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Dilip Buildcon shares zoom 7% after Q1 profit surges 94% YoY to Rs 271 crore

Economic Times2 days ago
Shares of Dilip Buildcon zoomed 7.2% to their intraday high of Rs 506.65 on the BSE in early trade on Wednesday after the company reported a 93.6% year-on-year (YoY) rise in consolidated net profit to Rs 271 crore for Q1FY26. The surge was driven by improved margins and an exceptional gain of Rs 169.3 crore.
ADVERTISEMENT EBITDA grew 8.7% to Rs 520 crore, while EBITDA margin rose sharply to 19.8% from 15.2% a year ago. However, revenue fell 16.4% YoY to Rs 2,620 crore, reflecting a slowdown in engineering, procurement, and construction (EPC) activity.
During the quarter, the company completed key road projects, including a Rs 925 crore section of the Bangalore–Chennai Expressway in Andhra Pradesh and a Rs 680 crore stretch of the Raipur–Visakhapatnam Economic Corridor in Chhattisgarh.
As of June 30, 2025, the company's order book stood at Rs 13,695 crore. Mining accounted for the largest share at 28.9%, followed by roads and highways at 17.8%. Other segments included irrigation, tunnels, water supply, optical fibre, urban development, bridges, and metro projects.Managing Director and CEO Devendra Jain said that while EPC headwinds remain, the coal mining and Hybrid Annuity Model (HAM) road projects helped cushion the impact.'We remain optimistic about winning a decent quantum of orders in the coming quarters. Post that, all three of our growth engines will be on accelerated mode,' he said.
ADVERTISEMENT Separately, the board approved the issuance of non-convertible debentures and commercial papers worth up to Rs 1,000 crore each through private placement.
Also Read: TCS slumps 33% from peak. Is the correction an opportunity in disguise?
ADVERTISEMENT According to Trendlyne, the average target price for Dilip Buildcon is Rs 442, indicating a potential downside of around 7% from current levels. Among six analysts tracking the stock, the consensus recommendation is 'Sell'.While the stock has declined over 8% in the past year, it has delivered an 85% return over the last two years. The company's current market capitalisation stands at approximately Rs 6,905 crore.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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