Capacit'e Infraprojects Charts Strong Growth Ahead

Ashwin Thakker

— 2 min read
  • Sales Outlook: Targeting 20% CAGR for FY26; expects to achieve/surpass full year guidance with H2 FY26 revenue exceeding INR1,500 crores.
  • Margin Outlook: Full-year EBITDA guidance maintained at 16.5%-17.5%, expected to be achieved or bettered through optimization efforts.
  • Order Book & Inflows: Current order book over INR11,000 crores (3+ years visibility); FY26 new order inflow target INR4,000-INR4,500 crores.
  • Operational Efficiency: Managing labor challenges via eFORCE app and LRD, with projects 90-95% manned.
  • Financial Health: Anticipates substantial improvement in positive cash flow; aims to aggressively reduce promoter share pledge in next two quarters.
  • Capex: Full year FY26 capital expenditure projected at INR75-INR80 crores.

Capacit'e Infraprojects Limited has set an ambitious 20% CAGR revenue growth target for FY26, signaling strong forward momentum. Despite Q1 FY26 experiencing temporary challenges like early monsoons and festival-related labor migration, the company is confident in achieving its full-year guidance. This analysis delves into their strategic outlook for sales, margins, and operational efficiencies, highlighting a robust path for sustained growth.

Strong Revenue Growth and Robust Order Book

Capacit'e Infraprojects aims for a robust 20% CAGR in FY26. Despite Q1 facing seasonal challenges, the company expects significant execution ramp-up, projecting over INR1,500 crores in revenue during H2 FY26. Executive Chairman Rohit Katyal confidently stated,

"the company will achieve its full year's guidance."

Bolstered by an existing order book exceeding INR11,000 crores, offering over three years of visibility, and an FY26 order inflow target of INR4,000-INR4,500 crores, Capacit'e is strategically selecting projects to ensure sustainable momentum.

Optimizing Margins and Strengthening Financials

Capacit'e maintains its full-year EBITDA margin guidance at 16.5%-17.5%, expecting to achieve or surpass this via optimization. Financial health is improving, evidenced by INR54 crores in positive cash flow in Q1 FY26 and anticipated substantial working capital improvements. The company also aims to aggressively reduce promoter share pledge, targeting elimination of all but a project-specific limit by FY26 year-end. While manpower remains a "big issue," strategic tools like the eFORCE app ensure 90-95% project manning, supporting robust revenue targets.

Capacit'e Infraprojects demonstrates resilience and strategic foresight. Despite Q1 headwinds, the company is firmly on track to meet its ambitious full-year guidance for revenue and margins. Through disciplined project selection, enhanced operational efficiencies, and prudent financial management, Capacit'e is building a strong foundation for continued growth and sustainable value creation.

Read more