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Recommendation Rationale

* Robust Order Book to Support Revenue Growth: As of 30th September 2025, the company's order book stands at Rs 64,682 Cr, with 40% from T&D, 29% from B&F, 13% from Water, 9% from Oil & Gas, 5% from Railways, and 4% from Urban Infra. Backed by a strong execution track record and expanding opportunities across all segments, the company is positioned for steady revenue growth, projecting a 20% CAGR from FY25 to FY27E.

* New Order Inflow to Sustain Growth: The YTD order inflow stood at Rs 14,591 Cr. Management expects full-year order inflow of over Rs 25,000 Cr, with a strategic focus on the T&D and B&F segments. It highlighted strong opportunities across power transmission and distribution, solar EPC, residential and commercial buildings, oil and gas pipeline networks, underground and tunnelling works, urban mobility, and select international civil projects.

* T&D Business to be Major Growth Contributor: T&D business remains highly optimistic across domestic and overseas markets, supported by a strong tender pipeline of over Rs 1,50,000 Cr for the next 12–18 months. The company is also competitively positioned in tenders worth Rs 5,000 Cr, primarily in the international T&D segment. High-margin T&D projects are expected to remain the key growth driver. We expect EBITDA margin expansion and PAT growth to deliver a CAGR of 25% and 47%, respectively, over FY25–27E, driven by robust execution and a healthy order pipeline.

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