Execution Performance and Liquidity
Capacit'e Infraprojects delivered an 11.6% increase in annual operating revenue to ₹2,622.72 crore for FY26. The company successfully reduced its working capital cycle by 43 days, driven by enhanced debtor collections and optimized operational processes. This efficiency was reflected in a robust surge in net cash from operating activities, which jumped to ₹224 crore from ₹52 crore in the prior year.
Despite facing execution headwinds due to labor migration during assembly elections in West Bengal and Bihar, the company maintained a steady operational pace across its major project sites in the MMR and NCR regions.
Order Book and Growth Strategy
The company ended the fiscal year with a massive order book of ₹13,498 crore, providing strong visibility for the next few years. Management is increasingly focusing on Engineering, Procurement, and Construction (EPC) and Lump Sum Turnkey (LSTK) contracts to improve revenue per man-hour and reduce the risks associated with labor-intensive traditional contracting. Public sector projects, including those from CIDCO and MHADA, now account for 57% of the total order book.
For FY27, the company has guided for a 20% revenue growth, supported by a healthy pipeline of quality bids and ongoing project scale-ups.
Inflationary Pressures and Margin Outlook
- Commodity price volatility in aluminum and copper-based electrical products has led to a cautious EBITDA margin guidance of 15.5% to 16.5% for FY27.
- Management noted that while escalation clauses exist, wholesale price indices often fail to capture the 18-20% real-market price spikes observed recently.
- A ₹10 crore provision was factored into procurement costs to buffer against input price hikes until escalation receivables catch up.
- The company plans a capital expenditure of ₹165 crore for FY27, primarily for aluminum formwork and automated systems to mitigate labor shortage risks.
Operational Resilience
The year underscored our splendid execution capabilities across project sites and reinforced our track record of delivering consistent performance at scale.
What to Watch
- Normalization of labor strength back to the required level of 14,000+ workers at sites.
- Progress on the planned liquidation of non-core assets worth ₹50 crore in FY27.
- Effectiveness of escalation index adjustments in compensating for rising aluminum and electrical component costs.
- Execution ramp-up at major project sites like CIDCO and MHADA now that they are operational.
