Capacit’e Infraprojects Limited (NSE: CAPACITE) The construction firm achieved 13% year-over-year income growth in Q3 FY26 and secured order inflows of ₹3,909 crores for the nine-month period. This performance surpasses its full-year target ahead of schedule as management targets a ₹4,000 crore revenue benchmark by 2028.
The company announced its highest-ever quarterly revenue for the period ended December 31, 2025. Total income rose to ₹681 crores, supported by accelerated project execution following monsoon-related delays. The company’s year-to-date order bookings reached ₹3,909 crores, exceeding the full-year guidance of ₹3,500 crores ahead of schedule.
Key Development
The primary driver of the quarter’s results was the normalization of project execution across the Mumbai Metropolitan Region (MMR) and National Capital Region (NCR). Earlier operational interruptions caused by extended monsoons, municipal elections in MMR, and regulatory delays in NCR have subsided, allowing for strengthened momentum in the latter half of the fiscal year. Furthermore, the company successfully tied up its assessed working capital limits of ₹1,390 crores, providing the liquidity necessary to support increased execution in the upcoming quarter.
Product Highlights
The company maintains a specialized focus on the construction of high-rise residential, commercial, and institutional buildings. Its portfolio includes super high-rise structures, townships, data centers, healthcare facilities, and metro stations. As of December 31, 2025, the order book is diversified with 61% of projects in the public sector and 39% in the private sector. Analysis of the project mix shows that 58% of the company’s work involves buildings exceeding 40 floors.
Financial Performance
For the third quarter of FY26, total income reached ₹681 crores, a 13% increase from ₹601 crores in the previous year. EBIDTA grew by 20% to ₹108 crores, with margins expanding to 16.0% compared to 15.3% in Q3 FY25. Profit after tax (PAT) was ₹50 crores, a 3% decrease from the ₹52 crores reported in the same period last year. The basic and diluted EPS for the quarter stood at ₹6.0.
On a nine-month basis, total income was ₹1,930 crores, representing a 13% year-over-year growth. The company reported a gross debt of ₹464 crores as of December 31, 2025, with a gross debt-to-equity ratio of 0.25x. Finance costs for the quarter were ₹24.1 crores. Operating expenses included ₹476.6 crores for material consumption and construction and ₹46.1 crores for employee expenses.
Business Outlook and Strategy
Management has outlined a “Vision 2028” strategy aiming for a revenue CAGR of over 20% to exceed ₹4,000 crores by FY 2028. Key operational priorities include reducing working capital days and monetizing non-core assets. The company has realized ₹38.3 crores from asset disposals to date and expects another ₹12 crores by March 31, 2026, with a further ₹50 crores targeted for FY27. Additionally, the company has reduced interest rates on fund-based limits from approximately 12.5% to 10.25% over the last two years, which is expected to lower finance costs in FY27.
Sector and Macro Context
The company’s performance reflects broader trends in the Indian engineering, procurement, and construction (EPC) sector, where execution is often sensitive to seasonal monsoons and regional regulatory shifts. Despite these macro factors, the company has maintained a robust bid pipeline and a high order-book-to-sales ratio of 5.1x.
Investment Thesis (Bull vs. Bear)
Bull Case:
- Company has demonstrated the ability to exceed order inflow guidance significantly ahead of schedule and has achieved record quarterly revenues.
- The reduction in interest rates for fund-based limits and the full tie-up of working capital provide a clearer path for margin expansion and execution growth.
- A 5.1x order-book-to-sales ratio suggests high revenue visibility for future periods.
Bear Case:
- While revenue and EBIDTA grew, PAT saw a marginal year-over-year decline of 3% in the third quarter.
- Gross debt has increased from ₹417 crores at the end of FY25 to ₹464 crores.
- The company remains susceptible to regional regulatory interruptions and municipal election cycles that can temporarily halt project momentum