Globe Civil Projects , a leading integrated EPC company, has reported robust financial results for the second quarter of fiscal year 2026, showcasing significant growth and operational efficiency.

Financial Highlights

• Total income for Q2 FY26 stood at ₹947.81 crore, marking a 40.01% quarter-on-quarter growth.
• EBITDA reached ₹139.90 crore, demonstrating strong operational performance.
• Net profit for H1 FY26 was reported at ₹110.25 crore, translating to a net profit margin of 6.79%.

Operational Achievements

Globe Civil Projects has made significant strides in its business operations:

• Secured new orders worth approximately ₹450 crore during the period, including projects from:
  • Central University of Punjab (NBCC): ₹193.13 crore
  • Haryana International Cricket Stadium, Jhajjar: ₹222.20 crore
  • Sports Complex at NIT Delhi (TCIL): ₹13.11 crore
  • Kotak School of Sustainability, IIT Kanpur: ₹70.92 crore (L1 bidder)
• Maintained an order book exceeding ₹1,000 crore, providing multi-year revenue visibility.
• Retained CPWD Class-I Super Contractor status, enabling bidding for projects up to ₹650 crore independently.
• Expanded footprint across more than 11 states, with a growing institutional and government clientele.

Management Commentary

Mr. Vipul Khurana, Managing Director of Globe Civil Projects Limited, commented on the results: "Our performance this quarter reflects the strength of our EPC model and our ability to execute complex, multi-year government projects across diverse geographies. The sustained traction in institutional, education, and public infrastructure projects continues to reinforce our position as a trusted execution partner for CPWD, NBCC, RLDA, IITs, NITs, and state agencies."

He further added, "With a disciplined bidding approach and a clear emphasis on high-margin, fully funded government contracts, we are prioritizing quality execution, timely delivery, and operational efficiency across all sites. Our strategy remains focused on scaling up execution capabilities, enhancing pre-qualification strengths, and leveraging our in-house engineering, MEP, and HVAC teams to deliver technically demanding projects."

IPO Fund Utilization

The company has provided an update on the utilization of its IPO proceeds:

The unutilized balance of ₹22.12 crore is currently invested in fixed deposits and maintained in bank accounts.

Globe Civil Projects Limited's strong performance in Q2 FY26, coupled with its growing order book and strategic project acquisitions, positions the company well for sustained growth in the coming quarters. The efficient utilization of IPO proceeds further underscores the company's commitment to its growth strategy and operational excellence in the EPC sector.

Globe Civil Projects Limited (GCPL), a prominent player in the civil construction sector, has received a significant boost in its credit rating outlook. Infomerics Ratings has revised the company's long-term bank facilities outlook from 'Stable' to 'Positive' while maintaining the IVR BBB rating. This upgrade reflects the company's strengthened financial position and promising growth trajectory.

Key Highlights

• Outlook Upgrade: Long-term bank facilities outlook revised to 'Positive' from 'Stable'
• Rating Maintained: IVR BBB rating reaffirmed
• IPO Success: Successful mobilization of ₹119 crore through IPO in July 2025
• Debt Reduction: Projected decrease in total debt to ₹120 crore by fiscal 2026 from ₹155 crore in fiscal 2025
• Revenue Growth: 11% increase in operations to ₹325.99 crore in fiscal 2025
• Improved Margins: Operating margins rose to 16.43% in fiscal 2025 from 15.10% in fiscal 2024
• Strong Order Book: ₹1,001.28 crore as of September 2025, representing 3.07 times FY25 revenue

Financial Performance

GCPL has demonstrated robust financial performance, as evidenced by the following table:

Factors Driving the Upgrade

The positive outlook revision is primarily attributed to:

1. Strengthened Capital Structure: The successful IPO in July 2025 raised ₹119 crore, significantly bolstering the company's financial position.
2. Debt Reduction Plans: GCPL aims to reduce its total debt to ₹120 crore by the end of fiscal 2026, down from ₹155 crore in fiscal 2025.
3. Improved Financial Metrics: The company's overall gearing ratio improved to 1.49x as of March 31, 2025, from 1.99x the previous year.
4. Enhanced Profitability: Both EBITDA and PAT margins showed significant improvement in FY 2025.

Order Book and Future Outlook

GCPL's order book stands at an impressive ₹1,001.28 crore as of September 30, 2025, providing strong revenue visibility for the near to medium term. The company expects to execute approximately ₹481 crore of this order book in FY 2026 and an additional ₹403 crore in FY 2027.

Management Commentary

While specific management quotes are not available, the company's performance and rating upgrade reflect the effectiveness of its strategic decisions, such as bulk procurement of materials and focus on project execution.

Challenges and Risk Factors

Despite the positive outlook, GCPL faces challenges including:

• Working capital-intensive nature of operations
• Exposure to intense industry competition
• Vulnerability of profitability to fluctuations in input prices

Conclusion

The credit rating outlook upgrade for Globe Civil Projects Limited underscores the company's improved financial health and growth prospects. With a strong order book, enhanced profitability, and plans for debt reduction, GCPL appears well-positioned for sustained growth in the competitive civil construction sector.

Investors and stakeholders should, however, remain mindful of the inherent risks in the industry, including working capital intensity and input price volatility, while considering the company's improved credit profile and growth trajectory.