J.Kumar Infraprojects Limited — Q2 FY26 earnings call

Call held 7 Nov 2025

Management summary

J. Kumar Infraprojects reported a steady H1 FY26 with 10% growth in revenue, operating margin, and PAT, despite an extended monsoon impacting Q2 execution. The company maintains a healthy order book of INR 20,160 crores and is confident in securing INR 5,000-6,000 crores in new orders for FY26. While revenue guidance for FY26 was slightly revised downwards due to weather, management remains optimistic about future growth and margin sustainability, supported by robust project pipelines and comprehensive escalation clauses in contracts.

Highlights

  • Revenue from operations for H1 FY26 grew by 10% to INR 2,826 crores.

  • Operating margin for H1 FY26 grew by 10% to INR 411 crores.

  • EBITDA margin stood at 14.6% in H1 FY26, compared to 14.5% in H1 FY25.

  • PAT for H1 FY26 grew by 10% to INR 195 crores.

  • Total order book as on September 30, 2025, stood at INR 20,160 crores.

  • FY26 revenue guidance revised to INR 6,200-6,300 crores (11% growth) from INR 6,500-6,600 crores (15% growth) due to extended monsoon.

  • Order inflow target for FY26 is INR 5,000-6,000 crores, aiming for an order book of INR 22,000-23,000 crores by year-end.

  • FY26 Capex is expected to be around INR 500 crores, with FY27 Capex projected at INR 200 crores.

Key financials

  1. Revenue ₹2,826 Cr +10%YoY
  2. EBITDA Margin 14.6%
  3. PAT ₹195 Cr +10%YoY
  4. Total Order Book ₹20,160 Cr
  5. Gross Debt ₹75 Cr
  6. Net Debt ₹-124 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

  • Order Book Composition
    13% Metro Projects53% Elevated Corridors Flyovers17% Road and Tunnel Projects17% Other Building and Civil Works

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · Medium confidence 11%

    Previously 15% → 11%

    So, we are expecting a growth. We had given a guidance of around INR6,500 crores in our previous call. So, we would say that still we'll be striving our best efforts to achieve that. But we expect that we should surely be able to achieve a target of around INR6,200 to INR6,300 crore, looking at the current situation of H1. So, but still it will be a growth of around 11% on the overall year-on-year basis.

    — Kamal Gupta, Managing Director

  • FY26 Revenue (Absolute) Revenue · FY26 · Medium confidence INR 6,200-6,300 crores

    Previously INR 6,500-6,600 crores → INR 6,200-6,300 crores

    — Kamal Gupta, Managing Director

Order Inflow

  • FY26 Order Inflow Order Inflow · FY26 · High confidence INR 5,000-6,000 crores
    And of course, we are very confident of the inflow of around INR5,000 to INR6,000 crores of projects in FY'26.

    — Kamal Gupta, Managing Director

Order Book

  • Order Book (Absolute) Order Book · March 2026 · High confidence INR 20,000-23,000 crores
    So, we have a closing order book of around INR20,000 to INR23,000 crores by March 2026. Yes.

    — Kamal Gupta, Managing Director

  • Order Book (Absolute) Order Book · Year-end (FY26) · High confidence INR 22,000-23,000 crores
    And as we told before, like this year we intend to take an order inflow from INR5,000 crores to INR6,000 crores, thereby maintaining an order book of INR22,000 crores to INR23,000 crores by the year-end.

    — Kamal Gupta, Managing Director

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 14-15%
    In H1 also, as you must have seen, we have done EBITDA margin of 14.6%. So, we'll be able to maintain this 14% to 15% of margin in this year as well.

    — Kamal Gupta, Managing Director

  • EBITDA Margin Profitability · coming two years · Medium confidence 15-16%
    And going forward also, we are intending to go 1% notch higher and trying to do it like 15% to 16% in the coming two years.

    — Kamal Gupta, Managing Director

Working Capital

  • Working Capital (Absolute) Working Capital · FY26 closing basis · Medium confidence around INR 800 crores
    So, more or less it will be around this range INR800 crores or so.

    — Vasant Savla, Chief Financial Officer

  • Working Capital Days Working Capital · null · High confidence 120-130 days
    And we intend to maintain a working capital of like 120 to 130 days.

    — Kamal Gupta, Managing Director

Capex

  • FY26 Total Capex Capex · FY26 · High confidence closer to INR 500 crores
    So, overall capex for this year will be closer to INR500 crores, including this INR100 crores.

    — Kamal Gupta, Managing Director

  • FY27 Capex Capex · FY27 · High confidence around INR 200 crores
    No, next year will be around INR200 crores.

    — Kamal Gupta, Managing Director

Growth

  • Future Growth Rate Growth · going ahead (beyond FY26) · Medium confidence 16-17%
    So that is our aim also Shravan, to like -- and we intend to grow at 16%, 17% going ahead.

    — Kamal Gupta, Managing Director

Debt

  • Net Debt Debt · FY26 year-end · High confidence INR 770-800 crores
    Right now we are at INR770 crores, so it will be similar to like INR800 crores.

    — Kamal Gupta, Managing Director

Risks & concerns

  • Extended Monsoon Impact on Execution

    medium

    Heavy and extended monsoon (till October) affected Q2 execution and led to a downward revision of FY26 revenue guidance.

    Management acknowledged

  • Slowdown in EPC Order Inflows

    low

    Management acknowledged a general slowdown in EPC orders but expressed confidence in securing their targets due to pan-India presence and diverse pipeline.

    Analyst acknowledged

  • Project Delays due to Environmental Clearances

    low

    The INR 1,020 crore CIDCO project is awaiting environmental clearances, expected in November, which has delayed its start.

    Management acknowledged

Areas of evasion (1)

  • The specific rationale for QIP given negative net debt was not fully explored, rather management reiterated it's an enabling resolution with no immediate plans.

Q&A highlights

3 direct
FY26 Revenue Growth Guidance Revision Direct
So, we are expecting a growth. We had given a guidance of around INR6,500 crores in our previous call. So, we would say that still we'll be striving our best efforts to achieve that. But we expect that we should surely be able to achieve a target of around INR6,200 to INR6,300 crore, looking at the current situation of H1. So, but still it will be a growth of around 11% on the overall year-on-year basis.

Management explicitly revised down their full-year revenue guidance from 15% to 11% (INR 6,500-6,600 crores to INR 6,200-6,300 crores), attributing it to the extended monsoon, which is a key factor for investors tracking execution.

Asked by Diwakar Rana

QIP Plans and Debt Levels Direct
So, QIP is just an enabling resolution that we are taking approval of, but we will take this call when the appropriate time comes and looking at the market situation... Mr. Venkatesh, that's the reason why last year also we had a QIP approval that we had taken from the AGM and from the Board, but we didn't go for it... So, this is just an enabling resolution that we are getting it passed. And even in the, one of our previous friends have asked this question, wherein we have clearly replied that we don't have any immediate plans to go for it.

Analysts questioned the need for a QIP given the company's negative net debt. Management clarified it's an enabling resolution with no immediate plans, dependent on future order book and capex needs, indicating a cautious approach to dilution.

Asked by Diwakar Rana / Venkat Subramanian

Margin Sustainability and Escalation Clauses Direct
So, Mr. Venkatesh, as you rightly said, firstly, all the contracts, the orders that we have backed up around INR1,000 crores is coming in from all EPC contracts, which are covered under the price variation and escalation clauses. So, even if the tenure is three years, four years or five years, the increase and decrease is fairly covered under the price variation clauses... So, it is not only on the steel and cement, but labor and even the fuel, the POL part of it is also being covered.

This question directly addresses a key investor concern in the construction sector: how the company protects margins against inflation. Management provided a detailed explanation of their comprehensive escalation clauses covering various cost components.

Asked by Venkat Subramanian

3 min read 7 chapters

Detailed narrative

H1 FY26 Performance and Monsoon Impact

J. Kumar Infraprojects reported a steady H1 FY26, with revenue from operations growing 10% to INR 2,826 crores. Operating margin also increased by 10% to INR 411 crores, resulting in an EBITDA margin of 14.6%. PAT for the period rose 10% to INR 195 crores, with a PAT margin of 6.9%. Management acknowledged that a heavy and extended monsoon, lasting until October, impacted Q2 execution, leading to a slight downward revision of the full-year revenue guidance.

Order Book and Inflow Outlook

As of September 30, 2025, the total order book stood at a robust INR 20,160 crores, providing strong revenue visibility. The order book is diversified, with elevated corridors/flyovers contributing 53%, road/tunnel projects 17%, metro projects 13%, and other civil works 17%. For FY26, the company is confident of securing new order inflows totaling INR 5,000-6,000 crores, aiming for a closing order book of INR 22,000-23,000 crores by March 2026.

Revised FY26 Revenue Guidance and Future Growth

Management revised its FY26 revenue guidance to INR 6,200-6,300 crores, representing an 11% year-on-year growth, down from the previous target of INR 6,500-6,600 crores. This adjustment was primarily attributed to the extended monsoon affecting execution. Despite this, the company expressed an aim to achieve 16-17% growth in the years beyond FY26, driven by projects like the GMLR tunnels.

Capex and Debt Management

H1 FY26 capex was INR 398 crores. The company projects a total capex of approximately INR 500 crores for FY26, which includes INR 100 crores for maintenance and investments in projects like GMLR and Chennai. Looking ahead, FY27 capex is expected to reduce significantly to around INR 200 crores. J. Kumar Infraprojects maintains a healthy balance sheet with a current gross debt of approximately INR 75 crores and a net negative debt of INR 124 crores, indicating strong financial health.

Margin Sustainability and Working Capital

Management assured investors that margins are sustainable, with EBITDA margins expected to remain between 14-15% for FY26 and potentially increasing to 15-16% in the next two years. This is supported by comprehensive price variation and escalation clauses in all EPC contracts, covering steel, cement, labor, and POL costs. The company aims to maintain working capital around INR 800 crores and manage working capital days within 120-130 days.

Project Execution Updates

Key projects are progressing well. The Chennai Elevated Corridor is in full swing with 40-45% of piling and substructure completed. The MMRDA Anand Nagar-Saket project (INR 1,800 crores) and NBCC Silicon Valley Noida project have commenced execution, with revenue already flowing. The GMLR tunneling project's TBM has reached the job site, and significant casting work has been completed. The CIDCO project (INR 1,020 crores) is awaiting environmental clearances, expected to start next month.

Bid Pipeline and Order Win Strategy

The company has a robust bid pipeline, with bids worth approximately INR 4,000 crores already submitted or L1, and plans to bid for another INR 20,000-25,000 crores in H2 FY26 across various verticals and geographies. Management indicated a win ratio of approximately 20% for their bids. The strategy emphasizes securing orders at their desired margins, prioritizing profitability and bottom line over aggressive bidding.

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