“Our target is to become a near-net-debt-zero company over the next two years. Currently, net debt is about Rs 2,150 crore, with net debt-to-equity at around 0.32 times. The company plans to reduce net debt to Rs 700–800 crore in this financial year,” Rohan Suryavanshi, head – strategy and planning at Dilip Buildcon, told Business Standard.
The company’s net debt declined from Rs 3,387 crore in 2018–19 to Rs 1,576 crore in 2024–25 but rose to Rs 2,150 crore as of December 2025. The company says the recent increase in debt was a temporary phenomenon on account of a lower order book in the last two years and the subsequent slowdown in execution.
“Our challenge over the last two years was order inflow, because we chose not to bid irrationally. There were limited orders, and competition was extremely aggressive. Fortunately, that has now improved, and our order book is at an all-time high,” Suryavanshi added.
As of December 2025, Dilip Buildcon’s order book stood at Rs 29,372 crore, with the roads and highways sector being the largest contributor at Rs 15,689 crore. Around 86 per cent of the company’s order book consisted of EPC projects. The roads sector, however, has been witnessing a slowdown in project awarding by the Ministry of Road Transport and Highways over the past three years.
Awards in the first eight months of 2025–26 stood at 1,951 kilometres, 24 per cent lower than 2,558 km recorded in the same period of the previous financial year. A pickup is expected in the fourth quarter of the current fiscal as several projects currently under bidding reach the award stage, according to ratings firm Icra.
“Diversification has protected us significantly. Our strategy has always been to focus on sectors where our equipment can be utilised, such as roads, metro, bridges, tunnels, mining, transmission, and renewables. This diversification has helped cushion the slowdown in road awards,” Suryavanshi said.
Going ahead, Dilip Buildcon believes that debt rationalisation, supported by a pickup in orders and higher execution, will lead to full utilisation of capacity and improved operational efficiencies in the coming quarters.
The company expects new order inflows in a range between Rs 10,000 crore and Rs 15,000 crore in 2026–27. Order inflow stood at over Rs 17,000 crore in the first nine months of the current fiscal. “We are not fixated on sectoral mix. Our focus is simple: good projects at good rates. We do not want to pursue projects aggressively at irrational prices,” Suryavanshi said.
The company expects debt reduction to be supported by funds from InvIT units expected from pending asset transfers. The total value of InvIT units currently held by Dilip Buildcon is around Rs 1,600 crore, including about Rs 1,400 crore in Anantham Highways InvIT and roughly Rs 200 crore in Shrem InvIT.
“We have 11 more assets that will be transferred into Anantham Highways. Once these assets are transferred, we will receive units (by FY27). The total units will amount to around Rs 3,500 crore,” Suryavanshi said.
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