SRM 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
₹446 Cr
verified against source
Revenue YoY
96%
reported change
EBITDA
₹80 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
SRM Contractors delivered exceptional Q4 FY26 results with 96% YoY revenue growth to ₹446 crore driven by robust execution across roads, bridges, and slope stabilization projects. Full-year FY26 revenue reached ₹1,026 crore (up 94% YoY) with PAT of ₹111 crore (up 102% YoY), exceeding the management's earlier promise of ₹100 crore PAT. The order book has expanded significantly to ₹3,000 crore (versus ₹1,884 crore reported as of March 2026), with a ₹6,000 crore bid pipeline and ₹2,000 crore targeted order inflow for FY27. Management targets 45-55% revenue growth and 16-18% EBITDA margins for FY27 with consolidated revenue guidance of ₹1,500-1,750 crore. The company is pursuing international expansion via a UAE branch office targeting GCC and select African markets, while maintaining its technical moat in specialized hill-road and border infrastructure. Key risks include margin dilution from competitive road projects (strike rate only 5-7% versus 33-50% for slope stabilization), raw material price volatility partially insulated at 80-85%, and delayed project appointments affecting execution timelines.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects strong revenue growth in FY27 driven by ₹3,000 crore order book execution and new order inflows. Consolidated revenue guidance set at ₹1,500-1,750 crore.
- Management projects EBITDA margins to expand and stabilize in the 16-18% range for FY27, up from 8.1% in FY26, reflecting improved operating leverage and project mix.
- PAT margins are expected to remain in the 11-11.5% band for FY27, consistent with FY26's 10.8% PAT margin achieved.
- Management targets fresh order inflows of approximately ₹2,000 crore in FY27, which would maintain the order book at approximately ₹4,000 crore by year-end.
Risks flagged
- Gross margins dropped sharply to ~21% in Q4 from 53-54% in Q2-Q3 due to project mix and inventory purchases. Management attributed this to inventory buildup (₹37 crore) for upcoming projects and reclassification of expenses, but this raises questions about margin sustainability.
- New auditors adopted different classification rationales. Subcontract expenses were reclassified between COGS and other expenses across quarters. FY26 full-year numbers have been restated but prior-year comparisons remain affected, making trend analysis challenging.
- Order book mix shifted materially towards roads (now ~40% vs ~21% slope stabilization). Road projects have 5-7% win rate versus 33-50% for slope stabilization, indicating highly competitive bidding. Lower slope share may pressure margins as the company scales.
- A significant portion of the order book and pipeline involves strategically important projects in J&K, Ladakh, and border areas. Any geopolitical tension or operational delays could impact execution timelines and revenue recognition.
Key quotes
- We are in a position to do some cherry picking because our variety of geographical exposure to different products and since we are not having a total turnover of 10,000 or 8,000 we are just aiming at something near about 2,000 so we are in a position to have two or three good projects of road projects also when we are looking for slow projects all over India.
- The strike rate in road is 5% if you are bidding 100 tenders we are getting only five but we are bidding a lot of projects in those just for an opportunity where we can get good margins. We have not bid for any project this year where the margin is less than 20%.
- We delivered both the numbers 1,000 crore and 100 crore, absolutely, absolutely.
- Our tunnel participation is minimum. It's not even 2 to 3%. So we are waiting for some very good tunnel projects which are coming in Ladakh. So you will see us there.
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