Bondada Engineering Ltd

12 Mar 2026Capital Goods & EngineeringFree
Company:Bondada Engineering

Summary

Bondada Engineering Ltd is a Hyderabad-headquartered EPC, operations and maintenance, and manufacturing business serving telecom, renewable energy and infrastructure markets. Minerva’s SME Outliers Series highlights rapid growth, backward integration and a large project pipeline, while flagging execution, funding and renewable-energy concentration risks. The note does not state a share recommendation or target price.

About Bondada Engineering

Established in 2012 and headquartered in Hyderabad, Bondada Engineering provides EPC services, operations and maintenance, and manufactured products. Its work includes telecom and renewable-energy projects, telecom and solar O&M, and products such as AAC blocks, uPVC doors and windows, towers and solar module mounting structures. The company operates across EPC, O&M and manufacturing, with telecom, solar and infrastructure customers.

Bondada Engineering's Growth Drivers

  • Strong historical growth: The scorecard cites 53% revenue CAGR over 12 years. Revenue increased from Rs. 800.7 Cr in FY24 to Rs. 1,571.0 Cr in FY25.
  • In-house manufacturing: The report estimates that Bondada manufactures ~78% of its project materials in-house, including telecom towers, solar mounting structures and crash barriers. It describes this integration as a source of cost and margin advantages.
  • Expanding orders: The Jan 2026 update lists INR 8,677 Crores of active orders, excluding the Andhra Pradesh project. A separate INR 9,000 Cr Andhra Pradesh solar project is described as excluded from that active order book.
  • Broad project exposure: The active order book includes solar EPC, BESS, Indian Railways and products. The company is also developing work in data centres, defence and aerospace.
  • Customer retention: The report cites 90%+ client retention over 3+ years and a CRISIL A− rating in its outlier scorecard.

Order Book and Pipeline

Active Order Book, Jan 2026 (Q3 FY26 Update)
CategoryOrder value
Solar EPCINR 6,870 Cr
BESS (BOO Model)INR 1,463 Cr
Indian RailwaysINR 231.7 Cr
ProductsINR 112.7 Cr
Total active ordersINR 8,677 Crores

The INR 9,000 Cr AP 2GW IPP is excluded from the active order book.

The report also lists INR 2,628 Cr of L1 orders awaiting formal Letters of Award and INR 7,531 Cr of submitted tenders awaiting bid opening. These are pipeline items, not confirmed active orders.

Bondada Engineering Key Financials

Financial Performance (Rs. Crores)
MetricFY20FY21FY22FY23FY24FY25
Revenue (Rs. Cr)229.4287.1334.1370.6800.71,571.0
EBITDA (Rs. Cr)14.016.219.829.868.5170.7
EBITDA Margin6.1%5.7%5.9%8.0%8.6%10.9%
PAT (Rs. Cr)10.09.210.117.146.3113.3

Revenue, EBITDA and PAT rose in FY25 compared with FY24, while the reported EBITDA margin increased to 10.9%.

Backward Integration

Bondada’s in-house production includes telecom towers, solar module mounting structures, crash barriers and other steel structures. The report gives steel manufacturing capacity as 48000 MTPA in FY25 and cites a 12,000 MTPA fabrication facility in Medchal, Telangana. It says captive supply supports cost control, lead times and supply-chain resilience.

Atpole Technologies, in which Bondada holds a 54% stake according to the subsidiaries page, manufactures BLDC motors and controllers. The report presents this as an additional growth opportunity, including a stated INR 500 Cr topline potential in 5 years.

Management Targets

  • Revenue: Management targets FY26 revenue at ~2x of FY25 (~INR 3,142 Cr), FY27 at ~3x of FY25 (~ INR 4,713 Cr), and FY30 at $1 Billion (~INR 11,000 Cr).
  • Order intake: FY26 Order Intake guidance is INR 6,250–7,000 Cr.
  • Energy plans: The report lists a BESS target of 4 GWh BOO + 12 GWh EPC by 2030 and a Solar RE Target of 25 GW by 2030 (up from 10GW).
  • Mainboard migration: Management’s stated target is Mainboard Migration: CY2026.

Industry Tailwinds

  • Telecom and fibre: The report points to 5G-related infrastructure demand, fibreisation and new tower requirements. It cites INR 3 trillion capex for fibreisation and 7L new towers needed by FY2030.
  • Renewable energy: The note cites a 500 GW renewable capacity target by 2030 and solar capacity of 334 GW by 2032 as sector demand drivers.
  • Battery storage: The report describes storage as important for grid stability alongside intermittent renewables and cites a requirement of 132 GW / 130 GWh by 2032.
  • Railways and infrastructure: The note highlights railway modernisation and Kavach signalling, citing INR 8.3L cr of government commitment for modernisation by 2030.

P/E Journey

The report traces the stock’s P/E range from 15–18x at its Aug '23 IPO, through 100–160x at the Aug–Dec '24 peak, to 15–18x in Mar 2026. It labels the intervening periods as a market discovery phase, earnings upgrade, SME bull run and broad SME correction.

Key Risks

  • Battery supply dependence: The report says battery cells make up 50% of BESS project cost and that the company is currently 100% dependent on Chinese cell manufacturers. Supply disruption, tariffs or geopolitical tensions could delay or increase project costs.
  • Capital requirements: Moving from EPC toward IPP and BOO models requires significant capital. Management plans to raise INR 1,500 Cr in debt by Q1 FY27, and the report warns that ROCE may compress during the transition.
  • Execution at scale: Managing INR 7,875 Cr+ of orders while entering BESS, defence and data centres could test management bandwidth; the report says a major execution failure could sharply affect the stock.
  • Renewable-energy concentration: The risk page cites INR 6,541 Cr of INR 7,875 Cr of order book in Renewable Energy. A slowdown in solar tendering, PPAs or policy changes could expose the business to concentrated revenue risk.
  • Margins and technology: The report flags competitive EPC pricing and the possibility that battery technologies beyond Li-Ion could reduce the relevance of current BESS expertise.

Our View of Bondada Engineering

The note’s central case rests on Bondada’s growth record, in-house manufacturing and expanding exposure to renewable-energy and infrastructure projects. Its key watchpoints are execution of the order book, dependence on battery-cell imports, capital needs and the concentration of orders in Renewable Energy. The report does not provide a formal share recommendation or target price.

Read the full report

This page is a summary. The full report has every table, chart and detail behind our view.

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Research by Minerva Capital Research Solutions, SEBI registered research analyst. Prices and figures are as of the report date. This is not personal investment advice.