Garuda Cons (544271) Oct 2025 Filing Analysis

Continue prioritising niche, high-margin projects and avoid contracts that could dilute margins.

Complete the landmark Gruha 5-star rated project in FY26-27. — target: Completion during FY26-27 (+4 more commitments)

Complete the International State-of-the-Art Convention Centre at Gorakhpur within the next 30 months. — target: Project completion within 30 months (+2 more commitments)

Expand into development projects in addition to civil construction. — target: Current order book includes 14 development projects: 7 residential, 2 commercial, 3 infrastructure and 2 industrial (+1 more commitment)

Strengthen project execution capabilities through adoption of the latest technology.

The order book expanded from Rs. 1,400 crore at IPO to Rs. 3,461 crore by October 2025, a 2.5x increase. The company also added approximately Rs. 353 crore of fresh orders during Q2 FY26. This strengthens revenue visibility and supports the later baseline assessment of a moderate execution moat. (1 expanding)

Industrial and infrastructure work became a meaningful revenue contributor, increasing from 0% in FY25 to 18% in H1 FY26. This reflects a favorable diversification away from dependence on commercial buildings, supported by the Gorakhpur convention centre, Rapti Nagar township and sports city, hydro project, and agro-processing cluster. (1 new)

The business is becoming more diversified. Industrial and infrastructure revenue increased from 1% in FY23 and 7% in FY24 to 5% in FY25 and 18% in H1 FY26. The government/private mix also moved from strongly private-led in FY23-FY24 to a more balanced 52% private and 48% government in H1 FY26. This is a positive, newly visible diversification trend, although the latest mix is only available for H1 FY26. (1 accelerating across 1 signal)

The order book has expanded sharply to Rs. 3,461 crore, 2.5 times the Rs. 1,400 crore level at IPO. Q2 FY26 added Rs. 353 crore of fresh orders, indicating continued strong order traction. However, only one current-quarter inflow figure is provided, so the acceleration assessment is based mainly on the large cumulative expansion. (1 accelerating, 1 new trend across 2 signals)

Garuda has a sizeable development pipeline of 14 projects: seven residential, two commercial, three infrastructure and two industrial. The document provides no earlier comparable pipeline count, so this is a new trend in the disclosed growth profile rather than a measurable multi-quarter acceleration. (1 new trend across 1 signal, 2 leading indicators)

Garuda reports 16 ongoing projects across multiple states and uses an asset-light model, meaning it relies on third-party equipment, materials and labour rather than owning heavy machinery. The model supports scaling, but the document gives no earlier quarterly project-count series. Fixed assets remain very low at Rs. 1.7 crore as of September 2025, confirming the capital-light structure. (1 new trend across 1 signal, 1 leading indicator)

Growth is being achieved with strong profitability, although margins are slightly lower than the previous year as the company scales. H1 FY26 EBITDA was Rs. 70.8 crore, with a 29.3% margin, while PAT was Rs. 55.1 crore, with a 22.8% margin. — EBITDA and PAT margins: EBITDA margin down 130 bps YoY; PAT margin down 30 bps YoY

The risk was already material in October 2025 because the order book was heavily concentrated in large, long-duration projects. The Gorakhpur convention centre alone had a total value of approximately Rs. 1,087 crore and outstanding order book of Rs. 1,015 crore, while Rapti Nagar Township had Rs. 687 crore outstanding. Management also reported that prolonged heavy rains had slowed on-site progress, although it expected execution to improve after the monsoon. Compared with the later March 2026 baseline, where additional large projects and phased Gorakhpur developments remained execution-sensitive, the risk appears to have intensified rather than been resolved. (1 intensifying)