tax declined because Q2 FY26 included much larger exceptional gains than Q2 FY27. Profit after tax was Rs 101.01 crore for the quarter ended September 30, 2026, compared with Rs 214.07 crore in the quarter ended September 30, 2025. Profit before tax fell to Rs 178.17 crore from Rs 264.73 crore, although profit before exceptional items and tax increased to Rs 176.42 crore from Rs 142.43 crore.

The difference lies in the exceptional-item comparison. DBL recorded a Rs 1.75 crore exceptional gain in Q2 FY27 from the partial divestment of equity and non-convertible debentures in three hybrid annuity model, or HAM, projects. The comparable quarter a year earlier included Rs 122.30 crore of exceptional items, so the reported profit movement does not match the movement in profit before exceptional items and tax.

Tax also affected the reported result. DBL recorded current tax of Rs 46.27 crore and a deferred-tax charge of Rs 30.91 crore in Q2 FY27, whereas Q2 FY26 included a Rs 10.34 crore deferred-tax credit. Profit attributable to owners of the parent was Rs 98.86 crore, down from Rs 181.49 crore, and basic earnings per share were Rs 6.24 compared with Rs 14.64.

How did DBL’s operations perform in Q2 FY27?

DBL’s operating performance improved year on year as revenue increased and finance costs declined. Consolidated revenue from operations reached Rs 2,250.36 crore in Q2 FY27, up from Rs 1,925.89 crore in Q2 FY26, while finance costs fell to Rs 250.61 crore from Rs 320.19 crore. The company reported earnings before interest, tax, depreciation and amortisation, or EBITDA, excluding other income, of Rs 438.83 crore and an EBITDA margin of 19.5%.

DBL said the consolidated EBITDA margin improved for a second consecutive quarter. The Q2 FY27 margin of 19.5% was above 18.1% in Q1 FY27 and 17.1% in Q4 FY26. Other income was Rs 61.96 crore in Q2 FY27, compared with Rs 68.81 crore a year earlier, which distinguishes the company’s EBITDA measure from total income.

Sequentially, revenue from operations declined from Rs 2,377.78 crore in Q1 FY27, but profit before exceptional items and tax increased from Rs 157.10 crore. Total expenses were Rs 2,135.91 crore in the September quarter, compared with Rs 2,267.64 crore in the June quarter. Finance cost rose slightly from Rs 244.95 crore in Q1 FY27, even as the pre-exceptional tax profit increased.

Which DBL businesses contributed to Q2 execution?

DBL disclosed gross engineering, procurement and construction, or EPC, revenue of Rs 1,499 crore and mining revenue of Rs 433 crore in Q2 FY27. Mining special-purpose vehicles recorded revenue of Rs 795 crore in H1 FY27 at an EBITDA margin of 25%, while consolidated income from infrastructure investment trusts, or InvITs, was Rs 37 crore in Q2 FY27.

Coal production rose 27% sequentially to 6.1 million tonnes in Q2 FY27 from 4.79 million tonnes in Q1 FY27, taking H1 FY27 output to 10.89 million tonnes. DBL reiterated a target of about 57 million tonnes of annual coal production by FY29. At that production level, management said the mining business alone is expected to generate around Rs 1,000 crore of annual operating cash flow.

DBL also said projects awarded in Q4 FY26, with an aggregate value of about Rs 15,000 crore, were in mobilisation and are expected to begin contributing from Q3 FY27. The company expects this to lift EPC execution in the second half. The release does not provide a segment-wise Q2 profit breakdown for EPC, mining and InvIT operations.

What does DBL’s order book indicate about future work?

DBL’s order book reached a record Rs 33,081 crore at September 30, 2026, up 19% from Rs 27,691 crore at June 30, 2026 and 15% from Rs 28,830 crore at March 31, 2026. Fresh order inflow was Rs 7,321 crore in Q2 FY27, bringing H1 FY27 inflow to Rs 7,589 crore.

The book spans 12 business verticals. Irrigation and water represented about 20.7%, mining 16.9%, and roads and highways 15.6%, while other verticals accounted for 46.8%. Renewable energy and power transmission together represented 27% of the book, exceeding the share of roads and highways cited by DBL.

H1 FY27 order inflow represented 76% of the lower end of DBL’s reiterated FY27 order-inflow guidance of Rs 10,000 crore to Rs 12,000 crore. The company said its order book was about 3.6 times the lower end of its FY27 standalone revenue guidance of Rs 9,107 crore. Those figures are management guidance and coverage calculations, rather than reported full-year revenue.

How are DBL’s debt and asset plans changing?

DBL reported standalone net debt of Rs 2,146 crore at September 30, 2026, compared with Rs 2,106 crore at June 30 and Rs 1,880 crore at March 31. Consolidated net debt stood at Rs 8,950 crore, while consolidated finance costs in H1 FY27 declined 39% year on year to Rs 495.56 crore from Rs 817.72 crore.

Management reaffirmed its target to become net debt-free on a standalone basis by FY28. DBL said this plan is supported by transfers of remaining HAM assets to Anantam Highways Trust, Alpha Alternatives’ equity co-investment and improved collections. The company expects working-capital requirements to ease in the second half and has targeted about 120 working-capital days by the end of FY27.

DBL signed agreements with Alpha Alternatives Fund Advisors LLP and its associates for the Mekhali transmission project and a 1,363 megawatt alternating-current solar portfolio. According to DBL, Alpha Alternatives will co-invest 49% of the combined equity requirement of about Rs 1,680 crore during construction and acquire DBL’s remaining 51% stake after commissioning. DBL said EPC work worth more than Rs 6,612 crore would remain with it under these projects.

Conclusion

DBL’s Q2 FY27 result shows higher profit before exceptional items and tax despite lower reported profit after tax. Revenue reached Rs 2,250.36 crore, pre-exceptional tax profit was Rs 176.42 crore and EBITDA margin rose to 19.5%, while exceptional gains declined from Rs 122.30 crore to Rs 1.75 crore.

The next disclosed items to watch are the expected Q3 FY27 contribution from about Rs 15,000 crore of recently awarded projects, progress towards FY27 order-inflow guidance of Rs 10,000 crore to Rs 12,000 crore, and execution of HAM, transmission and solar asset-transfer plans. DBL’s FY28 standalone net-debt-free target and its goal of about 120 working-capital days by FY27-end also remain stated milestones.