Sathlokhar FY27 target hinges on Rs 150 crore add-on packages

Sathlokhar says its Rs 1,400 crore FY27 revenue target depends on executing Rs 738 crore of remaining order book, receiving Rs 150 crore of expected add-on packages at live projects and billing part of orders expected in November and December. Revenue from operations was Rs 509 crore in the first half, or H1, of FY27.

How does Sathlokhar bridge the gap to Rs 1,400 crore in FY27?

Sathlokhar needs Rs 891 crore of revenue in H2 FY27 to reach its Rs 1,400 crore guidance after reporting Rs 509 crore of revenue from operations in H1 FY27. Management said the assigned order book totalled Rs 1,239 crore, with Rs 501 crore billed through H1 and Rs 738 crore left for execution.

Management’s stated execution bridge nearly matches the remaining revenue requirement before considering late-year order billing. The Rs 738 crore of unexecuted order book plus Rs 150 crore of expected packages at ongoing sites equals Rs 888 crore, Rs 3 crore below the Rs 891 crore required after H1 FY27 revenue.

The bridge uses two different measures disclosed by management: Rs 509 crore of reported H1 revenue from operations and Rs 501 crore of billing cited against the order book. Management also later referred to Rs 520 crore as billed in H1 and Rs 718 crore remaining, so the call did not provide one reconciled order-book-to-revenue schedule.

What are the Rs 150 crore of expected add-on packages?

The Rs 150 crore represents packages that Sathlokhar expects to receive at projects already under execution, rather than orders already booked. Management said the likely packages include electrical, mechanical, plumbing, firefighting, data, interior works and other scopes beyond initial civil and pre-engineered building, or PEB, work.

Management expects these packages could be awarded before December and executed in January, February and March. It said many projects are scheduled for completion in the first or second quarter of the next financial year, giving customers an incentive to use the existing contractor for linked works.

Sathlokhar said 30% to 40% of its orders usually come from existing clients, which supports management’s expectation of further packages at current sites. However, the Rs 150 crore is an expectation, not a disclosed order award, and the call did not identify customers, project locations or contract values for those packages.

How much does Sathlokhar rely on November and December orders?

Sathlokhar relies on orders expected in November and December to provide additional billing support in January to March. Management said projects awarded in those two months could be executed during the last three months of FY27, with 30% billing occurring in that period.

The company did not disclose the value of prospective November and December orders, so their possible contribution to FY27 revenue cannot be calculated from the call. Management said October 2026 order intake was about Rs 117.61 crore, excluding goods and services tax, or GST, but did not state that this intake formed part of the Rs 150 crore expected add-on packages.

Management also said it hoped to receive further orders from Reliance Group after executing projects for the group during the past two years. No award value, timing or contract confirmation was disclosed for that potential repeat business, which means it remains a management expectation rather than part of the reported order book.

What supports execution of Sathlokhar’s FY27 plan?

Sathlokhar’s reported H1 FY27 growth provides the operational backdrop for its guidance, with revenue from operations rising 85% year on year to Rs 509 crore from Rs 271 crore in H1 FY26. Q2 FY27 revenue was Rs 297 crore, compared with Rs 138 crore in Q2 FY26, a 100% increase.

Operating earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 131% year on year to Rs 74 crore in H1 FY27, while the EBITDA margin rose by 296 basis points to 14.8%. Profit after tax increased 120% to Rs 51 crore, with a 10.1% margin, according to management’s H1 commentary.

Management said customers were seeking faster project completion, which it identified as a key driver of Q2 execution. Sathlokhar operates an engineering, procurement and construction, or EPC, model covering civil work, PEB structures, utilities, mechanical and electrical work, and fit-outs, which management said positions it to receive subsequent packages at existing locations.

The new PEB manufacturing facility is another planned support for execution. Management said the facility was ready but awaited government approvals expected in November, with production expected from December, and estimated annual turnover potential of Rs 140 crore to Rs 150 crore from the facility under Sathlokhar orders.

What funding does Sathlokhar need to execute growth?

Sathlokhar said current working capital is sufficient to meet FY27 guidance, but it may need additional funding for FY28 as order bookings grow. Management estimated that each Rs 100 crore of turnover requires Rs 25 crore to Rs 30 crore, including working capital, performance bank guarantees and advance bank guarantees.

Management said its overall banking limit was about Rs 300 crore, of which Rs 100 crore had been used for bank guarantees and about Rs 50 crore to Rs 60 crore remained unused. It said it was working with banks for debt and could consider non-convertible debentures, or NCDs, depending on future order-book needs; management said it had no equity-raising plan at that stage.

An analyst stated that borrowings had risen by about Rs 90 crore from March 2026 to Rs 235 crore at September, while cash and cash equivalents stood at Rs 46 crore. Management did not provide a debt-reduction timeline and instead linked future funding needs to client requirements, guarantees and FY28 order conversion.

Management said customer bill certification takes three to four weeks after submission and payment processing takes roughly another four weeks. It therefore put the collection cycle at 45 to 60 days from bill submission, which can move cash collection from one quarter into the next in its EPC model.

Conclusion

Sathlokhar’s FY27 revenue guidance has a stated numerical bridge, but a meaningful part of it remains conditional. The Rs 738 crore of remaining order book and Rs 150 crore of anticipated add-on work together nearly cover the Rs 891 crore of revenue needed after H1 FY27, while billing from prospective November and December wins provides the additional buffer.

The next points to watch are the award of expected packages before December, the scale and execution timing of November and December orders, and the planned December start of PEB production following government approvals. Management’s ability to fund guarantees and working capital within its bank limits, or through debt or NCDs, will also matter as it pursues FY28 growth.