Synopsis:
The infrastructure firm gained after emerging as the lowest bidder for a Rs 1,700 cr solar project, highlighting renewable expansion. With a strong, diversified order book, disciplined execution, and optimistic management, it targets Rs 5,000 cr order inflows and 10–15% revenue growth for FY26.
The shares of the prominent infrastructure company gained up to 3 percent in the morning session after the company emerged as the Lowest (L-1) Bidder for the project worth Rs 1,700 crore.
With a market capitalization of Rs 4,891.67 crore, the shares of Ceigall India Ltd were trading at Rs 280.80 per share, increasing around 1.54 percent as compared to the previous closing price of Rs 276.35 apiece.
Lower Bidder
The shares of Ceigall India Ltd have seen positive movement after it emerged as the lowest bidder for a 220 MW Grid-Connected Solar PV Project with Battery Energy Storage Systems at Morena Solar Park, Madhya Pradesh. Selected through a competitive tariff-based bidding process by Rewa Ultra Mega Solar Limited, the award covers half of the total 440 MW project.
Furthermore, the company quoted a tariff of ₹2.70/kWh in an online reverse auction for the solar project. The construction is scheduled for 24 months, followed by a 25-year operational period. This achievement highlights the company’s growing presence in renewable energy, strengthens its project pipeline, and positions it for potential revenue growth in India’s expanding solar and energy storage market.
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Operational & Financial Performance
The company’s revenue showed modest growth in Q1FY26, rising 2% from ₹822 crore to ₹838 crore year-on-year. However, net profit declined sharply by 35%, dropping from ₹78 crore to ₹51 crore, indicating rising costs or margin pressures despite steady top-line performance in the quarter.
Celgall maintains a robust order book totaling ₹1,03,374 million, providing long-term revenue visibility. With 22 ongoing projects, including 13 EPC and 8 HAM projects, over 80% of the book is tied to NHAI, reflecting strong alignment with government infrastructure initiatives and stable project inflows.
The company’s portfolio is well-diversified across states and project types. EPC projects dominate at 61.7%, while HAM and BOT projects contribute significantly. Key clients include NHAI, metro corporations, and state road authorities. Geographically, orders span Uttar Pradesh, Bihar, Punjab, and Jharkhand, ensuring balanced exposure and reduced dependency on a single region or client.
For FY26, the company targets Rs. 5,000 cr in order inflows, pursuing a diversified bidding strategy across highways, T&D, metro, tunnels, airports, railways, and renewables. Emphasis remains on high-return projects (IRR >25% for HAM) and disciplined margins (>11% for EPC). With Rs. 16,000 cr in tenders already quoted and aggressive T&D renewable expansions, the pipeline shows strong growth potential.
For FY26, the company maintains a revenue growth target of 10–15% despite metro project cancellations and delays. EBITDA margins are projected at 11–11.5% for pure EPC, with any bonuses or claims considered non-recurring, emphasizing quality and margin preservation, while management plans higher growth (>25%) as the order book and new verticals expand.
Management maintains an optimistic and confident outlook, driven by sector tailwinds, policy support, and Ceigall’s diversified order book across new verticals like T&D and renewables. They emphasize disciplined execution with strong margin control, prudent equity deployment, and risk-conscious bidding. Additionally, the team remains open to monetizing assets at attractive valuations to efficiently recycle capital and fund growth.
Ceigall India Limited is a premier infrastructure construction company with expertise in specialised projects like elevated roads, flyovers, highways, expressways, and runways. The company is driven by a commitment to forging ahead with resilience and responsibility, emerging as a top Engineering, Procurement, and Construction (EPC) player.
Written by Abhishek Singh
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