About the Company
Incorporated: March 29, 2012
Headquarters: Hyderabad, Telangana, India
Industry: Engineering services—specializing in telecom and solar infrastructure (EPC & O&M)
Founded by Bondada Raghavendra Rao (CMD) and Satyanarayana Baratam (CFO), the company was formed by a team of experienced professionals to deliver comprehensive infrastructure solutions across India.
Service Offerings & Focus
1) EPC Services
The company engages in design and EPC activities for the telecom and solar sectors. It has established partnerships with major telecom players like Reliance Jio, Airtel, Indus, and BSNL. The company has successfully installed over 12,500 telecom towers and laid a 4,300-kilometer optical fiber cable (OFC) network. It has installed solar power plants with a cumulative capacity of more than 240 MW as of FY24. The segment revenue grew by 236% between FY22 and FY24.
2) Product Manufacturing
The company manufactures Telecom Towers,
Telecom Poles, Transmission Towers, Solar MMS, Crash Barriers, Industrial Cable Trays, etc., for its customers, including Airtel, Sterlite Power, Exicom, etc. It also offers building materials including Autoclaved Aerated Concrete (AAC) Blocks, Jointing Mortar, Wall Plaster, Wall Putty solutions, as well as lifestyle products such as uPVC Profiles, uPVC Windows & Doors, and Aluminium Windows & Doors, etc under its brands like Smartfix, Smartcare, Smartplast, Alurise, etc. The segmetal revenue grew by 86% between FY22 and FY24.
3) O&M Services
The company offers comprehensive operation and maintenance services to telecom tower operators. These services include cell site maintenance, covering both preventive and corrective upkeep of passive infrastructure and equipment. It also provides support for backup power systems, manning services, supply of riggers, and surveillance solutions. It offers O&M services to over 38,500 telecom towers and 1,21,873 kms of OFC network . It also provides solar O&M services which include testing and cleaning of solar panels, repair, replacement of damaged components and inspection of solar panels, etc. Its solar O&M portfolio covers a capacity of 20 MW. The segment’s revenue growth has been flat over FY22 and FY24.
1. Financial Performance and Growth Trajectory
- FY25 Revenue: Company reported Rs. 1,572 crore in revenues, a 96% YoY growth.
- PAT Growth: PAT increased ~150% YoY.
- Historical Growth: Since inception (2012), revenue has grown from Rs. 7 crore to Rs. 1,572 crore, indicating a strong execution track record and scalability.
- Operating Margins: Margins improved from 8.9% to 11.7% YoY. Management expects margins to remain intact or improve by “one or two basis points” in FY26 due to fixed price contracts and advanced supplier payments.
2. Order Book and Segmental Insights
-
Order Book: Over Rs. 5,000 crore as of March 2025.
-
Order Book Mix:
- Renewable Energy (RE): Rs. 3,589 crore (of which ~Rs. 3,300 crore is Solar EPC, Rs. 200 crore O&M; BESS order of Rs. 240 crore is L1 but not yet included).
- Telecom: ~30% of business mix.
- Products: 10-15% of business, growing at 35-40% YoY.
- Railways: New segment, already secured Rs. 228 crore order (South Central Railway, Kavach project), Rs. 600 crore worth of tenders participated.
-
Execution Timeline: Solar EPC orders to be executed in 10-18 months; O&M contracts span 3-5 years post-COD.
-
Revenue Guidance: Management guides for Rs. 1,800 crore from RE segment in FY26; overall revenue guidance ~Rs. 2,600 crore for FY26.
3. Business Segments and Strategic Developments
A. Renewable Energy (Solar EPC & BESS)
-
Growth Drivers: PSU orders (Singareni Collieries, MAHAGENCO), large pipeline of tenders (NHPC, Tamil Nadu GENCO, NTPC, etc.).
-
BESS (Battery Energy Storage Systems):
- First large order (L1) for 100 MWh (50 MW x 2 cycles) in Telangana GENCO, Rs. 240 crore (CapEx model).
- Market opportunity: Management cites market to grow at 27% CAGR to $32bn by 2030; India needs 35 GW by FY27, 160 GW by 2030, 1,840 GW by 2047.
- Execution: BESS projects can be executed in 80-100 days due to containerized solutions; batteries imported (G Power, Goshen Energy China).
- Economics: CapEx model, Rs. 1.8-2 crore/MWh installation cost, paid as rental over 12 years; also participating in EPC model tenders.
- FY26 Revenue Expectation: Rs. 10-12 crore from BESS (first project), with significant scaling potential.
- Target: 2 GW BESS installations by 2030.
-
Product Business: Includes eco-build products, BLDC motors, solar streetlights, LED products. Growth visibility is strong, but contribution remains ~10-12% of overall revenue.
B. Telecom Infrastructure
- Revenue Share: Decreased from 52% to 28% YoY, as solar EPC ramped up.
- 4G/5G Projects: 4G saturation project for BSNL ongoing; 5G rollout slow in tier 3 towns due to limited fiber reach. BharatNet Phase III: Participated in most packages, currently L2/L3, may tie up with L1 for subcontracting.
- Data Centers: Empaneled with Microsoft for O&M of Hyderabad data centers (2 x 25MW). Potential for future data center construction contracts.
- Services Margins: Lower (7-9%) due to large Reliance Jio O&M contract (Rs. 7.5-8 crore/month). Margins expected to improve as BSNL 4G O&M ramps up.
C. Railways
- New Growth Area: Focus on safety projects (Kavach 2.0, crash barriers, telecom infra for private networks along tracks).
- Order Book: Rs. 228 crore (South Central Railway), Rs. 600 crore tenders participated.
- Market Size: Indian Railways to spend ~Rs. 10,000 crore/year on safety; Bondada targets 3-4% share, with aspiration for railways to contribute 20-25% of revenue in 5-10 years.
- Margins: Higher than solar EPC and telecom.
D. International Business
- US Market: Successfully completed $2.7mn order for GameChange Solar. Repeat orders on hold due to new US steel import duties.
4. Operational Highlights
- Execution: Management emphasizes timely (often ahead of schedule) project delivery, aided by advanced payments to suppliers for price and timeline security.
- Working Capital: Working capital cycle managed at 75 days (5x churn/year), with significant advances (~Rs. 120 crore) to suppliers to lock in prices. Receivables at FY-end high (~Rs. 530 crore) due to year-end billing, but within industry norms (33-34% of turnover), with most collections expected by June.
- Bank Limits: BG limit at Rs. 280 crore, recently enhanced via Rs. 125 crore SBI sanction. Sufficient for current and near-term execution.
- People Management: Talent acquisition from reputed organizations is ongoing; not a constraint for growth.
5. Order Pipeline and Future Visibility
- Robust Pipeline: Actively participating in tenders worth Rs. 1,000+ crore in BESS alone; large solar, telecom, and railways tenders in the pipeline.
- FY26 Order Book Target: Management expects to close FY26 with Rs. 8,000-8,500 crore order book after revenue recognition.
- Adani Group: In advanced discussions for solar EPC orders; Adani prefers partial EPC due to captive supply of panels and equipment.
- No Slowdown: Management strongly denies any slowdown in order inflow across RE, telecom, or railways, citing robust tendering activity in all segments.
6. Strategic Initiatives and M&A
- Speck Systems Acquisition: Acquired primarily for real estate (adjacent to current office), not for defense diversification or product portfolio.
- IPP Ambitions: Targeting 2 GW IPP (Independent Power Producer) by 2030, but minimal contribution expected in FY26 due to ongoing land pooling and approvals.
7. Industry and Competitive Landscape
- BESS Competition: Facing both listed and unlisted players, including PSU arms (NTPC Renewables, NLC, etc.), asset holding companies, and private developers.
- Receivables Benchmarking: Management believes their receivables are better managed than peers (Oriana, Waaree, etc.), with competitor ratios ranging from 32% to 65%.
- Railways Tendering: Decentralized, section-wise tendering slows award process, but opportunity size remains very large.
8. Management Outlook and Guidance
- Growth Outlook: Management is highly optimistic, targeting 50-60% CAGR for next 3-5 years, with a goal to double revenues annually to reach Rs. 1 billion by 2030.
- Margin Guidance: Margins expected to remain stable or improve slightly, driven by scale, operating leverage, and higher-margin segments (railways, BESS).
- Capital Expenditure: No significant capacity expansion needed for EPC business; factory utilization is sufficient, with factory contributing 78% to EPC projects.
- Risks/Headwinds: None highlighted by management; working capital, people, and capacity not seen as constraints.
9. Other Notable Points
- Customer Profile: Major clients are PSUs (NLC, Singareni, BSNL, NTPC, NHPC, etc.) and private players (Airtel, Reliance Jio, Adani under negotiation).
- International Expansion: US repeat order contingent on US import duties; exploring further opportunities as feasible.
- Product Development: Focus on energy-efficient products (BLDC motors, LED, solar streetlights), with applications in weather stations, drones, etc.
Strengths
- Diverse EPC Portfolio:
- Strong presence in telecom infrastructure (towers, FTTx, OFC laying), renewable energy (solar EPC, BOS work), and power transmission & distribution.
- Expanding into civil infra and data center construction—a strategic adjacency.
- Execution Capability at Scale:
- 8,000+ towers built, 11,000+ sites maintained.
- Installed 500+ MW of solar EPC and handled 5000+ km of OFC work.
- Proven high-volume project execution in both urban and remote terrains.
- Blue-Chip Clientele:
- Trusted by Jio, Airtel, Adani, Tata Power Solar, L&T, Tata Projects, etc.
- Repeat orders indicate trust and operational reliability.
- Backward Integration & Cost Control:
- In-house design, fabrication, erection, and commissioning of towers and solar structures.
- Reduces dependency, improves margins, and ensures quality control.
- Debt-Free Status with Strong ROCE:
- Zero long-term debt, healthy EBITDA margins (~15–17%), and rising PAT.
- ROCE and ROE consistently above 20%, reflecting efficient capital use.
- Founder-Led Agility with Experienced Leadership:
- Founder-led firm with deep industry connections and execution know-how.
- Lean leadership structure enables nimble decision-making.
Weaknesses
- Client Concentration Risk:
- Top 5 clients may account for a significant portion of revenues, especially in telecom EPC.
- High dependency on a few large players may affect revenue stability.
- Limited Brand Recall:
- Despite robust execution, Bondada lacks the brand equity of players like L&T or Kalpataru in broader EPC.
- Low International Exposure:
- Operations are currently India-centric; missed opportunity in GCC, Africa, or Southeast Asia where infra EPC demand is high.
- Limited Working Capital Buffer:
- Aggressive project onboarding requires careful working capital planning; slow payments from PSU/private clients could create short-term stress.
Opportunities
- India’s Infra & CapEx Supercycle:
- National infra pipeline, solar parks, 5G rollout, and smart cities fuel multi-year EPC demand.
- Rising capex from both public and private players.
- Data Center Construction & Green Energy Infra:
- Booming data consumption, AI/IoT fueling need for Tier-3/Tier-4 data centers.
- Solar EPC + energy storage + microgrid = next wave of industrial infra growth.
- Export EPC Potential:
- Similar infra needs in Africa, Bangladesh, Middle East—could replicate its execution model globally.
- Government Push:
- PLI schemes, 5G telecom expansion, and rural electrification are tailwinds.
- Increasing shift toward EPC subcontractors from public and private sector.
- Backward Integration Monetization:
- Potential to spin off fabrication or solar mounting structure vertical as a standalone revenue driver.
Threats
- Execution Delays & Cost Inflation:
- Project-based business model sensitive to input cost surges (steel, cement, labor).
- Delays in site handover, approvals, or logistics can derail margins.
- Competitive Pressure from Larger EPCs:
- L&T, KEC, Tata Projects, and others could undercut or bundle offerings for key clients.
- Price wars in telecom or solar EPC can hurt margins.
- Technological Disruption:
- Rapid change in solar or telecom technology (e.g., prefabricated towers, wireless backhaul tech) may reduce demand for conventional infra.
- Regulatory & Policy Risks:
- Delays in disbursals from PSUs, changes in telecom/energy policy, or local labor laws could impact profitability.
Conclusion:
Bondada Engineering is demonstrating strong momentum across its core EPC, RE, and emerging BESS and railways segments, supported by a robust order book, disciplined working capital management, and a scalable operating model. Management exudes confidence in sustaining high growth, with multiple new verticals (BESS, railways, data centers) poised to drive future expansion. No material headwinds identified; execution, order inflow, and margin profile remain strong.