On 8th August 2025, Ceigall Limited reported its Q1 FY26 financial results. The quarter delivered marginal revenue growth but a sharp fall in profitability, highlighting operational challenges.
The company posted consolidated revenue of ₹838.18 crore, up 1.92% YoY, while PAT fell 33.03% YoY to ₹53.18 crore from ₹79.41 crore in Q1 FY25. Standalone results showed stronger revenue growth of 5.86% but also weaker profits, with PAT slipping 19.09% YoY.
Financial Performance Overview
Consolidated Results
| Particulars | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | ₹838.18 Cr | ₹822.39 Cr |
| Profit Before Tax (PBT) | ₹123.56 Cr | ₹151.90 Cr |
| Profit After Tax (PAT) | ₹53.18 Cr | ₹79.41 Cr |
Highlights:
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Revenue grew 1.92% YoY, indicating stable operations.
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PAT fell 33.03% YoY, showing margin erosion.
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PBT dropped from ₹151.90 crore to ₹123.56 crore, reflecting weaker cost efficiency.
Standalone Results
| Particulars | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | ₹818.35 Cr | ₹773.03 Cr |
| Profit Before Tax (PBT) | ₹108.65 Cr | ₹124.42 Cr |
| Profit After Tax (PAT) | ₹55.92 Cr | ₹69.12 Cr |
Highlights:
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Revenue rose 5.86% YoY, outperforming consolidated growth.
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PAT declined 19.09% YoY, highlighting cost pressures.
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Standalone revenues suggest resilience in core operations.
Key Takeaways
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Revenue Stability
Both consolidated and standalone revenues show growth, though modest, signaling steady demand. -
Profit Decline
PAT drop of 33% consolidated and 19% standalone underscores pressure from rising input costs or execution challenges. -
Mixed Signals
While top-line is resilient, the bottom-line weakness raises investor concerns.
Share Price Performance
On 22nd August 2025, Ceigall shares opened at ₹252.55 and closed slightly higher at ₹254.89.
| Period | Returns (%) |
|---|---|
| 1 Year | -35.84% |
| 5 Years | -35.80% |
| Max Period | -35.80% |
Observations:
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Shares lost nearly 36% over 1 year, underperforming the broader market.
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Over 5 years, returns remain negative at -35.80%, indicating long-term investor wealth erosion.
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Despite Q1 revenue stability, stock underperformance highlights weak market sentiment.
Analysts’ Expectations Post Q1 FY26
Analysts remain cautiously optimistic about Ceigall.
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Bullish Case: If margins recover, stock may touch ₹300.20 per share.
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Bearish Case: If profit decline worsens, stock could fall to ₹210.60 per share.
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Neutral Case: Consolidation between ₹230–₹260 per share until Q2 visibility.
Business Model and Growth Drivers
Ceigall operates in engineering, procurement, and construction (EPC) projects, with a focus on infrastructure development.
Key Growth Drivers:
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Government’s infrastructure push (roads, bridges, and smart cities).
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Steady pipeline of EPC contracts.
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Demand for high-value projects in urban development.
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Execution capabilities in large-scale infrastructure.
Risk Factors
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Profitability Concerns: Steep PAT decline undermines investor confidence.
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Volatile Share Performance: Consistent long-term negative returns.
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Execution Challenges: Delays or cost overruns in EPC projects.
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Competitive Industry: Price pressures from other large EPC players.
Comparative Analysis with EPC Peers
| Company | Market Cap (₹ Cr) | P/E Ratio | 1-Year Return (%) | 5-Year Return (%) |
|---|---|---|---|---|
| Ceigall | ~₹2,800 Cr (est.) | 18.4x | -35.84% | -35.80% |
| NBCC (India) Ltd. | ~₹20,000 Cr | 28.4x | +18% | +160% |
| KNR Constructions | ~₹11,000 Cr | 20.8x | +22% | +175% |
| PSP Projects Ltd. | ~₹2,800 Cr | 24.2x | +15% | +140% |
Insights:
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Ceigall lags behind peers in stock performance, despite similar sector positioning.
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Valuation (P/E) is moderate, but investor sentiment is weak due to profit decline.
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Strong execution and cost control are essential for Ceigall to catch up.
Future Outlook
Ceigall’s future performance will hinge on:
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Margin Recovery: Essential to restore profitability.
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Project Execution: Timely delivery to prevent overruns.
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Government Contracts: New orders in infra push could boost revenues.
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Investor Confidence: Needs multiple quarters of consistent growth.
Conclusion
Ceigall’s Q1 FY26 results highlight stable revenues but falling profits. Consolidated revenue rose modestly by 1.92% YoY, but PAT slipped 33.03% YoY. Standalone numbers show stronger revenue growth at 5.86% but also a 19% drop in profits.
The company’s stock remains under pressure, with -36% returns in both 1 year and 5 years. Analysts see potential upside to ₹300.20, though downside risks remain at ₹210.60.
For investors, Ceigall is a cautious play in the infrastructure space. While revenues show resilience, profitability pressures and poor long-term stock performance make it suitable only for risk-tolerant investors seeking turnaround potential. Conservative investors may prefer stronger peers like KNR Constructions or NBCC.
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