Detailed Narrative
FY26 Performance and Consolidation
J. Kumar Infraprojects experienced a year of consolidation in FY26, with revenue from operations growing modestly by 1% to INR5,723 crores compared to INR5,693 crores in FY25. EBITDA stood at INR823 crores, a slight decrease from INR826 crores in FY25, resulting in an EBITDA margin of 14.4%. PAT for FY26 was INR387 crores, down from INR391 crores in FY25, with a PAT margin of 6.8%.
Robust Order Book and Pipeline
The company's total order book as of March 31, 2026, stood at INR18,554 crores. In the current fiscal year (April 1 - May 19, 2026), new order intake was INR6,300 crores, comprising INR4,500 crores bagged orders and INR1,770 crores in L1 bids. Management anticipates the order book to reach INR9,000-10,000 crores by the end of FY27, with a bid pipeline of INR100,000 crores from Maharashtra alone, including major metro and elevated corridor projects.
FY27 Growth Outlook and Margin Targets
For FY27, J. Kumar Infraprojects guides for a 15% growth in top-line revenue, expecting to cross INR6,500 crores. The company also targets a 15% increase in bottom line and aims to improve EBITDA margins from the current 14-15% to 15-16%. PAT margin is expected to remain around 7%. Further EBITDA margin improvements are anticipated within the next 6-8 quarters, driven by execution velocity and expanding capabilities.
Working Capital and Liquidity Management
The company improved its working capital days to 99 in FY26 from 112 in FY25, indicating better operational efficiency. As of March 31, 2026, the company was cash positive with a negative net debt of INR264 crores. Key working capital components include unbilled revenue of INR578 crores, mobilization advances of INR706 crores, and retention money of INR464 crores, reflecting a strong balance sheet and adequate liquidity.
Project Execution and TBM Deployment
Progress on key projects like the Chennai NHAI project is on track, with foundation and substructure work completed and segment casting initiated. For the GMLR project, over 3.5 km of tunnels have been casted, and both Tunnel Boring Machines (TBMs) have arrived on site. One TBM is in an advanced stage of assembly, with site acceptance testing (SAT) expected by June 8, 2026, and drilling to commence shortly thereafter, ahead of schedule.
Mitigation of External Risks
Management confirmed zero impact from geopolitical changes and commodity price escalations, as all contracts are covered by price variation and escalation clauses for steel, cement, POL, and other components. Acknowledged a temporary 10-15% labor shortage in April-May due to elections, but characterized it as a routine, temporary issue with no material long-term impact on execution.
Capital Expenditure Plans
The company plans an incremental capital expenditure of INR200-250 crores annually for FY27 and FY28, which includes capex for new order books. This follows capex of INR280 crores in FY25 and INR400 crores in FY26, totaling INR600 crores over the last two years. The TBMs have been financed, with 10% of the loan already repaid from receivables, and full repayment expected within 2-3 years as work progresses.
Revised Long-Term Revenue Target
Management clarified its previous $1 billion revenue target, initially set for FY27 based on an INR/USD exchange rate of 75. Due to current exchange rates and execution pace, the target is now projected for FY28, with an expected revenue of INR7,500 crores. The company aims to accelerate order intake in the current year to cover the gap from previous years and potentially revise this target upwards based on future performance.