Garuda Construction and Engineering shares jumped more than 11 percent on Monday following the company's strong quarterly earnings announcement. According to reports from Moneycontrol.com, the stock rose to an intraday high of ₹200.50 per share on the NSE before profit booking brought it down to ₹195.43, up 8.27 percent around 11:30 am. The sharp uptick in share price came immediately after the company reported its first-quarter results for the June quarter.
The company delivered impressive financial performance with net profit rising 48.36% to ₹41.54 crore in the June quarter of FY27, compared to ₹28 crore in the year-ago period. As reported by Business Standard, this represents a significant improvement in profitability driven by strong operational performance. The substantial profit growth demonstrates the company's ability to convert revenue into bottom-line results effectively. The consolidated net profit stood at ₹4,154.37 lakh, reflecting a similar upward trajectory across all financial metrics. The standalone net profit growth of 48.21% YoY validates robust execution and margin stability, with the company maintaining healthy EBITDA margins over the medium term.
Revenue increased 40.12% to ₹175.38 crore during the quarter under review, compared to ₹125.16 crore a year ago, according to the latest financial data from Business Standard. The EBITDA rose 54% to ₹56.1 crore from ₹36.4 crore in the year-ago period, showing strong operational leverage. The EBITDA margin stood at 32.01%, compared with 29.11% a year ago, indicating improved operational efficiency and cost management. The earnings per share rose to ₹4.47 from ₹3.01 in the corresponding period last year, demonstrating enhanced profitability per share. For the full fiscal year FY26, Garuda Construction reported revenue of ₹534 crore, which was a 137% growth over FY25.
The company's financial health improved significantly across key metrics compared to the prior year period. Total income rose to ₹17,562.90 lakh from ₹12,668.00 lakh in the previous year, while total expenses increased to ₹11,985.60 lakh from ₹8,925.80 lakh. The profit before tax surged 49% to ₹5,577.29 lakh from ₹3,742.20 lakh in the year-ago period. The EBITDA margin expansion of 290 basis points to 32% reflects improved operational efficiency and cost management. The company maintains high order book visibility of over ₹4,336.72 crore as of December 31, 2025, supporting medium-term growth prospects. Recent major contract wins include a ₹231 crore Mumbai rehabilitation project and a ₹143.96 crore Oshiwara redevelopment contract, providing strong execution visibility.
The strong earnings performance is expected to trigger positive momentum in the stock, with investors closely monitoring execution timelines for major Mumbai contracts. However, managing working capital cycle and high debtor days remains key to converting book profits into strong cash flows. The company's debtor collection period stood at 165 days as of mid-2026, indicating potential working capital intensity. Infomerics Ratings assigned IVR BBB+/Stable and IVR A2 ratings to the company's bank facilities in April 2026, citing negligible debt levels and robust capital structure. While the order pipeline remains robust, investors should monitor how effectively the company turns its ₹41.5 crore quarterly profit into liquid operational cash given historical working capital intensity.
