Synopsis:
Bondada Engineering is in focus as the management is projecting revenue of Rs 2,600-2,700 crore for FY26 and setting a target of Rs 4,000 crore for FY27, drawing substantial contributions from renewable energy projects.
The shares of this leading engineering, procurement, & construction (EPC) services, operations, and maintenance (O&M) services are in focus after laying out key updates for the future. In this article, we will dive more into its details.
With a market capitalization of Rs 4,223.26 crore, the shares of Bondada Engineering Ltd made a day high of Rs 386.00 per share, up by 0.11 percent from its previous day closing price of Rs 385.55 per share. In the last one year, the stock has delivered a positive return of 33 percent and 1000 percent in 5 years, against the NIFTY 50 return of -3 percent.
About the Announcement
Bondada Engineering’s CFO, Baratam Satyanarayana, has given some key updates on its business. He said that it expects a Memorandum of Understanding (MoU) for a defence manufacturing partnership within the next 3-6 months. It also added that it is engaged in talks with India’s largest PSU bank, SBI, and Power Finance Corporation (PFC) for a Rs 9,000 crore Andhra Pradesh JV project.
The management also said that it is the lowest bidder for two solar power projects worth Rs 1,200 crore in the Small & Medium Enterprises segment. And expects to close FY26 with an EBITDA margin of 12-12.5 percent, with an estimated revenue of Rs 2,600-2,700 crore. On a more optimistic front, it expects its consolidated revenue to touch Rs 4,000 crore by FY27 as the renewable energy segment begins significant revenue contribution
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Financial Highlights
The company’s revenue for H2 FY25 came in at Rs 1,091 crore, up by 127 percent from Rs 481 crore in H1 FY25. Regarding its profitability, the company reported a net profit growth of 119 percent to Rs 79 crore in H2 FY25 as compared to Rs 36 crore in H1 FY25.
The company has delivered an ROE and ROCE of 36.75 percent and 40.43 percent respectively, and is currently trading at a high P/E of 40.16x as compared to its industry average of 20.69x.
As of the latest filing available, the company has a robust order book of Rs 5,044 crore. Coming to its segment, its Renewable Energy segment contributes the highest to its order book with Rs 3,589 crore, followed by Rs 1,091 crore in the Telecom segment, Rs 228 crore in the Railways segment, and Rs 136 crore through other products like AAC blocks, solar mounting blocks, etc.
Bondada Engineering provides comprehensive engineering, procurement & construction (EPC), and maintenance services to the technology and solar energy sectors, mainly. It constructs and maintains telecom towers, optical fiber networks, and data centers, and offers 4G network support.
Besides that, the company also produces building materials such as AAC blocks (SmartBrix) and uPVC/aluminum windows and doors (truVU & AluRise), as well as tower poles, LED lights, and motors for EVs and drones, to name a few.
Written by Satyajeet Mukherjee
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