Ducon targets ₹600-1,000 cr revenue in 2-4 years from ₹400 cr base
Cautiously optimistic management flags CO2 capture tailwind but declines FY27 guidance; ₹25 cr rights issue to fund working capital.
— 2 earlier stories on Ducon Infratechnologies Ltd. →What's new
- Management targets ₹600-1,000 cr revenue in 2-4 years from current ~₹400 cr.
- Declined to provide specific FY27 guidance, citing project lumpiness.
- ₹25 cr rights issue to be used for working capital and bank guarantees.
Why this matters
Ducon is a small-cap (₹114 cr) with trailing revenue -15.5% and PAT -48.7%. The ambitious target hinges on converting a ₹20,000 cr government CO2 capture allocation into orders. Without concrete FY27 guidance, execution risk remains high.
What we're watching
- Order inflow timing and conversion of the CO2 capture opportunity.
- Working capital availability and deployment of rights issue proceeds.
- Any contracts announced from the ₹20,000 cr government pool.
The full read
Ducon Infratechnologies is chasing a big number. Management told investors it sees ₹600-1,000 crore in revenue within two to four years, up from a current run-rate of about ₹400 crore. The catalyst is a ₹20,000 crore government allocation for CO2 capture, which plays directly into Ducon's flue gas desulfurization suite and 27 patents. But that is the optimistic part. The company has a market cap of just ₹114 crore, trailing revenue is down 15.5%, and trailing PAT fell 48.7%. A ₹25 crore rights issue, already approved, will go toward working capital, not capacity. The ambition is real; the path is not. Management declined to give FY27 guidance, citing project lumpiness. For a stock that needs orders more than optimism, the next filing that matters won't be a concall but a contract.
Questions answered
- What is Ducon's current revenue and profit?
- In the latest quarter (Mar 2026), Ducon reported sales of ₹101 cr and net profit of ₹2 cr. Trailing twelve-month revenue is roughly ₹400 cr, down 15.5% year-on-year.
- What is the ₹25 cr rights issue for?
- The rights issue will be used primarily for working capital and bank guarantees to support order growth, according to management.
- Why didn't management give FY27 revenue guidance?
- Management cited project lumpiness as the reason for declining to provide a specific FY27 target. Instead, they offered a broader 2-4 year range of ₹600-1,000 cr.
- How credible is the ₹600-1,000 cr revenue target?
- The target implies 50-150% growth from the current base. While the ₹20,000 cr CO2 capture allocation is a strong tailwind, Ducon's recent revenue decline and lack of specific orders make the target uncertain.
- What are the key risks to achieving the target?
- Management identified order inflow timing and working capital availability as the two key value drivers. The company's high debt/equity (0.61) and low ROE (8.1%) add stress.
Ducon Infratechnologies Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on DUCON →- 22 Jun 2026 · 5:56 PM IST Ducon targets ₹600-1,000 cr revenue in 2-4 years from ₹400 cr base
- 7d ago Ducon sees ₹10,000 cr FGD pipeline, but sales just ₹101 cr
- 27d ago Ducon Infratechnologies to consider rights issue at June 12 board meet