1. At a Glance
BigBloc Construction (BBCL) wants to be the“Ultratech of AAC blocks”, but its P/E of 382 is screaming “startup valuation” while profits are running away faster than Virat Kohli singles. Sales in FY25 stood at ₹225 Cr, but PAT shrank to ₹3 Cr (down 93% YoY). The company has marquee clients (Adani, Lodha, Oberoi Realty, L&T, even CIDCO), but margins collapsed from 25% to 9%. In short: demand is real, clients are real, but shareholder returns feel like ghost stories.
2. Introduction
AAC blocks are supposed to be the eco-friendly, lighter, smarter alternative to traditional bricks. BigBloc was set up in 2015 with the ambition to be India’slargest AAC manufacturer, and it has actually made strides. Four plants, 1.3 Mn MTPA installed capacity, tie-up with Siam Cement, green energy push — on paper, this looks like a poster child for “Make in India.”
But the numbers? Ugly. FY24 net profit was ₹31 Cr, FY25 nosedived to ₹3 Cr. Q1 FY26 added insult:₹56 Cr sales (+9% YoY) but ₹5 Cr loss. That’s like Virender Sehwag hitting three boundaries in the first over and then getting bowled trying to slog.
So is BBCL a hidden gem or just another “capacity wale baba” story where expansion is faster than profits? Let’s break it down.
3. Business Model (WTF Do They Even Do?)
BigBloc makes and sellsAAC blocks, wall panels, and now construction chemicals. Think of them as a next-gen brick company — but with PowerPoint slides about sustainability.
Key Products:
- NXTBLOC (AAC blocks):Lightweight, energy-saving, fire-resistant
- NXTPLAST (ready mix plaster)
- NXTFIX (block jointing mortar)
- AAC Wall Panels:For internal & external walls
- JV Brand “Zmart Build” with Siam Cement
Customers:
- Real estate:Adani, Lodha, Oberoi, Godrej, Raymond, Sunteck
- Infra majors:L&T, PSP Projects, Afcons
- Cement OEMs:Ambuja, ACC
- Govt bodies:CIDCO, GAIL, JNPT
So yes, BBCL supplies to the who’s who of construction. But their business model iscommodity-heavy— thin margins, high working capital, cyclical demand.
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 56.36 | 51.57 | 64.59 | 9.3% | -12.8% |
| EBITDA (₹ Cr) | 1.3 | 9.6 | 5.8 | -86.5% | -77.6% |
| PAT (₹ Cr) | -5.0 | 3.0 | -0.3 | -265% | -1500% |
| EPS (₹) | -0.23 | 0.31 | 0.07 | — | — |
Annualised EPS (FY25): ₹0.15CMP ₹56.6 →P/E ~382x(i.e. absurd).EV/EBITDA = 38x (again, very stretched).
Commentary: BBCL looks like it sells bricks with the margins of Zomato. Revenue growing, but profits vanishing.
👉 Question: Would you pay 382x earnings for a brick company, even if the brick is eco-friendly?
5. Valuation (Fair Value Range)
(a) P/E Method
EPS ₹0.15. Even at industry PE ~49 → FV = ₹7.5But if normalized PAT returns to ₹30 Cr (EPS ~2.1), FV = ₹100 at 50x.
(b) EV/EBITDA Method
FY25 EBITDA ₹29 Cr, EV ~₹986 Cr → EV/EBITDA 34x.Sector trades at 15–20x → FV EV = ₹435–580 Cr → per share =₹30–₹40.
(c) DCF (optimistic, assume 20% CAGR growth, margins recover)
FV range ~ ₹45–₹65.
🎯Fair Value Range (Educational Only): ₹30 – ₹65(Disclaimer: Not investment advice.)
6. What’s Cooking – News, Triggers, Drama
- JV with Siam Cement:Bagged Tata Projects order for Micron’s Sanand semiconductor unit. Good PR, but order size = ₹4.5 Cr. That’s like Ambani announcing a new kirana shop.
- Wada Expansion:Capacity doubled to 0.5 Mn
