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Strong numbers with an all-round beat

• 1QFY26 revenue at INR50b (+34% YoY) was 10% above our estimate. Growth was driven by robust project progress and strong order backlog. T&D/B&F revenue grew 56%/13% YoY, while O&G/Urban Infra revenue jumped 132%/42% YoY. Railways grew moderately by 5% YoY, while the Water segment continued to witness challenges, declining 5% YoY.
• Absolute EBITDA grew 37% YoY to INR4.3b vs. our estimate of INR3.9b (10% beat), while EBITDA margin was in line with our estimate of 8.5%.
• Adj. PAT surged 72% YoY to INR2.0b, beating our estimate of INR1.5b by 30%, aided by strong revenue growth and a lower tax rate (26.8% vs. our estimate of 27.7%).
• Order inflows at INR99b were up 41% YoY, mainly driven by B&F and T&D businesses. The company received its largest-ever order in B&F business worth over INR25b during the quarter. The order book stood at INR644.8b (+13% YoY).
• NWC days stood at a comfortable level of 106 in 1QFY26 vs. 124 in 1QFY25.
• Net debt was down YoY at INR19.4b in 1QFY26 (vs. INR29b in 1QFY25).

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