J.Kumar Infraprojects Limited — Q4 FY25 earnings call

Call held 21 May 2025

Management summary

J. Kumar Infraprojects delivered a strong Q4 and FY25, reporting double-digit growth in revenue, EBITDA, and PAT. The company's order book remains robust at over INR22,000 crores, providing significant revenue visibility for the next 3-3.5 years. Management provided optimistic guidance for 15% revenue growth in FY26 and expects EBITDA margins to expand to 15-16% in the coming quarters, driven by a focus on niche, structure-oriented EPC projects.

Highlights

  • FY25 Revenue from operations grew 17% to INR5,693 crores.

  • FY25 EBITDA grew 17% to INR826 crores, with EBITDA margin at 14.5%.

  • FY25 PAT grew 19% to INR390 crores, with PAT margin at 6.9%.

  • Q4 FY25 Revenue from operations grew 15% to INR1,633 crores.

  • Order book as on March 31, 2025, stood at INR22,238 crores.

  • Projects worth INR4,700 crores awarded in FY25.

  • Proposed dividend of INR4 per equity share.

  • Anticipated order inflow for FY26 is INR6,000-8,000 crores.

Key financials

3 periods

Headline

  • Order Book (Mar '25)
    ₹22,238 Cr
  • Dividend Proposed
    ₹4
  • Current Debt
    ₹700 Cr
  • Restricted Cash (Mar '25)
    ₹325 Cr

Q4 FY25

  • Revenue
    ₹1,633 Cr
    YoY +15%
  • PAT
    ₹114 Cr
    YoY +15%

FY25

  • Revenue
    ₹5,693 Cr
    YoY +17%
  • EBITDA
    ₹826 Cr
    YoY +17%
  • EBITDA Margin
    14.5%
  • PAT
    ₹390 Cr
    YoY +19%
  • PAT Margin
    6.9%
  • Projects Awarded
    ₹4,700 Cr
  • Capex
    ₹241 Cr
  • Depreciation
    ₹168 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.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 15%
    So we are expecting a top line growth of around 15% on FY '25. That should be around INR6,500 crores to INR6,600 crores for FY '26.

    — Nalin Gupta, Managing Director

  • Top Line Revenue · by FY27 · High confidence crossing INR7,500 crores
    So we are very sure about crossing the INR7,500 crores our top line by FY '27, which is what we had been expecting.

    — Kamal Gupta, Managing Director

Profitability

  • EBITDA Margin Profitability · next 6-8 quarters · High confidence 15-16%
    in the coming quarters of 6 to 8 quarters, we expect to come into a band from 15% to 16% from the current 14% to 15%.

    — Kamal Gupta, Managing Director

Debt

  • Peak Debt Debt · FY26 · Medium confidence INR900 crores
    So peak debt should be around INR900 crores or so. ... Peak will be in '26.

    — Nalin Gupta, Managing Director

Capex

  • Total Capex Capex · FY26 and FY27 · High confidence INR550-600 crores
    So total would be INR550 crores to INR600-odd crores that the capex that we will be looking. And it largely it would be the TBM that would be maybe a INR300 crores kind of a number would be there this year.

    — Nalin Gupta, Managing Director

Order Inflow

  • New Order Inflow Order Inflow · FY26 · High confidence INR6,000-8,000 crores
    INR6,000 crores to INR8,000 crores is what we are looking for FY '26 as the new order inflow for the current year.

    — Kamal Gupta, Managing Director

Order Book

  • Order Book Maintenance Order Book · by end of FY26 · High confidence around INR23,000 crores
    So, Shravan, basically, what we are intending is the order book that the company wants to maintain. So our focus is to maintain an order book close to around INR23,000 crores more or less by end of FY '26.

    — Nalin Gupta, Managing Director

Other

  • Investment Property Return Other · in coming 1 year to 15 months · High confidence 30-40%
    And in coming 1 year to 15 months, it will be winded up. ... we see upside of 30%, 40% in that.

    — Kamal Gupta, Managing Director

Project Completion

  • Sewri-Worli Connector Completion Project Completion · after demolition permission · Medium confidence 15-18 months
    So, after the demolition is done, it will take 15 to 18 months to complete the project. ... If we get the permission in coming 1 or 2 months, we should be able to complete next year.

    — Kamal Gupta, Managing Director

Risks & concerns

  • Conversion of Virar-Alibaug Multi-Modal Corridor project to BOT or cancellation

    medium

    News in media about potential cancellation or BOT conversion for the INR4,200 crores L1 project; management received a bid validity extension request and is hopeful.

    Analyst acknowledged

  • Delay in NBCC Delhi (Hari Nagar) project start

    low

    One INR700 crore NBCC project in Delhi has not started yet, but management expects it to commence in the next 2 months.

    Management acknowledged

  • Demolition and approval delays for Sewri-Worli Connector project

    low

    The project faces delays due to demolition permissions for Elphinstone ROB and affected buildings; alignment has been changed, and permission process is ongoing.

    Analyst acknowledged

Q&A highlights

3 direct
Order Inflow for FY25 and L1 Project Conversion Direct
Yes. So like as we have told before, so there's INR4,200 crores of projects where we are L1. We are expecting this to get materialized in the last fiscal year, but it could not be done. So the department has asked us to extend our bid validity. So we're expecting that to come in, in this fiscal year. So this INR4,700 crores is excluding that L1.

Clarified the reason for lower-than-guided order inflow in FY25 and the status of significant L1 projects, indicating a spillover to FY26.

Asked by Hemant Soni

Revenue Growth and EBITDA Margin Sustainability Direct
So I would like to mention here Uttam that if you look at, the growth numbers of the company, a 15% growth itself, I would say, is a decent growth because we intend not only to increase the top line of the company, but for us at J. Kumar, bottom line is very, very important. ... So like first of all, we quote at our numbers, number one. And like we quote for niche projects. It's not the normal conventional road projects, what you're saying is about the normal road projects.

Addressed concerns about conservative revenue growth guidance and explained the strategy for maintaining and improving EBITDA margins by focusing on complex, niche EPC projects.

Asked by Uttam Kumar Srimal

Execution of Large Order Book and Potential Delays Direct
No, no. This order book of INR22,000 crores, as I told you apart from the INR700 crores project of Delhi, all the projects are going in full steam, so there is no chance of cancellation of any order, which is INR22,000 crores plus. ... We have separate resource allocated to each project, whether it is staff, project heads, project directors, project managers, your equipments.

Reassured investors about the company's ability to execute its large order book without significant delays or cancellations, highlighting dedicated resources for each project.

Asked by Ashwin Kumar

2 min read 7 chapters

Detailed narrative

Strong Financial Performance in FY25

J. Kumar Infraprojects delivered robust financial results for FY25, with revenue from operations growing 17% to INR5,693 crores and EBITDA also increasing by 17% to INR826 crores. The EBITDA margin stood at 14.5%, a slight improvement from 14.4% in FY24. Net profit (PAT) saw a 19% rise to INR390 crores, with the PAT margin at 6.9%, demonstrating consistent profitability and operational efficiency.

Robust Order Book and Future Visibility

The company's order book as of March 31, 2025, was strong at INR22,238 crores, providing revenue visibility for the next 3 to 3.5 years. Key segments contributing to the order book include elevated corridors/flyovers (50%), road tunnels (18%), metros (16%), and other building projects (16%). Management is confident in maintaining an order book close to INR23,000 crores by the end of FY26, ensuring sustained growth.

FY26 Growth and Margin Outlook

For FY26, J. Kumar Infraprojects anticipates a top-line growth of approximately 15%, targeting revenues between INR6,500 crores and INR6,600 crores. Management expects EBITDA margins to expand to a band of 15% to 16% over the next 6 to 8 quarters. This margin improvement is projected to be driven by their strategic focus on technically demanding, structure-oriented EPC projects that typically command better profitability.

Significant Bidding Pipeline and Order Inflow Targets

The company is actively pursuing a substantial bidding pipeline, looking to bid for projects worth INR20,000 crores to INR25,000 crores in FY26, including major metro, road, and water infrastructure projects. They have set an order inflow target of INR6,000 crores to INR8,000 crores for FY26, which includes INR4,200 crores of L1 projects (Virar-Alibaug) that spilled over from FY25, indicating strong potential for new awards.

Capex and Debt Management Strategy

J. Kumar Infraprojects plans for an additional capex of INR450-500 crores spread over FY26 and FY27, primarily for GMLR, Chennai, and BDCR projects, in addition to INR100 crores for maintenance capex, totaling INR550-600 crores. The company's current debt is around INR700 crores, with a projected peak debt of INR900 crores in FY26. Management highlighted a healthy gross debt-equity ratio of 0.23, reflecting prudent financial management.

Strategic Investment Property Monetization

The company acquired an investment property, PSL Vizag, for INR100 crores from NCLT, financed by a INR90 crore loan. They have already repaid INR30-40 crores by monetizing parts of the asset and plan to fully repay the loan and sell the entire asset within 15-18 months. This strategic move is expected to yield a significant 30-40% return on investment, enhancing shareholder value.

Project Execution and Timelines

Key projects like the GMLR and Chennai elevated express are progressing well, with revenue recognition starting in FY25 and expected to be in full steam from FY26. While the GMLR project experienced an initial 7-month delay due to approvals, it is now on track for completion within the 5-year timeline. The Sewri-Worli connector project is awaiting demolition permissions, with completion expected 15-18 months post-approval, demonstrating active project management.

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