J.Kumar Infraprojects Limited — Q1 FY26 earnings call

Call held 30 Jul 2025

Management summary

J Kumar Infra reported a strong start to FY26 with double-digit growth in revenue and profit, coupled with significant EBITDA expansion. The company maintains a healthy order book and a net cash positive balance sheet. Management reiterated its focus on EPC projects, conservative bidding for profitable growth, and provided clear guidance for future order inflows, revenue growth, and margin expansion, anticipating a stronger second half for new orders.

Highlights

  • Revenue from operations grew 15.84% YoY to ₹1,484 crores in Q1 FY26.

  • EBITDA surged 158.33% YoY to ₹217 crores, with EBITDA margin expanding to 14.6% from 14.4% YoY.

  • PAT increased 18.39% YoY to ₹103 crores, and PAT margin improved to 7% from 6.8% YoY.

  • Total order book stood at a robust ₹20,946 crores as of June 30, 2025.

  • The company reported a net cash positive position of ₹159 crores as of June 30, 2025.

  • Management guided for FY26 order inflow of ₹5,000-6,000 crores and aims to maintain a 15-16% top-line growth rate.

  • Working capital days for Q1 FY26 were 115 days, well within the guided range of 120-125 days.

Key financials

2 periods

Headline

  • Revenue
    ₹1,484 Cr
    YoY +15.8%
  • EBITDA
    ₹217 Cr
    YoY +158.3%
  • EBITDA Margin
    14.6%
  • PAT
    ₹103 Cr
    YoY +18.4%
  • PAT Margin
    7%
  • Order Book
    ₹20,946 Cr
  • Net Debt
    ₹-159 Cr
  • Working Capital Days
    115 days

Q1 FY26

  • Capex
    ₹107 Cr

What they filed

Q1 FY27: revenue up 1.9%, net profit down 4.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,292 1,487 1,633 1,479 1,337 +3%1,306 −12%1,573 −4%1,507 +2%
EBITDA188 219 235 216 194 +3%189 −14%219 −7%215 −0%
Net profit90 100 114 103 91 +1%84 −16%105 −8%98 −5%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Metro
    40% Revenue Contribution
  • Flyovers and Tunnels
    60% Revenue Contribution

Guidance & targets

Strategy

  • Project Focus Strategy · ongoing · High confidence EPC only, may explore HAM, not BOT
    We are right now focusing on this thing, EPC only and not on BOT projects. Maybe some of the HAM projects we may explore where we see good opportunity and our strength is there, so not for the BOT for sure.

    — Nalin Gupta, Managing Director

Bidding Pipeline

  • Total Bidding Pipeline Bidding Pipeline · current · High confidence ₹30,000 crores

    From ₹25,000 crores today

    Yes, it is still INR30,000 crores, Mr. Vaibhav. We are in different verticals of building, elevated corridors, flyover roads, metro and water.

    — Nalin Gupta, Managing Director

Order Inflow

  • Q2 FY26 Order Inflow Order Inflow · Q2 FY26 · Medium confidence ₹2,000 crores
    In the Q2 itself, we are hopeful that we should be able to bag orders worth nearly around INR2,000 crores.

    — Nalin Gupta, Managing Director

  • FY26 Order Inflow Order Inflow · FY26 · High confidence ₹5,000-6,000 crores
    In the whole year, we will be able to back around INR5,000 crores to INR6,000 crores for sure.

    — Nalin Gupta, Managing Director

Order Book

  • Order Book Order Book · FY26 End · High confidence ₹22,000-23,000 crores
    Maintaining our order book close to like INR22,000 crores, INR23,000 crores is minimum is what we are targeting at.

    — Nalin Gupta, Managing Director

Revenue Growth

  • Top Line Growth Rate Revenue Growth · medium term · High confidence 15-16%
    we are very sure of maintaining growth rate of 15% to 16% in terms of top line

    — Nalin Gupta, Managing Director

Profitability

  • EBITDA Margin Profitability · next 6-8 quarters (by FY27) · High confidence 15-16%
    we are trying to take our EBITDA margin to 15% to 16% going forward 6 to 8 quarters that we had mentioned, and we are confident that due to the operational efficiency and leverage that we'll be getting, we should be able to maintain that.

    — Nalin Gupta, Managing Director

Working Capital

  • Working Capital Days Working Capital · ongoing · High confidence 120-125 days
    Going forward also, we'll maintain around 120 to 125 days of working capital.

    — Nalin Gupta, Managing Director

Capex

  • Total Capex (including maintenance) Capex · next 2 years (FY26-FY27) · High confidence ₹550-600 crores
    Apart from maintenance capex of INR100 crores, there will be INR450 crores to INR500 crores of additional capex for TBM and other equipment. Put together would be INR550 crores to INR600-odd crores would be for both the years? Yes.

    — Nalin Gupta, Managing Director

Debt

  • Overall Debt Debt · FY26 and FY27 · High confidence ₹750-800 crores
    We have, as guided before, so it's around INR750 crores to INR800 crores for FY 26 and FY27.

    — Nalin Gupta, Managing Director

Finance Cost

  • Finance Cost as % of Revenue Finance Cost · FY26 · High confidence 2.75%
    Finance cost in the last con call also, we have said that we'll be able to keep it around 2.75% of the overall revenue.

    — Vasant Savla, CFO

Depreciation

  • Depreciation as % of Revenue Depreciation · FY26 · Medium confidence 3.5%

    Previously 3% → 3.5%

    Depreciation will be marginally up. Right now, it is around 3%. It may marginally go up to 3.5%.

    — Vasant Savla, CFO

Net Profit

  • Net Profit Net Profit · FY26 · High confidence ₹400 crores plus
    Approach INR400 crores. It will be 400 crores plus, sir.

    — Nalin Gupta, Managing Director

Asset Monetization

  • PSL Land Transaction Completion Asset Monetization · June 2026 · High confidence June next year
    By next June, we are expecting to complete. Presently, we pay off the debt by receiving this thing, whatever the inflows will be there. That will be done by this December only. But by June, we'll be completing the entire transaction.

    — Nalin Gupta, Managing Director

Risks & concerns

  • Conversion of L1 EPC projects to BOT model

    medium

    The ₹4,000 crore Virar-Alibaug project, where JKIL was L1, is now expected to be on a BOT model, which JKIL does not pursue.

    Analyst acknowledged

  • Labor availability and wage inflation

    low

    Management acknowledges a tight labor situation but states it's mitigated by being a good paymaster, automation, and pre-casting.

    Analyst downplayed

  • Delays in regulatory approvals for projects

    low

    Mangrove permissions for 30% of the Versova-Dahisar project are pending, but 70% on road area has received permissions, with physical work starting soon.

    Analyst acknowledged

  • Timeline for promoter pledge release

    low

    An old 22% promoter pledge with Bank of India is being worked on for release, but the timeline depends on the bankers.

    Analyst acknowledged

Areas of evasion (1)

  • specific project values/details not immediately available (e.g., Chennai outstanding order value, Line 8 BOT value)

Q&A highlights

2 direct, 1 evasive
Virar-Alibaug project conversion to BOT model Direct
we have learned that they are getting this project on BOT. It's not sure, so we are not considering that L1 for the moment.

A significant ₹4,000 crore project where JKIL was L1 is now expected to be BOT, potentially impacting future EPC order inflow.

Asked by Vaibhav Shah

Outstanding order value for Chennai Elevated Corridor Evasive
We'll get back to you the exact figure in separately. We don't have this handy right now. We'll get back to you.

Management could not provide a specific number for a major project's outstanding value, suggesting a lack of immediate data availability or willingness to disclose granular details.

Asked by Lokesh Kashikar

Conservative order inflow guidance vs. revenue growth Direct
We are targeting INR6,000 crores because we want to keep topping up the turnover that we will be consuming in this year. That doesn't mean that we don't look at good opportunities, but we don't want to underbid. That's the point... We always want to give investors a very safe figure where we do not disappoint anyone.

Clarifies management's strategy of prioritizing profitable growth and conservative guidance over aggressive order book expansion, even if it means a lower book-to-bill ratio in the short term.

Asked by Shravan Shah

3 min read 7 chapters

Detailed narrative

Strong Q1 FY26 Financial Performance

J Kumar Infra reported robust financial results for Q1 FY26, with revenue from operations growing by 15.84% YoY to ₹1,484 crores. EBITDA saw a significant increase of 158.33% YoY, reaching ₹217 crores, leading to an EBITDA margin expansion to 14.6%. Net profit also grew by 18.39% YoY to ₹103 crores, with the PAT margin improving to 7%.

Robust Order Book and Conservative Inflow Strategy

As of June 30, 2025, the company's total order book stood at ₹20,946 crores. Management guided for an order inflow of ₹5,000-6,000 crores for FY26, with an expectation to bag around ₹2,000 crores in Q2 FY26. This conservative approach prioritizes profitable growth, as management stated they 'don't want to underbid' and aim to maintain a healthy bottom line, targeting an order book of ₹22,000-23,000 crores by FY26 end.

Strategic Focus on EPC and Core Verticals

J Kumar Infra reiterated its strategy to focus exclusively on EPC (Engineering, Procurement, and Construction) projects, with a clear policy against BOT (Build-Operate-Transfer) models, though HAM (Hybrid Annuity Model) projects may be explored. The company is deepening its presence in core verticals such as metros, elevated corridors, tunnels, and water infrastructure, leveraging its expertise in complex, specialized jobs for better margins. The current bidding pipeline across these verticals is healthy at ₹30,000 crores.

Capex and Debt Management

The company incurred a capex of ₹107 crores in Q1 FY26. For the next two years (FY26-FY27), total capex, including maintenance and TBM requirements, is projected to be ₹550-600 crores. J Kumar Infra maintains a strong balance sheet, reporting a net cash positive position of ₹159 crores as of June 30, 2025. Overall debt for FY26 and FY27 is guided to be around ₹750-800 crores.

Key Project Updates and Progress

Several major projects are progressing well. The Dwarka Expressway to Delhi is nearing completion. The Chennai Elevated Corridor (₹4,200 crores across 4 packages) is full-fledged, with 40% of piling completed and a casting yard established. For the GMLR project, parts of the TBM have arrived, with tunneling expected to start in a couple of months. Preparatory works for the Versova-Dahisar project have begun, with physical piling starting in August, and the New Bombay Coastal Road is also progressing at full speed.

Working Capital and Asset Monetization

Working capital days for Q1 FY26 stood at 115 days, well within the management's guidance of 120-125 days. The company provided detailed working capital components: mobilization advance at ₹789 crores, retention at ₹386 crores, unbilled revenue at ₹650 crores, and apple-to-apple inventory at ₹315 crores. The monetization of PSL land, with an outstanding balance of ₹20 crores, is expected to be completed by June next year, with debt repayment from this process by December.

Market Outlook and H2 Expectations

Management noted a subdued order inflow in Q1 and Q2 due to the new government formation but expressed bullish sentiment for the second half of FY26. They anticipate a significant push for infrastructure from the government, leading to a healthy order book over the next 2-3 years. The company expects new tenders for metros, elevated corridors, and road tunnels to be floated in the coming 3-6 months.

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