Dilip Buildcon
Cyclical: deleveraged road EPC
- Last close
- ₹410.90
- 29 Sept 2026 · reference
- 1D · 1M
- +1.0% · +1.0%
- price-only
- Weight
- 0.6%
- 31 Jul 2026 · Aug rank —
- Thesis review
- 8 Sep 2026
- Why We Own, p55
Approved description
Dilip Buildcon is one of India's largest road EPC contractors, now diversifying into mining (coal mine developer-operator contracts at Siarmal and Pachwara, 4.79 mn t produced in Q1FY27), irrigation/water, tunnels, and power transmission/solar. Order book was Rs 27,691 cr at Jun-2026 (mining 20.9%, irrigation/water 18.1%, roads 17.1%, others 43.9%). It has been monetising HAM road assets: 24 SPVs sold to Shrem group (2017-21) and 7 HAM projects (EV ~Rs 4,500 cr) seeded into the Anantam Highways InvIT (listed 17-Oct-2025, DBL 74%, Alpha Alternatives sponsor 26%), with 11 more HAM assets to be transferred by Mar-2027.
- 01Asset-light pivot funded by monetisation: next tranche of 11 HAM assets to Anantam InvIT worth ~Rs 1,750 cr in units (4 assets, ~Rs 700 cr, slated for Q2FY27) with <Rs 81 cr incremental equity; Alpha Alternatives to co-invest 49% (~Rs 830 cr of Rs 1,650 cr equity) in Rs 8,400 cr of transmission/solar projects.
- 02Deleveraging path: standalone net debt Rs 2,106 cr (Jun-26) with FY27 reduction target of Rs 600-800 cr and a stated net-debt-free standalone balance sheet by FY28; finance cost guided ~Rs 350 cr.
- 03Mining annuity: MDO coal volumes guided to 34 mn t in FY27 (27 Siarmal + 7 Pachwara) and ~57 mn t by FY29 at Rs 600-1,200/t, giving a steadier earnings base (mining 20.9% of order book).
- 04Cheap on book and order book: 0.94x P/B, order book Rs 27,691 cr = ~3x FY26 revenue, bid pipeline Rs 1.5 lakh cr; management guides 30-40% standalone revenue growth in FY27.
- 05Execution track record: ~90% of projects completed early (3 HAM projects worth Rs 1,700 cr finished ahead of schedule in Q1FY27), which earns early-completion bonuses.
Reference close, with results-period markers
- 1Q Sep-25 end · 30 Sept 2025
- 2Q Dec-25 end · 31 Dec 2025
- 3Q Mar-26 end · 31 Mar 2026
- 4Q Jun-26 end · 30 Jun 2026
Quality score, technicals and Buoyant Score
Computing the scorecard…
Latest quarter · Q Jun-26
| Line (₹ cr) | Q Jun-26 | YoY | QoQ |
|---|---|---|---|
| Net Sales | 2,378 | −9.2% | +3.4% |
| Operating Profit | 429 | −17.7% | +9.4% |
| Net Profit | 113 | −50.7% | +82.1% |
Reported vs internal estimate: internal quarterly estimates are not in the supplied package; consensus feed not licensed. YoY/QoQ per PRD §12.5 (transitions, not %, on non-positive bases).
Position and valuation context
General industrial/consumer/IT preset: growth, margins, ROCE/ROIC, working capital, FCF, net debt; P/E, EV/EBITDA.
Valuation range
No headline target on this page; the book quotes the thesis and the risk rather than a target.
What we watch
- Transfer of 4 HAM assets (~Rs 700 cr of Anantam units) in Q2FY27 and remaining 7 by Mar-2027; Alpha Alternatives Rs 8,400 cr co-investment closing.
- Order inflows from the Rs 1.5 lakh cr bid pipeline in H2FY27 (Chhattisgarh Rs 2,524 cr water project already L1) and potential InvIT route for renewable/transmission assets (Business Standard, 26-Aug-2026).
- Q2/Q3FY27 results showing standalone debt reduction toward the Rs 600-800 cr FY27 target and working capital normalisation.
- Consolidated net debt of Rs 7,801 cr (1.1x equity) and working-capital days of 133 (target 120 by Mar-27); debtor days up from 50.5 to 67.2 and interest coverage is low (screener).
- Order inflow of only Rs 268 cr in Q1FY27 vs Rs 10,000-12,000 cr FY27 target; dependence on lumpy awards and InvIT unit transfers that have already slipped by a quarter.
- Earnings quality: FY26 PAT of Rs 1,398 cr was driven by exceptional/asset-sale gains (ROE 6%, FY27e ROE 2.9% per Buoyant); mining ramp-up faced a labour strike at Pachwara.