Dilip Buildcon (DBL IN) – Q4FY26 Result Update – Record order book drives FY27 recovery visibility – Accumulate

Dilip Buildcon (DBL) closed FY26 with a muted operational performance due to weak execution, with standalone revenue declining ~22% YoY to Rs70bn; however, the company enters FY27 with significantly improved visibility supported by record order inflows of Rs185.5bn and a multi-year high order book of Rs288.3bn (~4x FY26 revenue). The order book is well diversified across mining, roads, renewables, irrigation and transmission. Management has guided for 30–40% YoY standalone revenue growth in FY27 with EBITDA margins of 11–12%, supported by execution ramp-up across EPC, mining and new energy verticals. Alongside this, DBL continues to accelerate its asset-light “DBL 2.0” strategy through InvIT monetisation, with pending HAM transfers expected to materially strengthen balance sheet liquidity and support its target of a near net-debt-free standalone balance sheet by FY28. The company is also scaling into solar and transmission assets through a capital-efficient structure with limited balance sheet equity commitment, while maintaining selective annual order inflow guidance of Rs 100–120bn, providing revenue visibility extending toward FY30. We model DBL’s revenue CAGR at 29% over FY26–28 and PAT CAGR at 60%, with the stronger PAT growth driven by factoring in dividend income from the InvIT. We retain our Accumulate rating, assigning 8x PER to the standalone FY28E EPC business and 5x FY28E EV/EBITDA (earlier 4x) to the coal MDO segment, while valuing investments at book value. This results in a revised target price of Rs 520/share (earlier Rs 478)