BigBloc Construction reports 10% quarterly revenue growth as business expands

BigBloc Construction Limited has reported a strong 10% quarter-on-quarter revenue growth, reinforcing its position in the building materials sector. The company’s Q3FY25 revenue from operations reached ₹56.82 crore, up from ₹51.66 crore in the previous quarter. This performance underscores the company’s ability to sustain revenue growth momentum despite market fluctuations.

The firm’s EBITDA stood at ₹6.11 crore, reflecting an EBITDA margin of 10.8%, while net profit for the quarter was ₹2.05 crore. The company attributed the temporary moderation in demand to the impact of the Diwali festival and elections in Maharashtra, which led to a slowdown in construction activity. However, the long-term outlook remains positive as the company continues its construction materials expansion strategy to capitalize on high-growth sectors.

What are BigBloc Construction’s latest expansions in the construction materials market?

BigBloc Construction is broadening its product portfolio by entering the construction chemicals sector, a move that strengthens its market positioning. The company introduced Block Jointing Mortar, Ready Mix Plaster, and Tile Adhesives, diversifying its offerings to cater to the evolving needs of the construction industry.

A key milestone in this construction materials expansion is the Phase 2 expansion of BigBloc Building Elements Pvt Ltd’s Wada facility, which has doubled its AAC block manufacturing capacity from 2.5 lakh to 5 lakh cubic meters per annum. This increase reinforces BigBloc Construction’s status as one of India’s largest AAC block manufacturers, ensuring enhanced production capacity to meet rising demand.

Additionally, the launch of NXTGRIP Tile Adhesives, along with the well-established NXTFIX and NXTPLAST brands, positions the company for further market penetration. These developments align with BigBloc Construction’s strategic focus on high-demand construction materials, offering superior strength, bonding, and performance for various applications.

How is BigBloc Construction strengthening its project portfolio?

One of the most significant achievements this quarter is the ₹4.5 crore work order from Tata Projects Ltd for the supply and installation of 2 lakh square feet of 100 mm AAC panels at Micron India‘s semiconductor facility in Sanand, Gujarat. This project represents a major milestone for Siam Cement BigBloc Construction Technologies Pvt Ltd, a joint venture between BigBloc Construction and Thailand’s SCG International.

The JV is at the forefront of innovation in India’s construction industry, having developed India’s first AAC wall plant in Kheda, Gujarat. The facility, built with an investment of ₹65 crore, has an annual capacity of 2.5 lakh cubic meters and is capable of producing large-format AAC wall products ranging from 8 to 20 feet in length. Notably, SCG BigBloc is the only company in India capable of supplying 20-foot AAC walls, which were previously imported. This expansion into large-format AAC products strengthens BigBloc Construction’s competitive advantage and enhances its ability to cater to large-scale infrastructure projects.

What role is sustainable energy adoption playing in BigBloc Construction’s growth?

BigBloc Construction is accelerating its sustainable energy adoption, furthering its commitment to environmentally responsible manufacturing. The company commissioned a 625 KW solar rooftop system at its Wada plant, supplementing its existing renewable energy capacity. Additionally, an 1,350 KW solar rooftop system was installed at the new Siam Cement BigBloc JV facility.

These initiatives have increased the company’s total solar power generation capacity to 3,475 KW, marking a significant step toward sustainable operations. This investment aligns with BigBloc Construction’s long-term goal of reducing its carbon footprint while enhancing operational efficiency.

Beyond solar energy, the company has positioned itself as a leader in sustainable building materials. As one of the few AAC block manufacturers generating carbon credits, BigBloc Construction continues to support environmentally friendly construction solutions while meeting the growing demand for energy-efficient materials.

How has investor confidence in BigBloc Construction evolved?

Reflecting strong confidence in BigBloc Construction’s revenue growth momentum, the promoter group has increased its stake to 72.63% by acquiring 2,01,500 shares from the open market during the December quarter. This move underscores the company’s long-term potential, with continued investments in expansion, innovation, and sustainable practices.

For the nine-month period ending December 2024, BigBloc Construction reported ₹160.05 crore in revenue, with EBITDA of ₹23.43 crore (14.64% EBITDA margin) and a net profit of ₹8.73 crore. The company has maintained a three-year revenue CAGR of 33% and an EBITDA CAGR of 66%, reflecting its consistent financial strength and ability to navigate market dynamics.

In addition to financial growth, BigBloc Construction has been actively rewarding shareholders. At its Annual General Meeting on August 29, 2024, the company approved a 1:1 bonus equity share issue and an increase in authorized share capital from ₹15 crore to ₹30 crore, enhancing shareholder value and market liquidity.

What is BigBloc Construction’s strategy for future growth?

Chairman Narayan Saboo emphasized that despite temporary slowdowns in demand, BigBloc Construction remains focused on innovation, efficiency, and sustainable growth. The company is leveraging its construction materials expansion strategy to enter new product segments while reinforcing its sustainable energy adoption goals.

With its increased AAC production capacity, growing footprint in high-demand construction chemicals, and strategic contracts such as the Micron India semiconductor project, BigBloc Construction is well-positioned to capitalize on India’s expanding infrastructure sector. As the demand for energy-efficient, sustainable building materials continues to rise, BigBloc Construction is expected to play a crucial role in shaping the future of India’s construction industry.