Any current/future new fundraising through debt or equity?

Desco Infratech Limited is currently in final discussions with their existing bank for working capital loan facilities in the range of INR 20-30 crores. The company is aiming to maintain a conservative debt-to-equity ratio below 0.22x to ensure financial prudence. There is no explicit mention of new equity fundraising during the call. The company is also exploring surety bonds as mandated by the Ministry of Finance and IRDAI to support their working capital requirements. No other specific plans for fresh debt or equity issuance were disclosed. Overall, the focus is on managing working capital

Any current/future capex/capital investment/strategic investment?

Desco Infratech Limited is planning capex in its wholly-owned subsidiary Desco BioGreen Private Limited for compressed biogas (CBG) plants. The company has signed MoUs in South Gujarat for land acquisition and is awaiting regulatory approvals expected in 2-3 months. Revenue from CBG is expected to start from FY 2027 with initial output capacity of 3 to 5 tons per day. Post initial CBG facility, the company plans to establish more CBG plants in states like UP and MP financed from generated revenue. The company is exploring acquisition of ready CBG units from entities unable to manage them. It p

Future growth expectations in sales/revenue/volumes?

Desco Infratech aims to achieve INR 1000 crore revenue by 2030, with a growth sequence led by City Gas Distribution (CGD), followed by Compressed Biogas (CBG) units, and power and transmission sectors. Current order book is strong, primarily in CGD, with INR 333+ crore in CGD, INR 6.6 crore in power and transmission, and the rest in water distribution. The company sees 65%-70% revenue contribution from CGD in the near term; power and transmission distribution expected to contribute 30% or more moving forward. CBG revenue is expected to start in FY 2027 through the wholly-owned subsidiary Desco

Future growth expectations in earnings/operating earnings/profits/EPS?

Desco Infratech aims to achieve INR 1000 crore revenue by 2030, driven mainly by City Gas Distribution (CGD), followed by Compressed Biogas (CBG) and power & transmission sectors. Revenue growth projected at 90%-100% YoY for FY 2026 and FY 2027, with expected full-year revenue between INR 108-115 crores conservatively. Operating cash flow currently negative due to strategic advances but expected to improve significantly in H2 FY 2026 and beyond. EBITDA margin stable around ~21%, with PAT margin expected conservatively around 13% despite expansion into power transmission where margins are

Current/ Expected Orderbook/ Pending Orders?

Current order book exceeds INR 345 crores. Breakdown of current order book: - City Gas Distribution (CGD): INR 333+ crores - Power and Transmission Distribution: INR 6.6 crores - Water Distribution: Remaining portion Additional pipeline tender orders: INR 431 crores (100% CGD segment), bids submitted, awaiting results. Company has a healthy conversion ratio of 30%-40% for winning new bids. L1 orders (approx. INR 20 crores) are not included in current order book as LOAs are yet to be received.

IN US

Desco Infra.Q3 FY26Construction

Desco Infra. Q3 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹184P/E: 8.8Market Cap: ₹144 CrSector: Construction

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→Desco Infratech aims to achieve INR 1000 crore revenue by 2030, with a growth sequence led by City Gas Distribution (CGD), followed by Compressed Biogas (CBG) units, and power and transmission sectors.
→Current order book is strong, primarily in CGD, with INR 333+ crore in CGD, INR 6.6 crore in power and transmission, and the rest in water distribution.
→The company sees 65%-70% revenue contribution from CGD in the near term; power and transmission distribution expected to contribute 30% or more moving forward.
→CBG revenue is expected to start in FY 2027 through the wholly-owned subsidiary Desco Bio Green, with capacity expansion planned over next years.
→Growth in power and transmission is expected to reach 18%-20% of revenue in the current year, scaling to 30%-35% over three years.
→The company projects a consistent 90%-100% year-on-year revenue growth rate in the near term barring force majeure events.

Margin guidance

Category 3

→Desco Infratech aims to achieve INR 1000 crore revenue by 2030, driven mainly by City Gas Distribution (CGD), followed by Compressed Biogas (CBG) and power & transmission sectors.
→Revenue growth projected at 90%-100% YoY for FY 2026 and FY 2027, with expected full-year revenue between INR 108-115 crores conservatively.
→Operating cash flow currently negative due to strategic advances but expected to improve significantly in H2 FY 2026 and beyond.
→EBITDA margin stable around ~21%, with PAT margin expected conservatively around 13% despite expansion into power transmission where margins are slightly lower.
→Expansion into CBG through wholly-owned subsidiary expected to contribute from FY 2027 with a payback period of 3-4 years.
→Power and transmission business expected to contribute 18%-20% revenue in FY 2026, growing to 30%-35% over next 2-3 years without compromising margins.
→Overall, a steady and focused approach is planned to ensure sustainable margin growth and profitability improvements over medium to long term.

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Fundraise plans

Yes

→Desco Infratech Limited is currently in final discussions with their existing bank for working capital loan facilities in the range of INR 20-30 crores.
→The company is aiming to maintain a conservative debt-to-equity ratio below 0.22x to ensure financial prudence.
→There is no explicit mention of new equity fundraising during the call.
→The company is also exploring surety bonds as mandated by the Ministry of Finance and IRDAI to support their working capital requirements.
→No other specific plans for fresh debt or equity issuance were disclosed.
→Overall, the focus is on managing working capital through existing banking relationships and strategic debt syndication rather than new equity offerings.

Order book

Yes

→Current order book exceeds INR 345 crores.
→Breakdown of current order book:
→ - City Gas Distribution (CGD): INR 333+ crores
→ - Power and Transmission Distribution: INR 6.6 crores
→ - Water Distribution: Remaining portion
→Additional pipeline tender orders: INR 431 crores (100% CGD segment), bids submitted, awaiting results.
→Company has a healthy conversion ratio of 30%-40% for winning new bids.
→L1 orders (approx. INR 20 crores) are not included in current order book as LOAs are yet to be received.

Capex plans

Yes

→Desco Infratech Limited is planning capex in its wholly-owned subsidiary Desco BioGreen Private Limited for compressed biogas (CBG) plants.
→The company has signed MoUs in South Gujarat for land acquisition and is awaiting regulatory approvals expected in 2-3 months.
→Revenue from CBG is expected to start from FY 2027 with initial output capacity of 3 to 5 tons per day.
→Post initial CBG facility, the company plans to establish more CBG plants in states like UP and MP financed from generated revenue.
→The company is exploring acquisition of ready CBG units from entities unable to manage them.
→It plans to blend green hydrogen into city gas distribution pipelines, with execution expected within 12-18 months, based on MoU with KP Group.
→Strategic advances have been made toward last-mile connectivity projects involving purchase of significant raw materials and premobilization payments to laborers and suppliers.

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