1. At a Glance
Ganesh Infraworld Ltd just posted a 33.5% YoY revenue jump and 61.6% EBITDA surge in Q1 FY26. It’s gone from India’s EPC backyard to international waters with a shiny new Dubai subsidiary. And with ROE touching 36%? Yep, eyebrows are officially raised.
2. Introduction with Hook
Imagine your neighborhood plumber suddenly opening an office in Dubai Marina. That’s Ganesh Infraworld for you.
– Q1 FY26 Revenue: ₹180.66 Cr (+33.5% YoY)
– Q1 PAT: ₹14.61 Cr (+45.5% YoY)
From 275 debtor days to 79 in just a year, this infra kid grew up fast — and brought receipts.
3. Business Model (WTF Do They Even Do?)
Ganesh Infraworld is a full-stack EPC contractor in civil infrastructure. Their core capabilities:
- Sewerage & water pipeline contracts (hello Bhubaneswar)
- Urban infra projects (municipal works, maybe a few manholes too)
- Now entering Middle East infra markets via Dubai
TL;DR: They dig, they build, they invoice (faster now).
4. Financials Overview
Q1 FY26 vs Q1 FY25
| Metric | Q1 FY26 | Q1 FY25 | Growth |
|---|---|---|---|
| Revenue | ₹180.66 Cr | ₹135 Cr | +33.5% |
| EBITDA | ₹20.3 Cr | ₹12.6 Cr | +61.6% |
| PAT | ₹14.61 Cr | ₹10 Cr | +45.5% |
| OPM | 11% | 9% | ↑ |
| EPS | ₹3.42 | ₹2.29 | ↑ |
Key Flex: Cash conversion days dropped from 275 to 79. Ganesh finally stopped being everyone’s free credit uncle.
5. Valuation
At ₹196, Ganesh Infra is trading at 18.8x trailing P/E. Let’s chew on some assumptions:
Fair Value Estimate (₹):
- Base Case: ₹220
- Bull Case: ₹260 (if Dubai story picks up)
- Bear Case: ₹160 (if receivables rise again or margins compress)
Valuation Band: ₹160–260
Still undervalued if they keep growing at >30% with ROE >35%.
6. What’s Cooking – News, Triggers, Drama
- New Order: ₹25.5 Cr sewer pipeline contract from Bhubaneswar (12-month timeline)
- Dubai Subsidiary: Launched Q1 FY26 — gateway to Gulf infra boom?
- Cash Flow Woes: Negative from ops (-₹80 Cr in FY25), but improving structurally
- Investor Buzz: Q1 Investor Presentation dropped — slick and aggressive tone
7. Balance Sheet
| Item | Mar 2024 | Mar 2025 |
|---|---|---|
| Equity Capital | ₹11 Cr | ₹21 Cr |
| Reserves | ₹24 Cr | ₹158 Cr |
| Total Liabilities | ₹94 Cr | ₹265 Cr |
| Borrowings | ₹31 Cr | ₹38 Cr |
| Total Assets | ₹94 Cr | ₹265 Cr |
Highlights:
- Equity base doubled YoY, maybe via dilution or fund infusion
- D/E remains moderate at ~0.2
- Capex visible — Fixed assets jumped from ₹9 Cr to ₹20 Cr
8. Cash Flow – Sab Number Game Hai
| Cash Flow Item | FY24 | FY25 |
|---|---|---|
| Operating | -₹28 Cr | -₹80 Cr |
| Investing | -₹28 Cr | -₹25 Cr |
| Financing | ₹62 Cr | ₹109 Cr |
| Net Cash | ₹6 Cr | ₹5 Cr |
Key Takeaways:
- Negative ops cash — classic EPC story
- Raised funds via financing to cover capex and ops
- FY26 should ideally turn ops cash flow positive if debtor days stay below 90
9. Ratios – Sexy or Stressy?
| Ratio | FY24 | FY25 |
|---|---|---|
| ROCE | 38% | 38% |
| ROE | 36% | 36.2% |
| Debtor Days | 275 | 79 |
| Working Capital Days | 217 | 99 |
| P/E | 18.8 | — |
| P/B | 4.68 | — |
Verdict:
ROE of 36% at P/E below 20? That’s smallcap sex appeal right there.
10. P&L Breakdown – Show Me the Money
| Item | FY24 | FY25 | TTM |
|---|---|---|---|
| Revenue | ₹51 Cr | ₹538 Cr | ₹584 Cr |
| Operating Profit | ₹6 Cr | ₹52 Cr | ₹60 Cr |
| Net Profit | ₹4 Cr | ₹40 Cr | ₹45 Cr |
| OPM | 11% | 10% | 10% |
| EPS | ₹3.60 | ₹9.37 | ₹11.08 |
Profit is scaling faster than revenue — operational leverage kicking in.
11. Peer Comparison
| Company | CMP ₹ | ROE % | P/E | OPM % | Sales ₹Cr | PAT ₹Cr |
|---|---|---|---|---|---|---|
| L&T | 3465 | 16.5 | 31.3 | 13.4 | 2,55,734 | 15,225 |
| NBCC | 115 | 25.9 | 50.7 | 5.1 | 12,039 | 610 |
| IRCON | 188 | 11.9 | 24.3 | 7.9 | 10,760 | 727 |
| KEC Intl. | 868 | 12.0 | 40.7 | 7.7 | 21,847 | 567 |
| Ganesh | 196 | 36.2 | 18.8 | 10.3 | 584 | 45 |
Mic Drop Stat: Highest ROE among peers at lowest P/E.
12. Miscellaneous – Shareholding, Promoters
| Shareholding | Dec ‘24 | Mar ‘25 | Jun ‘25 |
|---|---|---|---|
| Promoters | 59.09% | 59.09% | 59.38% |
| FIIs | 0.92% | 0.55% | 0.77% |
| DIIs | 8.58% | 5.82% | 5.10% |
| Public | 31.41% | 34.54% | 34.75% |
- FIIs and DIIs slightly trimming, Public picking up — looks like institutions booked profits post 2x rally
- No pledged shares
- Only 1,431 shareholders — still under the radar
13. EduInvesting Verdict™
Ganesh Infraworld is a classic EPC story done right — aggressive growth, strong margin discipline, and now going global.
But EPC is cash-hungry, and negative operating cash flows need to be monitored like a hawk on Red Bull.
Valuation still gives room for upside, and that Dubai angle? Could be a game-changer or a mirage — time will tell.
Stay infra-curious, stay skeptical, and don’t forget to read the fine print under the flyover.
Metadata
– Written by Eduinvesting Team | 23 July 2025
– Tags: Ganesh Infraworld, Infra, EPC, Smallcap Stocks, Q1FY26, Dubai expansion, Construction
