AVP Infracon Limited — Investor Meet, 27-05-2026: Analysts/Institutional Investor Meet/Con. Call Updates

AVP Infracon's H2 FY26 earnings call addressed a 1-2% compression in PAT and EBITDA margins, primarily due to soaring bitumen prices from geopolitical events, higher finance costs from increased debt, and INR70-80 Cr in unbilled revenue. The company achieved INR440 Cr turnover, falling short of its INR500 Cr guidance due to billing delays, though actual work completed was INR500 Cr. Management aims for a sustainable 9-10% PAT margin, targeting 11-11.5%.

For FY27, the revenue target remains robust at INR700 Cr. The unexecuted order book is approximately INR500 Cr, with plans to secure an additional INR500 Cr+ through bids for projects over INR100 Cr. Funding strategies include an equity raise (QIP) by H2 FY27 and promoter commitment to subscribe the remaining INR22.5 Cr warrants. Consolidated debt stands at INR234 Cr, with a goal to keep debt-to-equity below 1.5 (currently 1.23).

Management acknowledged negative cash flow from operations in recent years, attributed to proactive supplier payments and election-related delays in government receivables. Efforts are underway to improve this, including transitioning to Ind AS for better reporting. The company is also actively bidding to expand beyond Tamil Nadu and grow its Solar EPC and Pre-Engineered Building (PEB) verticals. Management expressed confidence in achieving growth targets and maintaining transparency.