Ladies and gentlemen, good day and Welcome to the J. Kumar Infraprojects Limited Q4 and FY 2026 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Before we begin, a brief disclaimer. The presentation which J. Kumar Infraprojects has uploaded on the stock exchange at their website, including the discussions during this call, contains or may contain certain forward-looking statements concerning J. Kumar Infraprojects business prospects and profitability, which are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements. Should you need assistance during this conference call, please signal an operator by pressing star then 0 on your touchtone phone. Please note that this conference is being recorded.
I now the conference call to Nalin J. Gupta, MD, J. Kumar Infraprojects Limited. Thank you, and over to you, sir.
Good afternoon, everyone. This is Nalin J. Gupta, Managing Director, J. Kumar Infraprojects Limited. Firstly, on behalf of J. Kumar Infraprojects Limited, I warmly welcome you all to our Q4 and FY 2026 earnings conference call. Joining me today are Vasant Savla, CFO, and our investor relation partner, Marathon Capital. I trust you all had the opportunity to review our earnings presentation and press release available in the stock exchanges and our corporate website. FY 2026 was a year of consolidation for the company, with operating and financial performance moderating compared to FY 2025. The impact was largely operational and timely related, stemming from external factors that temporarily slowed execution. Through this phase, we maintained a strong balance sheet and an adequate liquidity, ensuring resilience and continuity of operations. Importantly, this period has strengthened our foundation for the future. The current fiscal has already seen significant order intake.
Considering strong build pipeline, we expect the momentum of order booking to continue, which provides us significant headroom. The company has so far booked orders in excess of INR 4,500 crore in fiscal year, with an L1 of INR 1,770 crore, totaling to around INR 6,300 crore. Considering the strong bid pipeline, we expect the momentum of order book to continue, which provides us significant headroom to accelerate the execution. With a solid order book, improving execution velocity, and expanding capabilities across our core verticals, we are very positioned to translate this pipeline into sustained growth. Now coming to financial performance. Consolidated performance highlights for the FY 2026 is revenue from operations grew by 1% to INR 5,723 crore as compared to INR 5,693 crore in FY 2025.
The EBITDA stood at INR 823 crores as compared to INR 826 crores in FY 2025. The EBITDA margin stood at 14.4% as compared to 14.5% in FY 2025. The PAT for FY 2026 stood at INR 387 crores as compared to INR 391 crores in FY 2025. PAT margin for FY 2026 stood at 6.8% as compared to 6.9% in FY 2025. Consolidated performance highlights for Q4 FY 2026. Revenue from operations for Q4 FY 2026 moderated by 3% to INR 1,585 crores as compared to INR 1,633 crores in Q4 FY 2025. EBITDA for Q4 FY 2026 moderated by 5% to INR 224 crore as compared to INR 235 crore in Q4 FY 2025. EBITDA margin for Q4 2026 stood at 14.1% as compared to 14.4% in Q4 FY 2025.
The PAT for Q4 FY 2026 moderated by 5% to INR 110 crores as compared to INR 114 crores in Q4 FY 2025. PAT margin for Q4 FY 2026 stood at 7% as compared to 7% in Q4 FY 2025. The net debt as on March 31, 2026 stood at negative INR 264 crores. That is cash positive. Working capital for FY 2026 stood at 99 days as compared to 112 days for FY 2025. Total order booked as of March 31, 2026 stood at INR 18,554 crores. The order booked in the area includes metro projects, elevated and underground, contributing 11%, elevated corridors and flyovers contributing to around 51%, road and tunnel projects contributing to around 18%, and others contributing around 20%. We can now begin with the questions and answers. Thank you very much.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Jainam Jain from DAM Capital. Please go ahead.
Thanks for the opportunity. My first question is, what is the current bid pipeline for this fiscal?
Bid pipeline.
Bid pipeline.
You said bid pipeline, right, Jainam?
Yeah.
Yeah. As mentioned by me, we have already bagged orders of INR 4,500 crores with an L1 of INR 1,770 crores, totaling to around INR 6,300 crore plus, taking our order book to around INR 25,000 crores approx. For this current year, we expect an order book close to around INR 9,000-INR 10,000 crores for the full year. There are projects worth around INR 15,000-INR 20,000 crores which we expect to bid in this coming period of current financial year.
Okay, sir. Are there any major opportunities which you are looking in Maharashtra this year in terms of bidding pipeline, especially for the metro segment or road upcoming projects?
Well, if you see, firstly, we have recently bagged an order of INR 1,770 crore which comes from the Delhi Metro, D207. There are tenders coming up of metro in Mumbai for Mumbai Metro Line 5, Mumbai Metro Line 14, Mumbai Metro Line 10, which is Bhayander to Bandra. There are a lot of metro opportunities which are available. Of course, yes, Bombay, Delhi, Pune, these areas they are coming up with metro projects, so we will be surely going for it. Overall, there is a very positive mindset for the infra projects because last two years were quite slack and we could see a big slowdown in terms of the order book coming in, and that is how we just booked an order book of only INR 1,000 crore for the current fiscal year. But in Q1 itself, we have bagged orders of more than INR 6,300 crore.
This year really looks to be quite positive, and that is how we are also very positive about it.
Okay. In terms of road, any opportunity?
Road per se is never J. Kumar's main area of focus. We basically look at expressway corridors, like even now there are some projects which are lined up where it's a combination of road and elevated combinations. That sort of project is what J. Kumar focuses into. In the near pipeline, we can see certain projects coming up in a similar way, like Pragati Shakti and some other MSRDC projects which are there. We are quite positive about it.
Okay. Sir, lastly on the working capital side. Can you give the amount for retention money, unbilled revenues, and mobilization advances?
Sure, sir. Unbilled revenue is INR 578 crore. Mobilization advance is INR 706 crore. Retention is INR 464 crore.
Okay, sir. That answers my question. Thank you so much and have a nice day.
Thank you, Jainam.
The next question comes from the line of Vaibhav Shah with JM Financial. Please go ahead.
Yeah. Sir, firstly on the guidance side, what kind of revenue growth and margins are we looking for FY 2027?
This year we are expecting a growth of around 15% in the top line. We should be crossing INR 6,500 crores with the current order book that we have and the projects which were little bit on the slower side. But now we have got approvals for them as well. 15% increase in top line and bottom line is what we are expecting.
Current margins?
Similar, 15% increase. Bottom line, I said.
No, no, EBITDA margins.
EBITDA we are around 14%- 15%, which as with the type of order books that we have, our endeavor would be to increase it from 14%, 15%- 15%, 16%, and the PAT would be around 7%.
Okay. And sir, given the flatten share we had on FY 2026 and a very strong order backlog, do you feel that 15% revenue guidance is a bit conservative and we can do even better?
There is possibility of doing better. But looking at last year's bad experience where we thought that we would get orders, but we could unfortunately not get it. I would say that surely there is a scope of showing some better results. But as of now, I would like to commit myself with a 15% increase in top line and bottom line. I would say that even last year, J. Kumar's policy, which we always never try to follow, that it was around INR 2,500 crore of order that we booked in 2024 and around 2025, I am sorry. And around only INR 1,000 crore order that we booked in 2026. That was not by any mistake or default. It was a well-chosen thing that orders where we do not have good bottom line.
That is how now the order that the company has bagged is with a similar margin and we do not want to book orders just for the heck of booking orders. That is how you can see last two years, we did not get orders at our prices, we let it. But now we have got orders at similar margins which is our target. So I think we are very comfortable that we will be able to cross this 15% top line growth. But as of now, we like to say 15%, my friend.
Okay. Sir, on CapEx, what are our plans for 2027?
So there are some CapEx which are still due for GMLR in Chennai. So there, and the incremental CapEx that we do every year. Around INR 200-INR 250 crore for the next coming two years, that is FY 2027 and FY 2028, is what we are expecting, including the incremental CapEx.
For FY 2027, it will be INR 200-INR 250.
Yeah.
Okay. And, sir, when do you-
Including the new order book that we have done of INR 6,500 crores.
Okay. And, sir, when do we expect these new orders to come on execution? If you could just say some update on that, regarding this Vadodara project, then on Versova-Bandra Sea Link and Lucknow project. When do we expect to start the execution over there?
I think from Q2 or Q3, we will be starting contributions coming up, because initial 6 months to 9 months, you have to do the preparatory work to join the soil investigation survey, geology, and design approvals and all that stuff. So by second to third quarter, we should start getting some contribution from these projects.
Okay. Sir, lastly, any update on the Chennai National Highways Authority of India project? How is the execution going on, and on GMLR as well?
Chennai, we have already started the work and our foundation and substructure work is there, which is in line. And the casting yard is fully operational, so we have already started casting our segment in the huge casting yard that we have developed. As far as GMLR is concerned, we have already casted more than 3.5 km of tunnels in our casting yard. And we have got some CUS also there of INR 300 crores, which is also for that. The new casting yard was required. That is also being developed. The molds have been ordered. The tunnel boring machine, the shaft is already excavated, which is a, I would say, a spectacular work being done by the GMLR team. And both the TBMs have arrived at the job site.
One TBM is already in an advanced stage of assembly, and we expect by June end, we will do the SAT, which is the Site Acceptance Test to start boring the tunnels. And the second machine-
We can see a-
One and a half month difference. Yeah.
We can see a 30% kind of execution for Chennai project, around 20% for GMLR in FY 2027 ballpark?
Yeah, around 20%-30% output we should be getting from both these projects.
Okay. Thank you, sir. Those were my questions.
Thank you very much, Vaibhav.
Thank you. The next question comes from the line of Parikshit Kandpal with HDFC Securities. Please go ahead.
Yeah. Hi, sir. Congratulations on a good quarter. My first question is, given the geopolitical issues, are we facing any slowness in execution in Q1? Do you expect any slowing down of work? I mean, client initiated slowdown in H1 because of high commodity prices.
Well, I would say that there is zero impact due to the geopolitical changes. These are, rather, I would say, at least for Maharashtra, there is a positive push that is happening from the Chief Minister's War Room, where each and every important project, the flagship projects, are being monitored on a fortnightly basis. The problem solution is becoming better. I am very positive about the whole change. There is no negative impact on any of the projects, I would say, from these changes. Everything is in pipeline, and it is not being EPC project. We do not have any implication in any sort.
Okay. Sir, some of the peers have highlighted that there has been a labor issue because of elections and a significant cut down. I mean, labors have not returned. What is our current site labor? How much it was at the peak? If you can give some color whether the delay in labors coming back has impacted execution. Also on the commodity side, if you can help us understand what kind of, in our order book, what is fixed price, what is variable pass through commodity price, and how are you mitigating that?
Well, Parikshit, firstly, about the labor issue, yes, you are totally correct. There is a cut of around 10%-15% of labor shortage is there at all our sites. This impact, I would say, is mainly due to the elections and these April and May months, which is every year we face this shortage. It is nothing new in the industry because it is the time where the labors go back to their home for marriages, for farming, and all other activities. This is a routine thing which happens every year without any change. It is a temporary issue and nothing alarming. That is from my side. Talking about the other thing. I am sorry, one more point you had made.
The commodity. On the commodity-
The commodity impact. All the contracts, without exception, are covered under price variation and escalation clauses. There is no particularistic impact on the price increase due to crude or any other steel prices or something. It is a regular increase, and it is fully covered under price variation and escalation clause. Zero impact on our bottom line.
Sir, in our order books, whenever there is a commodity increase, do you reprice the orders? How does it happen from the accounting side? How do you?
There is pre-pricing that happens, Parikshit. It is basically when you make your monthly running bill that we submit to the department. There is a one-time billing that has been done. Based on the milestones or quantities or whatever numbers, how the billing schedule has been distributed. At the bottom of it, the last month's bill, whatever the price variation and escalation is there, it has been added at the bottom. Added or deducted depending upon the increase and decrease. It is a clear pass-through, having no impact. Every month it has been generated along with the work done. A plus B. A is work done, B is the price variation. It has no implication.
Any price escalation change or plus or minus. The approving authority is usually the same guy who is approving your regular bills, or it gets escalated to higher authorities for further budget approval. If there is a major escalation, does it go back to the CM for approval? How does it happen at the back end?
It is just like a regular running bill. Even the budget that has been approved for any project, like if you take any project, for that there is an administrative approval, authority approval, or the government approval at state level. Wherever the approval happens, the budget is for the project, and there is a wording that increase for. In Marathi they say, means the price variation escalation. That point is written as an additional thing for which no approval is required even from the commissioner. It is regular, the engineer passing the bill approves it along with the monthly bill. The approval is excluding escalation.
Understood. This is to ask question on some of the key projects. I think CM has earlier announced Mumbai Metro Line 8, Gold Line, and Mumbai Metro Line 14. I think there was also talk of that Vikhroli to Kopar Khairane and Ghansoli connector, some large infra projects. Any timeline on how these projects are progressing in terms of getting awarded, whether in this financial year or next financial year, because these are large ticket size orders.
You missed one important project, which is Uttan-Virar.
Yeah. Uttan-Virar Sea Link also. My bad. Uttan-Virar Sea Link also is one project.
Yeah. It is not a metro corridor, it is an elevated corridor similar to MTHL and like Mumbai Coastal Road, because Mumbai Coastal Road has been awarded till Bhayander.
Yeah.
Dahisar-Bhayander is the last stretch. From Bhayander, which is also called as Uttan, from there this will go till Virar, and that elevated corridor tender will be floated by Mumbai Metropolitan Region Development Authority any time, like three to six months' time, is what we are expecting, as per the information we have gathered. Mumbai Metro Line 5, which is Sanjeev Saluja line, that project, Mumbai Metro Line 10, which is from Ghatkopar to Dahisar, and Mumbai Metro Line 13 and 14, these projects which is from Bhayander to Virar. These metro lines are in advanced stage, and we should see the tender process in the next three to six months time.
Okay. Any update on this Vikhroli to Kopar Khairane and Ghansoli connector? Is that happening or that is shut down?
Honestly, I am not very sure about that. I would not like to just make some false hope.
Okay. All these metro projects put together, how big is the pipeline for all these projects, five, 10, 13, 14, and Uttan-Virar?
We are talking of, if we talk of Uttan-Virar alone, it is more than INR 50,000- INR 60,000 crores. Altogether, INR 100,000 crores is what we should expect in this one year's timeline.
In one next 12 months, almost you are saying INR 1 lakh crore plus kind of awarding may happen from Maharashtra.
Yes.
Okay, sure.
That is only from Maharashtra I am talking of that.
Yeah. Only from Maharashtra, I know. I mean, other states also will contribute, but Maharashtra, you have a very significant market share, so just wanted to understand whatever you are guiding. I think this year you said INR 9,000-INR 10,000 crores of inflows, right? In your guidance.
Sir, honestly, when we speak of these projects, we are not even talking of Maharashtra whole as a per se, because it is in and around Mumbai, we are talking of around INR 100,000 crores.
Yeah. Your order guidance you said is about INR 9,000- INR 10,000 for this year, and you have already done close to about INR 6,300.
That's right. It's like, because we already had a very bad experience last two years.
Yeah.
J. Kumar Infraprojects is very pessimistic when it comes to margin. We don't want to bag orders without margin. We're very adamant sort of mindset, you can say, because we are working to earn money. If there are no margins, I just don't want to block my capacity and miss the good opportunity going forward. That's how we wait for two years, and we have hit an all-time high, lifetime high order book of INR 25,000 crores as we speak now. Going forward, we will do better than what we have committed, but as of now, I would just like to stick to INR 9,000-10,000 crores. We are going forward in Q2 to Q3, we can keep revising these figures. Yes, forget INR 9,000- INR 10,000 crores we'll cross this year.
Sure, sir. Thank you, sir, and wish you all the best.
Thank you, Parikshit.
The next question comes from the line of Girija Ray with Nirmal Bang Securities. Please go ahead.
Hello, sir. Good afternoon. Thanks for taking my question. I have three questions. One with regards to margin, second one is into cost efficiency management, and third one is with respect to your order book. Margin, we have been maintaining around 14% of margin. Even yearly the margin also we are sticking the margin 14%. I think this year there are 15% kind of margin we can see in FY 2027. In fact, you have mentioned, we have zero impact of the geopolitical incidents on checking material costs. I can see if I am not wrong, our construction cost as a percentage of our revenue has increased in our fourth quarter at 5.26%. Kind of pre-depreciation and pre.
Do you think this has impacted this, as you are mentioning it is no impact, but I can see there is a cost increase in the percentage of total revenue for us. How is that? What is factoring there?
Somehow I am not very clear about what is your question, because when I said that the geopolitical changes have increased the price of POL, diesel, the steel prices get impacted. There are certain increase in shipping costs, there is certain increase in implication on the steel prices. So those impacts are basically getting covered somewhere or the other, like our price escalation and variation clauses. It has four components: which is steel, cement, POL and others, and labor. So there are five parts, I would say. So in five parts, somewhere or the other, those items, they get covered. So, we have done this matrix of increase, decrease many a times, what is the actual increase and what is the percentage increase because we are being paid on the basis of indices. So the indices do not increase exactly proportionate to that.
It does not decrease proportionately to the actual increase or decrease. But when you see as a overall picture in the years time, even when there was steep price increase post-COVID, we thought that we will be putting a claim on the department for an additional increase on steel, increase in pricing of the steel. But when we tabulated the whole thing on a yearly basis, we found that there is no 0.5% here and there increase, which was really not even discussable. So we left that point. So there is no impact when I say for these contracts which are on EPC basis, having price variation and escalation clauses. Contracts which do not have this clause or which are on BOT, those projects are different. So this is irrelevant for us.
Yes, sir. Thank you very much. The last question will be on the order book. So if I see from 1st of April 2026 to 19th May 2026, the order book, this is what you are saying it is INR 6,000 crore of order inflow, new order inflow, right? Which is EPC project in Maharashtra, EPC project in Uttar Pradesh, then Metro rail and MPL.
MPL.
Yeah. So these are the, you are saying this is excluding our GST, right? INR 6,000 something you are saying.
Excluding GST. All the order book that we are discussing is without GST. INR 18,500 as till date in March was also excluding GST and INR 25,000 crores as of today, including the L1 of INR 1,770 that we speak of, is excluding GST.
Done. Thank you very much. All the best.
Thank you very much.
The next question comes from the line of Jahnvi Mishra with Green Portfolio. Please go ahead.
Hi. Good afternoon, sir. Actually, most of my questions have been answered broadly, but I would additionally like to ask that, sir, in previous call you had mentioned that the TBM capitalization machine is lowered into the shaft, which was expected around February end, and the useful life was guided at three to four years. Now that we're entering Q1 FY 2027, can you quantify the incremental quarterly depreciation impact once the GMLR TBMs become operational?
Firstly, I would like to clarify that we had not mentioned that the TBM would start in February. But you are partly right because we had mentioned we'll start lowering the machine in the shaft from February, which we have already started, Jahnvi. As I had mentioned, the machine is in advanced stage of assembly and by next month end, we'll start drilling. So the machine is running well on time and in fact, I would say before schedule, because it's just seven months we started the machine, which usually, as per the contract period also it was one year, and we are doing it in less than nine months, we are starting the machine. As far as depreciation is concerned, we will be doing as per the rules of income tax.
Depreciation will be as per books of accounts only. Only thing is this machine has been costed into the project.
What we would like to say is that the real depreciation would be more because this is a special machine where we have to amortize a majority of the portion on the project, but it will be depreciated as per the requirement of the book. So the profit and loss would be seen a little differently when you see the books.
Yes, sir. There is no number to quantify what would be the incremental value?
We will have to really work out that number, Jahnvi. We understand what you are saying. Within three years, we have to 2.5 years is what is our internal target as far as per contract I am entitled for four years. Our internal target is to complete the project in three, 3.5 years. The TBM would be amortized over these three years instead of, like when you see in the books, it will be as per the rule eight years or whatever it is. We will amortize it in three years with faster depreciation, if whatever is allowed in the books.
Okay, sir. Similarly, how would the finance costs look in coming quarters? Any incremental value?
The TBM installments that we are supposed to pay because we have taken a period of three years as a term loan for this huge machine, and we will be paying it and we will be booking it under expense.
Okay, sir.
Along with the progress of work, the TBM will be fully repaid.
Okay.
Once the tunnel is complete, the term loan will also be completed. We have an option to early repay the amount that we have kept with the banks, because we don't want to keep the loan outstanding and a headache to us for the coming years. We'll be fully repaying the machine along with the execution.
Okay, sir.
Thank you, Jahnvi.
Thank you.
Thank you, sir.
The next question comes from the line of Siddhant Lodaya with Sanshi Fund. Please go ahead.
Just a lifecycle question. When you say order book of INR 10,000 in FY 2027, is it the order intake or is it something you are envisaging that the order book would be at the end of the year?
No, it is new order intake.
New order intake.
INR 25,000 crores, you see a top-line reduction of INR 6,500 with zero order intake will also stand at around INR 19,000 crores.
Correct. This 10,000 includes the existing 4,500, right?
Yes.
Okay. Thank you.
6,300. 4,500 is the LOA that we have already received.
Correct. L1 at 700.
We should receive within 15 days to 30 days max. So additional over and above INR 6,300, around INR 3,700 crore is approximately INR 3,000 crore approx, is what we have to book more. It's our
Thank you.
Thank you.
The next question comes from the line of Nishit Jain with SNJ Investments. Please go ahead.
Yeah, good afternoon. Can you throw some light on the progress of Versova-Bandra Sea Link?
Versova-Bandra Coastal Road, Package D, which is from Goregaon, Bangur Nagar to Mindspace. From Mindspace, we have a long connector of 6, 7 kilometers that goes up till Chembur, connecting our GMLR project. The approvals of most of the portions have been received. There are some minor approvals that are required from the environmental issues. We have already started the mangrove cutting. We have done 10% mangrove cutting, but that mangroves have been cut in such a way that the temporary access bridge, which is called a TAP, the steel bridge through which we enter the sea. The material has already been procured, the labor contractor is in place, and we are starting the TAP work so that we can continue our work even in monsoon. Those works are already started.
We have already completed more than 100 piles, around 14, 15 foundations, around 7, 8 pillars has been casted. The work is started now and because it was earlier two years where mainly there were a lot of revisions in the alignment. Some additional variation will also be getting attracted because of these changes, positive variations. There were some level changes that they were hitting the Mumbai Metro Line 7 and Mumbai Metro Line 2A. All those things required an entire overhauling of the project alignment and levels. That has been done. Work has physically started. Foundation and substructure work have already started. Now it's in the proper alignment. Traffic permissions have also been okay. This year we should see a decent amount of top line coming in from that project as well.
Okay. This is more of a on-site work or for this even the casting yard set up and already is done and
These are all on-site jobs and casting yard is also under setup stage. Now we are setting up the casting yard as well.
Okay. Thank you so much.
Thank you, Nishit.
The next question comes from the line of Bhavin Modi from Anand Rathi Group. Please go ahead.
Hi, sir. Thank you for the opportunity. Just wanted to know how much money we have spent on the TBM and how much more CapEx we are going to do on TBM and how much we have paid and what is the loan amount that is, taken and what is the balance drawdown which is pending? If you can help with that.
Can we talk about these numbers separately because I wouldn't be very comfortable talking about the price of my TBM because this is a price-sensitive issue, but there is no additional major CapEx to be done with regards to TBM. TBM has already been procured. It has been financed, and we have paid part of the money. Around 10% is already repaid. There is no major impact. The 10% approximately has already been repaid out of that loan from the receivables and within a period of 2.5-3 years, what I earlier mentioned will be along with the progress of the work, it will be fully paid back.
Okay, got it. Second, sir, there was a tree cutting permission that was required for GMLR from RA. Has the approval been received?
Yes, we have received the 100% permission. It was not from RA, but it was from Supreme Court of India. As I've mentioned that the Chief Minister's War Room really supported us and the permission has been received. Tree cutting and transplantation is already completed, and that's how we have excavated the shaft and the cutting cover is also being executed. We are out of the tree issue totally. That too, we were done by December, so it's already in progress in a good speed.
Okay, got it. Thank you.
Thank you, Bhavin.
The next question comes from the line of Shravan Shah with Dolat Capital. Please go ahead.
Hi, sir. Thank you. Most of the questions have been answered. Just a couple of things to clarify. Sir, when we are saying that we are looking at a 15% revenue growth for this year, and given obviously the inflow most likely will be of more than INR 10,000 crore for this year. For next year, can we see even a higher rate, 18% plus kind of a rate? Because the FY 2026, whatever we have lost by INR 600 crore, because normally we are going at 15%, 16%. So to cover it up, that's the way one can look at?
You can look at that way, Shravan, but I wouldn't commit right now. I just want these things to start moving. Going forward Q2 or Q3, we'll be able to really comment on that. But yes, you are not wrong. In a way, one can look at in the way you are saying. Yes.
Yeah. Second, for this year, FY 2027, for 15% to achieve, so that means from Q1, from this quarter itself, we'll be seeing at least 10% + kind of a growth. Because when I'm looking at a number, at least it should be there. Else the second half, particularly third and fourth quarter, we need to have a 20% kind of a growth needed. Given what you have highlighted that whatever the geopolitics is there, it is not impacted on the margin front and on the execution, but just trying to get confidence again.
Well, I would say I'm not very sure about Q1. I wouldn't like to comment at this stage because honestly, I've not looked at the inflow as of now. But Q2 onwards, yes, you will be seeing this increase in the similar lines to achieve this 15% of line.
Okay. Got it. In terms of the inflow, you highlighted the opportunity INR 1 lakh crore. So the bigger projects, obviously it would be in the different strategies. Are there any particular specific projects, because now it is at three, six months that you are saying the tendering will come. Alone will be bidding, or have you already finalized if we want to have a kind of a GMLR, we can go with a JV also.
Shravan, this will be a project specific call depending on the size of the project and nature of the project. Wherever J. Kumar qualifies independently, surely we will be going independently. There are certain projects where joint venture will be required from financial or technical point. There, if joint venture is required, we will be going in JV. It will be a very project specific call. Generalizing it wouldn't be right from my side.
Yeah. No. My point, I was trying to understand that because we are already INR 6,300 crore inflow is there, I think we should be having at least INR 13,000-INR 15,000 crore kind of an inflow given the opportunity. As you are saying, the tendering most likely would be happening awarding. Though it may be a third quarter or fourth quarter, but that should be there. So we should not be minding even going for a INR 15,000 crore kind of an inflow.
If you remember, in 2024, Shravan, we had back orders worth around INR 11,000 crores. So it's not the capacity that the company, whether like we don't have a capacity to back orders more than INR 10,000 crore. I just want to be very realistic and a little bit on the safer side, because last two years we just made INR 2,500 and INR 1,000 crore which was much, much lower as compared to our expectation. That's how I just want to be very realistic of talking right now. As I said, that we have not even completed Q1 and we have back orders worth around INR 6,300 crores. But again, the question comes in where there are more of talks happening that these projects will come in three to six months or nine months or 12 months.
But if it slips, again, the timing these orders are placed and orders have been issued. Secondly, the quantum of work coming in together because depending on the aggression people have and the mentality that J. Kumar has, that we don't want to back orders without our margin. I'm very optimistic that, yes, we will cross INR 10,000 crores because I had mentioned when I started, I think I had mentioned INR 9,000 - INR 10,000 crores. But I'm sure that we will be able to cross this INR 10,000 mark even this year. Given an opportunity, we can even back INR 20,000 crores. So it is not that we are not realistic, that we have a mindset of staying at INR 10,000 crores. I hope this clarifies your question.
Yeah. Lastly, sir, this INR 100 crore investment that we have done, investment property in Vizag. Just wanted to get a clarity when we will be getting back by Q2 itself, and broadly, will it is kind of a INR 70 crore-INR 80 crore kind of a profit that we will be having on that?
I don't want to comment on the exact number that we will be making. To clarify, out of the INR 106 crore of the loan that we have taken for PSL, INR 90 crore has already been paid back by selling the plant and machinery as well as the internal accruals. Still the majority, the same amount is still pending, which is very close to looking at the high demand in that area of Chennai for new data center coming up. I think we should be able to make in Vizag, sorry. We expect a good profitability and ROI on this overall asset.
Broadly by Q2, this should be out of our balance sheet, whatever the INR 100 crore.
I would say it should be out.
Okay. Thank you, and all the best, sir.
Thank you so much.
A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Chandramouli Jagannath, an individual investor. Please go ahead.
Hello, sir. How is the Chennai flyover projects are going now, sir? Because why I am asking this question is there is a new government formation happened. I believe it is a state government project.
Well, the project is in advanced stage and my brother looked after that project, to be honest, so I just don't want to make any loose comments. But yes, the project is online, going on well, and I'll just say one thing. If a project is to be started, the change of government can have an impact, whether it can have some negative impact or not. But once the project is already started on the ground physically, and a substantial portion has already been completed, there is no negative impact that it can have or any government wouldn't like to, in the middle of the road, we have already dug and we have completed foundation, substructure and stuff like that, and you stop it. That I think, that's a very negative thing any changing political party can do.
Unless the project is not started, it can have an impact. But this project of INR 500 crore, there is no question of any impact that we can see from that area.
Okay. How is it progressing, sir? When you expect, how much time will it take to?
It's going on well. We have already completed 50% of the project progress in that project. So it's on time, and we are not delaying that project at all.
Okay. Sir, when it comes to our working capital, you have done a great job last financial year. Is there any further scope for improvement?
As we have mentioned that we expect to increase our EBITDA by 1%. That is from 14, 15% to 16% is what our endure is. Because if you look at our employee costs and other factors, it is still remaining with the same percentage. As an overall thing, I think we should be able to improve this going forward.
Okay. When you are talking about 15% top-line growth and also talking about 15% bottom-line growth, when there is efficiency and things like that comes in, the bottom line should go slightly above than the top line, right?
Exactly. You are very right, Chandramouliji. That is how we have mentioned that we expect in six to eight quarters, we should be able to further increase some basis point in terms of the EBITDA.
Okay. And sir, your valuation right now is so attractive compared to your EBITDA and the cash flow. Wouldn't you think of some buyback plans and things like that since you have a cash surplus? It would be great for you and us as shareholders, right?
Your point is well noted, and that is on our cards. Just waiting for some financial comfort that we need because if you see that even with the increase in the order book and top-line, we haven't increased our debts, but in fact, we have reduced our debts.
Okay.
Firstly, we are trying to cover up the financial requirements of the company. And yes, as you rightly mentioned, that is on our cards and we are very positively looking towards it.
Generally, this is just my humble request because more than giving a dividend buyback now, the taxes become little attractive for you guys as well as us. No? Maybe you can think of buyback. I mean, this is my suggestion, sir. Okay.
See, I will tell you one thing. Now, this paying dividend has been a historical thing of J. Kumar. So there was a discussion even in this board meeting that instead of paying the dividend, should we think of doing a buyback. But we thought that it is okay sharing 10% approximately of your bottom line. The investors should be benefited first. So the current benefit we did not want it to restrict. Otherwise, as I said, this was a discussion in our board meeting yesterday that we do the buyback and not pay dividend this year. So it was a double-sided sword. Some investors would not like it, and some investors would see it as a positive change because the stock market prices would go on a positive side. But we decided to go with paying with the dividend. But going forward, this is on our cards.
Okay. Thank you, sir. Thanks a lot. Thank you. Done for me.
Thank you, sir.
Thank you. The next question comes from the line of Vaibhav Shah with JM Financial. Please go ahead.
Yeah. Thanks for the follow-up. Just one question on depreciation. It was around INR 66 crore in Q4, which was a sizable jump from roughly INR 40 crore-INR 45 crore quarterly trend. How would you see it going forward?
Going forward it will be more or less on the same line because if you see in FY 2025, we have made CapEx of about INR 280 crore and in current year we have done CapEx of about INR 400 crore. So in last two years if you see INR 600 crore CapEx has been done. So going ahead it will be little bit elevated to a certain extent.
Capital requirement of INR 65 crore should be a required number now.
Yes, correct.
Okay. Thank you.
Thank you, Vaibhav.
The next question comes from the line of Dinesh with Kirti Creation. Please go ahead. Dinesh, please go ahead with your question. Unmute your line. Dinesh, are you there?
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Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Dr. Nalin Gupta for the closing comments.
Thank you everyone. We remain committed to discipline execution, agility in dynamic market environment and delivering transformative infrastructure projects that support economic progress at scale. Backed by the strength of our people and a clear strategic vision, I am confident that the year ahead will mark the beginning of a stronger growth trajectory and create lasting value for all the stakeholders. Please feel free to reach out to our IR team for any clarifications or feedback. Thank you everyone and have a great day.
Thank you, sir. On behalf of J. Kumar Infraprojects Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.