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Univastu India Ltd

| Q2 & H1 FY26 Earnings Conference Call

BULLISH SENTIMENT

Report Source

⬤28th Nov 25

Summary : Univastu reported strong Q2/H1 FY26 results, driven by diversification into high-margin tech-based EPC, sports, and metro segments, supported by a robust order book and strategic acquisitions.

Management Perspective positive : Management expressed satisfaction with strong financial performance, robust order book, and strategic diversification. They highlighted unique market positions and future growth targets confidently, despite some challenges.

Concall Report Analysis & Insights

Business Overview

  1. Q2 FY26 revenue grew 64.36% QoQ to 48.34 crores, with PAT up 25.08% to 5.01 crore.
  2. H1 FY26 turnover increased 10.33% YoY to 77.74 crore, and PAT rose 46.95% YoY to 9.02 crore.
  3. Current order book stands at over 630 crore, with 150 crore from Bootes Infra.
  4. Diversifying into sports, metro, swimming pools, and net-zero projects.
  5. Sole distributor for Myrtha pools A&T Italy in India for Olympic-level pools.
  6. Acquired Setubandhan Infrastructure, gaining 34% equity in Biomining India Private Limited.

Future Growth Prospects

  1. Anticipate robust revenue growth due to efficiency, cost control, and new sector diversification.
  2. Targeting 125 crore revenue in H2 FY26 from major project approvals.
  3. Projected FY26 revenue of 200 crore and FY27 revenue of 300 crore+ (consolidated).
  4. Targeting 500 crore from sports, 300-400 crore from metro E&M, and 100 crore from BMS.
  5. Expecting orders from Commonwealth Games and 2036 Olympics bids.
  6. Opal Luxury acquisition to generate 5 crore in FY27, growing to 20 crore by FY28.
  7. Biomining acquisition adds 210 crore revenue share for FY27-28.

Management Insights

  1. Strong financial performance driven by improved productivity, efficiency, and cost optimization.
  2. Maintaining a healthy order book and diversifying into high-growth niche sectors.
  3. Myrtha pools partnership positions us uniquely for Olympic-sized swimming pools.
  4. Wireless Zigbee-based BMS for metro is a world's first, contributing to net-zero goals.
  5. Expect 10% PAT margin for March 2026 total, with margins improving from tech segments.
  6. Planning 10 crore debt from Canara Bank, comfortable with max 40 crore debt for current order book.
  7. High bid conversion ratio (50%) is due to in-house execution, leveraging cost advantages.

Signs of Skepticism

  1. Bootes Infra's lower revenue contribution due to external factors like flooding.
  2. Initial low revenue target for Opal Luxury acquisition (5 crore for FY27) despite high margin.
  3. Analyst questioned the Q2 margin dip, attributed to front-loading expenses.
  4. Significant increase in short-term borrowings due to project front-loading.

Risk Factors

  1. Bootes Infra revenue was lower due to severe rainfall and flooding in North India.
  2. Short-term borrowings increased due to front-loading expenses for project execution.
  3. Q2 margins saw a slight dip attributed to front-loading of project expenses.
  4. Potential need for additional financing (debt or equity) for future projects.

Good To Know

  1. Conference call held on November 28th, 2025, for Q2 and H1 FY26 results.
  2. Management team included Chairman & MD, CFO, and Company Secretary.
  3. Transcript uploaded on Stock Exchange and company website.
  4. Company is ISO 9001:2015, 14001:2015, OHSAS 18001:2007 Certified.

Key Drivers

  1. Strong order book of 630+ crore.
  2. Diversifying into high-margin tech-based EPC.
  3. Exclusive Myrtha Pools partnership for Olympics.
  4. Wireless BMS for metro, a global first.

Key Analyst Discussions

Competitive Environment

  1. Questions about competitors in tech-driven EPC and net-zero projects.
  2. Discussion on Myrtha Pools' unique position for Olympic-sized pools.
  3. Inquiry into the company's high bid conversion ratio.

Market Trends & Consumer Behavior

  1. Questions regarding potential orders from Commonwealth Games.
  2. Discussion on India's bid for the 2036 Olympics and related opportunities.

Financial Highlights

  1. Questions on Bootes Infra's revenue contribution and order book.
  2. Inquiry about expected execution, sustainable PAT margins, and future debt plans.
  3. Discussion on FY27 revenue and margin trajectory, including acquisitions.
  4. Clarification on short-term borrowings increase and expected reduction.
  5. Explanation of 'other current assets' jump and Q2 margin dip.

Product Composition

  1. Questions on Opal Luxury acquisition's revenue contribution and growth.
  2. Breakdown of future revenue targets across sports, metro E&M, and BMS segments.
  3. Clarification on Setubandhan acquisition and its biomining business contribution.

Strategic Considerations

  1. Inquiry about plans to increase stake in Bootes Infra.
  2. Strategy for scaling Opal Luxury and expected order inflows for H2.
  3. Plans for further acquisitions of NCLT stress assets in niche areas.
  4. Details on Myrtha Pools tie-up and Univastu's contribution to the partnership.
  5. Discussion on equity fundraising preference over debt for major orders.
  6. Geographic expansion plans and explanation of tech-driven projects.