J Kumar Infra

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.

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.

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.

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.

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.

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.