J.Kumar Infraprojects Limited — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

J. Kumar Infraprojects reported a moderation in Q3 FY26 performance due to monsoon-related disruptions and project delays, leading to an 11.8% YoY revenue decline and 17% PAT decline. Despite this, the company maintained a strong balance sheet with a cash-positive net debt position and improved working capital days. Management expects execution to pick up, guiding for 15% growth in FY27 and aiming to maintain FY25 revenue levels for FY26, supported by a robust order book of INR 19,212 crores and a strong bidding pipeline.

Highlights

  • Nine-month FY26 revenue grew 1.9% to INR 4,138 crores compared to INR 4,061 crores in FY25.

  • Net debt position is cash positive at negative INR 250 crores as of December 31, 2025.

  • Debt-equity ratio improved to 0.2x from 0.23x in FY25.

  • Working capital days improved to 103 days for nine-months FY26 from 112 days in FY25.

  • Total order book stands at INR 19,212 crores as of December 31, 2025, with 90-95% already under execution.

Concerns

  • Q3 FY26 revenue moderated by 11.8% to INR 1,311 crores YoY.

  • Q3 FY26 PAT declined by 17% to INR 83 crores YoY.

  • Nine-month FY26 EBITDA margin slightly compressed to 14.5% from 14.6% YoY.

  • Order inflow for nine months FY26 was low at INR 515 crores.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹1,311 Cr
    YoY -11.8%
  • EBITDA
    ₹188 Cr
    YoY -14.1%
  • EBITDA Margin
    14.3%
  • PAT
    ₹83 Cr
    YoY -17%
  • PAT Margin
    6.3%

9M FY26

  • Revenue
    ₹4,138 Cr
    YoY +1.9%
  • EBITDA
    ₹599 Cr
    YoY +1.4%
  • EBITDA Margin
    14.5%
  • PAT
    ₹277 Cr
    YoY 0%
  • PAT Margin
    6.7%

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.

Order book

high confidence

Total value

₹19,212 Cr

as of 2025-12-31 quantified

Execution

3-4 years to complete the jobs

Composition

Mix 4 segments
  • Metro projects, elevated and underground 11%
  • Elevated corridors/flyovers 53%
  • Roads and road tunnels 17%
  • Other 18%

Share of order book by segment

Pipeline

L1 awaiting loa

L1 bids worth INR 1,728 crores; bids submitted for INR 13,000 crores

Order book remains solid, with execution velocity improving after temporary moderation, and 90-95% of the order book is already in the pipeline generating revenue.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹533 Cr
    We have already done INR433 crores for 9 months. More or less another INR100 crores-or-so.
  • Debt Net cash ₹250 Cr
    Net debt as on 31st December 2025 stood at negative INR250 crores, that is cash positive, and debt-equity ratio is at 0.2x, reduced from 0.23x in FY '25.
  • Liquidity Liquidity disclosed Working capital days improved to 103 days for nine-months FY26. Unbilled revenue of INR 600 crores in Q3. Mobilization advance is INR 800 crores as of December 2025, with INR 650 crores being interest-bearing.
    Working capital days for nine-months FY '26 stood at 103 days as compared to 112 days for FY '25. Yes, there is an overall unbilled revenue of INR600 crores. Mob advance is about INR800 crores as of now. Interest-bearing portion is about INR650 crores.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26-27 · High confidence 15%
    but now everything is in place and we are very positive that from FY ‘26- ‘27 should be surely giving us a growth of around 15%.

    — Nalin Gupta

  • FY26 Top Line Revenue · FY26 · Medium confidence INR 5,700 crores

    Previously INR 6,300 crores → INR 5,700 crores

    So for FY '26 we hope that we'll be able to maintain or surpass the last year's top line that we did of around INR5,700 crores.

    — Nalin Gupta

Profitability

  • EBITDA Margin Profitability · FY26 and FY27 · High confidence 14-15%
    Yes. So if you look at the figures, Parikshit, all the jobs that we have secured, are all with the similar margin of 14% to 15%. So there we don't see any sort of decline or anything happening.

    — Nalin Gupta

Order Inflow

  • FY26 Order Inflow Order Inflow · FY26 · Medium confidence INR 4,000 crores
    So for the current fiscal year, I would say that we are hopeful of closing with an order book of around INR4,000 crores by the end of March '26.

    — Nalin Gupta

  • FY27 Order Inflow Order Inflow · FY27 · Medium confidence INR 7,000-8,000 crores
    And for FY 27, we expect around INR7,000 to INR8,000 crores of order book.

    — Nalin Gupta

Working Capital

  • Working Capital Days Working Capital · Future · Medium confidence 115-120 days

    From 103 days today

    But as the work progress will increase, we intend to keep we expect that it should be around 115 to 120 days.

    — Nalin Gupta

Capex

  • Next Year Capex Capex · Next Year · Medium confidence INR 200-300 crores
    Okay. Okay. And then for next year, then it would be INR200 crores, INR300 crores, that's the way one can look at?

    — Vasant Savla

What to watch in Q4 FY26

FY26 Revenue Achievement

Next quarter (Q4 FY26)
Current INR 4,138 crores (9M FY26)
Target Maintain or surpass INR 5,700 crores (FY25 level)

Why it matters

To assess if the company can recover from Q3 moderation and meet its revised annual revenue target.

So for FY '26 we hope that we'll be able to maintain or surpass the last year's top line that we did of around INR5,700 crores.

Risks & concerns

  • Extended monsoon season and project disruptions

    high

    The decline in Q3 performance was primarily on account of an extended monsoon season, which led to temporary disruption at multiple project sites, slower execution progress, and deferment of billing linked to milestone achievements.

    Management acknowledged

  • Land acquisition and regulatory approval delays

    medium

    Projects like VDCR, Anand Nagar Saket, and GMLR faced delays due to land acquisition issues, design approvals (IIT, LDC, GC), and tree-cutting permissions, which impacted execution velocity.

    Management acknowledged

  • Low order inflow in FY26

    medium

    The order inflow for nine months FY26 was low at INR 515 crores, which management noted was 'nothing much' and contributed to the disappointment in FY26 top line.

    Management acknowledged

Q&A highlights

7 direct
Execution pace and project delays Direct
Well, Parikshit, as we have said that, there were a lot of issues, operational issues, some land acquisitions which were there, but now everything is in place and we are very positive that from FY ‘26- ‘27 should be surely giving us a growth of around 15%.

Analysts were concerned about execution bottlenecks, and management confirmed issues are resolved and execution is normalizing, providing growth guidance.

Asked by Parikshit Kandpal

Revised FY26 Revenue Guidance Direct
So for FY '26 we hope that we'll be able to maintain or surpass the last year's top line that we did of around INR5,700 crores.

Management revised down its FY26 revenue guidance from earlier expectations, indicating a flattish year due to execution challenges and low order inflow.

Asked by Parikshit Kandpal

Order Inflow Targets and Pipeline Direct
So for the current fiscal year, I would say that we are hopeful of closing with an order book of around INR4,000 crores by the end of March '26. And for FY 27, we expect around INR7,000 to INR8,000 crores of order book.

Management provided specific order inflow targets for current and next fiscal years, along with a detailed list of upcoming large projects across various segments.

Asked by Parikshit Kandpal

BOT Project Strategy Direct
Well, all the projects, Shravan, that we have mentioned here, they come in only from EPC and J. Kumar, we are not bidding for any BOT or such projects.

Management clarified its strategic focus on EPC projects and explicitly stated no future plans to bid for BOT projects, despite a past specific bid.

Asked by Shravan Shah

Fund Raise (QIP) Plans Direct
No. Well, it wasn't for the TBM, but for the upcoming new projects that we were expecting that to we had made an enabling resolution. And immediately, we don't have any plans to do so.

Management clarified that while an enabling resolution for an INR 800 crore QIP exists, there are no immediate plans to proceed, and it would be project-specific if pursued.

Asked by Thomas

Promoter Share Pledge Direct
Dinesh, this hasn't increased, it is constant, it has been the same for many years, 80 lakh shares we have pledged. ... Dinesh ji, we haven't done any increase in pledging, in fact we are putting our minds towards getting it released.

An analyst raised concerns about an increase in promoter pledge, which management strongly denied, stating it has been constant and they are working to reduce it.

Asked by Dinesh Karwa

Mira-Bhayandar Flyover Construction Quality Direct
You are very right. It is constructed by J. Kumar and I am personally looking after that project. It's under my control. So this project is -- it's something which has people love to make a mockery of every situation. And this project is been constructed as per the requirements of the client. And also, I would like to mention that, there is no flaw in the construction that has been done.

Management addressed public concerns about the construction quality and design of the Mira-Bhayandar flyover, asserting that there are no flaws and the design accounts for future expansion.

Asked by Thomas

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Moderation and Outlook

J. Kumar Infraprojects reported a moderation in Q3 FY26, with revenue declining by 11.8% YoY to INR 1,311 crores and PAT falling by 17% to INR 83 crores. This was primarily attributed to an extended monsoon season, temporary project site disruptions, and deferred milestone-linked billing. Despite the Q3 slowdown, management expects execution velocity to improve, guiding for a 15% growth in FY26-27 and aiming to maintain FY25's top line of INR 5,700 crores for FY26.

Robust Order Book and Strong Bidding Pipeline

As of December 31, 2025, the company's total order book stood at INR 19,212 crores, with 90-95% already under execution and expected to be completed within 3-4 years. The order book composition includes 53% from elevated corridors/flyovers, 17% from roads/road tunnels, and 11% from Metro projects. The company has INR 1,728 crores in L1 bids and has submitted bids for INR 13,000 crores worth of projects, targeting INR 4,000 crores in order inflow for FY26 and INR 7,000-8,000 crores for FY27.

Balance Sheet Strength and Working Capital Management

The company maintains a strong balance sheet, reporting a cash-positive net debt position of negative INR 250 crores as of December 31, 2025. The debt-equity ratio improved to 0.2x from 0.23x in FY25, and working capital days reduced to 103 days for nine-months FY26 from 112 days in FY25. Management aims to keep working capital days around 115-120. Unbilled revenue for Q3 was INR 600 crores, and mobilization advances stood at INR 800 crores, with INR 650 crores being interest-bearing.

Project Execution Challenges and Resolutions

Several key projects, including VDCR, Anand Nagar Saket, and GMLR, faced delays due to land acquisition, regulatory approvals (e.g., IIT clearance for GAD, tree-cutting permissions), and design clashes. Management confirmed that these issues are largely resolved, with GMLR's shaft land acquired in August 2025 and TBM lowering commencing soon. The VDCR project, valued at INR 2,500 crores, has only seen INR 100 crores of work completed but is now set to accelerate with design approvals in place.

Strategic Focus on EPC and Margin Stability

J. Kumar Infraprojects is strategically focused on EPC projects and has no future plans to bid for BOT projects, despite a past specific bid. Management emphasized maintaining margin stability, guiding for an EBITDA margin band of 14-15% for both FY26 and FY27. This approach prioritizes profitable growth over aggressive bidding to increase top line at the expense of margins.

Capital Expenditure and TBM Depreciation

The company incurred INR 433 crores in capex for the first nine months of FY26 and expects to spend an additional INR 100 crores in Q4, bringing the total FY26 capex to approximately INR 533 crores. For the next fiscal year, capex is projected to be around INR 200-300 crores. Depreciation for Tunnel Boring Machines (TBMs) is expected to commence in Q1 or Q2 FY27, once the machines are capitalized and lowered into the shafts.

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