SRM Contractors Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript SRM Contractors Ltd filed with BSE on 02 Jun 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
SRM Contractors reported Q4 FY26 revenue growth of 96% year-on-year to Rs 446 crore and full-year FY26 revenue growth of 94% to Rs 1,026 crore, with PAT rising 102% to Rs 111 crore. Management described the order book at approximately Rs 1,884 crore as of March 2026, with fresh order inflow of around Rs 1,097 crore during the year and a bid pipeline of nearly Rs 6,000 crore for FY27. Management also discussed capex of around Rs 152 crore during the year, an increase in debt linked to equipment financing, and provided revenue and margin guidance for FY27.
Numbers mentioned
Revenue: INR446 crore (Q4 FY26)
p. 5
“quarter four financial year ‘26 witnessed strong growth momentum with revenue rising 96% year-on-year to INR446 crore”
Sanjay Mehta, page 5 of the filed PDF · View the filing
EBITDA: INR80 crore (Q4 FY26)
p. 5
“EBITDA grew 96% yearon-year to INR80 crore, while PAT increased 120% year-to-year to from INR54 crore, resulting in EPS of 23.6 per share”
Sanjay Mehta, page 5 of the filed PDF · View the filing
Revenue: INR1,026 crore (FY26)
p. 5
“Revenue grew 94% year-on-year to INR1,026 crore, driven by strong execution and healthy project momentum”
Sanjay Mehta, page 5 of the filed PDF · View the filing
EBITDA margin: 8.1% (FY26)
p. 5
“EBITDA increased 86% to INR95 crores with margins of 8.1%, while PAT rose 102% year-on-year to INR111 crore”
Sanjay Mehta, page 5 of the filed PDF · View the filing
Order book: approximately INR1,884 crore (as of March 2026)
p. 4
“SRM Contractors order book stood at approximately INR1,884 crore, comprising a welldiversified mix across roads and bridges, tunnel projects, and slope stabilization works”
Sanjay Mehta, page 4 of the filed PDF · View the filing
Fresh order inflow: around INR1,097 crore (FY26)
p. 4
“During financial year ‘26, we secured fresh orders inflow of around INR1,097 crore, while our financial year ‘27 bid pipeline remains strong at nearly INR6,000 crore”
Sanjay Mehta, page 4 of the filed PDF · View the filing
Capex: approximately INR152 crores (FY26)
p. 5
“we incurred a capex of approximately INR152 crores in financial year ‘25-‘26”
Sanjay Mehta, page 5 of the filed PDF · View the filing
PAT margin: 10.8% (FY26)
p. 6
“The PAT margin for this year is 10.8%, Harshit.”
Sanjay Mehta, page 6 of the filed PDF · View the filing
Order book in hand: more than INR3,000 crores (as of call date)
p. 7
“the total order book is more than INR3,000 crores as of today”
Sanjay Mehta, page 7 of the filed PDF · View the filing
MIPL revenue: INR267 crores (FY26)
p. 16
“MIPL revenue for the year was INR267 crores and out of that, INR172 crores has been post-acquisition”
Aashni Mahajan, page 16 of the filed PDF · View the filing
Trade payables: INR166 crores (FY26)
p. 15
“the total creditors, the total payables are of INR166 crores, but out of that, INR148 crores are the current portion”
Aashni Mahajan, page 15 of the filed PDF · View the filing
Other financial assets: INR157 crores (FY26)
p. 9
“Other financial assets of INR157 crores that you see in our balance sheet are basically comprising of INR82 crores that is the security deposits with various departments and INR76 crores will be our contract assets”
Aashni Mahajan, page 9 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 growth — 45% to 55% · FY27
stated firmly by Sanjay Mehta
p. 5
“We expect revenue growth of approximately 45% to 55% with EBITDA margin expected to remain in the range of 16% to 18% and PAT margins at around 11% to 11%”
Sanjay Mehta, page 5 of the filed PDF · View the filing
Order inflow — approximately INR2,000 crore · FY27
stated firmly by Sanjay Mehta
p. 5
“Our targeted order inflow of financial ‘27 stands of approximately INR2,000 crore, while the current bid pipeline remains robust at INR6,000 crores”
Sanjay Mehta, page 5 of the filed PDF · View the filing
Consolidated turnover — INR1,500 crores to INR1,750 crore · FY27
stated firmly by Sanjay Mehta
p. 6
“this year our consolidated turnover should be between INR1,500 crores to INR1,750 crore”
Sanjay Mehta, page 6 of the filed PDF · View the filing
PAT margin — 8.75% to 10.25% · FY27
stated firmly by Sanjay Mehta
p. 6
“PAT will be, yes, yes, PAT will be around same, 8.75% to 10.25%”
Sanjay Mehta, page 6 of the filed PDF · View the filing
Order book conversion ratio — 60% to 70% · FY27
stated firmly by Sanjay Mehta
p. 8
“It will be more than 60% to 70% from this order book.”
Sanjay Mehta, page 8 of the filed PDF · View the filing
Capex — INR250 crores · FY27
stated firmly by Aashni Mahajan
p. 11
“we are expecting a capex of around INR250 crores”
Aashni Mahajan, page 11 of the filed PDF · View the filing
Debt-to-equity ratio — 0.3% to 0.2%
stated as an aspiration by Sanjay Mehta
p. 13
“Debt-to-equity ratio is -- will remain something like from 0.3% to 0.2% only.”
Sanjay Mehta, page 13 of the filed PDF · View the filing
Revenue — around INR3,000 crores top line · three years
stated as an aspiration by Sanjay Mehta
p. 12
“Three years down the line, we should be around INR3,000 crores top line.”
Sanjay Mehta, page 12 of the filed PDF · View the filing
Order book — around INR4,000 crore · end of FY27
stated firmly by Sanjay Mehta
p. 12
“FY ‘27, it should be around INR4,000 crore.”
Sanjay Mehta, page 12 of the filed PDF · View the filing
MIPL revenue — INR400 crores to INR450 crore · FY27
stated firmly by Sanjay Mehta
p. 12
“for MIPL, it will be INR400 crores to INR450 crore”
Sanjay Mehta, page 12 of the filed PDF · View the filing
SRM standalone revenue — INR1,150 crores to INR1,300 crore · FY27
stated firmly by Sanjay Mehta
p. 12
“for SRM standalone in ’26, ‘27, it will be something around INR1,150 crores to INR1,300 crore, sorry”
Sanjay Mehta, page 12 of the filed PDF · View the filing
Order pipeline conversion — INR2,500 crores to INR2,800 crores
stated as an aspiration by Sanjay Mehta
p. 18
“out of INR6,000 crores, the pipeline only it will -- which will materialize will be roughly INR2,500 crores to INR2,800 crores only”
Sanjay Mehta, page 18 of the filed PDF · View the filing
Revenue growth — 50% to 60% top-line growth · next 2 to 3, 4 years
stated as an aspiration by Sanjay Mehta
p. 22
“That is our belief and we deliver for our belief. We will be doing that.”
Sanjay Mehta, page 22 of the filed PDF · View the filing
QIP/equity fundraise — next three months
stated firmly by Sanjay Mehta
p. 19
“As of for next quarter -- next three months is no plan.”
Sanjay Mehta, page 19 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 confirmed FY26 PAT margin and gave FY27 turnover and PAT margin ranges.
Answered by Sanjay Mehta
Asked by Harshit Pandey: What is the PAT margin for FY26 and could guidance be exceeded again?
p. 6
“Yes, this year our consolidated turnover should be between INR1,500 crores to INR1,750 crore.”
Sanjay Mehta, page 6 of the filed PDF · View the filing
CFO attributed the COGS rise to higher revenue and unbilled/inventory purchases entering COGS, with no change on an annual basis.
Answered by Aashni Mahajan
Asked by Maitri Shah: Why did cost of goods sold rise sharply in Q4 and are gross margins sustainable?
p. 6
“Overall, the cost of goods sold is in line with the increase in revenue. Overall, talking, our EBITDA margins have risen only. It's just because of the increase in turnover, nothing else.”
Aashni Mahajan, page 6 of the filed PDF · View the filing
Management clarified that total order book in hand is around INR3,000 crore, to be executed over roughly two years.
Answered by Sanjay Mehta
Asked by Maitri Shah: What is the order book size and execution timeline across verticals?
p. 8
“As of date, we have a INR3,000 crores order book in hand which needs to be executed in coming two years.”
Sanjay Mehta, page 8 of the filed PDF · View the filing
CFO explained the increase was due to equipment financing for new project mobilization.
Answered by Aashni Mahajan
Asked by Darshil Pandya: What led to the increase in long-term debt?
p. 8
“the increase in debt is purely because of the equipment financing that we've taken recently”
Aashni Mahajan, page 8 of the filed PDF · View the filing
CFO said estimating year-end debt is difficult and depends on financing options available in the market.
Answered by Aashni Mahajan
Asked by Chirag Shah: What is the year-ending debt expected for FY27 given planned execution and capex?
p. 11
“We can get back at this over the next a few quarters.”
Aashni Mahajan, page 11 of the filed PDF · View the filing
Management gave the order book split by entity and by segment mix.
Answered by Sanjay Mehta
Asked by Rutu Chavan: How is the order book split between SRM standalone and MIPL, and what is the regional mix?
p. 12
“INR3,000 crores, out of this INR3,000 crores, INR2,112 crores is from SRM and more than INR850 crores – more than INR850 crores is from MIPL.”
Sanjay Mehta, page 12 of the filed PDF · View the filing
Management said talks are ongoing with clients in Oman and UAE but nothing has been confirmed yet.
Answered by Sanjay Mehta
Asked by Anukool Arora: What progress has been made on international projects in GCC/Africa?
p. 14
“We are speaking to 4 clients exactly, precisely, and but nothing has matured into a confirmed order so far.”
Sanjay Mehta, page 14 of the filed PDF · View the filing
CFO explained trade payables rose due to operational increase and non-controlling interest arose from the MIPL acquisition.
Answered by Aashni Mahajan
Asked by Bhavey Ahuja: What drove the increase in trade payables and the new non-controlling interest line item?
p. 15
“The non-controlling interest came because of the acquisition of MIPL. We have a 51% stake in MIPL, so the other 49% is the non-controlling interest.”
Aashni Mahajan, page 15 of the filed PDF · View the filing
CFO and Chairman gave separated pre- and post-acquisition PAT margins for MIPL.
Answered by Sanjay Mehta
Asked by Vansh Solanki: What were MIPL's revenue and PAT figures for the quarter/year, split pre- and post-acquisition?
p. 16
“Pre-acquisition was 6.7%, post-acquisition is 9.4%.”
Sanjay Mehta, page 16 of the filed PDF · View the filing
Management confirmed slope margins are better and described strike rates and competitors in each segment.
Answered by Sanjay Mehta
Asked by Madhur Rathi: Are margins higher in slope stabilization versus road projects, and who are competitors in each?
p. 17
“in slope, our strike rate is almost 33% to 50%. But in road sector, the strike rate is 5% to 7%.”
Sanjay Mehta, page 17 of the filed PDF · View the filing
Management said they cherry-pick higher-margin road projects and that government circulars insulate them from most input cost fluctuation.
Answered by Sanjay Mehta
Asked by Darshil Jhaveri: Will growing road project share dilute margins, and how are raw material price fluctuations being managed?
p. 19
“MoRTH has issued circulars for bitumen and diesel, so which is insulating us to not 100%, but to something like 80% to 85%.”
Sanjay Mehta, page 19 of the filed PDF · View the filing
CFO explained the reclassification was due to adoption of Ind AS control rules, with no change in consolidation treatment.
Answered by Aashni Mahajan
Asked by Sonia Keswani: Why were JVs reclassified as subsidiaries in the financials?
p. 20
“the reclassification of the earlier JVs to subsidiary is purely because we have control over those JVs”
Aashni Mahajan, page 20 of the filed PDF · View the filing
Management confirmed the company was ranked second, not first, on that HAM bid.
Answered by Sanjay Mehta
Asked by Ketan R Chheda: What is the outcome of the HAM project the company was awaiting results on in the last call?
p. 23
“HAM project, yes, we were H2, not H1.”
Sanjay Mehta, page 23 of the filed PDF · View the filing
Risks flagged
Raw material price fluctuation affecting margins, partially offset by government circulars
p. 19
“we have a price escalation clause, but this escalation is high, but we are being insulated to something like 80% to 82%”
Sanjay Mehta, page 19 of the filed PDF · View the filing
Road sector bidding is highly competitive with a low strike rate
p. 17
“So, road sector is quite intensive, competitive and intensive.”
Sanjay Mehta, page 17 of the filed PDF · View the filing
Inability to secure HAM projects to date despite bidding
p. 14
“Unfortunately, we are not able to get any HAM project till date. Of course, we are bidding for those, but till date we are not able to get it.”
Sanjay Mehta, page 14 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.