GPT operating cash flow rose nearly fivefold in H1 FY27

GPT Infraprojects Limited generated about Rs 54 crore of net cash flow from operations in H1 FY27, nearly five times Rs 12 crore in H1 FY26. Contract assets increased by about Rs 45 crore from March, which management attributed mainly to expenditure on newly started projects before their first billing milestones.

Why did GPT’s operating cash flow increase in H1 FY27?

GPT’s net cash flow from operations rose by about Rs 42 crore year on year to Rs 54 crore in H1 FY27, while consolidated revenue increased only to Rs 594 crore from Rs 591 crore. Management attributed the cash-flow change to its focus on working-capital efficiency, cash generation and financial discipline.

Operating profit also increased faster than revenue in the six months ended September 30, 2026. Consolidated earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 16.1% to Rs 89 crore from Rs 77 crore, and the EBITDA margin increased to 15.0% from 12.9%.

Management did not provide a detailed reconciliation between the Rs 12 crore and Rs 54 crore cash-flow figures. It said, however, that collections and billing from existing contracts had improved in October, after the H1 period, and that reducing the working-capital cycle remained a priority.

What caused GPT’s contract assets to rise?

GPT said the approximately Rs 45 crore increase in contract assets over the six months from March resulted chiefly from Chambal, Kashi Ganga Bridge and Rapti contracts that had recently started. Management said it had spent around Rs 40 crore to Rs 45 crore on these projects before their first billing milestones were reached.

The company put the contract-asset balance discussed during the call at about Rs 543 crore, of which roughly Rs 10 crore was more than one year old. Management described the balance as current and said billing had begun on Chambal in October, providing an early route for a portion of the project spending to move into invoicing.

Contract assets include retention money, unbilled revenue and price-escalation amounts, according to management. GPT said about Rs 100 crore of cash retention had been deducted from customer bills and would be released when contracts are completed, while unbilled revenue increased by only about Rs 15 crore to Rs 20 crore in H1 FY27.

Management also clarified that the balance had been recognised over time and was not revenue still to be recognised during the remainder of FY27. The distinction matters because retention, escalation and unbilled work can have different triggers for certification, invoicing and cash collection in engineering, procurement and construction, or EPC, contracts.

How did GPT’s profitability and segments perform?

GPT’s consolidated EBITDA rose by Rs 12 crore in H1 FY27 despite revenue increasing by Rs 3 crore, lifting the margin by 210 basis points to 15.0%. Consolidated profit after tax was Rs 43 crore, including an Rs 8 crore non-cash goodwill-amortisation charge associated with the February 2026 acquisition of Alcon Builders & Engineers.

Infrastructure remained the larger operating segment in Q2 FY27, with revenue of Rs 262 crore and earnings before interest and tax, or EBIT, of Rs 33 crore. Management said the segment represented nearly 90% of quarterly revenue and almost 92% of EBIT, supported by execution at Prayagraj Ganga Bridge, Kolaghat and Kona Expressway.

By comparison, the Concrete Sleeper segment reported Q2 FY27 revenue of Rs 30 crore and EBIT of Rs 2.5 crore. Its Rs 852 crore order book compared with Rs 4,521 crore for Infrastructure, while management cited domestic supplies, exports to Bangladesh and African operations as activity drivers for the sleeper business.

Can GPT convert its order book into H2 revenue and cash flow?

GPT management expects H2 FY27 revenue of more than Rs 1,000 crore and full-year revenue above Rs 1,600 crore, implying full-year growth of about 25% to 27%. It said its Rs 5,373 crore order book, equivalent to 4.3 times FY26 revenue, was sufficient to support an H2 monthly revenue run rate of about Rs 160 crore.

Management said some orders had arrived in the preceding nine to 10 months and needed time to mobilise, which limited H1 conversion. It expects the effect of these orders to be more visible in H2 FY27 and to continue into FY28 and FY29, with the present order book expected to be executed over two to 2.5 years.

The H2 plan follows disruptions from West Bengal elections in April and May and an extended monsoon, which affected workforce availability and project execution in H1. Management said workforce availability had normalised and that significant billing had begun in October, although it did not quantify October revenue or collections.

New awards add to both the execution opportunity and the need to manage upfront project spending. During FY27 to date, GPT said it had secured about Rs 1,450 crore of contracts, including Rs 484 crore for the Mahanadi bridge, about Rs 428 crore of signalling contracts at Alcon and a five-year Rs 385 crore South African contract.

Conclusion

GPT’s H1 FY27 results show that operating cash generation improved materially even as contract assets rose. The move from Rs 12 crore to about Rs 54 crore of net cash flow from operations occurred alongside nearly flat consolidated revenue of Rs 594 crore, while management said only about Rs 10 crore of the approximately Rs 543 crore contract-asset balance was more than one year old.

The next measure of execution will be H2 FY27, when management targets more than Rs 1,000 crore of revenue and at least Rs 2,000 crore of order inflows. Investors can watch whether October billing, including at Chambal, and the ramp-up of new bridge, signalling and African contracts convert contract assets and order book into sustained collections.