J. Kumar Infraprojects Limited (JKIL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the J. Kumar Infraprojects Limited Q2 and H1 FY '26 Earnings Conference Call. [Operator Instructions] Before we begin, a brief disclaimer. The presentation which J. Kumar Infraprojects has uploaded on the stock exchange and 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. I now hand the conference over to Mr. Kamal Gupta, MD at J. Kumar Infraprojects Limited. Thank you, and over to you, sir.

Yes. Good afternoon, everyone. This is Kamal Gupta. On behalf of J. Kumar Infraprojects Limited, I warmly welcome you all to our Q2 and H1 FY '26 earnings conference call. Joining me today are Nalin Gupta, Managing Director; Mr. Vasant Savla, Chief Finance Officer; and our Investor Relations partner, Mahaton Capital. I trust you all had the opportunity to review our earnings presentation and press release available on the stock exchanges and our corporate website. As we close the first half of FY 2026, I'm encouraged by the steady progress we have made and the resilience our team has continued to demonstrate. Despite a heavy and extended monsoon, this has been a period of balanced performance, one that has strengthened the foundation for a stronger second half and for the years ahead. Our order book remains solid. Execution velocity is improving and our capabilities across key verticals continue to evolve. In a demanding and highly competitive industry, our continued success is a direct reflection of our resilience, agility and engineering excellence that defines J. Kumar. Where others see complexity, we see opportunity. Technically demanding first-of-their-kind projects are not obstacles. They are catalysts that push us to innovate, adapt and lead. Our proven ability to consistently qualify for, win and execute landmark projects speaks volumes about the strength of our technical team and our organizational depth. With the strength of our people and the clarity of our vision, I'm confident that the best chapters of our growth story are still ahead. Now coming to the financial performance. The consolidated performance highlights for H1 FY '26 are the revenue from operations for H1 '26 grew by 10% to INR 2,826 crores as compared to INR 2,574 crores of the preceding year. The operating margin for H1 '26 grew by 10% to INR 411 crores as compared to INR 373 crores in H1 of previous year, and the EBITDA margin stood at 14.6% as compared to 14.5% in H1 of the previous year. PAT for H1 grew by 10% to INR 195 crores as compared to INR 177 crores in H1 of '25 and the PAT margin stood at 6.9%. Total order book as on 30 September '25 stood at INR 2,160 crores. The order book includes metro projects contributing around 13%, elevated corridors, flyover contributing around 53%, road and tunnel projects contributing around 17% and other building and civil works contributing around 17%. We can now begin the question and answers. Thank you.

[Operator Instructions] The first question is from the line of Aditya Sen from Findoc.

Hope I am audible.

Yes.

So the first question is about the order inflows. Can you throw some light on the quantum of orders that is in the advanced stages in the L1? And will we be able to sustain our target of approximately INR 4,000 crores to INR 5,000 of inflow for the financial year? And are we seeing any headwinds in terms of -- industry-level headwinds in terms of order inflow?

So Aditya, we have already secured around like INR 150 crores of projects. And we are L1 in INR 1,200 crores of a convention center in Lucknow. So we are expecting these orders very soon. And of course, we are very confident of like the inflow of around INR 5,000 crores to INR 6,000 crores of projects in FY '26. So like ensuring that we have a closing order book of around INR 22,000 crores, INR 23,000 crores by March '26, yes.

All right. And sir, rather a macro-level question that there's no industry-level headwind that we are seeing. Is that correct?

No, no, no. We don't see...

All right. And there was some decline in the execution. That's aisle. So was that because of the extended monsoon or were there some other reasons for this?

Yes. So if you see the monsoon this year has started early and like October is impact, the rains that affected this thing, top line of the nations for this. That was the main reason. But overall, you can see there is a growth of around 10%, 11% in H1.

The next question is from the line of Devakar Rana from Prudent Equity.

Sir, my first question on the growth part only. So sir, are you maintaining the 15% growth guidance for FY '26?

We are expecting a growth of -- we had given a guidance of around INR 6,500 crores in our previous call. So we would say that still we'll be driving our best efforts to achieve that, but we expect that we should surely be able to achieve a target of around INR 6,200 crores to INR 6,300 crores, looking at the current situation of H1. So -- but still, it will be a growth of around 11% on the overall year-on-year basis.

It will be around 10%.

Around 11% on a year-on-year basis.

So this is because of the bad Q2, right, the growth?

Because as you would appreciate that usually the Q2s are the lowest quarter of the year. And in this year, we had a much heavy rainfall as compared to with the early start and getting extended till October end. So because of that, the execution because it's totally on the job side, it's not a factory-based execution. So it has an implication on the top line. But we will be trying our best how we can cover up the growth in the top line in this coming H2.

Okay. And sir, what is the total amount of orders that we have bagged in H1 of this financial year?

As we answered before, it was around INR 150 crores of orders that we have bagged in H1 till now. And there is around INR 1,200 crores of order which we have recently we are L1 last week. So -- and there are some orders that we are bidding even today, we are submitting a bid. So we are very hopeful that we should be able to achieve a target close to like INR 5,000 crores to INR 6,000 crores order book by the end of this closing year.

Okay. So because the -- for EPC companies, the orders has been slowed in last financial year. So assuming...

I deny that Mr. Diwakar, so I would -- I'm with you on that. So there is some slowdown, but still working pan-India in 7 states, we are still hopeful that we should be able to bag orders of around INR 5,000 crores to INR 6,000 crores in this year closing.

Okay, sir. Okay. And sir, this -- how much money you plan to raise in this QIP?

So QIP is just an enabling resolution that we are taking approval of, but we will take this call when the appropriate time comes and looking at the market situation. So I would say this is like it would be a little premature for me to reply.

We are expecting some new big orders. So like at that time, probably we'll go for it.

Okay. So as of now, there are no plans. It is just a resolution. I think you passed it last year also, right, in FY '23.

We passed it last year also. So it is just an enabling resolution to continue that, being in preparedness, depending upon the order book and the requirements that the company has. So as of now, no immediate plans.

So let's say, if you get an inflow of INR 5,000 crores to INR 600 crores, you will go for a QIP. Otherwise, you will not be.

It all depends upon the nature of work that we bag whether how CapEx oriented it is, what is the working capital requirement. So it is a very -- it's a very dependable discussion. But yes, we are keeping ourselves in preparedness to be ready for it, but with no immediate plans to be precise.

Okay. Just 2 more questions on the balance sheet part only. So there is a CWIP of INR 292 crores in this quarter, yes. So can you explain the nature of this?

So basically, majority of it comes in from the GMLR tunnel pouring machine that J. Kumar has purchased. The TBM is -- as we had explained and clarified during the earlier calls as well that we have purchased 2 tunnel pouring machines, in our books and one in NCC. So J. Kumar's TBM has already reached the job site. And that's how that CapEx figure has gone up.

So it is actually under assembling right now. So once it is assembled and put to you, it will be capitalized.

So there is a cash outflow of around INR 385 crores. So this is completely pertaining to this TBM? No, no, there is a cash flow statement. Yes.

No, no. INR 385 crores is not fully for this because it is partly on a deferred credit basis.

The next question is from the line of Dhananjay Mishra from Sunidhi Securities.

So just wanted to know as you are maintaining this INR 5,000 crore order inflow. So can you tell what is the bid pipeline and which all orders are expected to be finalized in this financial year?

So like recently, today, we'll be submitting a bid for a BMC flyover and also a River Bridge. So that is around INR 2,250 crores approx, which will be submitted today by the end of the day. Again, Delhi Metro has come up, which for a project of metro, which is around INR 2,500 crores, which we will be submitting the bid date will be somewhere by the end of this month. So that is one tender again of INR 3,000 crores approx that we'll be submitting. And there are various flyers, elevated corridors and some water projects, water tunnel projects. we are expecting. So altogether around INR 20,000 crores, INR 25,000 crores worth of projects is what we are expecting to bid in H2.

Okay. So these are our first bid you are going to submit. And as on today, any bid already submitted, which has to be finalized?

Yes. So there are -- as we have told, we are L1 in one of them in the INR 1,200 crore project. And the bids submit. INR 2,000 crores worth of project is what we have submitted, and we are expecting -- we are waiting for the outcome of it.

And also this working capital, we have seen slight improvement in H1. So how do you see it going ahead or closing basis, closing basis, how do you see working capital...

So working capital will be at more or less this level or maybe another INR 50 crores here and there. So if you see in financial year '25, it was INR 696 crores and now it is INR 775 crores. So more or less, it will be around this range, INR 800 crores or so.

And we intend to maintain a working capital of like 120 to 130 days.

Okay. And lastly, your CapEx till date and full-year CapEx target.

So CapEx for H1 is, as already mentioned before, INR 398 crores. And as we have been saying like we require around INR 100 crores of maintenance CapEx every year. And for these 2 projects of GMLR and Chennai, we intend to do a CapEx of INR 500 crores in 2 years. So let's say, INR 400 crores we have done this year, so around 2 years next year. So like the couple of projects of new like [ VDCR ], GMLR and Chennai.

So overall CapEx for this year will be closer to INR 500 crores, including this INR 100 crores.

Correct, correct, correct.

And next year, it may be about INR 350 crores.

No, next year will be around INR 200 crores.

The next question is from the line of Vaibhav Shah from JM Financial.

Yes. Sir, I wanted to get an update on a few of the big-ticket projects. So how is the execution going on in Chennai Elevated Corridor Project?

So Chennai Elevated is going on full swing. The casting yard is fully operational and like the segments are going on well. The foundations piling like we have completed around 40%, 45% of the piles and the substructure -- everything is like it is in swing. So there is no hindrance as such. Apart from the monsoon, like Chennai has some extended monsoon of like South November and December, this October, November, December, so it is there. So -- but the work apart from the reverse portion, we are doing on land. So the yard, precast yards and all you can go ahead, no problem. So the work is going in full swing in Chennai.

Sir, broadly, what would have -- how much would have been executed already?

Sorry?

Chennai. Speaker 7 How much high in Chennai?

Individually, I may not have the figure right now, but like people will pass on you the figures. No worries, Mr. Vaibhav.

Okay. Okay. Sir, secondly, the projects that we have won recently in the last 12-odd months, so have execution started in those projects like CIDCO project of INR 1,000 crores and MMRDA project we won last year in August. So in those project execution has started? And also on NBCC, couple of projects?

Yes. So CIDCO, the INR 1,020 crores project, that has not started yet. We are just awaiting for the environmental clearances, which is expected in this month only November. So I expect it to start by next month. MMRD project of Anand Nagar-Saket, which is INR 1,800 crores has already started full swing and the revenue has started pulling in. The piling has started, pile caps have started so all this work already started in MMRD project. The NBCC project of Silicon Valley in Noida, even that has started in full swing and the revenue has started pulling in from that as well.

And VCDR -- also our GMLR project of the tunneling that we are doing, the TBM has reached the job site. We have already casted more than around close to 700 rings that we have already casted at the casting yard and also the excavation of the main shaft that's required to lower the TBM for driving it inside has also been happening on a regular basis on a full swing. So we have already done the tree cutting and the excavation is going on in full swing. So the project is in proper control now as we speak.

So in the Gurgaon GMLR project, so can we expect somewhere around 20% execution in the current year?

So we cannot give you that exact number. But in the current year, we are only talking of like 4 months has been balanced, so 4 to 5 months. So in this 20% will be too optimistic, I would feel. But yes, the work because the main revenue comes in when the tunneling starts. So as of now, expecting that huge figure would be unpractical, I would feel. But from the next year onwards, there will be a substantial revenue that should be contributing to the top line.

The next question is from the line of Aditya Sahoo from HDFC Securities. I...

Hi Sir, am I audible?

Yes, Mr Aditya.

I just wanted to get an update on the margin guidance. What are we guiding for the FY '26 in terms of EBITDA margin?

In H1 also, as you must have seen, we have done an EBITDA margin of 14.6%. So we'll be able to maintain this 14% to 15% of margin in this year as well. There's absolutely no issues. And going forward also, we are intending to go 1% notch higher and trying to do it like 15% to 16% in coming 2 years. Also, if you see the PAT, which is around 7%, we'll be able to maintain that as well.

Okay. So more or less, we are maintaining our guidance on the revenue, EBITDA and the PAT margin guidance that we had given in the Q1?

Absolutely. Absolutely, 100%. some secured order book what we have Aditya, which are with the secured margins.

Right, sir. Understood. In the TBM, you have mentioned that the TBMs are in place. So I hope -- I mean, we are not expecting any more CapEx on the TBM front at least? Or are we expecting any more CapEx on that front?

No. So as I mentioned, the TBM is already here, and we have paid part of the money and the money is on deferred payment system because we have taken a term loan on it. So there is no major -- other than some small ancillary equipment, there is no major CapEx as such, which is expected.

Okay. So whatever CapEx that we are planning of about INR 500-odd crores, including the INR 100 crore maintenance CapEx, that is going to be ex of all TBM in terms of...

Yes. Because the other TBM will be in the books of NCC. Our part is more or less done, you can say.