1. At a Glance – The Contractor That Refuses to Quit
At ₹50.4 per share and a market cap of ₹1,137 crore, B.L. Kashyap & Sons Ltd is that EPC veteran who has survived recessions, debt restructuring, metro delays, and promoter pledges that could give bankers insomnia. Q3 FY26 (Dec 2025 quarter) revenue came in at ₹324 crore, up 33.9% YoY. Profit? ₹11.8 crore — up a dramatic 966% YoY. Sounds heroic, right? But hold your cement mixer — the stock trades at a P/E of 128 while ROE is just 2%. Debt stands at ₹309 crore with a debt-to-equity of 0.59. Promoters hold 61.7%, and 99.4% of that is pledged. Yes, ninety-nine point four percent.
This company has an order book of ₹3,311 crore as of 9MFY25. It’s winning contracts from DLF, Embassy, BPTP, and even metro authorities. CRISIL just upgraded its rating to BB-. So is this a phoenix rising from the corporate debt restructuring ashes? Or is it a construction site where the scaffolding looks stronger than the foundation?
Let’s put on our hard hats and audit this properly.
2. Introduction – The Comeback Kid of Civil Construction?
If Indian EPC companies were Bollywood characters, B.L. Kashyap would be the underdog who went bankrupt in the first half of the movie and then returned with background music in the second half.
In FY14, the company entered Corporate Debt Restructuring. Borrowings were around ₹700 crore once upon a time. Fast forward to H1FY25 and long-term debt is negligible. As of Sep 2025, total borrowings stand at ₹309 crore. That’s a serious clean-up job.
Revenue over the last few years has been mostly flat. Five-year sales growth: 7%. Three-year sales growth: basically zero. Profit growth? TTM shows -82%. ROE? 2%.
And yet, the order inflow machine is buzzing.
In 2025 alone:
- ₹910 crore residential order (July 2025)
- ₹615.69 crore Chennai Knowledge City (Dec 2025)
- ₹364.07 crore Embassy Splendid Tech Zone (Dec 2025)
- ₹254.22 crore DLF order (Nov 2025)
- Multiple other ₹100–500 crore tickets
So the pipeline is full. The margins? That’s the real thriller.
Are we looking at a genuine turnaround or just temporary accounting sunlight in Q3?
3. Business Model – WTF Do They Even Do?
Simple.
They build stuff. Big stuff.
High-rise residential towers. IT parks. Railway stations. Metro projects. Airports. Basically, if it involves cement, steel, and government tenders — they’re bidding.
Portfolio includes:
- Sabarmati Terminal – ₹369 crore
- NHSRCL (High-Speed Rail) – ₹332 crore
- DMRC – ₹192 crore
- DLF Downtown NCR
- Hero Motocorp Green Factory
Revenue mix:
- Private: 87%
- Government: 13% (targeting 25–30% by FY26)
Order book:
₹3,311 crore with 78.3% commercial exposure.
Translation for lazy investors:
They work for real estate developers and corporates. When real estate is hot, they’re busy. When real estate slows, they sweat.
This is not an asset-heavy
One Response
what’s your Fy27 and Fy28 projection? what’s your call to action? what practical insights to derive! it seems you guys are only interested in writing entertainment articles not action oriented research