Summary
J. Kumar Infraprojects Limited - Q3 FY 2026 Earnings Call Summary Friday, February 06, 2026 02:00 PM
Event Participants
Executives 3 Nalin Gupta (MD), Vasant Savla (CFO), Marathon Capital (Investor Relations Team)
Analysts 6 Alok Deora (Motilal Oswal), Dinesh Karwa (Kirti Creation), Parikshit Kandpal (HDFC Securities), Shravan Shah (Dolat Capital), Vaibhav Shah (JM Financial), Yash Kothari (CRK Eq Research)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Order Book | ₹19,212 crores | Down from previous peaks; 90% is operational but impacted by site-specific delays. |
| Revenue (Q3) | ₹1,311 crores | -12% YoY; impacted by extended monsoon and deferred billing milestones. |
| Revenue (9M) | ₹4,138 crores | +2% YoY; moderation due to slower execution and lack of new inflows. |
| EBITDA (Q3) | ₹188 crores | -14% YoY; margins slightly contracted. |
| EBITDA (9M) | ₹599 crores | +1% YoY; margins remained stable at 14.5% vs 14.6%. |
| PAT (Q3) | ₹83 crores | -17% YoY; lower operating leverage and higher interest costs. |
| PAT (9M) | ₹277 crores | Flat YoY; net margin at 6.7% vs 6.8%. |
| Net Debt | (₹250 crores) | Net cash positive; debt-equity ratio improved to 0.2x from 0.23x in FY25. |
| Working Capital | 103 days | Improved from 112 days in FY25; expected to normalize to 115-120 days. |
| Capex (9M) | ₹433 crores | Significant investment in TBMs and project-specific machinery. |
Geographic & Segment Commentary
- Flyovers & Elevated Corridors (53% of Order Book): This remains the largest segment; however, major projects like VDCR (₹2,500 Cr) and Anand Nagar Saket saw stagnant execution due to GAD approval delays and utility clashes, with revenue expected to pick up in Q1 FY27.
- Metro Projects (11% of Order Book): Focus is on Mumbai Metro Line 9 and upcoming bids for Delhi, Pune, and Nagpur; the Mumbai Metro 9 site faced public scrutiny over flyover design, which management clarified is an intentional offset for future expansion.
- Roads & Tunnels (17% of Order Book): The Goregaon Mulund Link Road (GMLR) project moved past land acquisition and eco-sensitive zone hurdles; TBM lowering is scheduled for February 2026 to start tunneling revenue.
Company-Specific & Strategic Commentary
- Execution Teething Issues: Management attributed the revenue miss to structural delays in GAD approvals from third-party agencies (IIT) and land acquisition for shaft construction at GMLR and VDCR sites.
- Tunneling Readiness: Two massive Tunnel Boring Machines (TBMs) for GMLR have reached the site; capitalization and depreciation for these units will commence in H1 FY27 once they are operational.
- Bidding Discipline: Management explicitly stated they are avoiding the BOT/HAM space to focus on EPC to protect the balance sheet, despite participating in a one-off Pune BOT bid previously.
- Fund Raising: An enabling resolution for a ₹800 crore QIP remains in place, but there are no immediate plans to dilute equity unless required for specific large-scale project wins in FY27.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue (FY26) | ~₹5,700 crores | Revised downwards from ~₹6,300 Cr; outlook is now flattish YoY due to execution delays. |
| Revenue Growth (FY27) | +15% YoY | Driven by clearance of GAD approvals and commencement of GMLR tunneling. |
| Order Inflow (FY26) | ₹4,000 crores | Expecting ₹1,728 Cr of L1 positions (Lucknow & NBCC) to convert by March 2026. |
| Order Inflow (FY27) | ₹7,000 - ₹8,000 crores | Based on a ₹35,000 Cr pipeline including Coastal Road extensions and new Metro lines. |
| EBITDA Margins | 14% - 15% | Management expects to maintain this range despite competitive bidding. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory/Approvals | Delays in GAD (General Arrangement Drawing) approvals and tree-cutting permissions in eco-sensitive zones hindered FY26 execution. |
| Regional Concentration | Significant order book concentration in the Mumbai Metropolitan Region (MMR) makes the company sensitive to local administrative and environmental hurdles. |
| Low Order Inflow | Only ₹515 Cr of new orders were booked in 9M FY26, necessitating a strong Q4 to meet the ₹4,000 Cr annual target. |
Q&A Highlights
Execution & Revenue Revisions
- Question: Why has the revenue guidance been lowered to flattish for FY26? (Alok Deora)
- Answer: Major projects like VDCR and GMLR faced significant “teething issues” including land acquisition for shafts and third-party approval delays from IIT; these are now resolved, and revenue will shift to FY27 (Nalin Gupta).
Order Pipeline
- Question: What is the status of the ₹1,728 crore L1 projects? (Shravan Shah)
- Answer: This includes the Lucknow Convention Center (₹1,206 Cr) and an NBCC project (₹522 Cr); LOIs are expected by March 2026 (Nalin Gupta).
Financials & Debt
- Question: Why did interest costs rise despite lower debt? (Vaibhav Shah)
- Answer: Driven by interest-bearing mobilization advances which currently stand at ₹650 Cr (Vasant Savla).
Project Specifics (Design)
- Question: Is there a design flaw in the Mira-Bhayandar flyover? (Thomas)
- Answer: No; the 90-degree cut is an intentional offset for future expansion, and safety barriers will be installed before opening; MMRDA has validated the technical plan (Nalin Gupta).
Key Takeaway
J. Kumar Infraprojects delivered a muted Q3 FY26, with revenue declining 12% YoY to ₹1,311 crores, primarily due to an extended monsoon and protracted approval cycles for high-value projects like GMLR and VDCR. Consequently, management has lowered its FY26 revenue guidance to a flattish ₹5,700 crores from earlier double-digit growth targets. Strategically, the company remains committed to the EPC model and is currently transitioning to the execution phase for its large tunneling projects, with two TBMs now on-site at GMLR. While 9M FY26 order inflows were soft at ₹515 crores, a robust L1 pipeline of ₹1,728 crores and a massive ₹35,000-40,000 crore tender pipeline in Maharashtra provide visibility for a targeted 15% growth in FY27. Investors should monitor the timely commencement of tunneling at GMLR and the conversion of L1 bids into formal contracts to validate the projected recovery.
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