Dilip Buildcon (DBL IN) – Q3FY26 Result Update – Execution recovery ahead; record order book – Accumulate
Published on 11 Feb 2026
Dilip Buildcon (DBL) reported robust order inflows of ~Rs179bn in YTDFY26, driving its order book to a record high of ~Rs293bn (around 4x TTM revenue). The order book remains well diversified across roads, mining, renewables, transmission, and irrigation. While execution remained subdued in 9MFY26 (revenue down 23% YoY), this trend is expected to reverse from FY27E. We have factored in revenue growth of 23% and 30% YoY in FY27E and FY28E, respectively, with a meaningful pickup likely from 2HFY27 onward. Net debt currently stands at ~Rs21bn (net DER ~0.3x), elevated due to lower execution over the past 2 years. However, the management remains committed to deleveraging, targeting Rs7–8bn debt reduction in FY27 and aiming to achieve a net debt-free balance sheet by FY28. Pending InvIT transfers are expected to yield Rs17–18bn of additional units, strengthening balance sheet resilience and annuity cash flows. DBL has already bid for ~Rs150bn of projects, with a broader industry pipeline of ~Rs700bn, positioning it well for sustained inflows of Rs100–150bn annually on a selective basis. We value DBL on SoTP basis, assigning 10x PER to the standalone EPC business and 4x EV/EBITDA to the coal MDO segment, along with investments at book value. This results in TP of Rs514 per share, implying upside potential; we have ‘Accumulate’ rating.
