Dilip Buildcon (DBL) Q3 24/25 earnings summary

Executive summary

• Revenue declined 16% year-over-year in Q3 FY25 and 5% for the nine months, mainly due to muted order inflows and industry-wide slowdown in government project awards.

• EBITDA dropped 34% year-over-year in Q3 FY25 but rose 37% for the nine months, driven by strong coal MDO business and exceptional gains from asset divestments.

• Consolidated Q3 FY25 PAT was ₹158 Cr, up 40% year-over-year; 9M FY25 PAT was ₹563 Cr, up 184% year-over-year, reflecting improved performance in long-term revenue businesses.

• Secured two new projects worth ₹2,100 Cr YTD FY25, including a tunnel in Kerala and an optical fiber project in Jammu & Kashmir.

• Completed five projects totaling ₹4,141 Cr, with early completion on select projects.

Financial highlights

• Standalone Q3 FY25 revenue: ₹2,155 Cr (down 16.18% YoY); EBITDA: ₹210 Cr (down 34% YoY); PAT: ₹88 Cr (down 7.4% YoY).

• Consolidated Q3 FY25 revenue: ₹2,590 Cr (down 9.98% YoY); EBITDA: ₹477 Cr (up 33.61% YoY); PAT: ₹158 Cr (up 40% YoY).

• 9M FY25 consolidated revenue: ₹8,221 Cr (down 4.92% YoY); EBITDA: ₹1,490 Cr (up 36.57% YoY); PAT: ₹563 Cr (up 184% YoY).

• Exceptional gains from asset divestments and strong coal MDO performance contributed to higher consolidated profitability.

• Blended cost of funds around 10%; total finance cost for nine months: ₹367 Cr.

Outlook and guidance

• Order inflow guidance for FY25-FY26 is ₹15,000–16,000 Cr, a conservative estimate due to muted government ordering.

• Revenue guidance for FY25 is around ₹9,000 Cr, with similar levels expected for FY26 unless order inflows accelerate.

• EBITDA margin guidance remains at 10.5% for the near term, with potential improvement as order book and execution scale up.

• Net debt expected to reduce to ₹1,500 Cr by March 2025, with a target of net cash position by FY27.

• Management expects order activity to pick up by Q1 FY26 as government clears backlog and increases project awards.