Informist, Monday, Sept. 22, 2025

By Narayana Krishna

HYDERABAD - Bondada Engineering Ltd., an infrastructure development company focused on telecommunication, renewable energy, and railways, expects its consolidated revenue to touch INR 40 billion by 2026-27 (Apr-Mar) as the renewable energy segment begins significant revenue contribution, Baratam Satyanarayana, chief financial officer, told Informist an interview. For FY25, Bondada Engineering reported a consolidated net profit of INR 1.15 billion on revenue of INR 15.70 billion.

"For the next 2-3 years, our revenue growth will be driven by renewable energy while we also get significant inflows from the telecom segment," Satyanarayana said. The company is expecting a 45-50% revenue growth for next 2-3 years, led by renewable energy business.

The company is expecting its revenue to rise 70% on year in FY26 to INR 26 billion–INR 27 billion, the CFO said, adding that the current financial year revenues will be aided by the telecom segment, though there will be contribution from the renewable energy segment too.

"Starting from FY27, we are expecting 40-50% revenue growth on average every year, led by the renewable energy segment. We have a very good order book to drive the growth," he said.

Bondada Engineering builds fiber optic cable networks, towers, and other supporting infrastructure for telecom operators. The company's client base includes Bharat Sanchar Nigam Ltd., Reliance Jio Infocomm Ltd., and Indus Towers Ltd.

The CFO said Bondada Engineering has INR 2.6 billion of debt on its books and has enough legroom to fund its growth plans. The company expects its earnings before interest, tax, depreciation, and amortisation margin at 12.0-12.5% for FY26. For FY25, the company EBITDA margin was at 11.7%.

ORDER BOOK

Bondada has a total order book of nearly INR 160 billion as of Aug. 31, which is executable in 2-3 years. The order book comprises telecom, renewable energy, and railways. The company is expecting it to touch INR 180 billion by the end of FY26, the CFO said. In the solar energy segment, which accounts for nearly 75% of total operations, the company has a total order book of nearly INR 143 billion, which includes a INR 90 billion solar energy project in Andhra Pradesh. In the telecom division, the company's order book is close to INR 10 billion, while railway segment orders were at around INR 2.5 billion, he said.

The company has emerged as the lowest bidder for two renewable energy project tenders floated by two reputed public sector agencies, he said. If those come into account, at least INR 12 billion worth of orders will be added to the book. The company is chasing tenders worth INR 65 billion, which are at various stages, he said.

Satyanarayana expects significant orders in the coming years from the railways segment as the Indian Railways is poised to modernise and deploy several safety systems such as Kavach. The company is also eyeing communication contracts in railways, including setting up towers and fiber networks.

Satyanarayana said Indian Railways has earmarked INR 260 billion budget for the next five years for infrastructure development and the tendering process has just begun.

Rapid expansion of the 5G network and telecom operators' plans to add an additional 700,000 towers by 2030, along with massive expansion in data centers, are likely to increase the order book going forward, he said.

RENEWABLE ENERGY

Bondada Engineering is pursuing renewable energy as one of its core growth drivers. The company has gained expertise in setting up renewable energy infrastructure right from the ground to energy generation under engineering, procurement, and construction mode for companies operating in that sector. As of now, the company has INR 143 billion worth of orders in hand. The company's clientele in this segment includes NLC India Ltd., BHEL Ltd., Singareni Collieries Ltd., and Maharashtra Power Generation Corp.

Satyanarayana said several public sector enterprises are working on green energy initiatives, mainly for captive consumption, hence, more renewable projects are coming up for bidding. As an established EPC player in this segment, Bondada is well-positioned to grab future opportunities, he said.

Besides EPC works, the company has an ambitious target of achieving 10 gigawatts of generation capacity by 2030. The company is also working to increase its presence in the battery energy storage systems space.

ANDHRA PROJECT JV

Bondada Engineering, through a joint venture, has bagged a 2-gigawatt solar energy project with an estimated investment of INR 90 billion at Sri Satya Sai District in Andhra Pradesh. The project will be executed through a joint venture with AAA Greentech Pvt. Ltd., in which Bondada will hold 51% equity. Satyanarayana said the company has to complete the project within 24 months from the date of award and is in the process of taking control of the land now. The state government has identified 6,000 acres of land out of 9,000 acres that have been allocated.

The company is in talks with State Bank of India, Power Finance Corp. Ltd., and others to fund the project. The company is expecting financial closure for the project in the next six months. He said renewable energy is the area where a lot of investors are coming forward to invest, and the company is not expecting any problem in achieving closure for the project. The company is aiming to generate 500 megawatts of power from the Andhra Pradesh project by the end of FY27, he said.

The Andhra Pradesh government has agreed to buy 30% of the power generated from this project, while the JV is entitled to sell the remaining power in the open market at commercial rates. The company is yet to sign a power purchase agreement with the state government.

DEFENCE FORAY

Satyanarayana said Bondada Engineering's plans to enter into the defence manufacturing space are at an early stage and the company is in the process of identifying the areas where growth is expected in the coming years. He said the company may come out with a clear plan in the 3-6 months on its defence venture.

Though the initial plan was to focus on making parts for missiles and allied products, the company is now thinking of a vast area of products in this segment, he said. The company is looking to sign 2-3 collaboration memorandum of understanding to enter into defence manufacturing, he said, declining to reveal more details.

At 1404 IST, Bondada Engineering shares traded at INR 380.65 on the BSE, down 1.6% from their previous close. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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