Capacit'e Infraprojects Targets Robust FY26 Growth

Ashwin Thakker

— 2 min read

Key Facts on Outlook:

  • Full-year revenue growth targeted at 20% Compound Annual Growth Rate (CAGR) for FY26.
  • EBITDA margin guidance maintained at 16.5% to 17.5% for the full financial year.
  • Order inflow target for FY26 is INR 4,000 to INR 4,500 crores.
  • Existing order book exceeds INR 11,000 crores (excluding MHADA), providing over 3 years of revenue visibility.
  • Positive cash flow is expected to improve substantially in the current financial year.
  • Average interest rate is projected to fall below 10%, leading to lower total finance costs.
  • Pledged shares are expected to be significantly reduced, aiming for only CIDCO-related pledge by FY26 end.

Capacit'e Infraprojects, despite Q1 FY26 headwinds from early monsoons and Eid-related labor migration, remains highly confident in achieving its ambitious full-year guidance. The company's recent earnings call highlighted a strong revenue growth outlook, stable margins, improving cash flow, and a robust order book providing multi-year visibility, underscoring its resilience and strategic focus.

FY26 Revenue and Margin Outlook

Capacit'e Infraprojects confidently targets a 20% Compound Annual Growth Rate (CAGR) for its full-year FY26 revenue. Despite Q1 facing temporary challenges from early monsoons and Eid-related labor migration, management expects significant execution ramp-up in the second half. Executive Chairman Rohit Katyal confirmed,

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

Capacit'e also reiterated its full-year EBITDA margin guidance at 16.5% to 17.5%, aiming to maintain or improve this through project optimization and eFORCE app deployment for efficiency.

Strong Order Book and Financial Health

The company's confidence is underpinned by a robust existing order book exceeding INR 11,000 crores (excluding MHADA), providing multi-year revenue visibility. Capacit'e targets new order inflows of INR 4,000 to INR 4,500 crores for FY26, applying a "pick and choose" strategy for projects with optimal commercial terms. Financially, a substantial improvement in positive cash flow is expected. Efforts are also focused on reducing finance costs, with the average interest rate projected to fall below 10%. Additionally, the company aims to significantly reduce pledged shares by FY26 end, highlighting enhanced financial discipline.

Capacit'e Infraprojects' Q1 FY26 call reinforced a clear vision for strong full-year performance. Despite temporary setbacks, the company's strategic focus on project quality, efficient execution, and financial health, supported by a significant order book, positions it for sustained growth and value creation in the infrastructure sector. Their commitment to guidance remains firm.

Read more