Bigbloc Construction Ltd (NSE: BIGBLOC) Q3 2026 Earnings Call dated Jan. 21, 2026
Corporate Participants:
Mohit Narayan Saboo — Chief Financial Officer
Analysts:
Prasan — Individual Investor
Ashvath Rajan — Analyst
Jayshree Bajaj — Analyst
Ajit Sethi — Analyst
Srijan Kaushik — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good afternoon, and welcome to the Bigbloc Construction Limited Q3 and 9M FY ’26 Earnings Conference Call. [Operator Instructions]
I will now hand the conference over to Mr. Mohit Saboo, the Chief Financial Officer, for opening remarks. Thank you, and over to you, sir.
Mohit Narayan Saboo — Chief Financial Officer
Good afternoon, everyone. It is my pleasure to welcome you all to Bigbloc Construction Limited’s earnings conference call for the third quarter and nine-month ended 31st December, 2025. Thank you for joining us today. I’ll take you through our financial and operational performance for the quarter and nine months, followed by key business updates. The third quarter marks a notable improvement in our overall performance. Construction activity gained strong momentum during the quarter as post-monsoon demand recovered across key markets. This favorable environment, combined with improved execution across our facilities, enabled us to deliver our best quarterly performance to date.
For Q3 FY ’26, consolidated revenue from operations reached INR728 million, marking the highest quarterly revenue in the Company’s history. This represents a growth of 28.1% compared to the same period last year and 8.2% sequentially. This growth was driven primarily by a 38% increase in sales volume compared to the same period last year, which reached 2,14,643 cubic meters for the quarter. For the nine-month period, revenue from operations was INR1,965 million, reflecting a growth of 22.8% over nine months FY ’25. On the profitability front, the quarter delivered [Technical Issues]. EBITDA for Q3 FY ’26 was INR81 million, up 31.8% year-on-year with margins expanding to 11.1% compared to 2.8% and 10.8% in Q2 FY ’26 and Q3 FY ’25, respectively.
The margin expansion was primarily driven by improved capacity utilization, better price realizations and a more efficient cost structure. Furthermore, the Company also returned to profitability during the quarter, reporting a profit after tax of INR4 million. From an operational standpoint, capacity utilization improved to 67% in Q3 FY ’26 compared to 62% in the previous quarter and 53% in the same quarter last year. Higher utilization levels across facilities has lowered fixed cost per unit and supported margin recovery. At our JV facility, Siam Cement Bigbloc Construction Technologies, capacity utilization has continued its upward trajectory, reaching 51% in Q3 FY ’26 as compared to 43% in the previous quarter.
Acceptance of the large-format wall panels is steadily increasing among contractors and developers, particularly for industrial and commercial projects. We are also witnessing a growing pipeline of inquiries and we expect to receive new order flows in the coming quarters. We have also been able to click a few big clients and customers in the wall panel segment. On the strategic front, I am pleased to share that the Company recently secured a significant purchase order from Larsen & Toubro for the supply of AAC Blocks. This order not only reflects the quality and consistency of our products, but also strengthens our presence in large infrastructure and institutional projects. Additionally, trial runs for our construction chemicals facility at Umargaon have commenced successfully and we expect to begin commercial production soon.
This will mark an important step in diversifying our product portfolio and tapping into complementary segments within the building materials industry. Sustainability remains a core focus area for the Company. The contribution of renewable energy to our total power consumption has increased to 36% during the quarter, up from 26% in the previous quarter. This increase is the result of enhanced solar power installations across our facilities and reflects our commitment to reducing carbon emissions while also lowering energy costs for the overall long term. At the industry level, construction activity is expected to remain supporting in the upcoming quarters. The government’s continued emphasis on affordable housing, infrastructure development and urban redevelopment is driving demand for modern building materials.
Looking ahead, our priorities are centered on sustaining momentum in capacity utilization, scaling up AAC wall panel operations and commencing commercial operations across our construction chemicals manufacturing setup. With demand conditions improving, we are confident of maintaining this positive trajectory and delivering improved performance in the quarters ahead.
With that, I conclude my remarks, and we can now open the floor for question and answers.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session. [Operator Instructions] We take the first question from the line of Prasan, who is an individual investor. Please go ahead.
Prasan
Hi, sir. Am I audible?
Mohit Narayan Saboo
Yes, you are.
Prasan
Hi, sir. Am I audible?
Mohit Narayan Saboo
Yes, please.
Prasan
Sir, so congratulations on these sets of results. I think EBITDA margin has improved significantly over the quarters. I had a very specific question. So, one is that has the realizations improved in the last quarter? And how are you looking at it going ahead?
Mohit Narayan Saboo
So I also mentioned in my earlier con call that our first focus is towards improving capacity utilization, and across all our three block facilities, our capacity utilizations have almost reached 70% plus utilization levels. Only at the JV facility, the utilization is still around 51 percentage. And in the last quarter, Q3, we have been able to improve our realizations as well. And going forward, looking at the demand trajectory, we might be able to further improve on our realizations.
Prasan
And so can you give us some flavor as to what are the current prices which we are seeing? Because — so before that, sir, can you clarify what percentage of the revenue in this quarter was from construction chemicals?
Mohit Narayan Saboo
So from the construction chemicals, around 5% to 7% of the revenue was contributed by the construction chemicals. And your query about increase in realization, so I think the average realization has just gone up by around two percentage to three percentage for this quarter.
Prasan
Okay. Okay. Got it, sir. Sir, so I wanted to understand, so our revenue has increased by only INR5 crores, but our EBITDA has increased by almost INR4 crores. So is there something on the cost front as well which has changed versus last quarter?
Mohit Narayan Saboo
So apart from the increase in revenue, there has been an increase in realizations as well. And as we improve our utilization levels, our operation costs also consequently goes down. We are able to save on the overall variable cost also to a certain extent and fixed cost to a big extent. And from Q1 to Q3, we have seen almost 10% to 12% jump in capacity utilization. And that’s why — how our realization as well as EBITDA margins have improved drastically over the last two quarters.
Prasan
Yes, sure. Okay, sir. And currently, can you let us know what is the capacity utilization in the Vapi plant?
Mohit Narayan Saboo
So for the last quarter I think the Vapi plant capacity utilization was approximately at around 70 percentage.
Prasan
Okay, 70%. Okay.
Mohit Narayan Saboo
And I think the same numbers are mentioned in our results as well. For Q3, it was around 68 [Phonetic] percentage for the Vapi plant.
Prasan
Okay. Vapi plant percentage, I thought was not mentioned, sir. But okay, I’ll just check. That’s in the holding company only, right, the Vapi plant?
Mohit Narayan Saboo
Yes, it’s just in the parent holding company.
Prasan
Okay. Noted, sir. Noted. So right now you are saying…
Mohit Narayan Saboo
Sorry, you are not audible now.
Operator
So the participant has left the question queue. [Operator Instructions] We take the next question from the line of Ashvath Rajan from Arihant Capital. Please go ahead.
Ashvath Rajan
Yeah, thank you for the opportunity. I hope I’m audible.
Mohit Narayan Saboo
Yes, you are audible.
Ashvath Rajan
Yeah. Sir, my question is the NXTBLOC brand, where do you see utilization levels across our plants?
Mohit Narayan Saboo
Sorry to interrupt but your voice is somehow not very clear.
Ashvath Rajan
Yes. Is it better? I’m audible now. Hello?
Mohit Narayan Saboo
Could you speak a bit louder?
Ashvath Rajan
Yeah, I’m audible now?
Mohit Narayan Saboo
Yes, that’s better.
Ashvath Rajan
Yeah. I just wanted to understand what kind of utilization level are we looking at, especially in our Ahmedabad and Ramosadi plants going ahead?
Mohit Narayan Saboo
So Ahmedabad StarBigBloc plant, last quarter capacity utilization was around 80 percentage, 81 percentage. And the Ramosadi plant, last quarter capacity utilization is around 51 percentage. I think on a quarter-on-quarter basis, on a long-term annual basis, the average utilization for this sort of industry, we calculate 80%, 85% as the optimal. And StarBigBloc, which is the Ahmedabad plant, is already at around 80%, 85% for the last quarter. And the Ramosadi plant, we intend to get to 80 percentage in the next one quarter or two quarters.
Ashvath Rajan
Okay. And any reason why we see the jump in utilization in terms of…
Mohit Narayan Saboo
So we are able to — we had increased our capacities by a drastical level, going from 550,000 to almost 1.3 million. And if we see on a quarter-on-quarter, I think Q1, our capacity utilization on a consolidation basis was approximately 53%, which went up to 62% in Q2 and 67% in Q3. So we are just targeting newer endmarkets as well as existing markets with more client penetration. And for the wall panel space as well, we have been able to cater to lots of new different customers and are continuously seeing an increase in customer base as well as inquiries. So looking at that, going forward, we should be able to better scale up our utilization levels.
Ashvath Rajan
Okay, thank you. And I’m assuming now we don’t have any capex. There is — could you elaborate on the same?
Mohit Narayan Saboo
So for the capex, the construction chemicals plant is also almost on the verge of completion, so there’s no much capex spending over there. And since we have already reached almost 67% capacity utilization in this quarter, we are planning to take up the expansion for the facility in MP, for which land is already acquired. And we are in the process of doing negotiations with the contracting partners for the construction as well as the machinery suppliers from China.
Ashvath Rajan
Okay. And we see this commencing on this quarter, the capex that you just mentioned?
Mohit Narayan Saboo
So the MP plant capex, we intend to start hopefully in the running quarter. And the plant operationalization will take a period of almost 10 months to 12 months.
Ashvath Rajan
Okay. Okay, thank you. I’ll get back in the queue.
Mohit Narayan Saboo
Thank you.
Operator
Thank you. [Operator Instructions] We take the next question from the line of Jayshree Bajaj from Trinetra Asset Managers. Please go ahead.
Jayshree Bajaj
Hi, sir. My question is the AAC wall panel business reached 51% utilization in Q3. And given the first-mover advantage, what are the primary adoption barriers preventing the segment from reaching the, like 60% or 65% plus utilization level seen in the core AAC Block business?
Mohit Narayan Saboo
So the AAC wall panel business, the capacity utilization which I mentioned of 51% was for that particular plant. And that plant has a total installed capacity of 250,000 cubic meters per annum, which is a fungible capacity between blocks and panels. And the breakup for blocks and panels, I think panel utilization is so far around 10% and rest 40% utilization is from the block space. And on a quarter-on-quarter basis, we are seeing new inquiries from lots of different customers across the country.
And since we are the early movers in that space and we are the only people providing a panel which is up to a height of six meters, we are able to click some good potential projects. And we should be able to keep on improving the capacity utilization in that plant and improving the sales of AAC wall panels over the next three quarters to four quarters to reach 30%, 40% plus.
Jayshree Bajaj
Okay, sir. Fair enough.
Operator
Thank you. [Operator Instructions] We take the next question from the line of Ashvath Rajan from Arihant Capital. Please go ahead.
Ashvath Rajan
Yeah, thank you for the follow-up. I just wanted to understand, do we have any ordering activity or any order book that we foresee coming in, especially from any real estate player?
Mohit Narayan Saboo
So this is a bulky product and we don’t have any bulk orders on hand as such. We generally have an order book of around three days to five days, which had gone down to almost one day to two days in Q1 of the current year. So the order book has been improving. And we keep on getting bulk orders from select few customers, the likes of L&T or a few big corporates who place bulk orders which is for a delivery schedule of up to six months to nine months. But apart from that, on a routine basis, we generally keep on getting monthly purchase orders or weekly purchase orders from majority of our clients.
Ashvath Rajan
Okay, noted. Thank you. That’s it from my end.
Mohit Narayan Saboo
Thank you.
Operator
Thank you. [Operator Instructions] We take the next question from the line of Ajit Sethi from Eiko Quantum Solutions. Please go ahead.
Ajit Sethi
Thanks for the opportunity. So in AAC Block, we are around 67% utilization. So what kind of utilization we are expecting to end in FY ’26? And what kind of utilization we can do in FY ’27?
Mohit Narayan Saboo
So our capacity utilization for Q3 was around 67% and consolidated for the current nine months is around 60 percentage, 61 percentage. For the current year, I think we’ll close average utilization levels of 63%, 64% for the entire year. Q4 utilization should be hopefully upwards of Q3 utilization levels. And for FY ’27, we intend to reach capacity utilization of almost 70% plus.
Ajit Sethi
Okay. And what kind of EBITDA margin you are expecting in FY ’26 as well as in FY ’27?
Mohit Narayan Saboo
So EBITDA margins had dropped down drastically over the last one year because of increased competition as well as a little bit of a slowdown in the real estate segment. But since last quarter, we have been seeing improved demand as well as we have spread our market coverage as well, and that’s how we have been able to scale up our volumes and also improve our EBITDA margins. On a long-term basis, I’ve always said that EBITDA margins of around — anywhere around 15% to 20% is easily sustainable in the industry. And hopefully, we intend to reach those margins in the upcoming quarters.
Ajit Sethi
Okay, thank you.
Mohit Narayan Saboo
Thank you.
Operator
Thank you. [Operator Instructions] The next question comes from the line of Srijan Kaushik, who is an individual investor. Please go ahead.
Srijan Kaushik
Yeah. Hi. Am I audible?
Mohit Narayan Saboo
Yes, you’re audible.
Srijan Kaushik
Yeah. Sir, my first question is regarding the auditor’s qualification on the noncompliance with Ind AS 19 for employee benefits. So why hasn’t the Company accrued the post-employment benefits and long-term benefits on the actuarial basis? And what is the estimated financial impact if corrected?
Mohit Narayan Saboo
So for the Ind AS 19, for the employee benefit, the actuarial valuation we are getting it done on an annual basis instead of a quarterly basis. And all that needs to be provided will be provided in the annual accounts. The same was done in the last financial year and will be done again at the close of this financial year. So we don’t see any major impact of any qualification from the auditor for Ind AS 19.
Srijan Kaushik
Okay, thank you. And my second question is regarding this — are you aiming contributing to PMAY scheme, in which INR57,000 crores allocated in the Union Budget FY ’26?
Mohit Narayan Saboo
So yes, there are various government schemes which are running for construction, be it PMAY or SSA, which is Sarva Shiksha Abhiyan, going on in Gujarat. There are various cow as well as goat sheds projects going on in Maharashtra and Kanya Shiksha Parisar project going on in Madhya Pradesh. So we have been providing our material to all such government schemes and projects which come in our territory, which we are able to tap.
Srijan Kaushik
Okay. Right. Thank you. And I just wanted to get an estimate, as in, can you give me some numbers regarding the capex in this new territory of Madhya Pradesh?
Mohit Narayan Saboo
So we are planning to put up a plant in Madhya Pradesh with an installed capacity of around 2 lakh cubic meters to 2,50,000 cubic meters per annum. And the total capex for this facility will be in the tune of almost INR75 crores to INR80 crores.
Srijan Kaushik
Okay. Which will get executed within next year or so, right?
Mohit Narayan Saboo
Yes, it will be done over the next 12 months approximately.
Srijan Kaushik
Okay. Okay. And any estimate on our carbon credit accumulations?
Mohit Narayan Saboo
So in terms of the carbon credit, we have some accumulated credits. The Umargaon plant, which belongs to Bigbloc Construction Limited, we have carbon credits in stock which are not yet issued because there are some delays on part of VERRA because of additional audits, etc., being done by various carbon credit auditing authorities. And I think we have pending credits to be issued worth almost 1 [Phonetic] lakh to 1,50,000 [Phonetic] credits plus. And similarly, for StarBigBloc plant as well, we are — have some pending credits to be issued.
Similarly, the plant at Wada, which is Bigbloc Building Elements, that also has — it’s under the process of registration for carbon credit. We have not — we have already applied for the same but the final registration certificate is yet to be received by us. And the carbon markets are a little slow currently. That’s why we are not actively keen on getting those credits secured or sold.
Srijan Kaushik
Right, right. Okay, that’s it from my side. Thank you.
Mohit Narayan Saboo
Thank you.
Operator
Thank you. [Operator Instructions] As there are no further questions from the participants, I now hand the conference over to Mr. Mohit Saboo for his closing comments.
Mohit Narayan Saboo
Thank you all for taking the time to join us today and for your continued interest in Bigbloc Construction Limited. 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 Relations adviser, Churchgate Partners, and we’ll be happy to address your queries. Thank you. Have a good day.
Operator
[Operator Closing Remarks]