DBL - Dilip Buildcon

📊 NSE: DBL 🏢 Construction 📅 Last Updated: 12/13/2025 21:35

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue for Q2 FY26 was INR 1,417 Cr. The company has a capability to execute INR 10,000 Cr+ revenue annually. The order book stood at INR 14,923 Cr as of March 31, 2025, a 14.4% decrease from INR 17,432 Cr in FY24. Mining and HAM segments are targeted to provide 75% of future profitability.

Geographic Revenue Split

DBL has a pan-India presence with operations across 20 states and 1 Union Territory. Specific percentage split by region is not disclosed in available documents.

Profitability Margins

Net margin was 3.5% for FY25, with a medium-term target to improve to ~5% through debt reduction and refinancing. Operating margins contracted to 10.2% in FY25 from 11.6% in FY24 due to high fixed costs and lower scale.

EBITDA Margin

Operating margin (EBITDA) was 10.2% in FY25, down 140 bps YoY from 11.6% in FY24. The company targets a recovery to ~12% in the near-to-medium term through cost streamlining.

Capital Expenditure

DBL operates a capex-intensive model with an owned fleet of 10,600+ GPS-enabled equipment. While specific future INR Cr capex is not disclosed, the company is shifting toward an asset-light model via monetisation and targets a standalone debt reduction of INR 500 Cr in FY26.

Credit Rating & Borrowing

Crisil Rating: Stable. Interest coverage ratio is expected to remain modest, sustaining below 3.0 times over the medium term. Upward rating sensitivity requires improvement to above 3.5 times.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, cement, and fuel (bitumen/diesel). Specific percentage of total cost for each is not disclosed, but they are subject to price volatility mitigated by contract escalation clauses.

Import Sources

Sourced primarily from within India; the company operates its own crushers and sources aggregates from in-house facilities to ensure supply stability.

Key Suppliers

Sourced directly from market leaders to ensure price and supply stability; specific company names are not disclosed in available documents.

Capacity Expansion

Current execution capacity is INR 10,000 Cr+ revenue. Coal MDO production target is 32 MMT for FY26 (25 MMT from one mine, 7 MMT from Pachhwara), expanding to 57 MMT by 2029 (representing 8-9% of India's total coal output). Solar capacity: 100 MW won, targeting 1 GW expansion.

Raw Material Costs

Raw material costs are managed through direct sourcing and in-house aggregate production. Contracts include cost escalation clauses to absorb price increases, though volatility still impacts margins.

Manufacturing Efficiency

Efficiency is driven by an integrated model managing the entire project lifecycle. Early delivery bonuses are a key contributor to profitability, reflecting high execution speed.

Logistics & Distribution

Managed through an in-house fleet of 10,600+ equipment units to maintain control over timelines and costs.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be achieved by targeting INR 15,000 Cr of new order inflows in FY26, diversifying into solar energy (1 GW target), and scaling coal MDO production to 57 MMT by 2029. The company is also utilizing an InvIT partnership with Alpha Alternatives to unlock capital and reduce standalone debt.

Products & Services

EPC construction services for roads, dams, tunnels, and metros; Coal mining services (MDO); Hybrid Annuity Model (HAM) road assets; Solar power generation.

Brand Portfolio

DBL (Dilip Buildcon Limited).

New Products/Services

Solar energy (100 MW project won, targeting 1 GW); expansion into digital infrastructure and optical fibre projects.

Market Expansion

Expanding presence across 20 states to mitigate region-specific policy risks; entering the renewable energy sector.

Market Share & Ranking

DBL is one of the top producers of coal in India (targeting 8-9% of national output by 2029) and a leading player in the road EPC sector.

Strategic Alliances

Strategic partnership with Alpha Alternatives (AA) for asset monetisation and financial structuring of the HAM portfolio.

🌍 External Factors

Industry Trends

The industry is seeing a tightening of eligibility criteria for EPC and HAM projects, which favors experienced players like DBL. There is a shift toward diversified infra (water, tunnels, solar) away from pure-play roads.

Competitive Landscape

Intense competition from both large and small players, though recent regulatory tightening of bidding norms is alleviating competitive pressure.

Competitive Moat

Moat consists of a massive in-house fleet (10,600+ units) and a large workforce (23,504), allowing for better control over quality and timelines compared to sub-contracting peers. This is sustainable due to the high capital cost for competitors to replicate.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and cyclicality in the construction industry. Reduced order inflows over the last 2 years led to lower free cash flows.

Consumer Behavior

Not applicable (B2B/B2G model).

Geopolitical Risks

Trade barriers affecting fuel or equipment parts could impact operational costs, though the company relies heavily on an in-house fleet.

⚖️ Regulatory & Governance

Industry Regulations

Tightening of prequalification norms for NHAI/EPC bidding; compliance with HAM/BOT model regulations and mining safety standards.

Environmental Compliance

Mining operations (MDO) require strict adherence to environmental clearances and coal production norms.

⚠️ Risk Analysis

Key Uncertainties

Order book visibility (currently 1.65x revenue, target >2.0x); execution delays in complex projects like tunnels; working capital cycle stretch (285 days GCA).