Economic Review
Global Economy1
Overview
The global economy grew by 3.3% in CY 2024, driven by moderating inflation, technological advancements and structural economic shifts across regions. This growth was achieved in a turbulent macroeconomic environment marked by geopolitical unrest and supply chain disruptions. Despite the resilient performance, growth remains below the historical average of 3.7%. Emerging Market and Developing Economies (EMDEs) performed better, growing at 4.3%, compared to the 1.8% growth recorded by advanced economies. This economic stability was supported by proactive monetary policies implemented by central Banks across the world. Monetary policy interventions played a key role in controlling inflation, which declined from 6.6% in CY 2023 to 5.7% in CY 2024.2 Easing inflation led to a moderation in price levels, helped stabilise consumer confidence and accelerated economic activity.
1
https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic-outlook-april-2025 2https://www.imf.org/external/datamapper/PCPIPCH@WEO/OEMDC/ADVEC/WEOWORLDOutlook
The Global economy is expected to maintain a modest growth, with a growth forecast of 2.8% for CY 2025 and 3.0% for CY 2026. This foreseen growth will be supported by further accommodative monetary policy aimed at ensuring price stability, stimulating economic activity and boosting employment. However, the recent uncertainty around the reciprocal tariffs imposed by the US on its imports is disrupting global trade. This could lead to increased costs, supply chain uncertainties and heightened recession risks. In response, businesses around the world are delaying investments and restructuring operations. To the impact of the tariffs, global leaders are undertaking diplomatic and economic initiatives through dialogue, trade alliances and strategic negotiations to ease rising tariff tensions and stabilise global trade.
As the current uncertainty around the US tariffs subsides, inflationary pressures are expected to ease gradually, with global headline inflation projected to decline to 4.3% in CY 2025 and further to 3.6% in CY 2026. The outlook of Emerging Market and Developing Economies (EMDEs) remains positive, with projected growth of 3.7% in CY 2025 and 3.9% in CY 2026. Advanced economies are expected to grow at 1.4% in CY 2025 and 1.5% in CY 2026.
Indian Economy3
Overview
The Indian economy was successful in maintaining its status as one of the worlds fastest-growing major economies by achieving a GDP growth rate of 6.5% in FY 2025. The growth was achieved amidst a disrupted global economic landscape and geopolitical tensions in Europe and the Middle East. One of the major factors that facilitated this growth was the targeted government initiatives aimed at stimulating economic activity through infrastructure development. India managed to keep its fiscal deficit at 4.4% of GDP4 , providing the government more room to increase spending and stimulate demand.
Additionally, the growth was further propelled by a decline in inflation from 5.4% in FY 20245 to 4.6% in FY 2025,6 which boosted consumer confidence and stimulated both urban and rural consumption. The easing inflation prompted the RBI to infuse 1.5 trillion into the banking system to support the demand for liquidity and propel economic activity.7
Outlook
India has become the worlds fourth-largest economy and is expected to maintain its strong growth trajectory, with GDP projected to expand by 6.5% in FY 2026.8 This strong growth will be backed by the governments income tax reform, which has exempted salaried individuals earning up to 12.75 Lakh from income tax.9 In accordance with the government, the Reserve Bank of India (RBI) is also aiming to augment economic activity by implementing expansionary monetary strategies. The RBI has reduced the repo rate by 100 basis points through consecutive cuts10 to further boost consumption and inject liquidityLower interest rates will directly benefit capital-intensive infrastructure projects by making financing more affordable. This move supports quicker execution and scaling-up of infrastructure investments.
3
https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULL22042025F03F83AE118C4B3B84E662D980C8DE33.PDF4
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=20983535
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2097919#6
https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULL210520259384088A6E4D431192628B2A15EDF52D.PDF7
https://www.livemint.com/economy/rbi-1-5-trillion-liquidity-boost-how-will-it-help-dollar-rupee-rate-cut-mint-primer-11738086455919.html8
https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154660#9
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=209835310
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=60176Inflation is expected to fall further to 4% in FY 2026, which will strengthen the economic growth momentum by enhancing purchasing power. With strong foreign reserves, smart government spending and stable policies, the Indian economy is well-positioned for continued growth, further elevating its role on the global stage .
Indias economic landscape has witnessed strong progress, reflected in the significant improvement in its ease of doing business ranking from 142nd in 2015 to 63rd in 2020, as highlighted in the World Banks Doing Business Report. This positive momentum is further reinforced by India securing the 39th position in IMDs World Competitiveness Index 2024, Showcasing the countrys growing global competitiveness. Looking ahead, inflation is expected to ease to 4% in FY 2026, which will bolster purchasing power and support sustained economic growth. Backed by robust foreign reserves, prudent government spending and stable policies, India is well-positioned to build on these achievements and strengthen its role as a dynamic driver of the global economy.
Urban infrastructure received special attention, with targeted allocations for water supply, green spaces, non-motorised transport and digital municipal services. The provision of 1.5
Lakh Crore in long-term, interest-free loans to states further supported large-scale urban projects. At the same time, rural infrastructure development and flood management measures were implemented to tackle developmental and environmental issues, promoting equitable and sustainable progress nationwide.13
Industry Overview
Infrastructure Industry
The infrastructure sector experienced a notable boost as the central government allocated 11.11 Lakh Crore for capital expenditure, a significant increase from the previous years 9.5
Lakh Crore This enhanced budget highlights the governments focus on driving robust economic growth, speeding up project execution and attracting private investment. Key initiatives included the launch of Phase IV of the Pradhan Mantri Gram Sadak Yojana (PMGSY), aimed at providing all-weather connectivity to 25,000 rural habitations and integrating remote areas into the national mainstream.12
Roadways14
Indian infrastructure investment has seen a major boost through combined efforts from both the government and private sector, especially in the road and highway segment. With increased capital spending, the country now became the second-largest road network globally. Over the last ten years, the length of national highways has grown by 60%, rising from about 91,287 km in 2014 to over 1,46,204 km in 2025. Construction speed has also improved drastically, reaching a record 34 km per day in 2025, compared to just 12.1 km per day in 2015.
Notable advancements were made in the development of high-speed corridors, which expanded from just 93 km to over 2,400 km showcasing the governments strategic emphasis on improving connectivity and logistics efficiency. Flagship programs such as Bharatmala Pariyojana played a pivotal role in linking key trade routes and urban centers. Furthermore, NHAI pursued the monetization of road assets through three primary mechanisms: Toll Operate Transfer (TOT), Infrastructure Investment Trusts (InvITs) and Toll Securitisation. During the financial year, these initiatives collectively generated proceeds amounting to 28,724 crore.15
11
https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULL22042025F03F83AE118C4B3B84E662D980C8DE33.PDF12
https://www.pib.gov.in/PressReleasePage.aspx?PRID=203555813
https://www.indiabudget.gov.in/doc/bh1.pdf14
https://www.pib.gov.in/PressReleasePage.aspx?PRID=209150815
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2117781Major policy reforms and initiatives such as PM GatiShakti National Master Plan continue to play a transformative role in Indias road infrastructure landscape. These initiatives are advancingtheconstructionofexpressways,greenfieldcorridors and performance-based maintenance systems. Complementary efforts including the development of ropeways, utility corridors and digital tolling infrastructure are promoting integrated and sustainable growth. The push for multimodal infrastructure is further strengthening logistics efficiency and contributing to long-term economic development .
Indias transport infrastructure witnessed expansion under programs like Bharatmala, Sagarmala, UDAN. Signature projects, including the Chenab Railway Arch Bridge, Anji Khad cable-stayed bridge and New Pamban vertical lift bridge, have redefined regional connectivity, while landmark corridors, tunnels and expressways such as the nearly completed Delhi–Mumbai Expressway, Atal Tunnel and Chenani–Nashri Tunnel have streamlined travel across diverse and challenging terrains.
Metro16
Indias metro rail sector is growing rapidly, expanding from 248 km in 2014 to 1,011 km by March 2025 a fourfold increase due to fast-paced urbanization, strong backing from the government and the increasing demand for reliable and efficient public transportation in cities. Major cities such as Delhi, Mumbai, Bengaluru and Pune achieved key construction milestones, expanded operational corridors and adopted advanced technologies such as digital ticketing . These efforts have significantly improved last-mile connectivity and multimodal integration boosted daily ridership, which has soared from 28 Lakh in 2013-14 to over 1.12 Crore by May 2025. Reflecting this momentum, India has also launched the Regional Rapid Transit System (RRTS), exemplified by the Namo Bharat trains on the Delhi–Meerut corridor, offering faster intercity connectivity and setting new standards for mass transit efficiency.
The country now ranks third globally in total metro network length, with 1,011 km operational across 23 cities, up from just 248 km in 2014. In FY 2024–25 alone, more than 763 km of new metro lines were commissioned, with construction advancing at a pace of about 6 km per month compared to under 1 km before 2014. Since 2014, 34 new metro projects totalling nearly 992 km have been approved, supported by a six-fold increase in annual budget allocation from 5,798 crore in FY 2013 14 to 34,807 crore in FY 2025 26. Beyond the metros in larger cities, projects in Tier II cities such as Kanpur, Lucknow and Agra are being fast-tracked under PM GatiShakti and metro expansion schemes, showcasing the governments focus on building modern transit infrastructure to enhance regional connectivity, reduce congestion and fuel urban economic growth nationwide.
Indi ranks third globally in terms of total metro rail network.
Railways17
Indian Ra ilways has achieved significant progress in upgrading its infrastructure, with a strong focus on enhancing speed, safety and reliability. As of March 2025, over 23,000 kilometres of track have been upgraded to support train speeds of up to 130 kmph, while an additional 54,337 kilometres are now equipped for speeds of 110 kmph. These enhancements include the installation of stronger tracks, advanced signalling systems and fencing in high-risk areas, particularly along the Golden Quadrilateral and Golden Diagonal routes that connect major cities and handle a significant share of passenger and freight traffic.
The modernization drive gained further momentum with the introduction of more than 300 Vande Bharat trains, which offer improved speed, comfort and reliability to passengers. Additionally, the "Amrit Bharat Station Scheme" has led to the redevelopment of over 1,300 stations, providing modern amenities, seamless multimodal integration and enhanced accessibility for all travellers.
A strong emphasis on domestic sourcing and public-private partnerships has bolstered the Atmanirbhar Bharat mission, while technological upgrades in signalling and automation of routes have significantly improved operational efficiency. Also, the government has reinforced its commitment to sustained modernization by allocating a record capital outlay of 2.65 lakh crore for FY 2025-26. Together, these initiatives have positioned Indian Railways as a key driver of inclusive growth and multi-modal connectivity, supporting Indias vision of becoming a developed economy by 2047.
Information and Communication Technology Industry18
Indias ICT industry is growing rapidly and is expected to expand by over 9% each year. The country has become a major hub for digital innovation, with thousands of tech companies and many successful startups. This growth is driven by strong government support, new digital infrastructure, and the rising use of technologies like 5G, cloud computing, AI and automation. The telecom sector plays a big role, contributing to the economy and connecting millions of people. Businesses and government services are also becoming more digital, using online platforms for tasks like buying goods and offering services. With more smart cities, digital payments, and e-governance projects, Indias ICT industry is creating new opportunities and shaping the future of technology in the country.
Airports
The airport sector has seen robust growth, the number of operational airports in India has more than doubled from 74 in 2014 to 159 by March 2025, driven by government initiatives like PM GatiShakti and UDAN. Under the National Infrastructure
Pipeline (NIP), over 91,000 Crore has been allocated for airport development from FY 2019-20 to FY 2024-25.19 Efforts were concentrated on expanding greenfield airports and improving multimodal connectivity.20
The regional air connectivity and environmental sustainability remained key focus areas, with 80 airports fully transitioning to green energy by December 2024. Passenger traffic saw strong recovery, reaching 122.2 million domestic and 53.2 million international travellers. The pace of greenfield airport development accelerated with approvals for 21 new projects and significant progress on major hubs such as Noida and Navi Mumbai international airports, both scheduled to become operational in 2025. These developments, along with ongoing infrastructure upgrades, are expected to drive economic growth, generate employment and strengthen Indias position as a global aviation hub.21
17https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/jan/doc2025127491601.pdf
18
https://www.mordorintelligence.com/industry-reports/india-ict-market19
https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=208998420
https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154624&ModuleId=321
https://www.civilaviation.gov.in/sites/default/files/202503/Annual%20Report%20Civil%20Aviation%20for%20the%20year%202024-25%20English_0.pdfIrrigation12
Indias irrigation sector saw strong momentum, anchored by the governments sustained commitment to expanding water access and boosting agricultural productivity. The Pradhan Mantri Krishi Sinchai Yojana accelerated Irrigation Benefits Programme (PMKSY-AIBP) remained pivotal, with new intrastate link projects such as the Kosi Mechi project in Bihar receiving over 3,600 Crore in central funding and an overall project cost exceeding 6,200 Crore, targeting irrigation for more than 2.1 Lakh hectares. Since April 2016, PMKSY-AIBP has enabled the completion of 63 projects, creating an additional irrigation potential of 26.11 Lakh hectares nationwide
In 2025 26, an allocation of 1,37,757 crore has been made to strengthen the irrigation and water management sector, with a strong emphasis on micro-irrigation, rainwater harvesting, and the integration of advanced technologies. Flagship initiatives such as "Per Drop More Crop" and watershed development have promoted efficient water use and conservation practices. Increased funding and active public-private partnerships are further enhancing infrastructure resilience, aiming to reduce dependence on monsoons, improve crop yields, and support sustainable agricultural growth, thereby laying a robust foundation for achieving the goal of doubling farmers incomes. Additionally, the National Ganga Plan (CS) has been allocated a financial outlay of 3,400 crore for 2025 26 to advance the conservation and rejuvenation of the Ganga River.
Water Distribution Sector
The Jal Jeevan Mission (JJM) is among Indias largest and most ambitious infrastructure programmes, aiming to provide functionaltapwaterconnectionstoall19croreruralhouseholds. As of January 2025, over 15 crore households or nearly 80% have been connected, making it one of the biggest drivers of growth in the water distribution sector. The scheme has been extended until 2028 to cover the remaining households. For 2025 26, JJM has been allocated 67,000 crore, reflecting a significant 195% increase over the revised estimate of the previous year, underlining the governments commitment to accelerating progress. However, implementation varies widely across states, with some lagging due to land acquisition and clearance delays. These projects represent a major opportunity and priority area for companies engaged in large-scale pipeline networks, storage and treatment solutions.
InvIT23
The Infrastructure Investment Trusts (InvITs) have emerged as a vital funding mechanism for Indias large-scale infrastructure projects, offering investors a transparent and structured way to participate in assets such as highways, power networks and transit systems. The InvIT model has become especially important for monetizing national highway assets, exemplified by the National Highways Infra Trusts recent fourth InvIT round of fundraising. Launched by NHAI in 2020, the InvIT platform operates through a trust structure under SEBI regulations, combining equity raised from investors with debt financing from banks and financial institutions. The fourth round achieved an enterprise valuation of approximately 18,380 crore, taking the cumulative value of monetized road sector assets to over 46,000 crore since inception, Showcasing the scale and impact of this approach.
What makes the InvIT model particularly attractive is its ability to deliver predictable, toll-based cash flows supported by long-term public-private partnership agreements, thereby diversifying investor exposure to essential infrastructure. The latest phase of fundraising attracted participation from a wide range of investors, including domestic pension and provident funds highlighted by the EPFOs first-ever InvIT investment as well as major insurance companies, mutual funds and sovereign institutions. This broad-based interest reflects growing confidence in InvITs as a strong, scalable and investment-grade vehicle for unlocking capital and accelerating the development of critical infrastructure across India.
Coal Mining Industry24
The coal industry in India achieved a historic milestone, surpassing one billion tonnes of coal production a first for the nation. This remarkable growth was driven by a robust 4.99% increase in total coal output compared to the previous year, with production reaching 1047.57 million tonnes (provisional) in FY 2024-25. The sectors success is largely attributed to the dedicated efforts of both public and private stakeholders, as well as the resilience of over 5 Lakh mine workers operating across more than 350 coal mines. Coal remains central to Indias energy landscape, contributing 55% to the national energy mix and fuelling over 74% of total power generation, showcasing its critical role in supporting the countrys rapid economic development and energy security.
22
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2116177#23
https://www.pib.gov.in/PressReleasePage.aspx?PRID=211530924
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2118788Alongside production, coal dispatch also crossed the one billion tonne mark in FY 2024-25, highlighting the industrys ability to efficiently meet rising demand from power, steel and cement sectors. Notably, the share of commercial and captive mines in both production and dispatch surged, reflecting the positive impact of policy reforms such as commercial coal mining and Mission Coking Coal. These initiatives have boosted domestic output and led to a significant reduction in coal imports. Safety, environmental sustainability and workforce welfare have remained key priorities, with the introduction of advanced safety audits and digital reporting systems to ensure a secure and sustainable future for the sector. The coal industrys continued resilience and innovation are laying a solid foundation for Indias journey towards becoming a self-reliant and developed nation by 2047.
The government has implemented comprehensive initiatives to boost domestic coal production and enhance sectoral efficiency. Multiple large-scale exploration and mining development projects are underway, supported by faster clearances and the deployment of modern technologies such as high-capacity excavators, surface miners and digital mine planning tools. Significant policy reforms, including the liberalization of commercial coal mining with 100% foreign direct investment and the auction of over 100 coal blocks to private players, are designed to attract new investments and encourage competition. Efforts to rationalize coal linkages and expand beneficiation capacity aim to reduce import dependence, lower logistics costs and ensure reliable fuel supplies for power and industrial consumers. These steps collectively showcase the governments focus on achieving self-reliance in coal, promoting private participation and creating a robust foundation for long-term growth in the sector.
India is the worlds second-largest consumer of coal and has the fifth-largest reserves.
Opportunities and challenges
Opportunities
Record Budget Allocation and Government Support
The Union Budget 2025 26 allocated 11.21 Lakh
Crore towards infrastructure, emphasizing resilient and future-ready development. This sustained capital outlay strengthens the foundation for infrastructure firms to secure new contracts across roads, airports, railways and logistics.
Technological Innovation in Construction
Adoption of advanced technologies such digital project monitoring tools, data analytics and automation are transforming construction management. Firms leveraging these technologies are achieving cost-efficiency, minimizing delays and enhancing competitiveness in project bids.
Private Sector Participation
Rising interest from private players in infrastructure projects through PPP models and asset monetization frameworks is reducing dependency on government funding and increasing opportunities for developers.
Focus on Sustainability
With growing regulatory and investor pressure for ESG compliance, companies focusing on sustainable construction practices, green materials and waste management are gaining early-mover advantages. These efforts enhance their ability to win premium contracts and build long-term brand equity.
Challenges
Execution and Regulatory Delays
Land acquisition hurdles, delayed environmental clearances and local-level policy uncertainties can disrupt project timelines and lead to cost overruns.
Intense Competition in Bidding
Intense competition leads to aggressive bidding with tight margins, raising concerns over project viability, quality execution and delayed returns on capital.
Dependence on Government Projects
Heavy reliance on public sector contracts exposes firms to payment delays, changing political priorities and slower project awards during election cycles.
Government Initiative Initiative |
Description |
PM GatiShakti National |
Integrated platform for multimodal connectivity railways, roads, ports, airports and logistics. |
Master Plan |
Real-time GIS mapping boosts efficiency and supports faster, coordinated infrastructure development. |
National Infrastructure Pipeline (NIP) |
Strategic framework for infrastructure growth with a focus on connectivity, logistics and social assets. Encourages private investment and regulatory streamlining. |
Public-Private Partnerships (PPP) |
Strong focus on PPPs in sectors like airports, ports, highways, logistics parks and city redevelopment. Includes incentives and new project pipelines for private investors. |
Urban Redevelopment & Growth Hubs |
Funding for water, sanitation, smart cities and creative redevelopment. Project-based models promote smart, inclusive urbanization aligned with the Viksit Bharat vision. |
Transport Sector Ambitions |
Plans for 2 Lakh km of highways, 220 airports, 23 waterways by 2030 and 35 Multi-Modal Logistics Parks. Enhances connectivity and regional development. |
Asset Monetization Plan 2.0 |
Monetisation of existing infrastructure assets to fund new projects and maintain liquidity. |
Supports sustainable infrastructure development aligned with long-term national growth goals. |
Company Overview
Dilip Buildcon Limited (DBL) is one of Indias most prominent infrastructure development companies, with a strong presence across sectors such as roads, highways, bridges, tunnels, airports, metros, irrigation, water supply, urban infrastructure and coal mining. Over the years, DBL has transformed from a pure-play road construction Company into a diversified infrastructure player with pan-India operations.
The Company has built its reputation on timely project execution, quality delivery and robust in-house capabilities. With operations in 20 states and 1 Union Territory and a workforce of 23,504 employees, DBL manages the entire project lifecycle from design and planning to construction and commissioning, largely through internal teams and resources. This integrated model enables better control over quality, cost and timelines.
In recent years, DBL has expanded into long-term, cash-generating businesses such as coal mining (MDO) and road asset monetisation through InvIT structures, strengthening its revenue stability. In FY25, despite a muted order inflow environment, the Company focused on financial discipline by reducing consolidated debt and maintaining profitability through contributions from its coal mining and HAM (Hybrid Annuity Model) businesses.
DBL continues to target growth opportunities across both traditional and emerging infrastructure segments, supported by a strong bidding pipeline and government focus on infrastructure development. The Company remains committed to operational excellence, sustainable growth and financial prudence, positioning itself well for future opportunities.
Competitive Advantage
Dilip Buildcon Limited (DBL) operates in a highly competitive infrastructure landscape. Despite sectoral headwinds and policy shifts, the Company has maintained a consistent track record of delivering above-industry-average growth without compromising profitability. Its success is underpinned by a robust, integrated operating model, a disciplined approach to execution and a strong focus on capital efficiency.
The Companys key competitive advantages are outlined below:
Strength / Capability |
Details |
Robust Backward Integration Enhancing Control and Cost Efficiency |
In-house manufacturing of road furniture (light poles, gantries, crash barriers, signage), specialized materials (elastomeric bearings, expansion joints) and equipment components (jaw plates, tooth points). Ensures timely availability, quality assurance, cost optimisation and environmental stewardship through reuse and recycling. |
Owned Equipment Base for Operational Agility |
Fleet of over 10,600 GPS-enabled, standardised machines enabling rapid mobilisation, uninterrupted execution and cost control. Operated by trained, full- time personnel ensuring high reliability and safety. |
Integrated In-House Execution Capabilities |
Largest in-house infrastructure execution team (>23,500 employees). Full lifecycle management: design, engineering, construction, commissioning. Enables quality control, customised delivery, reduced subcontractor dependency and swift adaptation to project complexity. |
Extensive Geographical Footprint with Proven Adaptability |
Presence across 20 states and 1 Union Territory. Diversifies geographic risk, accesses regional infrastructure opportunities and demonstrates mobilisation capabilities across varied terrains and climates. Preferred EPC partner for Central and State projects. |
Diversification across High-Growth Infrastructure Segments |
Multi-sector EPC operations covering roads, highways, tunnels, airports, irrigation, water distribution, metro, rail, urban infrastructure, coal mining (MDO)and Bharat Net optical fibre. Actively bidding for projects worth over 1 Lakh Crore. |
Coal MDO Business: A High- Visibility Revenue Stream |
In FY25, coal MDO operations made a substantial contribution to consolidated profitability, generating healthy earnings from this vertical. With payments received on a fortnightly basis, the business ensures robust cash flow and strengthens working capital stability. The company also plans to expand further by developing a large coal handling plant over the next two years to enhance operational capacity and drive future growth. |
Established Relationships with Key Government Stakeholders |
Strong, long-term associations with MoRTH, NHAI, AAI, NCL, MCL, SCCL. Proven track record, pre-qualification credentials and consistent delivery leading to repeat mandates. |
Focused Capital and Working Capital Management |
Emphasis on higher-margin projects, faster execution cycles, debt reduction, stable standalone debt, optimised inventory/site operations and increased share of mining/annuity assets. Strengthens financial resilience through predictable income streams. |
Strategic Partnership with Alpha Alternatives
In November 2023, Dilip Buildcon Limited (DBL) entered into a strategic, long-term partnership with Alpha Alternatives (AA) to support the construction, financing and monetisation of DBLs Hybrid Annuity Model (HAM) road projects through a structured Infrastructure Investment Trust (InvIT) platform.
Under this partnership, Alpha Alternatives committed to investing up to 2,000 Crore over the next 12 18 months, across DBL and its projects. The investment is structured across three components:
26% stake in 8 completed HAM projects
26% stake in 10 under-construction HAM projects
10% stake in DBL via preferential allotment of equity warrants
Progress Till FY25
Equity Investment: AA and its associates have already invested 133.12 Crore in DBL (as of December 21, 2023) for subscribing to equity warrants (representing 25% of the total consideration). The remaining 75% will be infused within the SEBI-prescribed timeline.
Divestment of Completed HAM Assets: DBL successfully transferred a 26% stake in 7 completed HAM projects to AA for a consideration of 397.36 Crore, following receipt of NHAI approvals. For the 8th project, where PCOD (Provisional Completion Certificate) was expected in May 2025, a 24.99% stake was planned for immediate divestment, with the remaining 1.01% to follow post-NOC.
Public Listed InvIT Formation: In March 2025, DBL filed the Draft Offer Document (DOD) with SEBI to establish a publicly listed InvIT, which will house these assets. This structure aims to provide long-term recurring cash flows, enhanced asset monetisation and deleveraging benefits.
Stake in Under-Construction Projects: The transfer of a 26%stakein10under-constructionHAMprojectswilloccur in phases, aligned with project progress and achievement of key construction and commercial milestones.
Strategic Rationale
This partnership leverages DBLs strength in project execution and operational delivery, along with AAs expertise in financial structuring, asset management and long-term capital mobilisation. It supports DBLs goal of creating an asset-light balance sheet, unlocking capital and ensuring predictable, long-term annuity-based revenues.
DBLs financial and operational performance
The Companys performance during FY25 has been resilient, despite a muted order awarding environment and slower EPC execution. DBL continued to focus on disciplined project delivery, asset monetisation and working capital optimisation. Strong contributions from the mining segment, improved profitability and strategic partnerships supported cash flow generation and reinforced the Companys commitment to creating long-term shareholder value.
Consolidated Overview of DBL Performance
Revenue from Operations
The consolidated revenue stood at 11,317 Crore in FY25, as against 12,012 Crore in FY24, registering a decline of 5.79%
YoY. The decrease was primarily due to order book decline in standalone business. Operating Cost and the Consolidated Operating Profit (PBDIT)
During FY25, manufacturing, construction and operating
(MCO) expenses increased/decreased by 14.92% to 8,559.45 Crore compared to 10,060.25 Crore in FY24. These expenses primarily comprise the cost of construction and changes in inventories. Staff expenses for FY25 stood at 230.03 Crore as compared to 214.53 Crore in FY24.
PBDIT, before exceptional items, increased/decreased by
46.12% and was at 2,287.18 Crore for FY25 as compared to 1,565.29 Crore in FY24, due to factors such as execution efficiency, cost optimisation or change in income mix.
Depreciation and Amortisation
Depreciation and amortisation expenses for FY25 decreased by 8.60% to 346.18 Crore as compared to 378.77 Crore in
FY24. The reduction reflects optimisation of existing asset utilisation and minimal addition of large depreciable assets during the year.
Other Income
Other income for FY25 decreased by 5.38% and stood at
136.45 Crore as compared to 144.21 Crore in FY24. The decline is attributable to lower treasury income and reduced non-operating gains compared to the previous fiscal.
Finance Cost
The interest expense for FY25 was at 1,248.77 Crore, which was higher by 23.34% in comparison to 1,012.46 Crore in
FY24, primarily on account of increased average borrowings and a rise in interest rates during the year.
Profit After Tax
Earnings Per Share
Consolidated earnings per share (EPS) for FY25 stood at 57.44 compared to 13.75 in FY24.
Net Worth and Capital Employed
The net worth of the shareholders stood at 5064.22 Crore as at March 31, 2025, as compared to 4,369.65 Crore as at
March 31, 2024. Capital employed decreased/increased to
14,780.29 Crore as at March 31, 2025, from 11,614.65 Crore as at March 31, 2024.
Liquidity and Gearing
Cash and cash equivalents stood at 462.66 Crore in FY25 as compared to 468.19 Crore in FY24. Net debt to equity ratio stood at 1.81 as at March 31, 2025, as compared to 1.66 as at March 31, 2024.
Consolidated Cash Flow Statement
( in Crore)
Particulars |
FY25 | FY24 |
| Net Cash Generated from Operating | 131.00 | 1,080.48 |
| Activities (A) | ||
| Net Cash Used in Investing Activities (B) | (731.17) | (110.77) |
| Net Cash Generated from Financing | 1,022.03 | (431.19) |
| Activities (C) | ||
| Cash and Cash Equivalents (D = A + B + C) | 421.86 | 538.52 |
Cash and Cash Equivalents at the beginning of the Year |
736.48 | 197.96 |
Cash and Cash Equivalents at the end of the Year |
462.66 | 468.19 |
The total borrowings as at March 31, 2025 stood at 9,525.39 Crore as compared to 7,240.35 Crore as at March 31, 2024.
Standalone Overview of DBL Performance
Revenue from Operations
The standalone revenue stood at 9,004 Crore for FY25 compared to 10,537 Crore for FY24, registering a decline of 14.55% year-on-year. The decrease was mainly due to decline in order book.
Operating Cost and PBDIT
Manufacturing, construction and operating (MCO) expenses increased/decreased by 13.34% year-on-year to 7,610.77 Crore, mainly due to (brief explanation). These expenses primarily comprise cost of construction and change in inventories. Staff expenses for FY25 stood at 195.86 Crore, increased/decreased by 2.69% compared to the previous year.
PBDIT before exceptional items increased/decreased by 30.80% to 977.2 Crore for FY25 as compared to 1,412.08 Crore in FY24.
Depreciation and Amortisation
Depreciation and amortisation charge for FY25 was lower by 15.98% at 292.06 Crore as compared to 347.60 Crore in FY24.
The reduction was primarily due to better asset utilisation and lower incremental capital expenditure during the year.
Other Income
Other income for FY25 decreased by 34.59% to 73.87 Crore compared to 112.94 Crore in FY24. The decline was largely on account of lower returns from surplus funds and fewer non-recurring income items.
Finance Cost
The interest expense for FY25 stood at 491.00 Crore, decreased by 2.12% compared to 501.63 Crore in the previous year. This decline was due to a more efficient debt structure and improved working capital management.
Profit After Tax
Standalone profit after tax (PAT), including other income, was 311.23 Crore for FY25 compared to 422.03 Crore in FY24.
Earnings Per Share
Standalone earnings per share (EPS) for FY25 stood at 21.29 compared to 28.86 in FY24.
Net Worth and Capital Employed
The net worth of the shareholders stood at 5,473.34 Crore as on March 31, 2025, increased/decreased by 286.84 Crore compared to 5,186.49 Crore as on March 31, 2024.
Capital employed stood at 7,443.40 Crore as on March 31, 2025 compared to 7,053.04 Crore in FY24.
Liquidity and Gearing
Cash and cash equivalents stood at 98.86 Crore in FY25 compared to 93.67 Crore in the previous year. Debt to equity ratio stood at 0.36 as on March 31, 2025 compared to 0.36 as on March 31, 2024.
Standalone Cash Flow Statement
( in Crore)
Particulars |
FY25 | FY24 |
| Net Cash Generated from Operating | 566.32 | 1,387.57 |
| Activities (A) | ||
| Net Cash Used in Investing Activities (B) | (224.53) | (156.89) |
| Net Cash Used in Financing Activities (C) | (401.72) | (1,188.81) |
| Cash and Cash Equivalents (D = A + B + C) | (59.94) | 41.87 |
| Cash and Cash Equivalents at the | 351.63 | 309.77 |
| beginning of the Year | ||
| Net Cash and Cash Equivalents at the | 98.86 | 93.67 |
| end of the Year |
Risk Management
Risk Category |
Description |
Mitigation Strategy |
The infrastructure industry remains highly competitive, with aggressive bidding from both large and smaller players. This can impact margins and order inflow visibility. |
• DBL focuses on bidding discipline, ensuring financial prudence and avoiding overly aggressive pricing. |
|
Competitive Pressure |
• Strategic diversification across sectors (tunnels, mining, metros, airports, optical fibre) helps mitigate reliance on any one vertical. |
|
• Emphasis on large, complex projects with higher entry barriers and better margins. |
||
Timely execution is vital, especially in EPC and HAM projects. Delays can affect cash flow, profitability and reputation. |
• DBL has a proven track record of early or on-time project completion. |
|
Delays in Project |
• Use of owned fleet of 10,600+ GPS-enabled equipment enables better control and real-time tracking. |
|
Execution |
• Strong in-house teams and backward integration ensure uninterrupted material and equipment supply. |
|
| • Early delivery bonuses continue to support profitability. | ||
Infrastructure projects, especially under HAM/BOT models, require significant upfront capital. |
• DBL reduced a major portion of its debt in FY25 and targets further 500 Crore standalone debt reduction in FY26. |
|
Capital Availability and Debt Exposure |
Elevated debt can affect liquidity and financial flexibility. |
• Strategic monetisation of assets through InvITs has helped deleverage the balance sheet and long-term partnership with financial investor provides financial flexibility |
• Improved debt-equity ratio and access to low-cost funding through strong banking relationships. |
||
Fluctuations in raw material prices (steel, cement, fuel) can affect project cost and margins. |
• DBL sources key raw materials directly from market leaders to ensure price and supply stability. |
|
Input Cost |
• Operates own crushers and sources aggregates from in-house facilities. |
|
Volatility |
• Contracts include cost escalation clauses to absorb price increases. |
|
• Focus on efficient inventory and procurement management to optimise working capital. |
||
Infrastructure execution is labour- intensive. Workforce availability, safety, attrition and training are critical. |
• DBL employs 23,504 trained professionals, making it the largest employer in the industry. |
|
• Continuous investment in skill development, welfare programs and health/safety measures. |
||
Labour-Related |
• Industry-aligned compensation and performance- based incentives. |
|
Challenges |
||
• Strong HR policies to maintain productivity, reduce attrition and boost morale . |
||
• Adoption of digital tools and automation to enhance workforce efficiency, reduce manual workload and address skill gaps. |
||
Delayed government awarding activity, especially in the roads segment, can affect revenue visibility for both geographic and industry vertical diversification. |
• DBL actively bids across diverse verticals: mining, tunnelling, water, railways, metros and digital infra. |
|
Order Book Risk |
• The Company has also started including MDO revenues in the order book, ensuring better visibility and reduced concentration on EPC business |
|
• Expanding presence across multiple states and regions in India to mitigate the impact of region-specific delays or policy changes. |
The business requires substantial short-term funds to manage daily operations, with significant cash tied up in inventory, receivables and project execution, increasing pressure on liquidity and cash flow. |
• Focus on fast-paying sectors like mining (with fortnightly payment cycles) improves liquidity. |
|
• Strong project monitoring, timely audits, inspections and efficient dispute resolution contribute to faster project delivery and ensure timely payments. |
||
Working Capital |
||
Intensive |
• Reduced project site footprint and inventory optimisation help shorten the cash cycle. |
|
• Continued emphasis on debt-light operations through strategic asset monetisation strengthens the financial position. |
||
Changes in government policies, environmental clearances or bidding norms can impact project flow or margins. |
• DBL maintains close coordination with regulatory agencies. |
|
Regulatory and Policy Risks |
• Actively monitors policy changes to adapt bidding and execution strategies. |
|
• The Company views recent tightening of prequalification norms positively, as it helps reduce irrational bidding and benefits experienced players like DBL. |
Internal Control Systems and Their Adequacy
DBL has established a robust internal control system that aligns with the scale and complexity of its operations. These controls are designed to ensure that the Companys assets and resources are used efficiently, safeguarded against misuse or loss and that all transactions are accurately recorded, authorized and reported to the appropriate authority.
The internal control framework also ensures compliance with applicable laws and regulations, supports reliable financial reporting and enhances overall operational effectiveness. The Companys policies, procedures and standard operating guidelines provide a strong foundation for internal governance, supported by regular internal audits conducted in line with the approved annual audit plan. Audit findings are reviewed by management and submitted to the Audit Committee of the Board for timely corrective actions and oversight.
Information Technology plays a central role in DBLs control environment. The Company leverages ERP solutions on the SAP platform to streamline operations, ensure data accuracy and support informed decision-making. Key IT controls, including user access management, data protection and system monitoring, are in place to secure critical business information and maintain operational integrity.
DBL continuously aligns its internal control systems with evolving business realities, sectoral risks and economic conditions, ensuring resilience, accountability and agility across its functions.
Human Resource
As of March 31, 2025, Dilip Buildcon Limited (DBL) employed a workforce of 23,504 individuals, reaffirming its commitment to in-house execution and operational excellence. DBL views its employees as a core strength and a critical enabler of sustainable growth. The Company encourages a people-centric culture focused on inclusion, empowerment and continuous development. With operations spread across challenging geographies, DBL places strong emphasis on employee well-being, skill development and long-term career progression. Training programs, team-building initiatives and on-ground welfare measures are regularly undertaken to keep the workforce motivated, aligned with business goals and equipped to meet evolving project demands.
Key HR Benefits and Social Security Measures
Retirement and Social Security Benefits
Provident Fund for long-term financial security
Pension Scheme in cases of retirement, death or permanent disability
Employees Deposit Linked Insurance (EDLI) for enhanced life cover
Gratuity Benefits for long-serving employees
Group Personal Accident Insurance for all on-roll employees
DBL Employees Voluntary Benevolent Fund for emergency family support
Workmen Compensation and ESI Coverage for eligible site workers
Group Mediclaim Insurance for employees and family members
HR Policies and Welfare Schemes
Leave Benefits, including casual, sick and earned leave
Loans and Advances with flexible repayment options
Camp Accommodation and Housing Allowance based on project location
Transport Facilities for remote sites
Subsidised Canteens and Mess Services across project camps
Medical Reimbursement for out-of-pocket expenses
Hardship Allowance for employees posted in South India, Jharkhand and other challenging locations
Free Child Education Policy for drivers and machine operators
Special Marriage Gift Scheme 1 Lakh support for daughters weddings of drivers and operators
Cautionary Statement
Statements made in this Management Discussion and Analysis Report may contain certain forward-looking statements based on various assumptions on the Companys present and future business strategies and the environment in which it operates. Actual results may differ substantially or materially from those expressed or implied due to risk and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India and abroad, volatility in interest rates and in the securities market, new regulations and Government policies that may impact the Companys businesses as well as the ability to implement its strategies. The information contained herein is as of the date referenced and the Company does not undertake any obligation to update these statements. The Company has obtained all market data and other information from sources believed to be reliable or its internal estimates, although its accuracy or completeness cannot be guaranteed.
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