GARUDA - Garuda Cons

📊 NSE: GARUDA 🏢 Construction 📅 Last Updated: 12/13/2025 22:17

💰 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.