Capacit'e Infraprojects Eyes Strong H2 Growth and Margin Stability

Ashwin Thakker

— 2 min read

Key Facts on Outlook:

  • Full-year FY26 revenue growth projected at 20% CAGR, aiming for over INR 1,500 crores in H2.
  • EBITDA margin guidance maintained at 16.5% to 17.5% for FY26.
  • Strong order book exceeding INR 11,000 crores, targeting INR 4,000-4,500 crores in new orders for FY26.
  • Anticipated substantial improvement in positive cash flow during FY26.
  • Strategic focus on ramping up project execution in the second half of FY26.
  • Finance costs expected to decrease, with average interest rates targeting below 10%.

Capacit'e Infraprojects Limited reaffirmed robust forward guidance for FY26 despite Q1 challenges. The company anticipates strong revenue growth of 20% CAGR, maintaining impressive EBITDA margins, and aims to surpass new order targets. Strategic execution ramp-up in H2, coupled with optimized operations and improved cash flow, underpins this optimistic outlook.

Revenue and Margin Outlook

Capacit'e Infraprojects remains confident in achieving its full-year guidance, projecting a 20% Compound Annual Growth Rate (CAGR) for revenue in FY26. Despite a Q1 impacted by early monsoons and holiday-related labor migration, the company expects a significant ramp-up in execution during the second half of the fiscal year, aiming for over INR 1,500 crores in H2 revenue. Management reiterated its full-year EBITDA margin guidance of 16.5% to 17.5%, attributing strong performance to

"disciplined project management, prudent financial oversight, and strategic decision-making."

Initiatives to improve productivity and margins are also underway.

Operational and Financial Strategy

The company's optimism is supported by a robust order book exceeding INR 11,000 crores, providing over three years of revenue visibility. Capacit'e aims to secure INR 4,000-4,500 crores in new orders for FY26, leveraging a "strong bid pipeline" and a strategy to "pick and choose" projects. Key projects like CIDCO and MHADA are set for increased momentum from Q3. Financially, the company forecasts a

"substantial improvement in the current financial year"

in positive cash flow. Efforts to reduce finance costs are ongoing, targeting an average interest rate below 10% as high-interest debentures are phased out.

Capacit'e Infraprojects is poised for a strong FY26, driven by a clear growth strategy, robust order book, and commitment to operational excellence. Despite initial Q1 hurdles, the company’s focus on H2 execution, margin stability, and improved cash flow positions it well for sustained performance and value creation. Management's cautious optimism reflects a strategic approach to navigate market dynamics and deliver on its forward-looking commitments.

Read more