Desco Infratech Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Desco Infratech Ltd filed with BSE on 09 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Desco Infratech reported revenue from operations of Rs 118.79 crore for the year, up from Rs 59.61 crore in the prior period, along with EBIT of Rs 23.43 crore and profit after tax of Rs 16.38 crore. Management described entry into power distribution and solar EPC segments during H2 FY26, alongside the SGAEPL biogas acquisition and new subsidiaries Desco Global FZ-LLC and Desco Bio Green Private Limited. Management also discussed order book composition, working capital cycles, and margin levels across the CGD, power distribution and solar EPC segments.
Numbers mentioned
Revenue from operations: INR 118.79 crores (FY26)
p. 4
“The revenue from operations for the period stood at INR 118.79 crores against INR 59.61 crores in the corresponding previous period, showcasing year-on-year growth of 99.28%.”
Malhar Desai, page 4 of the filed PDF · View the filing
EBIT: INR 23.43 crores (FY26)
p. 4
“Our EBIT stood at INR 23.43 crores, showcasing year-on-year growth of 76.30%.”
Malhar Desai, page 4 of the filed PDF · View the filing
Profit after tax: INR 16.38 crores (FY26)
p. 4
“The profit after tax stood at INR 16.38 crores, showcasing year-on-year growth of 80.87%.”
Malhar Desai, page 4 of the filed PDF · View the filing
Debt-to-equity ratio: 0.2x (FY26)
p. 4
“Our debt-to-equity ratio which is very much negligible and is maintained at 0.2x.”
Malhar Desai, page 4 of the filed PDF · View the filing
EPS: 21.34 (FY26)
p. 4
“EPS stood at 21.34 which is significant increased from previous year by 33%.”
Malhar Desai, page 4 of the filed PDF · View the filing
CGD segment revenue: INR 83.24 crores (FY26)
p. 6
“So like out of our INR 118 crores revenue, our CGD like city gas distribution has achieved a fair good revenue of INR 83.24 crores and our power distribution and solar EPC revenue stood at INR 35.37 crores.”
Malhar Desai, page 6 of the filed PDF · View the filing
CGD PAT margin: 15.3% (FY26)
p. 7
“It remains the consistent with 15.3% profit after tax and power and solar distribution, power distribution and solar EPC solution is almost having the margin of around 9.5% to 10%.”
Malhar Desai, page 7 of the filed PDF · View the filing
Tender pipeline: INR 650 crores
p. 16
“Approximately around INR 470 crores to INR 480 crores this tender under pipeline in city gas distribution sector only, INR 100 crores or something like in solar EPC solutions and power distribution sectors.”
Malhar Desai, page 16 of the filed PDF · View the filing
CBG plant capex: INR 3.5 crores to INR 4 crores
p. 13
“Okay, so like Q1 we believe that we will commission the plant and to commission 2 ton per day we spent a capex of approximately around INR 3.5 crores to INR 4 crores, where civil structure and infra is left to be built.”
Malhar Desai, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue — INR 1,000 crores · by 2030
stated as an aspiration by Malhar Desai
p. 5
“So yes, what I foresee is INR 1,000 crores we will be able to achieve easily by 2030.”
Malhar Desai, page 5 of the filed PDF · View the filing
Revenue growth — 70% to 80% year-on-year · next 2 to 3 years
stated conditionally by Malhar Desai
p. 5
“And in current and going forward in next 2 to 3 years, I can see the revenue growth by I think minimum 70% to 80% year-on-year.”
Malhar Desai, page 5 of the filed PDF · View the filing
Revenue growth guidance for FY27 — 70% to 80% YOY · FY27
stated firmly by Malhar Desai
p. 7
“Sir, I just I just provided the guidance of around 70% to 80% YOY growth on top line.”
Malhar Desai, page 7 of the filed PDF · View the filing
CBG plant commissioning — 2 ton per day plant · Q1 FY27
stated firmly by Malhar Desai
p. 7
“We are we are definitely commissioning your company's first CBG plant in quarter 1 itself.”
Malhar Desai, page 7 of the filed PDF · View the filing
Debt-to-equity ratio — maximum at 0.3 · coming 1.5 years
stated conditionally by Malhar Desai
p. 8
“Going forward the debt-to-equity ratio may go maximum at 0.3 in coming 1.5 years or something because our company is very well positioned to make some good leverage by having some little bit structured debts and some financial tools.”
Malhar Desai, page 8 of the filed PDF · View the filing
Operating cash flow — positive · next 2 years
stated as an aspiration by Malhar Desai
p. 10
“And going forward, I can promise you one thing in coming next 2 years, we will be reporting the cash flow operating that will be positive.”
Malhar Desai, page 10 of the filed PDF · View the filing
Cost of debt after restructuring — 8.5% to 9.5%
stated conditionally by Malhar Desai
p. 17
“Ma'am, I think it will be around 8.5% to 9.5%, not more than that.”
Malhar Desai, page 17 of the filed PDF · View the filing
CBG plant expansion capacity — 15 to 20 tons per day · next 18 months
stated firmly by Malhar Desai
p. 13
“And going forward we are even expanding our plant to set up another 15 to 20 tons per day capacity by a period of next 18 months.”
Malhar Desai, page 13 of the filed PDF · View the filing
CBG plant EBITDA/PAT breakeven — breakeven · 18 to 20 months
stated conditionally by Malhar Desai
p. 18
“Breakeven will be there in the next 18 months I believe 18 to 20 months maximum.”
Malhar Desai, page 18 of the filed PDF · View the filing
CBG revenue contribution — INR 170 crores · by FY2030 end
stated as an aspiration by Malhar Desai
p. 18
“Ma'am I believe compressed biogas also falls under city gas distribution channel itself. So yes, I am expecting CBG revenue at around INR 170 crores or something like that.”
Malhar Desai, page 18 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the negative cash flow is growth-led rather than stress-led, cited improvement in the negative operating cash flow ratio year-on-year, and reiterated the INR 1,000 crore revenue target by 2030 with 70-80% annual growth expected.
Answered by Malhar Desai
Asked by Raghav: Why is operating cash flow still negative and what is the path forward, and can management give a step-by-step revenue trajectory toward the INR 1,000 crore target?
p. 5
“The negative cash flow is primarily due to the growth led and not because of the stress led.”
Malhar Desai, page 5 of the filed PDF · View the filing
Management said margins are sustainable but were squeezed by entry into power distribution and solar EPC, and expects margins to remain structurally stable to improving.
Answered by Malhar Desai
Asked by Aniket: Can management quantify and explain the margin contraction at the operating and net level?
p. 6
“Yes, the margins are sustainable at this current level. The margins got a little bit squeezed due to our entry in power distribution and solar EPC solution projects that we have commenced in the H2 of the financial year 2026.”
Malhar Desai, page 6 of the filed PDF · View the filing
Management said the NBFC loans were taken to fund solar EPC projects with 90-120 day timelines at around 16-17% interest, and plans to structure the debt after H1 of the current year.
Answered by Malhar Desai
Asked by Manish More: What is the average cost of unsecured NBFC borrowings and the plan to reduce them?
p. 8
“The loan from NBFCs was taken to fund our solar EPC projects with the timelines remained only 90 to 120 days.”
Malhar Desai, page 8 of the filed PDF · View the filing
Management attributed the improvement to being a listed company able to access financial products like sales and purchase discounting platforms and surety bonds unavailable to unlisted peers.
Answered by Malhar Desai
Asked by Keshav Garg: With growth from a higher base being tougher, how will operating cash flow turn positive despite continued 70-80% growth?
p. 12
“There are some good M1x platform of discounting where we can sell -- where we can get the sales discounting, purchase discounting.”
Malhar Desai, page 12 of the filed PDF · View the filing
Management said they have been selective in accepting work during the current crisis period and expect margins to remain sustainable by not chasing every order.
Answered by Malhar Desai
Asked by Keshav Garg: Is the 20-23% margin in this tender-driven business sustainable given competitive bidding dynamics?
p. 13
“So going forward your company is promising you that this margin will be sustainable and company to increase the order book they won’t pick up any book and this is the promise from me to you.”
Malhar Desai, page 13 of the filed PDF · View the filing
Management attributed the change to a shift in mindset toward showing profits and sharing them with shareholders rather than minimizing reported profits to reduce taxes.
Answered by Malhar Desai
Asked by Madhur Rathi: What led to the margin improvement from 8% to 20-23% between FY22-23 and now?
p. 16
“Why not to show your profits? Why not to share your profits with every individual, every shareholders that is believing in you.”
Malhar Desai, page 16 of the filed PDF · View the filing
Management said SGAEPL is expected to merge into Desco Biogreen Private Limited once the 5 ton per day capacity is commissioned.
Answered by Malhar Desai
Asked by Maitri Shah: Does the company plan to acquire the remaining 25% stake in SGAEPL, or merge it?
p. 16
“Ma'am I think SGAEPL will soon get merge into Desco Biogreen Private Limited once they plan and commission the 5 ton per day capacity.”
Malhar Desai, page 16 of the filed PDF · View the filing
Risks flagged
Middle East crisis delaying Ras Al Khaimah operations and tender openings
p. 9
“And due to this Middle East crisis going on right now, we have planned to delay the delay the ongoing process because like the gas companies in Ras Al Khaimah has stopped their operations looking at to the Middle East crisis and we are also waiting for the policies to get liberal going forward once this war gets over.”
Malhar Desai, page 9 of the filed PDF · View the filing
Monsoon-related force majeure delaying right-of-way approvals in H1
p. 10
“Like in the first half, there has been the force majeure situations like monsoon and because of monsoon we don't get the ROW like ROUs from the municipal departments and everywhere.”
Malhar Desai, page 10 of the filed PDF · View the filing
Tender delays in solar and power distribution pipeline due to Middle East crisis
p. 16
“Just because of this Middle East crisis like this tender are yet to open.”
Malhar Desai, page 16 of the filed PDF · View the filing
High cost of green hydrogen production currently limiting the opportunity
p. 18
“Since we all know like production of green hydrogen right now is very costly as compared to in coming years because solar park is definitely required to make that thing very profitable.”
Malhar Desai, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.