Financial Performance Highlights (H1 FY27)

  • Revenue from Operations: ₹75 crores (compared to ₹42 crores in H1 FY26), representing year-on-year growth of 78.52%
  • EBITDA: ₹14.60 crores (compared to ₹8.98 crores in H1 FY26), representing year-on-year growth of 62.43%
  • Profit After Tax (PAT): ₹9.50 crores (compared to ₹6.17 crores in H1 FY26), representing year-on-year growth of approximately 54%
  • EBITDA Margin: 19.45% (compared to 21.38% in H1 FY26)
  • PAT Margin: 12.66% (compared to 14.68% in H1 FY26)
  • EPS: ₹12.38 per equity share (compared to ₹8.04 in H1 FY26), representing year-on-year growth of approximately 54%
  • Debt-to-Equity Ratio: 0.45x as of September 30, 2026

Operational Metrics

  • Order Book: ₹370+ crores as of the call date
  • Tender Pipeline: ₹740+ crores as of the call date
  • Infra Projects Completed: Approximately ₹340 crores
  • Project Size Capabilities: ₹50+ crores

Segment-wise Performance (H1 FY27)

  • City Gas Distribution: Revenue of ₹49.67 crores with segment results of ₹10.15 crores
  • Power Distribution: Revenue of ₹3.89 crores with segment results of ₹48.72 lakhs
  • General Civil Construction Services: Revenue of ₹21.47 crores with segment results of ₹3.52 crores
  • Compressed Biogas Segment: Nominal loss of ₹5.09 lakhs (early stage of development)

Strategic Priorities and Business Updates

Management outlined the company's focus on strengthening core business, expanding execution capabilities, diversifying into complementary infrastructure sectors, and improving working capital efficiency and cash flow generation.

Diversification Strategy: The company is expanding beyond traditional city gas distribution into:

  • Power transmission distribution
  • Solar EPC
  • Compressed biogas (clean energy)
  • International opportunities through Desco Global FZ-LLC in UAE

Compressed Biogas (CBG) Update:

  • Pilot project completed with 60 days of testing
  • 97-98% capacity achieved during testing
  • Expected commercial launch before Diwali 2026 (injection into Adani Total Gas pipeline)
  • Potential benefit from government GOBARDHAN scheme (awaiting state-level subsidy details)

International Operations:

  • Desco Global FZ-LLC (UAE subsidiary) participated in tender with ADNOC
  • Price bid opening expected in next 2-3 months
  • Operations were temporarily on hold due to Middle East geopolitical issues

Guidance and Outlook

  • FY27 Revenue Guidance: ₹190-200 crores (conservative estimate)
  • Long-term Ambition: Reach ₹1,000 crores revenue by FY2030 (dependent on business opportunities, order inflows, execution capabilities, market conditions, and financial health)
  • Expected Margin Ranges:
  • CGD: 12.5-13.5% PAT margin
  • Solar EPC: 10-11% PAT margin
  • Power Transmission & Distribution: 11-12% PAT margin

Working Capital and Financing

  • Working capital management remains a priority with focus on timely billing, certification follow-ups, collection efficiency
  • Plan to restructure high-interest NBFC loans (16-17%) by December 15, 2026
  • Loan limit increased to ₹150 crores
  • Focus on improving cash flow conversion alongside profitability

Management and Governance

  • Recent appointments to strengthen governance and execution: Mr. Arun Kumar (execution excellence), Mr. Shailesh Naik (Independent Director), Mr. Kalpesh Patel (recent board member)
  • Emphasis on professional management and transparency

Q&A Session Highlights

  • Growth Concerns: Management addressed questions about slower growth in September, explaining that significant project activity concentrates in H2 (October-March)
  • Geopolitical Impact: Monitoring Middle East uncertainties for potential impact on material prices, logistics, and procurement costs
  • Shareholder Importance: Emphasized equal importance to all shareholders regardless of shareholding size
  • Business Transformation: Confirmed transition from CGD contractor to diversified EPC company focusing on energy mix and associated infrastructure