Ceigall India Limited (CEIGALL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Seagull India Limited Q2 and H1-FI27 earning conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation conclude. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Upadhyay from... Thank you.

Good morning, everyone, and welcome to Q2 and H1 FY27 earning conference call of Legal India Limited. Today, we have with us Mr. Ramanik Saigal, chairperson and managing director, Mr. Kapil Agarwal, CFO, and Mr. Sarwanan, full-time director. Before I hand over for opening comments, let me mention a cautionary statement that this conference may include forward-looking statements about the company which are based on belief, opinion, and expectation of the company as on the date of this call. These statements are not a guarantee of future performance and involve risk and uncertainty that are difficult to predict. We will begin the call with the opening remarks from the management, after which we will have forum open for question and answer session. I now hand over the conference to Mr. Raminik Seigel for his opening comments. Thank you, and over to you, sir.

Good evening, everyone, and thank you for joining us for Segal India's Q2H1 Financial Year 27 Earning Conference Call. I hope all of you are doing well. Before we begin... And this is stakeholders on the occasion of Diwali. I wish you and your family a very happy Diwali and a prosperous New Year. Joining me on today's call is Mr. Kapil Agarwala, CFO, along with the Investigation Team. Our financial results, investor presentation, and press release have been shared with the stock exchanges now also available on our website. I hope all of you had an opportunity to review them. Second quarter and the first half of the Financial Day 27 have been a strong period for Seagull India as we continue to deliver healthy growth in revenue, profitability, while making significant progress across our diversified infrastructure portfolio. Our performance reflects. Sustained execution across our ongoing projects, improving operational efficiencies, and a continued focus on expanding into high-potential infrastructure segments. During the quarter, we further strengthened our order book, which stood at approximately 22,681 crore of September 30, 2026, providing strong revenue visibility over the coming years. Importantly, our order book is becoming increasingly diversified across other sectors than roads and highways. We are in metros, renewable energy, transmission, distribution, industrial infrastructure, and positioning as well to capture emerging opportunities across India's infrastructure landscape. One of the significant developments during the quarter was expansion into the power transmission segment. We received a letter of intent from REC Power Development and Consultancy Limited for the development of Lakadia Jam, Kambalia Jam Nagar Transmission Project in Gujarat, which is a project of approximately 5,700 crores, including GST. The project involves... The development of 765 oblique 400 kV substation and approximately 300 km of transmission lines with a construction period of 36 months followed by a 35-year operational period. This presents an important milestone in our diversification strategy and strengthen our presence in long-term infrastructure assets. Our core roads and highway business also witness a healthy auto inflow during the quarter. Through our joint venture, we secured up five packages for NH913 Frontier Highway in Uralachal, Pradesh, aggregating approximately 3128 crores and spanning around 278 kilometers. These projects further strengthen our presence in northeast India and reinforce our capability in executing large-scale infrastructure projects across the challenging geographies. On the execution front, we... This is an important development as these projects now move into the execution phase and will contribute to our construction pipeline over the coming quarters. We also continued to make meaningful progress in our renewable energy business. During the quarter, our only-owned subsidiary successfully commissioned 10 megawatt of the solar capacity under 147 megawatt solar power plant in Maharashtra ahead of schedule. This marks an encouraging beginning to our operational journey in renewable energy. We remain focused on scaling up the irrigation across our solar and battery energy storage projects. Another important area of focus continues to be our ham asset monetization strategy. Following the successful monetization of the first ham asset, we are progressing with the monetization of the other matured assets, including Bathinda Dawali and Jalbida Shahbad projects. During the contract quarter, we also achieved the provisional COD for Jalbeda-Shabad project. Our objective remains to recycle the capital from completed assets into the new projects, improve capital efficiency, support our future growth requirement while maintaining the financial discipline, and while selling these projects, our debt is also reducing. Subsecant to the quarter, we also received completion certificate for Delhi-Saharanpur Highway Project, marking another important contractual milestone and reinforcing our execution track record in complex road infrastructure. Looking ahead, we remain confident in the opportunities emerging across India's infrastructure sector with a strong and diversified autoburg, a healthy execution pipeline, and expanding presence in renewable energy and power transmission. Our focus will remain. Before I conclude, I would like to thank our clients, business partners, lenders, shareholders, and most importantly, our employees of their continued trust and support. With that, I would like to now hand over the call to our Chief Financial Officer, Mr. Kapil Angarwal, who will take you through the financial performance for Q2 and H1, financial year 27, in a greater detail. Thank you, guys. Thank you.

Thank you, Ramani, sir, and warm welcome to everyone joining us today. It is a pleasure to take you through our financial and operational performance for the second quarter and first half of the FY27. I begin with our standalone financial performance. Our standalone revenue from operations for Q2 FY25 stood at 974.5 crores, compared to 787 crores in Q2 FY26, registering a year-on-year growth of 23.8%. For half-year 27, standalone revenue from operations stood at 1,876 crores compared to 1,605.3 crores in H1 F1 26, registering a growth of 16.9%. Our standalone EBITDA for Q2 FY27 stood at 130.5 crores compared to 91.8 crores in Q2 FY26 resisting a growth of 42.3%. Standalone EBITDA margins improved to 13.4% compared to 11.7% in the corresponding quarter last year. For half-year FY27, stand-alone EBITDA stood at 251.6 crores, resisting a year-on-year growth of 35.8%, with a stand-alone EBITDA margin improving to 13.4% from 11.5% in half-year FY26. Our stand-alone profit after tax for Q2 FY27 stood at 82 crores, compared to 55.9 crores in Q2 FY26. Resisting a growth of 46.7%, standalone PAT margins improved to 8.4% from 7.1% in the corresponding quarter last year. For half-year FY27, standalone PATs stood at 157.2 crores, resisting a growth of 40.6% year-on-year, with a standalone PAT margin improving to 8.4% from 7% in half-year FY26. Consolidated financial performance. Moving on to our consolidated financial performance, our consolidated revenue from operations for Q2 FY27 stood at 1022.5 crores compared to 806.6 crores in Q2 FY26, resisting a year-on-year growth of 26.8%. For half-year FY27, consolidated revenue from operations stood at 1,992.1 crores, compared to 1,644.7 crores in half-year FY26, registering a growth of 21.1%. Our consolidated revenue for Q2 FY27 stood at 174 crores, compared to 113.6 crores in Q2 FY26. Resisting a growth of 53.2%. Consolidated EBITDA margins improved to 17%, compared to 14.1% in Q2 FY26. For half-year FY27, consolidated EBITDA stood at 317.4 groups, resisting a year-round growth to 42.5%, with a consolidated EBITDA margins improving to 15.9% from 13.5% in half-year FY26. Our consolidated profit after-tax for Q2 FY27 stood at 92.2 crores compared to 56.2 crores in Q2 FY26, resisting a growth of 64.1%. Consolidated margin improved to 9% compared to 7% in the corresponding quarter last year. For half-year F527, consolidated past stood at approximately 156 crore, resisting a year-on-year growth of around 45%, with consolidated PIAT margin improving to 7.8% from 6.5% in H126. Coming to our order book and operation performance, as on 30th September 2026, our order book stood at 22,681 crore, providing a strong execution visibility over the coming years. Our order book comprises of 18 APC projects, 10 HAM projects, 1 DBFOT project, and 10 tariff-based projects. In terms of sector-wise composition, roads and highways continues to account for the largest share of our order book at approximately 55%, followed by transmission and distribution at 21%, renewable energy at 16%, metro projects at 4%, and Indian infrastructure projects at 3%. This reflects our continued effort to diversify our business while maintaining a strong presence in our core infrastructure segments. On the balance sheet front, our standalone debt stood at approximately 436 crores as of 30 September 2026, while our consolidated debt stood at approximately 730 crores, our standalone debt-to-equity ratio remained at 0.2 times, while our consolidated debt-to-equity ratio stood at 0.8%. Going forward, our focus remains on timely execution of our projects, improving our operational efficiencies, and maintaining financial discipline. With a diversified order book and a healthy execution pipeline, we remain well positioned to support our growth ambitions across infrastructure segments. With this, I conclude my remarks and would request the moderator to open the floor for question and answer session. Thank you, everyone.

Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session.

Anyone who wishes to ask a question may press star and 1 on their touchtone telephone.

If you wish to remove yourself from the question queue, you may please press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question comes from the line of Bebo Shah with James Rancher. Please wait.

Hi, sir. Firstly on guidance, so we had guided for around 15% kind of a growth, but the growth has been very strong in the first half. Also margins have been very strong at 13.4%. So we'd like to revise the guidance for the revenue growth and margins. Hi, Weber.

I was expecting first question, as always. So, thank you so much for the question. You know, we... After the IPO, we guided our investment that we'll be between 10% to 15%. Of course, we achieved more than that. And here also, this year, we have guided our investors that we'll have minimum 15%. And of course, we have overachieved it. And we will always want it to be a little conservative on this. And, you know, it's always better for the investor to see the surprises. As a driver of growth is renewable business and T&D, and that is really giving us a push. And if you see, we have already delivered 10 megawatt of renewable, and it is progressing very fast. And if you see, we are getting the incentive also in that business. So, again, the guidance would be minimum 15%, and we'll try to achieve it.

On EBITDA Models.

So, the guidance will be same, we'll try to over achieve it.

Okay. So, secondly on the few of the solar and best projects, so for the MP project, when do we expect to start the execution? PPA was signed actually?

No. So, for MP there are two projects, one is solar, which is already started, which is For marina, there are three things required. One is PPA. We have already given the land. It's there. The third thing is the transmission line. So transmission lines, one, it is completed, and the department, you know, indicates that it's about to complete or you can start. We'll start the project. Thank you.

So we actually start the project this year or next year?

So this year looks tough because I think they are under the stage of... Finalizing the contractor for transmission line, once that is done, then the contractor would execute it, then it would be handed over to us.

Okay. So, secondly, on monetization, so what inflow are we expecting from monetization of Bhatina Dabbali and Deldera Shabbat, and by when do we expect the cash to come in?

The inflow should be around 250 crores, and debt around 540 crores will be reduced, but Hindadabali we are targeting in this quarter, Jalbida Shawa next quarter.

Sir, lastly, what would be the total equity required for the entire asset portfolio, and how do we intend to spend it, or to fund it, actually?

Yeah, yeah, yeah. So, we have the requirement of 2,632 crores, 669 already infused, till now, and 962 crores is a balance. And 161 crore we have already infused in this year. Balance is 1801 crore. And this year we are targeting another 700 crore. So next two years, again, around the same 700 crore. And then it would be around 400 crore. So equity, we were sitting on 400 crore cash surplus last year in a balance sheet. And close to 450 crore is coming from NIO. And there is a cash cruel also you would have seen in both the quarters, 75 plus 82, and going forward also there is a cash cruel. So there is no such challenge, but as per the CV guidelines, we have to reduce it at 82.06 to 75%. So we expect money coming there also, and that will also be used for the growth of the company.

Just to confirm the number, 2632 is total required. 639 is infused as of September. So pending is 1962. Of 1962, we are expecting 700 to be spent in second half of this year?

Yes, yes, yes. So, 700 next year has... The web of 1962 was at the start of the year. During the year till first, second quarter, we have already infused 161. So, balance 707 for the current financial will be invested in two quarters, and for next year it is 730, and obviously for the third year it is 397.

So, by FY20, the entire investment will be done?

Yeah, yeah, yeah.

And the last year for this new project, the last area one, so what will be the ETC value for that, and when do we expect to start the work for that?

Also, 5,300 crore is including the GST, and we are targeting to start it before 31st March. That's real aggressive, but we are trying to do that.

Okay. Thank you, sir. Those were my questions. Pleasure. Pleasure.

Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and 1. Next question comes from the line of Madhav Das with Mehta Investments. Please go ahead.

Madhav Das, please proceed with the question. Thank you. Mr. Das, we request you can please proceed ahead with the question.

As there's no response from Mr. Das, we will move to the next questioner. Next question comes from the line of Iyash Parker with Patel Investments. Please go ahead.

Hi, sir. Good evening. Thank you so much for the opportunity. Sir, your order book has increased to approximately 22,680 crores, which is providing a book-to-bill ratio of around 4.8x. How should we look at this conversion of the order book into revenue over the next two to three years? And could you elaborate on the expected execution trajectory of across EPC, HEM, and tariff-based projects?

Good question, Hishpal. First of all, out of 22,681 crore, our order book from Ham is close to, the road is 56%, 36% from T&D and solar, the rest is a mix of metro, industrial, and other projects. So, in terms of developer side, our order book is 73%, and the company... Bring us minimum 15% growth, and, of course, we have shown the better, you know, numbers. Going forward, we have...

Okay. And, sir, how are you assessing the infrastructure opportunity in India over the next three to five years, particularly considering the government's focus on highways, expressways, railways, renewable, as well as power? So, which segments do you believe will see the strongest tendering activities?

Sir, you know, there is no looking back in this developing country. If you see, we have 11 verticals, 16 seats. So, for Seagull, what matters is, we need to bid projects at 25% IRR. And if you see in the last three projects, which is, we have guided investors to get 25% at project IRR level, and we have achieved much more what we said. So, it doesn't matter that we get an IV project or we get a solar project or we get a hybrid project or we get a transmission project or any other vertical. We need to make money, minimum 25% IRR on the project level or EPC or 13-14% EBITDA. So, that is achievable and since we have so many verticals and so many states, getting order book is not a challenge for Seeker. Thank you.

Yeah, and so last question from my aunt. You recently received appointment dates for three hemp projects, which is aggregating over 4,000 crores. Could you, like, walk us through the initial execution milestones for these projects, including the land availability, financial disclosure, mobilization of equipments, and commencement?

So, you know, good thing about Seagull is before these appointed dates, we have fairly good time where we mobilize before time. Number two, FCs, Seagull has always shown this in the past. We've been punishing it before time, and good news is all our highway projects, financial closes are done and executed. And third, VRK 11 and 12, every month, we are getting the payments, running bill payments, and we are expecting for Indoor also before Diwali. And the projects have picked up, and we are really looking forward for good execution in coming months, especially March.

So, can I ask an additional question?

Please, please, go ahead.

So, you have also entered and expanded into Arunachal Pradesh through multiple Frontier Highway packages, right?

Yes, yes.

So, what are the challenges? There are a lot of terrain challenges and geographical conditions in the Northeast. So, could you elaborate on the execution methodology, the logistical requirements and cost implications compared with projects in, say, the normal planes?

So, good question. We are already present in Hamanin train. You know, we have done Kirat Kurni Chong, which was a leftover work of ILFS. We were executed before time. Then we have executed a tunnel in Ramban Banyal, which was one of the most toughest train before us. Many contractors tried, they couldn't execute. With us, there's another renowned company of the country. They could only execute 15-1600 meters. We completed 6.5 kilometers. In fact, this year, the Ammanath Yadra happened to that. We're putting another bar next to that, which is also about 60% completed. So we, our company has been working in Himalayan terrain for more than 10 years. Our USP is working in Himalayan terrain is there. We've been executing projects before time and, you know, completing projects before time in Himalayan terrain also. So expertise and execution, team, mobilization is not a challenge. That's the USP of C. Right.

Okay, sir. But, sir, despite the strong improvement in profitability, the consolidated operating cash flow actually remained negative during the first half. So, what are the key reasons for this, particularly the working capital absorption, and when should we expect the cash flow conversion to improve?

So, this is basically because of the HAMP projects, if you look at the consolidated cash flow, we are only getting 40% payment from the NHI. So, moreover, it is a half year. When we are going for a full year result, things will be different.

Okay. Makes sense. Thank you so much for answering my questions patiently, sir. And all the best for future endeavors.

Pleasure, pleasure, pleasure. Thank you.

Thank you so much. Ladies and gentlemen, anyone who wishes to ask a question, may press start, anyone. Next question comes from the line of Madhudas with Mehta Investments. Please go ahead.

Yes. Hi. Thank you for the opportunity. So, sir, I have a few questions in line for the same. One being that our consolidated revenue has grown 27% YOY. So, could you help me understand which projects or segments drove this growth, and how do we look at the execution momentum for the second half of FY27 for the same month?

Can you repeat the question, please?

Yes, sure. The question is that, sir, our consolidated revenues have grown 27% by or by. So, if you could help me understand which projects or segments have driven this growth, and how should we look at the execution momentum for the rest of the AFY27?

Yeah, this year, renewable is basically the key factor. So, we have achieved the turnover of almost 143 growth in renewable sector, which was not there last year. So, going forward also, we expect a good turnover from renewables and transmissions, which is going to add to the turnover of the company.

Thank you, sir. And the other question being, our EBITDA margins have improved for this quarter. So, if you could explain me the, if you could help me understand the key factors for this improvement and are the margins sustainable going forward, the improvement margins, are they sustainable in the long run, if you could help me understand this.

We are getting healthy margins and this is like a transformation. So, which has resulted in the improvements of the EBITDA, and moreover, we have recently started our HAMP projects, BRK 11 and 12, so which are good, profitable projects for us.

Okay. And so, can I take up a last question? Hello.

Madhu, there is a lot of background noise coming from your NKT. Please check. Thank you.

Certainly. Is it better now?

Okay, you can go ahead with the question.

Thank you. So, given our strong order wins during the first half, what is the order and so target for FY27? And how much additional ordering activity are we expecting in the half of FY27?

So, we have guided 6,000 crores through the investors. We have already achieved close to 5,400. And we have already quoted 10 days more than 10,000 crore. And 6,000 is easily achievable. That will be achieved. Last year also, we got 5,000. We got 11,500.

Okay. Thank you so much, sir, for answering the questions patiently, and I give you the opportunity. Thank you so much.

Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Ramnik Seidel for the closing comments. Thank you. I know what you said.

Thank you very much for joining us today for your active participation in the discussion. We sincerely appreciate your continued interest and confidence in Segal India. As we move forward, our focus remains on accelerating project execution, strengthening our presence across emerging infrastructure segments, and maintaining financial discipline. With a robust and diversified order book, we remain confident in ability to deliver sustainable growth and create long-term value for our stakeholders. We hope we have been able to address all your queries. In case you have any further questions, please feel free to reach out to our Investor Relations team at AdFactor PR. Thank you once again for your continued support. Have a great and happy Diwali. Have a great evening. Thank you so much. Have a good day.

Thank you so much. Ladies and gentlemen, on behalf of Segal India and the Magic, that concludes today's call. Thank you for joining us, and you may now just come to us.