Ceigall India Targets 10-15% Revenue Growth In FY26 Led By Strong Orderbook

Infrastructure firm Ceigall India has set a revenue growth target of 10% to 15% for FY26, according to its Managing Director Ramneek Sehgal. He cited a robust order book and strategic diversification into new sectors as key factors to drive the company’s growth in the current fiscal.

 “Last year, we also grew by 14% in revenue. Growing company between 10% and 15% looks easy for us because of the order book we have and the kind of bidding. We have about 10 verticals. If we don't get work in the road segment, we go into airports, we don't get an airport, we have metros, we have tunnelling, so we have so many businesses that getting a new order book would not be a challenge,” Sehgal said in an interview with NDTV Profit.

The company is facing tough competition, particularly in the Engineering, Procurement and Construction (EPC) space. "The competition is crazy," he said. However, recent changes to the government’s qualification criteria would favour established and larger firms, the MD noted. 

 “The good thing is government has changed the qualifying criteria also. If you would have seen it got changed last month only and we are expecting changes would be there from BOT (Build-Operate-Transfer) and HAM (Hybrid Annuity Model) side which would be only the strong and the large companies can bid for those large projects,” the top executive asserted. 

He said that the sustainable margin for core EPC work is around 11% to 12%, with additional profits derived from bonuses, royalties and interest income. He also noted that profits from HAM projects are realised over a 15-year period.

Sehgal noted that the commencement of several HAM projects, which constitute a significant portion of their order book, faces delays.  "HAM projects typically take more than half a year to two years to start," he explained. 

In a strategic pivot, Ceigall India is expanding its focus beyond its traditional stronghold in roads and highways, venturing into the burgeoning metro rail and underground construction sectors. The company is already involved in metro rail projects in Kanpur, Agra, and Bhubaneswar. It has also submitted bids for projects in Delhi, Kolkata and Bengaluru.

“Metro is going to be a real boom. Besides, the metro will be underground, so there is a lot of underground work coming up. Large countries are predicting where they can go after all tension is happening, so a lot of work would be there in the underground,” he said. 

Shares of Ceigall India closed 1.46% higher at Rs 243.75 apiece on the NSE on Friday, while the benchmark Nifty50 ended at 25,112.4, up 1.29%.