Core4 FY26 Revenue Growth Was Concentrated in Water, Karnataka

Core4’s revenue from operations rose 167.41% to Rs 91.34 crore in fiscal 2026, but the expansion was concentrated in water and wastewater engineering, procurement, construction and commissioning (EPCc), Karnataka projects and subcontracting agreements. Water EPCc supplied 67.65% of service revenue, Karnataka provided 85.65% of operating revenue and subcontracting provided 67.67%.

How did Core4’s FY26 revenue growth arise?

Core4’s FY26 revenue growth arose principally from service revenue, which increased by Rs 50.29 crore to Rs 84.44 crore from Rs 34.16 crore in fiscal 2025. Revenue from operations increased by Rs 57.18 crore, from Rs 34.16 crore in FY25 to Rs 91.34 crore in FY26. Service revenue represented 96.83% of FY26 operating revenue, while product revenue was Rs 2.90 crore, or 3.17%, after no product revenue in FY25.

Core4 reports operating revenue from EPC services in water and wastewater treatment, railway electrification and infrastructure, extra-high-tension transmission and distribution systems, and automation and supervisory control and data acquisition systems. EPCc refers to contracts involving engineering, procurement, construction and commissioning. Service revenue is generally recognised as services are performed under the proportionate-completion method, using contract value, associated costs, number of acts or another suitable basis.

Core4’s total income increased to Rs 91.79 crore in FY26 from Rs 34.60 crore in FY25, including other income of Rs 0.45 crore. Interest income accounted for Rs 0.45 crore of FY26 other income. Restated consolidated profit after tax increased 224.69% to Rs 12.37 crore from Rs 3.81 crore, and represented 13.47% of FY26 total income compared with 11.01% in FY25.

Why did water EPCc dominate Core4’s FY26 revenue growth?

Water and wastewater treatment EPCc dominated Core4’s FY26 revenue growth by generating Rs 59.83 crore, or 67.65% of service revenue, compared with Rs 8.67 crore, or 25.38%, in FY25. The category increased by Rs 51.60 crore, making it the largest service stream after being smaller than railway electrification and infrastructure in FY25.

Railway electrification and infrastructure remained Core4’s second-largest service category, rising to Rs 24.76 crore in FY26 from Rs 16.10 crore in FY25. Its share of service revenue nevertheless declined to 27.99% from 47.13% because water EPCc expanded at a faster rate. Automation and supervisory control and data acquisition systems declined to Rs 2.20 crore from Rs 8.11 crore, while extra-high-tension transmission and distribution systems increased to Rs 1.66 crore from Rs 1.28 crore.

The water EPCc concentration means FY26’s revenue composition depended materially on the execution and billing of water and wastewater contracts. Under Core4’s revenue-recognition policy, service revenue is recognised when performance occurs and there is no significant uncertainty about the consideration receivable. The mix would therefore continue only if the relevant contracts progress through their execution and billing stages.

How concentrated was Core4’s FY26 revenue growth in Karnataka?

Karnataka concentrated Core4’s FY26 revenue growth by contributing Rs 78.23 crore of Rs 91.34 crore in operating revenue, equal to 85.65%. Karnataka revenue was Rs 14.75 crore in FY25, or 43.17% of operating revenue. The state’s revenue increased by Rs 63.49 crore and its revenue share rose 42.48 percentage points year on year.

Core4 attributed the geographical concentration to the location and stage of project execution. Tamil Nadu revenue declined to Rs 3.25 crore in FY26 from Rs 5.22 crore in FY25, Telangana declined to Rs 0.15 crore from Rs 4.40 crore, and Odisha declined to Rs 1.89 crore from Rs 2.53 crore. Jammu and Kashmir rose to Rs 2.65 crore from Rs 0.91 crore, while Uttar Pradesh contributed Rs 1.93 crore in FY26 after no revenue in FY25.

Karnataka’s FY26 share was nearly twice its FY25 share, making revenue sensitive to the timing and progress of projects in that state. The subsequent three months ended June 30, 2026 showed a further increase in concentration: Karnataka contributed Rs 43.37 crore, or 95.01%, of Core4’s Rs 45.65 crore operating revenue for the period.

What did subcontracting and customer mix contribute to FY26 growth?

Subcontracting agreements contributed Rs 61.81 crore, or 67.67%, of Core4’s FY26 operating revenue, compared with Rs 14.73 crore, or 43.12%, in FY25. Revenue attributable to such agreements therefore increased by Rs 47.08 crore. This shift means the FY26 operating mix relied more heavily on subcontracting arrangements than in the preceding fiscal year.

Private-sector customers contributed Rs 61.80 crore, or 67.66%, of FY26 operating revenue, up from Rs 14.88 crore, or 43.57%, in FY25. Revenue from government and public-sector undertaking customers rose in amount to Rs 29.54 crore from Rs 19.27 crore, but their share fell to 32.34% from 56.43%. The disclosed private-sector and subcontracting amounts are close but not identical, so the figures show parallel shifts rather than proving that all private-sector revenue was subcontracting revenue.

The higher execution level was accompanied by increased materials use and working-capital balances. Cost of materials consumed rose 220.75% to Rs 48.77 crore in FY26 from Rs 15.21 crore in FY25. Trade receivables increased 108.47% to Rs 75.45 crore at March 31, 2026, and Core4 linked the increase to higher revenue and the milestone-based billing and certification cycle of EPC contracts.

How did working capital move alongside FY26 revenue growth?

Working-capital requirements expanded alongside Core4’s FY26 revenue growth, with total borrowings rising to Rs 31.58 crore at March 31, 2026 from Rs 18.58 crore a year earlier. Short-term borrowings increased to Rs 29.32 crore from Rs 16.85 crore, mainly as secured bank overdraft and cash-credit facilities rose to Rs 24.76 crore from Rs 13.83 crore. Core4 said these facilities supported higher working-capital needs as operating revenue increased.

Trade payables increased 140.67% to Rs 16.45 crore at March 31, 2026 from Rs 6.83 crore at March 31, 2025, while materials consumed increased to Rs 48.77 crore from Rs 15.21 crore. Of FY26 trade payables, Rs 14.99 crore, or 91.16%, had been outstanding for less than one year from the due date. The trade-payables turnover ratio increased to 5.30 times in FY26 from 3.88 times in FY25.

Core4 reported net cash used in operating activities of Rs 10.81 crore in FY26, compared with Rs 8.59 crore in FY25. The FY26 operating cash outflow followed increases of Rs 39.46 crore in trade receivables and Rs 38.61 crore in other current assets, partly offset by increases of Rs 9.61 crore in trade payables and Rs 11.21 crore in short-term provisions. These cash-flow movements show that reported revenue and profit growth coincided with greater funds tied up in operating balances.

Conclusion

Core4’s FY26 revenue growth was concentrated rather than distributed evenly across service categories, geographies and contractual arrangements. Water and wastewater EPCc accounted for more than two-thirds of service revenue, Karnataka generated more than five-sixths of operating revenue, and subcontracting agreements contributed more than two-thirds of operating revenue. These changes accompanied operating revenue of Rs 91.34 crore and restated consolidated profit after tax of Rs 12.37 crore.

The next disclosed period to watch is the three months ended June 30, 2026, when Karnataka’s share of operating revenue rose to 95.01% and revenue attributable to subcontracting agreements was 88.59%. Core4 also reported trade receivables of Rs 101.54 crore and total borrowings of Rs 40.57 crore at June 30, 2026, making collections, billing certification and project execution relevant to whether the FY26 mix persists.