Capacit'e Infra cuts EBITDA margin guidance as commodity inflation bites

Capacit'e Infraprojects, in its post-results concall, flagged a downward revision in its CIDCO revenue expectations by over ₹100 crore and an EBITDA margin guidance cut of 100-200 bps to 15.5-16.5%, blaming commodity inflation. Election-related labour disruptions cost a full-year ₹125 crore in lost revenue, and a ₹10 crore provision for escalation timing mismatches adds to the burden. While management reiterated a 20% revenue growth target for FY27, the margin compression and project-specific downgrades raise questions about earnings quality. The call provided granular detail on headwinds, but the backward-looking nature of the summary means the market has likely already priced in these challenges. The open question is whether the 20% growth target holds water if CIDCO, a key client, continues to scale back.