Financial Performance Highlights

Consolidated Q1 FY27 Results:

  • Revenue from operations: ₹380 crores (39% YoY growth from ₹273 crores in Q1 FY26)
  • Total income: ₹393 crores (40% YoY growth from ₹281 crores)
  • EBITDA: ₹139 crores (30% YoY growth from ₹107 crores) at 35% margin
  • Profit after tax: ₹65 crores (30% YoY growth from ₹50 crores)
  • Cash profit: ₹104 crores (from ₹82 crores YoY)

Sequential Performance (Q1 FY27 vs Q4 FY26):

  • Revenue increased from ₹350 crores to ₹380 crores (+₹29 crores)
  • EBITDA decreased from ₹143 crores to ₹139 crores
  • EBITDA margin declined from 40% to 35%
  • PAT decreased from ₹69 crores to ₹65 crores

Margin Analysis

Core crane rental EBITDA margin declined from 53% in FY26 to 47% in Q1 FY27 (6 percentage point drop) due to:

  • ₹6.2 crores higher expected credit loss provisions from receivables aging
  • ₹1.4 crores mark-to-market reinstatement of foreign currency loan (non-cash)
  • One-time incentive payments to frontline employees and senior management for surpassing ₹1,000 crores top line in FY26
  • Revenue mix change with higher ancillary equipment and cross-rental of cranes

Underlying core margin excluding forex and incentive items was approximately 49%. Company expects credit provisions to rationalize during FY27, potentially returning margins above 51%.

Working Capital Position

Group Days Sales Outstanding (DSO) stood at:

  • Crane rental: 124 days
  • Renewable E&C: 98 days
  • GCC business: 201 days

GCC collections improved in July 2026 post-quarter end.

Business Mix

  • Crane rental: 60% of revenue
  • Renewable E&C: 37% of revenue
  • Project EPC: 3% of revenue

Full year expectation: ~2/3 revenue from crane rental, ~1/3 from renewable E&C

Operational Metrics

Fleet Details:

  • Total cranes: 492
  • Gross block: ~₹3,300 crores

Utilization and Yields:

  • India & Botswana: 86% utilization at 2.29% yield
  • GCC: 86% utilization at 4.10% yield
  • GCC total income: ₹19 crores at 23% EBITDA margin
  • Saudi operations achieved cumulative EBITDA positive performance

Balance Sheet & Capital Structure

  • Gross debt-to-equity: 0.54 times (FY27 guidance ceiling: 0.72 times)
  • Group ROCE: ~16% as of March 2026
  • Treasury surplus: >₹300 crores
  • Net debt-to-equity: 0.3-0.7 range

CAPEX Deployment

  • FY27 approved CAPEX pool: ₹652 crores
  • Q1 FY27 capitalized: ₹92 crores
  • Remaining deployment: ₹560 crores in second half of FY27
  • Expected revenue increase: 15% within FY27 from this investment

Business Environment & Order Book

Macro Context:

  • India GDP growth: 7.7% in previous year, Q1 FY27 tracking at ~6.6%
  • Government capital expenditure at record ₹12.2 lakh crores
  • Repo rate reduced by 100 basis points

Order Pipeline:

  • Secured order book: ~₹1,250 crores (fully executable within FY27)
  • Inquiry pipeline: ~₹5,600 crores across multiple sectors

Sector-wise Capacity Additions:

  • Wind: Record 6 GW added last year, 29 GW under construction
  • Thermal: 62 GW under bid or award
  • Steel: Targeting 300 million tons by 2030
  • Cement: Adding over 160 million tons
  • Nuclear: Open to privatization under SHANTI Act

Segment Performance

Renewables Business (Sangreen Future Renewable):

  • Order book: ₹686 crores
  • Asset-light, high ROCE business model
  • Complements core crane rental business

GCC Operations:

  • Cumulative EBITDA positive achieved in first year
  • New orders secured in Qatar
  • Botswana commissioning completed on schedule with $1.1 million repatriated to India
  • 0-24 month pipeline: ~$38 million
  • Zero working capital draw in Saudi Arabia

Organizational Initiatives

Elevate 2030 Strategy:

  • Expansion from single-country to multi-country operations (India, Saudi Arabia, Botswana, Qatar)
  • Digital transformation initiatives
  • New HRMS and CRM software scheduled to go live

Guidance & Outlook

FY27 Guidance (unchanged):

  • Consolidated revenue: ₹1,400-1,500 crores
  • EBITDA: ₹525-575 crores
  • Blended return on capital: 16.25-16.5%

FY28 Projection:

  • Revenue growth: 30-40%
  • EBITDA growth: 20-30% (₹650-700 crores range)

Q&A Session Highlights

Capital Allocation: Decisions based on judicious capital allocation ensuring group ROCE maintenance and internal IRR criteria.

Market Positioning:

  • Saudi investment thesis validated by higher yields (4.10% vs India 2.29%)
  • Saudi Arabia experiencing construction boom due to Vision 2030, FIFA World Cup, World Expo
  • India yields improving, not capped by competition

Debt Structure:

  • India debt: INR denominated at ~8% ± 0.25%
  • International debt: USD denominated at SOFR + spread (5.5-6%)

Wind E&C Business:

  • Margins expected to normalize at 12-15%
  • Revenue doubling annually for three years
  • Execution capability determines order intake and revenue recognition

Safety Record: Company maintains gold standard safety protocols across geographies with transfer of institutional knowledge to new markets.