Sugs Lloyd order book hits Rs 1,067 crore, Bihar share falls

Sugs Lloyd Limited had a Rs 1,067 crore order book on September 30, 2026, after winning seven Q2 FY27 orders worth Rs 395 crore excluding Goods and Services Tax, all outside Bihar. Those wins reduced Bihar’s share of the backlog to about 55% from about 82% at the end of July.

How did Sugs Lloyd reduce its Bihar order-book exposure?

Sugs Lloyd reduced its Bihar exposure because every one of its seven Q2 FY27 orders came from outside the state. Chief Executive Officer Satyakam Basu said Bihar had traditionally been the company’s stronghold, but its share of the order book declined by about 27 percentage points, from about 82% at July-end to about 55% on September 30.

The seven new orders were worth Rs 395 crore excluding GST and Rs 466 crore including GST. Their value was almost three times Sugs Lloyd’s Q2 FY27 revenue of Rs 134.91 crore. Management said the company operates across 11 states, while Chairman and Managing Director Santosh Shah described the order book as spread across 10 states.

The September 30 backlog was about 3.5 times Sugs Lloyd’s FY26 revenue, according to management. The shift followed management’s stated effort to expand beyond Bihar, although the call did not disclose individual values, customers or states for all seven new orders.

What makes up Sugs Lloyd’s Rs 1,067 crore order book?

Sugs Lloyd’s order book comprised about Rs 929 crore in power transmission and distribution, including smart-grid work, with the remainder in solar. The power transmission and distribution, or T&D, segment therefore represented about 87% of the Rs 1,067 crore backlog at September 30.

About nine-tenths of the backlog was with government utilities, public sector undertakings and centrally funded schemes, management said. A good part of the remainder was with Tata Power’s distribution company and other private utilities. Basu said this mix supported payment security, though the call did not disclose project-level payment terms.

The book includes a flagship partner project valued at about Rs 542 crore before GST, which is scheduled for completion by March 2028. Management said the project has required the mobilisation of people, equipment and vendors across multiple sites, and has developed supervisory control and data acquisition, or SCADA, and advanced metering and billing system capabilities.

The composition broadly matches current execution. Sugs Lloyd reported H1 FY27 revenue from operations of Rs 213.31 crore, up 73% from Rs 123.03 crore in H1 FY26, with power T&D and smart grid contributing about 80% of first-half revenue and solar engineering, procurement and construction, or EPC, contributing the balance.

When will Sugs Lloyd’s new orders contribute revenue?

Sugs Lloyd said its Odisha maintenance contract started on October 1, 2026 and will bill monthly for three years, adding roughly Rs 60 crore of annual recurring revenue. Management cited the contract as a source of revenue visibility rather than a one-time EPC project.

Punjab work under the Revamped Distribution Sector Scheme, or RDSS, is to be completed over 15 months, while the Amritsar solar plant is scheduled for completion by December. Management did not state the individual contract values, but identified the Odisha, Punjab and Amritsar projects as priorities for execution in coming quarters.

Sugs Lloyd said its business is normally weighted towards the second half, particularly the March quarter. Q2 FY27 revenue was Rs 134.91 crore, 72% above Q1 FY27 and 12% higher than Q2 FY26, while H1 FY27 revenue represented 71% of the revenue recorded in all of FY26.

Q2 FY27 earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 19.1 crore, up 91% year on year and 59% quarter on quarter. Profit after tax was Rs 12.51 crore, up 108% year on year and 67% from Q1 FY27. Management said quarterly margins can vary with the mix of project components executed, while expecting about 15% EBITDA margin for FY27.

What further orders and products is Sugs Lloyd pursuing?

Sugs Lloyd said it was tracking floated tenders worth about Rs 19,150 crore, of which it had selected about Rs 6,600 crore to bid for. About Rs 1,260 crore was at the final evaluation stage, consisting of roughly Rs 800 crore in power T&D, Rs 400 crore in solar and storage, and Rs 60 crore in products.

Management targets a 15% to 20% strike rate on qualified bids and 10% to 15% in states new to Sugs Lloyd. These are management targets rather than awarded work. The company also said a Jammu and Kashmir transmission tender, in which it was the lowest bidder, was scrapped following a state-policy change.

Products remain part of management’s FY28 plan. Sugs Lloyd said Madhya Pradesh and Noida Power orders added two utilities to its fault passage indicator and closer platform, and management aims for products to account for about 10% of revenue by FY28. It estimates the Indian market at 2.65 lakh feeders.

The compact fault passage indicator has completed testing, and management said it would supply the first unit under an existing order during the quarter. Work on vacuum circuit breakers and rain units is continuing, while a potential SCADA technical collaboration is under discussion and could come together by the first half of the next financial year.

How is Sugs Lloyd funding execution and managing cash flow?

Sugs Lloyd reduced trailing-12-month receivable days to about 150 in September 2026 from about 179 in June and about 193 in March. Shah said the company had collected about Rs 50 crore after the September-quarter close, while management focused on faster certification of milestones and payment releases.

Operating cash outflow was Rs 12 crore in H1 FY27, compared with Rs 37 crore for the full FY26 year. Shah said the company did not expect to be cash-positive while maintaining growth of about 70%, as rising execution requires working capital. Management expects the cycle to shorten as the Patna project moves into bulk billing.

The company is using surety bonds where clients accept them instead of cash-backed bank guarantees, as well as trade and purchase-bill discounting. Finance costs declined to 2.8% of H1 FY27 revenue from 3.2% a year earlier, and interest cover improved to 5.2 times from 4.8 times.

Management said debt was about Rs 160 crore at the time of the call and expects about Rs 230 crore to Rs 240 crore around FY27-end or the start of FY28, followed by about Rs 300 crore by FY28-end. Shah said Sugs Lloyd plans to maintain debt-to-equity of about 1.2 to 1.3 times, subject partly to wider acceptance of surety bonds.

Conclusion

Sugs Lloyd’s seven out-of-state Q2 FY27 wins expanded its order book to Rs 1,067 crore and lowered the concentration of Bihar to about 55%. The backlog remains primarily power T&D at about Rs 929 crore, while H1 FY27 revenue rose 73% to Rs 213.31 crore as smart-grid and distribution project execution increased.

The next developments to watch are monthly billing under the Odisha contract from October 1, the 15-month Punjab RDSS schedule, and the Amritsar solar completion target in December. Management also plans to convert Rs 1,260 crore of final-stage tenders, improve receivable days from about 150, and deliver the first compact fault passage indicator unit during the quarter.