At a Glance
J Kumar Infraprojects (JKIL) continues to dig tunnels and stack profits like a seasoned mole in Q1 FY26. Revenue climbed to ₹1,484 Cr (+16% YoY), while PAT rose 19% YoY to ₹103 Cr. The stock trades at ₹706 (P/E 13.1), with a monstrous order book of ₹20,946 Cr – nearly 4x its annual revenue. Margins held steady at 15%, making JKIL a rare infra player that doesn’t need subsidies to survive.
1. Introduction
When your business is building metros in India, you’re basically the unsung hero of every frustrated commuter. JKIL has mastered this niche, being among the top five EPC companies qualified to undertake underground metro projects. Despite high contingent liabilities (₹2,812 Cr) and cost of borrowing that could buy a small island, it keeps delivering profits and growth.
2. Business Model (WTF Do They Even Do?)
- Core Focus: EPC contracts – metros (both underground & elevated), roads, flyovers, bridges, and irrigation works.
- USP: Expertise in underground metro projects, a high-barrier niche with fewer competitors.
- Execution: Turnkey – from design to delivery.
- Revenue Source: 90% from government metro & infra contracts.
3. Financials Overview
Q1 FY26 Performance:
- Revenue: ₹1,479 Cr (+15.4% YoY)
- EBITDA: ₹216 Cr (OPM 15%)
- PAT: ₹103 Cr (+19% YoY)
- EPS: ₹13.6
FY25 Recap:
- Revenue: ₹5,693 Cr
- PAT: ₹390 Cr
- EPS: ₹51.6
Solid growth trajectory despite industry headwinds.
4. Valuation
- P/E: 13.1 (cheap for the growth on offer)
- P/B: 1.77 (reasonable for infra)
- EV/EBITDA: ~7x (attractive vs peers)
Fair Value Range: ₹750–₹850, factoring in strong order visibility and execution record.
5. What’s Cooking – News, Triggers, Drama
- Order Book: ₹20,946 Cr – assures revenue visibility for 3–4 years.
- Dividend: 4% proposed for FY25.
- Metro Mania: Continues to bag metro contracts across Mumbai, Delhi, and other Tier-1 cities.
- Risks: High contingent liabilities, interest costs.
6. Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 4,356 | 4,708 | 5,612 |
| Liabilities | 2,016 | 2,066 | 2,607 |
| Net Worth | 2,340 | 2,604 | 2,967 |
| Borrowings | 547 | 593 | 673 |
Comment: Balance sheet shows moderate leverage but well-supported by cash flows.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 183 | 337 | 375 |
| Investing | -186 | -193 | -306 |
| Financing | -43 | -105 | -105 |
Remark: Strong operating cash flow but heavy capex eats a chunk.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 13% | 14% | 13.8% |
| ROCE | 17% | 18% | 20% |
| PAT Margin | 7% | 7% | 7% |
| D/E | 0.23 | 0.23 | 0.25 |
Verdict: Ratios show healthy profitability with manageable debt.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 4,203 | 4,879 | 5,693 |
| EBITDA | 597 | 704 | 826 |
| PAT | 274 | 329 | 390 |
Comment: Consistent growth, unlike many infra peers who live off arbitration claims.
10. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| L&T | 2,64,294 | 15,544 | 31 |
| RVNL | 19,923 | 1,281 | 58 |
| IRCON | 10,760 | 727 | 24 |
| J Kumar Infra | 5,891 | 407 | 13 |
Verdict: Undervalued compared to peers with similar growth potential.
11. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 46.6%
- FIIs: 12.6% (increasing)
- DIIs: 15.4%
- Public: 25.3%
12. EduInvesting Verdict™
JKIL is the underground metro king – strong order book, consistent margins, and clean execution record. Unlike many infra players that struggle with cash flow, JKIL manages to generate positive operating cash consistently. Sure, there are risks – high contingent liabilities and rising interest costs – but the growth story remains intact.
SWOT Analysis
- Strengths: Niche expertise in metros, strong order book, good margins.
- Weaknesses: Interest costs, contingent liabilities.
- Opportunities: Metro expansion in Indian cities, EPC diversification.
- Threats: Policy delays, input cost escalation.
For investors, JKIL is like a tunnel – dark at first, but with light (profits) at the end.
Written by EduInvesting Team | 29 July 2025
SEO Tags: J Kumar Infra, Q1 FY26, Metro Projects, Infrastructure Stocks
