Current Infraproject's own CFO contradicted its working capital pitch
The CEO said short projects improve cash rotation. The CFO said delayed payments and high site inventory are causing negative cash flows.
What's new
- FY26 revenue grew 76% to ₹160 cr; EBITDA was ₹23 cr at a 14.5% margin.
- Order book hit a record ₹305 cr, 2.5x the FY23 level; forward pipeline is ₹320 cr.
- RESCO annuity plants delivered ₹2.90 cr in FY26; annualized run-rate is ₹6 cr.
Themes from the call
Working Capital
Management's narrative of improved cash rotation was flatly contradicted by the CFO, who cited client payment delays and high site inventory as drivers of negative operating cash flows.
Cost Pressure
Management first said fixed-rate contracts insulated them from cost pressure, then later admitted crude-driven transportation and labor inflation is a live issue they are negotiating.
Order Book
The ₹305 cr order book and ₹320 cr pipeline are strong, with a strategic tilt toward government-backed electrical infrastructure and a 25-year RESCO annuity stream.
Guidance watch
- FY27 revenue guided at ₹200-250 cr (25-56% growth); operating margins expected 'relatively stable' versus FY26's 14.5%.
- Solar EPC revenue of ₹50-80 cr in FY27 is contingent on pending tender awards of ₹200 cr; no specific timeline for awards given.
- Management refused to guide on BESS tender timing, capex requirements, or consolidated PAT.
Risk flags
- The gap between the CEO's working capital pitch and the CFO's cash-flow reality is the primary credibility risk.
- FY27 guidance assumes commodity input stabilization and price variation recoveries that are yet to be settled.
- The wide ₹200-250 cr revenue range suggests high uncertainty around solar/BESS tender awards.
Key quotes
-
"Our focus on high-turnover projects enabled better working capital rotation while maintaining execution quality."
— CEO, prepared remarks -
"Our working capital requirements increased due to payment delays from certain clients and high stock levels at project sites. All of those factors resulted in our negative cash flow."
— CFO, Q&A session
The brief
The most important thing on Current Infraproject's earnings call was the contradiction between the CEO and the CFO, on the same call. CEO Sunil Singh Gangwar told investors his pivot to shorter-duration projects was improving working capital rotation. Minutes later in the Q&A, the CFO revealed working capital requirements actually increased, driving negative operating cash flows because of delayed client payments and elevated site inventory. No explanation was offered for the mismatch. The numbers themselves are strong. Revenue grew 76% to ₹160 cr, and the order book hit a record ₹305 cr. A ₹100 cr RDSS government mandate provides a near-term revenue anchor with verified 7-day payment cycles, which should help the cash-flow problem if it materializes as planned. But the contradiction forces a question: is management's stated execution velocity a real structural shift, or a story being told before the cash conversion proves it? The cost narrative is similarly muddled. The CEO first said fixed-rate contracts protected them from inflation. The CFO later said crude-driven transportation and labor costs are a live issue they are negotiating. None of this is fatal. The ₹305 cr order book and the RESCO annuity stream give the business a real foundation. But the gap between the CEO's pitch and the CFO's reality needs a clear, single explanation in the next quarter. Right now, there isn't one.
A CEO and CFO who can't agree on their own working capital story on the same call have a credibility gap to close.