Bigbloc Construction Ltd (NSE: BIGBLOC) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Mohit Narayan Saboo — Director and Chief Financial Officer of the Company
Analysts:
Unidentified Participant
Naman Jain — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Big Block Construction Limited Q1FY26 earnings conference call hosted by Ventura Securities Limited. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. Before we begin, I would like to point out this conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call.
These statements do not guarantee the future performance of the company and it may involve risks and uncertainties that are difficult to predict. I would now like to hand the conference over to Naman from Ventura securities. Thank you. And over to you, Naman.
Naman Jain — Analyst
Thank you. Good day. Ladies and gentlemen, on behalf of Ventura. Securities, I welcome you all to the. People of Construction Limited Q1526 earnings conference call. The company is today represented by Mr. Mohit Sabu, Chief Financial Officer. Mr. Manish Sabhu, Head of Marketing and Strategy. I would now like to hand over. The call to Mr. Mohit Sabhu for his opening remarks. Thank you. And over to you, sir.
Mohit Narayan Saboo — Director and Chief Financial Officer of the Company
Good afternoon everyone. It is my pleasure to welcome you all to Big Block Construction Earnings conference call for the first quarter of the financial year 2026. I’ll take you through our financial and operational performance for the quarter along with some key updates on our ongoing initiatives. For Q1FY26, Big Block Construction reported consolidated revenue from operations of Rupees 564 million, an increase of 9.3% compared to the same quarter last year. The growth was driven by higher sales volumes which rose by 25.3% year on year to 1.67835 cubic meters. This volume increase was partially offset by lower average realizations during the quarter.
Sequentially, volumes were lower by 4.3% reflecting seasonal moderation following the festive period, the onset of monsoons and continued slowdown in the real estate sector as well as labor availability which remains a key demand driver for our products. On the profitability front, Gross profit was Rs. 304 million with a margin of 53.9%. EBITDA for the quarter was Rs. 13 million with a margin of 2.3%. The decline in margins compared to the previous year was mainly due to softer pricing, lower capacity utilization and seasonal demand patterns. Consolidated capacity utilization for the quarter was 53%. The utilization of SAR big block building material at 62%, big block building elements at 58% and CM cement big block construction technologies at 36%.
On the operational side, AAC wall production continues to scale up and we are in the process of securing the remaining product certifications which will further enable adoptions across a wider set of projects. Additionally, we are seeing an uptick in demand in the current period and expect utilization levels to improve from Q2 FY26 as construction activity picks up post monsoon in line with our product diversification strategy and remain on track to commence manufacturing of construction chemicals at our Umargaon facility shortly. This will expand our product portfolio and allow us to cater to a broader segment of the building materials market.
From a sustainability perspective, the contribution of renewable energy to our total power requirements has increased to 26% from 22% in the previous quarter. This reflects our continued efforts to integrate clean energy into our operations and reduce our carbon footprint. Going ahead, our focus remains on improving capacity utilization, accelerating market penetration for AAC wall panels and bringing new product lines to the market. With the expected recovery in construction activity, we are confident of delivering improved performance in the coming quarters. With that, I conclude my remarks and now we can open the floor for questions and answers.
Questions and Answers:
operator
Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing Star one again. Ladies and gentlemen, please press star and one on your telephone keypad to ask your question. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. First question comes from Srijan Kaushik. Please go ahead, sir.
Unidentified Participant
Yeah, hi. Thank you for the opportunity, Manish. First of all, I must appreciate the fact that our management has the courage to conduct the call every quarter despite not so great numbers. So on that note, my first question would be regarding the current capital structure of our company. In the earlier call you said that debt to equity ratio in the range of 1 is to 1 to 1.5 is the number we are quite comfortable with. So. And as our capacity utilization keeps on increasing, our debt level will keep on going down. So. But the numbers say that neither our capacity utilization is increasing nor the margins of course due to macros like monsoon which are.
But we can see that the financial leverage we hold right now is working against us each passing quarter. So do you still intend not to make any changes in the current capital structure going forward given the current situation and whether our public effects will be financed via taking more, taking on more debt.
Mohit Narayan Saboo
Coming down to your question about the capacity utilization. So if we compare year on year, we have seen a 25% increase in our capacity utilizations. And since this quarter Q1 is generally a little bit slower and we saw an early onset of monsoon for this financial year, looking at that, capsity utilization has been good. And in the running quarter Q2 also the capsity utilization has been better off than what it was in the previous quarter. So as we mentioned that we are looking at achieving optimum capacity utilization going ahead on a quarter on quarter basis.
That’s what the target is. And once the capsule utilization keeps on improving, the margin should also flow in and whatever losses have been incurred that should Also be settled off. Coming down to your second query about our debt equity ratio and our expansions. So for the expansion the land is already procured at MP and we have gotten the necessary conversions or government permissions done. Whether it comes to the pollution control board or the conversion of land from NA to industrial purpose, all that is for completed and hopefully soon we’ll be starting work at that site as well.
And the dedicated issue should be comfortable going ahead as the performance of the company also improves.
Unidentified Participant
Okay, so and any update on our expansion in southern India and the financing instrument for the.
Mohit Narayan Saboo
So in southern India we still contemplating the same. We are looking for the land for the same and any updates on that will be communicated as and when something is finalized. I did not get your second question.
Unidentified Participant
The financing instrument for. I mean the land acquisition and. Taking. On more debt or having some FPO or something.
Mohit Narayan Saboo
Once you have this root table opportunity of land in southern India, we will communicate the same accordingly.
Unidentified Participant
Okay, sure, sure. So my next question is regarding our. Can I ask one more question please? Yeah. So my next question is regarding our current order book and the revenue outlook for the coming two quarters.
Mohit Narayan Saboo
Order book has started improving from the end of mid June or end of June and we are seeing better order inflows on a daily basis. Order book generally in this industry does not run for a very long period of time. Generally it’s around five to seven days at the max and when there’s a slowdown it goes down to two to three days because it’s a bulky product and the space available at the construction site is also quite limited. Looking at that constraints coming down, can you get on your second question again regarding the order book?
Unidentified Participant
Yeah, revenue outlook for coming to quarters.
Mohit Narayan Saboo
As we saw that this year also in spite of, you know, we have seen the increase in turnover with 35% increase in volumes in this quarter. Again, we’ll see further increase in volumes and we intend to reach 70 plus percent capacity utilization in the next couple of quarters.
Unidentified Participant
Okay, thank you. I’ll wait in the queue for. I have a couple of more questions but I’ll ask it later. Thank you.
operator
Thank you. Sir, the next question comes from Manish, an investor. Please go ahead. Sir.
Unidentified Participant
Thanks for taking up my question. I have three questions basically. One, although the volumes increase in Q1 why did the realizations form like are we aware as to what is the reason behind the point in realization? That is one second is I also wanted to understand as to what is the field that we generated from the A and C wall panels and construction Chemicals. Third is in one of the previous phone calls you guys had highlighted that the aim is to double revenues over the next two years. So wanted to understand if that guidance remains intact.
These are my three questions.
Mohit Narayan Saboo
So coming on to your first question of why the realizations have gone down. Because of a little bit of a slowdown in the real estate sector in Q1 as well as an increase in competition. There has been a little bit hit on the realizations and that’s the reason that the volumes have gone up, but renalizations have decreased a little bit. Coming down to your second question. Can you repeat the second question once again, please?
Unidentified Participant
Sorry. Yeah. The AAC wall panel revenue and construction chemical revenue, because I don’t see any mention of that.
Mohit Narayan Saboo
The revenue from construction chemicals is approximately around 10 to 12 percentage and the revenue from AC wall panels is approximately at around 3 to 4 percentage. And this has been increasing on a month. On month basis. We are taking more and more orders and seeing more penetration of AAC panels across India. We have clicks and projects in various different cities, the likes of Delhi, Jaipur, Surat, Bombay, Ahmedabad, some in southern India like Chennai, etc.
Unidentified Participant
So similar to. So how you shown what is the breakup in the PPT right on the AAC blocks. Can we show it for the AAC wall panels and construction chemicals also? Because that would give us at least a rough idea from a shareholder perspective as to what is the volumes that the other two segments can take.
Mohit Narayan Saboo
Surely we’ll start doing that from the next quarter.
Unidentified Participant
Yeah. My third question was on the guidance. So I think in the 2025 call, you guys had highlighted that the target was to double revenues over the next two years. So is that guidance intact?
Mohit Narayan Saboo
Yes. We are still in the process of doubling our revenues for the next two to three years because expansion has been a little bit delayed because of a little bit of slowdown in the industry. In the next two to three years, they are looking at doubling other. Okay.
Unidentified Participant
All right. I have a couple of more questions. Maybe I’ll join Magnificent and then wait for the other parts of them to raise the question.
Mohit Narayan Saboo
Sure.
operator
Thank you. Sir. The next question comes from Navneet, an individual investor. Please go ahead, sir. Amit. Sir. Please go ahead, sir.
Unidentified Participant
Hello. Yeah, hi. So my question is the company capacity utilization was reported around 53%. So what are the reasons behind that and what steps are being taken to improve it?
Mohit Narayan Saboo
The Capacity utilization for Q1 has been around 53%. Q1 is generally marred by labor shortages at the factories as well as at the construction sites. And that’s the reason that the capsule utilization is much lower. We are seeing better capsity utilization in Q2 which has gone up to almost approximately 60% in July month and our intention is to make the capsule utilization reach 70 to 80% over the next couple of quarters.
Thirdly, what other steps are being taken? We are trying to increase our market share and penetrate more in different markets and the capacity has been majorly lower for the panel division where since it’s a new product and the adaptation is taking time. Okay, sure.
Unidentified Participant
Thank you.
operator
Sir, we have a follow up question from Manish. Please go ahead sir.
Unidentified Participant
So my other two questions now one, when does the company expect to be profitable because I understand that the interest charges. Right. Are on the higher side because of the high debt in the books and second is the depreciation is also high when we compare it with the previous quarter. So the performance has not been that great if we look at it from the last quarter. Right? So when do we expect to start making profits once again? So that’s my first question and second is I also wanted to understand as to how is the price difference currently between the traditional bricks versus the university blocks.
Is the pricing different CCM versus the previous year or has it changed dramatically? I’m asking this person because you talked about the realization being low, right? So if you can give an update on that.
Mohit Narayan Saboo
Coming down to your first question about when will the company get into profits? So I mentioned and target is to firstly reach optimum capacity utilization which will make us reach on a profitability mode faster. The last two quarters have been at least slow for the entire real estate sector as well as for the building materials industry and hopefully in this quarter or by next quarter we should be again in the green profitability zone. Coming down to your next question about the pricing of AAC block versus red bricks. So approximately the pricing of AC blocks is in the range of almost 3200 to 3500 rupees a cubic meter right now across the geography where you operate and the prices of red bricks is in the range of almost 4000 to 4500 rupees of cubic metal.
So still AC blocks are almost 1520% cheaper as compared to red bricks and they are still seeing increased market share as compared to red bricks on a quarter on quarter basis.
Unidentified Participant
Can you please give a flavor if the pricing was similar when we Compare it with Q1 last year. Compared to. Comparison between red bricks and the AFC blocks.
Mohit Narayan Saboo
So pricing of AFC blocks have gone down almost 8 to 10% as compared to Q1 of last year. And I think there might have been a similar decrease in the pricing of red bricks as well. It’s an unorganized market and transportation plays a very big role in our red bricks industry. So across regions it’s not a fixed pricing model.
Unidentified Participant
All right, understood. And one final question if I can please add in when you talk about your capacity, right. Is it fungible as in you have three products which is AAC blocks, the construction chemicals and AOC walls. So is it fungible or is it not fungible? I wanted to understand that.
Mohit Narayan Saboo
So we have a total of four manufacturing setups. The VADA facility, the facility and one facility near Andabad at Keda. These three are completely for AC blocks and one facility near Ahmedabad which is a joint venture with CMC Man Group from Thailand. That is a fungible capacity in which we can manufacture AC blocks as well as panels. And installed capacity of that particular facility is around 250,000 cubic meters per annum. Coming down to the construction chemicals. So so far up till Q1 of FY26 we have been just doing cleaning of construction chemicals which includes block jointing, motor and ready mix process.
And we are in the process of installing the plant which is almost on the verge of completion. And hopefully shortly we’ll be starting commercial production there and for which will be for manufacturing of three different chemicals mainly for block jointing, mortar, kadenic plaster as well as tile addresses is one new product which will be introducing.
Unidentified Participant
And at what percentage of capacity utilization do we expect profitability to come back into our accounts?
Mohit Narayan Saboo
Approximately around 60 to 65 Percentage we shall be able to come to profits. And the margin realization in the panel division is far better as compared to AAC blocks division. So as and how the acceptability and panel sales grow that should also help us to get to profitability question much faster.
Unidentified Participant
And so again coming back to one of my previous questions wherein you talked about doubling revenues over the next two to three years which means if we entered FY25 somewhere around 225230 crores of sale. So if I take approximate number of days, 450 crores to 500 crores, what do we think the contribution of construction chemicals and AAC wall panels will be to the revenues two years from now.
Mohit Narayan Saboo
So in doubling the revenue from 225 to 250 crores to 5500 crores, the share of AAC wall panels and AAC construction chemicals should be 15 to 20% each and almost 60% should be from AAC blocks.
Unidentified Participant
And how would be margins for all these three segments. How will that look like?
Mohit Narayan Saboo
Currently the margins blocks have squeezed a little bit, but chemicals and channels, the margins have continued to be almost the same. And going ahead we see material additions in margins for block industry as well. And hopefully soon we should be able to reach that anywhere between 15 to 18% EBITDA margins in two quarters, more or less.
Unidentified Participant
All right, thank you so much.
operator
Thank you. Sir, we have a follow up question from Mr. C.J. and Kaushik. Please go ahead, sir.
Unidentified Participant
Yeah. Hi. My next question is regarding the marketing of AC block. Right. So are we putting significant effort educating people regarding AC blocks versus this red table? Because it requires a complete shift in the mindset to trust something which looks perfect on paper but people lack confidence from within companies to in reality. So can you put some light on that?
Mohit Narayan Saboo
Yes. We are trying to increase the conversion from red bricks to AC blocks. And we are so majorly in, you know, in the Metro cities, tier 1 or TS2 cities, they have majorly shifted to AC blocks from red bricks. The tier 3 or the small town, their penetration of red bricks is still quite high. We have our sales team appointed in those networks and we are trying to do some campaigns also for conversion of most customers from red bricks to AC box. And we have seen a little bit of success there. We have been doing some white labeling for brands like Ambuda who are getting blocks manufactured in RA main and because of their retail networks, we are supplying blocks through these small towns and Vegas through them so that the market availability and acceptability of this product improves.
Unidentified Participant
Okay. Okay, thank you. So my next question will be on the technical front. I have read somewhere that AC blocks face grind printing issue, right? Yes. So what’s our customer feedback on the paint?
Mohit Narayan Saboo
The product is governed by IS norms and these trying shrinkages, whatever are being faced, these are whatever people are using ASEE blocks today. They are well aware about the characteristics of the product and there are no challenges with regards to the use of the product. The product has been used in the industry over the last few decades and there have been various buildings which have been installed and are still constructed and are still running which have been made using AC blocks. There are no challenges or issues relating to the usage of the product. Okay.
Unidentified Participant
So our customers are fully satisfied and no complaints whatsoever. Till now.
Mohit Narayan Saboo
We don’t have any customer complaints or challenges with regards to the product quality. Yes.
Unidentified Participant
Okay, thank you. Thank you. And my last question is that are we considering other, do we have other diversification plans on product profile in the Future like in other construction materials apart from additive chemicals like paint or something like that.
Mohit Narayan Saboo
Currently we don’t have any other product diversification plans on hand for the short term. But yes, over the longer term the vision is to make Big Block Transition Limited a building material instead of just an AC block or a panel company.
Unidentified Participant
Right? Right. Thank you. Thank you, Manish. Thank you.
operator
Ladies and gentlemen, if you have any questions, please press Star and one on a telephone keypad. I repeat, if you have any questions please press Star and one on a telephone keypad. Follow up question once again from Mr. Manish. Please go ahead sir.
Unidentified Participant
Yeah, my question is why would it be difficult to say push sales of AAC blocks versus red bricks if the prices of AAC blocks are low in comparison? And second is did we realize any sales from carbon credits?
Mohit Narayan Saboo
Regarding your first question regarding the conversion from red bricks to AC blocks. So red bricks is a product which has been running since generations, maybe since 50, 100 years. And it says that the end customer who is using red bricks today is content happy using it and there’s just a resistance to change. That is the reason that we are doing job work for people like Gujarat Ammoja and also trying to create brochure or pamphlets explaining them about the advantages of EEC blocks as compared to the red bricks. Whether it comes to cost, whether it comes to the thermal conductivity or also it comes to the more carpet area that the person gets.
So this is how we are trying to create that awareness and slowly and gradually. That’s why we have seen returns as well. So the share of the product in the volume material was around 3% which has gone up to almost 10% over the last and I feel over the next decade this 10% should go up to almost 30, 40%. Coming down to your question about carbon credits. So yes, in the running quarter there’s been no realization of carbon credits.
Unidentified Participant
When do we expect sale from carbon credits? Because I know the company has been talking about potential revenue recognition from carbon credits. Do we have any timeline for it? And like what could that number look like?
Mohit Narayan Saboo
We have some carbon markets in stock on our books. But regarding when will realize revenue for the same, we are in talks but carbon markets are currently not performing excellently well because of the global trade scenario, etc. Once things settle down and we see an uptick in the carbon pricing market, we will try and realize the scheme as well.
Unidentified Participant
Okay, thank you.
operator
Thank you sir. Ladies and gentlemen, if you have any questions please press Star L1 on your telephone keypad. Repeat if you have any questions, please press Star L1 on a telephone keypad. There are no further questions. I hand over the floor to Mr. Mohit Sabu for closing comments.
Mohit Narayan Saboo
Thank you all for taking the time to join us today and for your continued interest in Big Block Construction Ltd. As we continue to navigate opportunities ahead, we remain committed to delivering consistent growth and value in the coming quarters. As always, if you have any further questions, please feel free to reach out to our investor, Masonry Advisors, and we’ll be happy to address your queries. Thank you. Have a good day. Bye bye.
operator
Thank you, sir. Ladies and gentlemen, this concludes the conference call for today. Thank you for your participation. You may disconnect your lines now. Thank you and have a good day.