CEMPRO - Cemindia Project

📊 NSE: CEMPRO 🏢 Civil Construction 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 18% in FY25 to INR 9,097 Cr and 9% YoY in Q2 FY26 to INR 2,175 Cr. While specific segment % growth is not fully itemized, the company is pivoting toward Data Centers (INR 1,307 Cr order) and Marine/Metro projects which are identified as higher-margin segments.

Geographic Revenue Split

The majority of revenue is domestic (India), with projects in Maharashtra, West Bengal, Kerala, and Chhattisgarh. Overseas operations contribute through projects in Abu Dhabi, Sri Lanka, and Bangladesh, though specific % split per region is not disclosed.

Profitability Margins

PAT grew 49% YoY in Q2 FY26 to INR 108 Cr. Net Profit margin for FY25 stood at 4.1% (Consolidated). Margins are expected to remain stable as operating leverage from a higher top-line absorbs corporate overheads.

EBITDA Margin

EBITDA margin improved to 11.1% in Q2 FY26 from 10.3% in Q2 FY25. For H1 FY26, EBITDA margin was 10.5% (INR 496 Cr). The company targets a sustainable EBITDA margin of approximately 11% through better project selection and cost control.

Capital Expenditure

Term debt has been reducing as the current asset base is deemed adequate for the existing order book. Specific planned INR Cr for future capex is not disclosed, but the company maintains a net debt-to-equity ratio of 0.25x to support conservative growth.

Credit Rating & Borrowing

CareEdge and ICRA provide ratings with a stable outlook. Interest coverage ratio improved to 3.9x in FY25 (from 3.7x). Ratings could be upgraded if interest coverage exceeds 6.0x on a sustained basis.

⚙️ Operational Drivers

Raw Materials

Steel and Cement are the primary raw materials, though their specific % of total cost is not disclosed. These are critical for heavy civil engineering and marine construction.

Import Sources

Not disclosed in available documents; however, projects are executed across India and in the Middle East/South Asia, suggesting localized sourcing for construction materials.

Key Suppliers

Not disclosed in available documents, though the company maintains long-standing relationships with suppliers to fund working capital through extended credit periods.

Capacity Expansion

The company is expanding its service capacity into the Data Center vertical (30MW project secured) and large-diameter tunneling. It aims to double revenues in less than 3 years by increasing execution cycles per quarter.

Raw Material Costs

Input costs are subject to volatility; however, most contracts include price escalation clauses to mitigate the impact of rising steel and cement prices on the 9.5-10% operating margins.

Manufacturing Efficiency

Efficiency is measured by execution speed; the company noted that H2 revenue is historically higher than H1, with Q2 typically seeing a 14-16% dip due to monsoon impacts on construction sites.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be driven by the Adani Group acquisition (67.46% stake), which is expected to increase in-house project contribution from 14% to 50% of the order book. The company is also targeting new high-margin verticals like Data Centers (15% order book target) and airports.

Products & Services

EPC services for Urban Infrastructure (Metro, MRTS, Airports), Marine Works (Jetties, Breakwaters), Data Centers, Hydroelectric power, and Irrigation projects.

Brand Portfolio

Cemindia (formerly ITD Cementation India Limited).

New Products/Services

30MW Data Center EPC (INR 1,307 Cr contract), large diameter tunnels, and airport infrastructure are the primary new growth areas.

Market Expansion

Expansion into the Adani Group ecosystem and increasing the share of specialized civil/electromechanical (EMP) works in the order book.

Market Share & Ranking

Cemindia is one of the few players in India capable of executing complex underground metro and specialized marine works, though specific % market share is not stated.

Strategic Alliances

Acquisition by Renew Exim DMCC (Adani Group entity) provides operational synergies and enhanced financial flexibility.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated EPC contracts including electromechanical parts. Cemindia is positioning itself by recruiting specialized consultants and building EMP capabilities to capture this 15% order book segment.

Competitive Landscape

Intense competition from small and medium players in general infrastructure, but limited competition in specialized segments like deep-sea breakwaters and underground tunneling.

Competitive Moat

Moat is built on 4+ decades of experience in technically complex projects (marine, underground metro) where entry barriers are high due to required technical qualifications and equipment intensity.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and GDP growth, as these drive the pipeline for metro, port, and airport projects.

Consumer Behavior

Not applicable for B2B/Government EPC; demand is driven by infrastructure policy and industrial expansion (e.g., data center demand).

Geopolitical Risks

Operations in Sri Lanka and Bangladesh expose the company to potential political instability and regulatory changes in those regions.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations 2015 and Regulation 74(5) of SEBI (Depositories and Participants) Regulations 2018 for share dematerialization.

Environmental Compliance

The company maintains IMS standards including ISO 14001:2015 (EMS) and ISO 45001:2018 (OHS-MS) for operational safety and environmental management.

Legal Contingencies

The company has sizeable contingent liabilities in the form of bank guarantees for contractual performance and retention money (INR 600 Cr), though no specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Execution risk on 32% of the order book in early stages; potential for 14-16% revenue volatility due to weather; and dependency on the Adani Group for future order flow synergies.