Cemindia Projects posts strong Q1FY26 growth with 49% profit rise and Rs 7,000 crore order book; eyes expansion in data centers, metros.
Cemindia Projects Ltd, an Adani Group company, reports strong Q1FY26 performance and expanding order book in infrastructure and data centers (Photo: Pinterest)
The Cementation Co Ltd, UK was formed in India in the year 1931 and currently known as Cemindia Projects Ltd is an Adani Group entity with an extremely wide area of operations such as Marine structures, Urban infrastructure of MRT'S and airports, Industrial building structures, Hydro, Dams, Tunnels, Irrigation, Data Centers, Specialist engineering, highway bridges and flyovers, water and waste water projects.
Cemindia posted a robust Q1FY26 financial performance with total operating income at Rs 2,175 crores as against Rs 1,991 crores translating into a 9% year on year growth over the same period. The EBITDA grew by 19% during the second quarter of FY26 at Rs 242 crores as against Rs 204 crores of the same quarter of the last fiscal. The EBITDA margin stood at 11.1% during Q1FY26 as against 10.3% of the preceding previous year corresponding quarter. The Profit after Tax climbed by a whopping 49% to Rs 108 crores against Rs 72 crores on a year on year basis.
In the earlier years, the profit after tax margins for Cemindia have generally been between 2-3% while it is now a healthy 6-7% which the company management feels is very good for a construction company.
The company has completed almost all the earlier projects such as the Ganga Expressway, Udangudi project, CMRL Chennai Metro, Bangalore Metro tunneling job, Project Varsha, Colombo project, among others. The company management expects the performance to be much better in Q3 and Q4 of FY26 than the earlier quarters due to the offset of monsoon and substantial new order wins.
Cemindia Projects Ltd has started working on new business orders such as data centers and large diameter tunnels and airports to diversify its orderbook. Currently, the company has started new projects such as the ADNOC for Abu Dhabi Ports, IKEA project in Noida and executing them comfortably.
Cemindia has a very strong order book of around Rs 7,000 crores which is almost equal to what the company had done for the last financial year. The order book is expected to go up to Rs 15,000 crores by the end of the current financial year 2026.
The current order segment is divided with:
A few of these projects and jobs are currently being executed while some having been awarded recently.
In terms of L1 which is commonly known as being the lowest bidder for project selection and the contract is awarded to a company that quotes the lowest price for any project after meeting all the technical qualifications, Cemindia is in the L1 position for the Pune Metro project of Rs 1,700 crores, Project Varsha of the Indian Navy for Rs 1,000 crores and another Rs 2,000 crore project job for a client which is currently under wraps for confidentiality reasons. The management is also expecting new orders from three main segments such as Data Centres, marine and Metro.
The geographic location of the order book for Cemindia Projects is around 90% in the domestic market while the balance is from the international markets. Data Centre is a very great business opportunity for Cemindia with Adani Enterprises expected to reach one gigawatt capacity by 2030 and Google recently announcing an investment of $15 billion in Vizag over the next five-year time frame. Business opportunities in the data Centre segment is huge with first the design aspect of the project and then the civil construction and electro mechanical segment of the project and Cemindia is interested in both the civil data centre part of the project as well as the electro mechanical area of the project.
The Cemindia stock is currently quoting at Rs 850 on the bourses and is an excellent time to purchase the stock for solid future gains. Analysts and brokers are bullish on the future aspect of the company and expect it to post higher revenue and profit in the long term
