Bigbloc Construction Ltd (BIGBLOC) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Valorem Advisors): Ladies and gentlemen, good day, and welcome to the Bigbloc Construction Limited Q2 H1 FY 2027 earnings conference call, hosted by Valorem Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you, and over to you, ma'am.
Purvangi Jain (Valorem Advisors): Thank you. Good afternoon, everyone, and a very warm welcome to you all. My name is Purvangi Jain, from Valorem Advisors. We represent the Investor Relations of Bigbloc Construction Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the second quarter and half year ended of financial year 2027. Before we begin, a quick cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's belief, as well as assumptions made by, and information currently available
Purvangi Jain (Valorem Advisors): Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's conference call is purely to educate and bring awareness about the company's fundamental business and financial performance for the period under review. Now, I would like to introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Mohit Saboo, Chief Financial Officer and Mr. Manish Saboo, Promoter. Without any delay, I request Mr. Mohit Saboo to give his opening remarks. Thank you and over to you, sir.
Mohit Saboo (Bigbloc Construction Ltd): Thank you, Purvangi. Good afternoon everyone and thank you for joining us for Bigbloc Construction Limited earnings conference call for the second quarter and half year ended of financial year 2027. I am pleased to share that Bigbloc continues to demonstrate strong business momentum supported by increasing sales volume, growing market reach and improving operational performance. The first half of FY '27 has been marked by healthy revenue growth, significant improvement in EBITDA and continued progress in ramping up our expanded manufacturing capacities. One of the most encouraging development has been the strengthening of our sales and dispatch momentum. This reached an important milestone in October 2026 when Bigbloc recorded its highest ever monthly turnover and sales volume. This record performance reflects growing acceptance of our products, strong customer relationships and a continued expansion of our market presence. Our priority is to build on this momentum and translate higher volumes into stronger capacity utilization and sustainable profitability. Our financial performance reflects this progress. During H1 FY '27, revenue from operations grew approximately 31% year-on-year to INR 162 crores while EBITDA increased from approximately INR 3 crores in H1 FY '26 to INR 10 crores in H1 FY '27. Sales volume rose 22% year-on-year to 4,46,769 cubic meters. These developments demonstrate the scale of the opportunity ahead and the importance of disciplined execution as well as expand our operations. Alongside growth, we are sharpening our focus on operational excellence and cost optimization. We are progressively enhancing automation across key operational areas, including boiler operations and material handling systems. We are also transitioning from rented forklifts to our own electric vehicle fleet, an initiative expected to improve operational flexibility and reduce fuel cost and operating costs over the period of time. Our sustainability initiatives continue to progress. Rooftop solar installations across our manufacturing facilities have taken aggregate installed solar capacity to approximately 3.5 megawatts. These investments support our long-term priorities of clean energy, efficiency, cost optimization and reducing our carbon footprint. Let me now address the operating environment and take you through our financial results. During the quarter, higher lime and coal costs influenced by geopolitical developments and supply side pressures, as well as monsoon-related disruption to construction activity created near-term challenges. We have taken a calibrated approach to pricing rather than passing through the full increase in input cost immediately. We intend to pursue gradual price revisions across markets while remaining competitive and working to protect margins. For Q2 FY '27, revenue from operations stood at approximately INR 83 crores, up around 23% year-on-year, primarily driven by higher sales volume. EBITDA grew 74% year-on-year to approximately INR 3 crores, with EBITDA margins expanding by 116 basis points year-on-year to 3.98%. The net loss for the quarter stood at approximately INR 2.75 crores. For H1 FY '27, revenue from operations stood at approximately INR 162 crores, growing 31% year-on-year. EBITDA increased from approximately INR 3 crores in H1 FY '26 to INR 10 crores in H1 FY '27, with EBITDA margin expanding by 334 basis points year-on-year to 5.93%.
Mohit Saboo (Bigbloc Construction Ltd): We are encouraged by our record October performance and the continued demand for lightweight, energy-efficient, and sustainable building materials. The second half is traditionally a stronger period for construction activity, although market conditions and input costs will remain important factors. Our priorities are clear: sustain dispatch momentum, improve capacity utilization, strengthen cost efficiencies, and progressively improve profitability and cash flows. We believe our investments in manufacturing capacity, technology, and market development, position Bigbloc to pursue long-term value creation for our shareholders. With that, I conclude my remarks and would now like to open the floor for questions and answers. Thank you.
Moderator (Valorem Advisors): Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants to ask a question, may please press star and one. First question is from the line of Richa Agarwal from Equitymaster. Please go ahead.
Richa Agarwal (Equitymaster): Hi, am I audible?
Moderator (Valorem Advisors): Yes, you are audible.
Richa Agarwal (Equitymaster): Yeah. Hello, sir. Good afternoon. Sir, I just wanted to understand, you know, how you are dealing with the, these inflationary pressures, and, you know, what is the ability to pass it on to the customers. You talked about some kind of calibrated passing on, but, you know, if you could add more color to that. Second was, with regards to what is the difference between bricks and panels, currently? And the third is regarding supply and demand situation, you know, what kind of capacities are coming up, what is the competitive pressure, if you could just share some light on those aspects along with what is the timeline by which you expect optimum utilization on the existing base of capacities based on, you know, the demand trends that you are seeing?
Mohit Saboo (Bigbloc Construction Ltd): So, coming down to your questions point-wise. Firstly, in terms of the supply-side constraints or the input, increase in input cost, so the input cost approximately has gone up by 8% to 10%. Against that, we have been able to pass on cost increase of about 5% to 7%. Considering it was monsoon period, we have not been able to totally do that. But looking at the overall demand situation in October, and generally, the industrial as well as the construction activity is at peak in the second half of the year. So, we will be able to pass on any further cost increase as well as current increase which has happened because of the ongoing geopolitical situation. Secondly, coming down to the point of capacity utilization, so if we see H1 of FY '26 against H1 of FY '27, so FY '26 had about 57 50 56%, 57% utilization, whereas H2 H1 of FY '27 has about 68% utilization, which shows almost a 17%, 18% increase. And I already mentioned in my speech that in October, we have achieved record high turnover as well as, in terms of value as well as volume, which shows that the capacity utilization will keep on growing in the upcoming quarters as well. Regarding your query about the share of AAC blocks, or in construction materials as well as wall panels. So, in the total turnover for the H1 FY '27, approx 87%, 88% volume is from AAC blocks, about 5% to 6% is from AAC panels, as well as 5% to 6% is from construction chemicals. And AAC panels, we are seeing we are able to continue acquire new customers like in the recently, we have received an order from Adani Connex for its data center coming up in Hyderabad. We are executing a couple of bullet train stations and have almost finalized a couple of other bullet train stations from Mumbai to Ahmedabad for the walling requirements of the same. And are in talks with few other large conglomerates, and almost on the verge of finalizing few large orders from there as well.
Richa Agarwal (Equitymaster): Okay. And, sir, will you also add the point, the reply for what is the price difference, and you know, how does it is it like expanding further or growing thinner between the bricks and
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