SATTVAENGINEERINGCONSTRU Q4 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹143.2 Cr
verification pending
Revenue YoY
32%
reported change
EBITDA
₹22.1 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Sattva Engineering Construction delivered solid FY26 results with 32% revenue growth to ₹143.2 crore and 43% PAT growth to ₹13.1 crore, though EBITDA margin contracted 170bps to 15.4% due to initial ramp-up costs in the WTP segment and new geographies. The company commissioned its largest-ever project—a 47 MLD water treatment plant in Chennai valued at ~₹170 crore—while expanding into Karnataka with a ₹127 crore order book as of May 2026. Management targets 50-60% revenue CAGR for FY27-FY28 backed by a robust order book of ₹447 crore (as of May 15) and ₹161 crore in pipeline tenders. Margin guidance of 15-16% reflects conservative provisioning for geographic expansion costs. Receivables of ₹49.5 crore remain elevated due to Q4 billing concentration, with ~33% already collected post-year-end. Key risks include government tender timing uncertainty following Tamil Nadu's political transition and working capital efficiency, with management targeting working capital days below 100 versus current 139.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets approximately 50-60% revenue growth for FY27 and FY28, funded through internal accruals, existing working capital facilities, and routine working capital optimization mechanisms.
- Conservative margin guidance of 15-16% for near-term reflects initial costs of geographic expansion and WTP segment ramp-up; management confirms 15% floor.
- Management indicated approximately ₹150 crore new orders expected in FY27 based on ₹161 crore pipeline of tenders currently under discussion.
Risks flagged
- Analyst raised concerns about Tamil Nadu government change impact. Management acknowledged potential delay in new tendering process until 'dust settles down', though existing contracts remain unaffected. This could constrain near-term order inflow visibility.
- Working capital days increased from 118 to 139 despite growth. Management targeting reduction below 100 days, but achievement depends on collection pace and billing cycle optimization—critical given high receivables concentration in Q4.
- FY26 EBITDA margin of 15.4% significantly missed original 21% guidance. While management attributes this to new segment ramp-up costs, margin expansion depends on execution efficiency and project mix improvement—analyst Ishita Sanga pressed for explanation on whether lower-margin orders were accepted.
- H2 FY26 revenue of ₹78.2 crore grew only 8% YoY versus 32% full-year growth, raising questions about execution cadence. Analyst Darshan Chandra specifically questioned whether revenue was delayed to FY27, noting comparable H2 performance despite strong FY25 base.
Key quotes
- We are targeting revenue growth of approximately 50 to 60% for FY27 and FY28 while maintaining margin discipline and improving working capital efficiency.
- The moderation in EBITDA margin versus FY25 was primarily driven by the commencement of WTP segment which remained in the gestation phase during the financial year 26 and initial ramp up and project commencement related cost.
- We don't see any slowdown. Government will keep definitely spending pan India. We are also getting into new venture like OCS the water control system which is also an emerging business pan India.
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