J.Kumar Infraprojects Q1 FY27 earnings call

J. Kumar Infraprojects Limited reported Q1 FY27 revenue from operations at ₹1,511 crores, marking a 2% increase year-over-year from ₹1,484 crores in Q1 FY26. However, EBITDA moderated by 1% to ₹215 crores, resulting in an EBITDA margin of 14.1%, down from 14.6% in the prior year. PAT also saw a 6% decline to ₹97 crores, with the PAT margin at 6.4% compared to 7% in Q1 FY26, primarily due to project mix and timing-related^📎 factors.

As of June 30, 2026, the company's total order book stood at a robust ₹22,246 crores, providing significant revenue visibility. During Q1 FY27, the company secured new orders worth approximately ₹5,500 crores, and holds an L1 position for a Delhi Metro underground project valued at ₹1,500 crores, bringing the total order inflow for the quarter to ₹7,000 crores. The order book composition includes 48% from elevated corridors and flyovers, 20% from roads and road tunnels, 9% from metro projects, and 23% from other segments.

Execution on major projects is progressing, with the Chennai project (₹3,570 crores NHAI portion) targeted for completion by December 2028, despite initial delays. The Anand Nagar project is 15% complete and on track for its October 2028 scheduled completion. For the GMLR project, 2,000 links of casting (4 km of tunnel) are complete, and the first TBM is ready for launch, with the second expected in the next two months. Past delays on these projects due to land acquisition and regulatory approvals have largely been resolved, and management is accelerating execution to meet revised timelines.

Capital expenditure for Q1 FY27 was ₹34 crores. The company projects an annual capex of ₹150 crores for FY27 and FY28, which includes both maintenance and project-specific requirements. Net debt as of June 30, 2026, was negative ₹45 crores, reflecting a strong balance sheet. Gross debt stood at ₹840 crores, with a net debt-to-equity ratio of 0.24. Management expects gross debt to reduce below ₹800 crores by year-end as term loans are repaid, and the cost of debt ranges from 8.5% to 11%.

For FY27, J. Kumar Infraprojects targets a 15% revenue growth, aiming for approximately ₹6,500 crores, and expects to maintain an EBITDA margin between 14% and 15%. The FY27 revenue target of ₹7,500 crores has been shifted to FY28, with a continued focus on achieving 14-15% EBITDA margins. Management emphasized their commitment to profitability, stating they will not pursue growth at the expense of margins, and aims to improve EBITDA margins to 15-16% in the coming years.

Working capital days for Q1 FY27 stood at 103 days, which management considers an improvement from their internal target of 120 days, and they aim to maintain it within the 100-110 day range. The company's liquidity position is strong, with surplus funds invested in debt securities to generate interest income. Management confirmed prompt payments from key clients like DMRC, MMRDA, MSRDC, BMC, and NHAI, ensuring regular cash flow and no liquidity issues.

The company has expanded its presence beyond Maharashtra, with 80% of its order book outside the state in 2010, and currently executing projects in seven states. While Maharashtra remains a preferred market, J. Kumar Infraprojects is actively bidding for projects across India, including stadium projects, provided they meet the company's margin requirements. This diversification strategy aims to capture opportunities in various infrastructure segments while maintaining profitability.