GARUDA - Garuda Cons
📢 Recent Corporate Announcements
Garuda Construction and Engineering Limited reported a robust performance for the quarter ended December 31, 2025, with standalone revenue from operations jumping 125% YoY to ₹140.05 crore. Net profit for the quarter rose significantly by 156% to ₹32.97 crore, up from ₹12.87 crore in the same period last year. On a sequential basis, the company maintained growth with revenue and profit increasing by 20% and 21% respectively. The nine-month profit of ₹88.12 crore has already significantly surpassed the total profit of the entire previous financial year.
- Standalone Revenue from operations grew 125% YoY to ₹14,005.41 Lakhs in Q3 FY26.
- Net Profit for the quarter increased by 156% YoY to ₹3,297.00 Lakhs.
- Earnings Per Share (EPS) improved to ₹3.54 from ₹1.43 in the year-ago quarter.
- Nine-month profit (Apr-Dec 2025) reached ₹8,812.37 Lakhs, nearly double the full-year FY25 profit of ₹4,980.48 Lakhs.
- Consolidated revenue for the nine-month period includes a contribution of ₹10,103.45 Lakhs from three subsidiaries.
Garuda Construction and Engineering Limited has submitted its quarterly compliance certificate under SEBI (Depositories and Participants) Regulations for the period ended December 31, 2025. The company's Registrar and Share Transfer Agent, Cameo Corporate Services, confirmed that zero dematerialization requests were received during the quarter. This is because the company has no shares remaining in physical mode, with 100% of securities already held electronically. This filing is a standard procedural requirement for all listed companies in India.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Zero dematerialization or rematerialization requests processed during the period
- Confirmation that no shares of the company are currently held in physical mode
- Certificate issued by Registrar and Share Transfer Agent, Cameo Corporate Services Limited
Garuda Construction and Engineering Limited has announced the closure of its trading window for all designated persons starting January 01, 2026. This mandatory regulatory step is taken ahead of the announcement of the company's financial results for the quarter ending December 31, 2025. The trading window will remain closed until 48 hours after the results are officially disclosed to the stock exchanges. This is a standard compliance procedure under SEBI (Prohibition of Insider Trading) Regulations, 2015.
- Trading window closure effective from January 01, 2026, for all designated persons.
- Closure is in anticipation of the financial results for the quarter ended December 31, 2025.
- The window will reopen 48 hours after the public announcement of the Q3 financial results.
- Compliance maintained under SEBI (Prohibition of Insider Trading) Regulations, 2015.
Garuda Construction and Engineering Limited held its Extraordinary General Meeting on December 01, 2025. The meeting addressed three resolutions, all of which were passed with the requisite majority. Specifically, a special resolution for raising funds through equity shares saw 67850987 votes in favor. An ordinary resolution for increasing authorized share capital also passed with 67850986 votes in favor. Another ordinary resolution approving related party transactions received 4987258 votes in favor.
- 67850987 votes in favor for raising funds through equity shares
- 67850986 votes in favor for increase in authorised share capital
- 4987258 votes in favor for approval for Related Party Transactions
- 255 votes against for raising funds through equity shares
- 3254 votes against for approval for Related Party Transactions
Garuda Construction and Engineering Limited convened an Extraordinary General Meeting (EGM) on December 1, 2025, via video conferencing. The meeting addressed key resolutions, including the approval for raising funds up to ₹500 Crores through the issuance of equity shares to Qualified Institutional Buyers via Qualified Institutions Placement (QIP). Shareholders also considered increasing the Authorised Share Capital and approving Related Party Transactions. Remote e-voting was facilitated through Central Depository Services Limited (CDSL) from November 28-30, 2025.
- Approved raising funds up to ₹500 Crores via QIP.
- EGM held on December 01, 2025, and concluded at 10:21 AM.
- Remote e-voting conducted from November 28 to November 30, 2025.
- The meeting was held through Video Conferencing (VC).
Financial Performance
Revenue Growth by Segment
The company achieved a total revenue of INR 241.61 Cr in H1 FY26, which surpassed the full-year revenue of the previous fiscal year. Revenue is segmented into Residential (52%), Commercial (30%), and Industrial & Infrastructure (18%). Historical revenue growth was reported at 84.39% YoY.
Geographic Revenue Split
The company is primarily based in Mumbai, Maharashtra, with its registered office in Bandra Kurla Complex. Specific regional percentage splits are not disclosed, but operations are concentrated in civil construction within these urban hubs.
Profitability Margins
PAT margin for H1 FY26 was 23.1%, showing an improvement from 22.1% in FY25. Net profit for H1 FY26 stood at INR 55.15 Cr.
EBITDA Margin
EBITDA margin for H1 FY26 was 29.3%, a slight decrease from 29.5% in FY25 and 32.2% in FY24. Core profitability remains strong due to a focus on niche, high-margin projects.
Capital Expenditure
Net cash used in investing activities was INR 6.2 Cr for H1 FY26, compared to INR 49.8 Cr in FY25, reflecting ongoing project-related asset requirements.
Credit Rating & Borrowing
The company is currently debt-free as of H1 FY26. Borrowing costs are negligible with non-current financial liabilities (borrowings) reported at INR 0.0 Cr.
Operational Drivers
Raw Materials
Key raw materials include cement, steel, sand, and bricks, which are essential for civil construction projects. Specific percentage of total cost for each material is not disclosed.
Capacity Expansion
The company currently has 16 ongoing projects and 26 completed orders. The order book has expanded significantly to INR 4,876.78 Cr as of November 2025.
Strategic Growth
Expected Growth Rate
84.39%
Growth Strategy
Growth is driven by aggressive bidding for new projects, resulting in an order book of INR 4,876.78 Cr. The strategy involves focusing on niche, high-margin contracts, expanding the client base beyond group entities, and transitioning into developer roles to capture higher value in the construction lifecycle.
Products & Services
Civil construction services for residential, commercial, industrial, and infrastructure sectors, along with hospitality and management services.
Brand Portfolio
Garuda Construction and Engineering Limited.
New Products/Services
The company intends to commence development mandates, taking on larger roles as developers in addition to their civil construction base.
Market Expansion
The company is targeting larger contracts with external developers to diversify its client base and reduce dependency on group entities.
External Factors
Industry Trends
The industry is entering an 'era of execution' with a strong focus on high-margin niche projects. There is a trend toward asset-light models to improve return on equity in the construction sector.
Competitive Landscape
The company competes with other civil construction firms but differentiates itself by prioritizing profitability over contract volume.
Competitive Moat
The company's moat is built on an asset-light business model, experienced promoters with 20+ years of expertise, and a diversified order book of INR 4,876.78 Cr, which provides long-term revenue visibility.
Macro Economic Sensitivity
The business is sensitive to infrastructure spending and urban development trends in India, particularly in the Mumbai real estate market.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
Taxation Policy Impact
Direct taxes paid in H1 FY26 amounted to INR 2.4 Cr.
Risk Analysis
Key Uncertainties
The primary uncertainty is the pace of execution in H2 FY26 following monsoon-related delays and the successful deployment of the planned INR 500 Cr QIP funds.
Geographic Concentration Risk
Operations are heavily concentrated in the Mumbai region, making the company susceptible to local regulatory changes and regional economic shifts.
Third Party Dependencies
The company relies on third-party projections and data for market analysis, though it does not formally adopt them.
Credit & Counterparty Risk
Trade and other payables due to creditors (other than MSME) stood at INR 119.0 Cr in H1 FY26, reflecting increased operational scale.