Kalpataru Projects, RITES & GR Infraprojects in Focus: Axis Securities Highlights Infra Stocks After Q1FY27

Infrastructure Stocks in Focus: Kalpataru Projects, RITES & GR Infraprojects

Indian infrastructure companies delivered a mixed performance during Q1 FY27, with revenue growth remaining under pressure in some road infrastructure businesses.

According to Axis Securities, companies under its road infrastructure coverage recorded a 3% year-on-year decline in revenue, compared with its expectation of 1% growth.

However, profitability remained stronger, with EBITDA increasing 6% YoY and PAT rising 47% YoY. The brokerage also highlighted stronger execution and healthy order books among several non-road infrastructure companies.

Three companies highlighted by Axis Securities are Kalpataru Projects International, RITES and GR Infraprojects.

Infrastructure Sector Outlook

The Q1FY27 performance was mixed across the infrastructure space.

Road infrastructure companies faced slower execution in some projects, while several non-road infrastructure businesses benefited from strong order inflows and healthy project pipelines.

Axis Securities expects companies with strong order books, diversified operations and improving execution to have better revenue visibility over the coming years.

Kalpataru Projects International

Kalpataru Projects International remains one of Axis Securities' key infrastructure stocks.

The company had an order book of approximately ₹66,607 crore as of June 30, 2026, along with an additional L1 pipeline of around ₹7,500 crore.

Its order book is diversified across

• Transmission and distribution
• Buildings and factories
• Water infrastructure
• Oil and gas
• Railways
• Urban infrastructure

Axis Securities expects Kalpataru Projects to deliver approximately 15% revenue CAGR between FY26 and FY28E.

The company also recorded order inflows of more than ₹2,800 crore in the Buildings & Factories segment during Q1FY27.

Improving execution in the Oil & Gas business and a growing contribution from higher-margin segments could support profitability.

RITES

RITES has also been highlighted by Axis Securities following its Q1FY27 performance.

The company secured 128 new orders worth ₹674 crore during the quarter, taking its order book to a record ₹9,450 crore.

The business has a mix of turnkey projects and consultancy assignments, providing diversification across its revenue streams.

Axis Securities expects export execution to improve from Q2FY27, including the ₹900 crore Bangladesh coach order.

The brokerage estimates a 17% revenue CAGR between FY26 and FY28E, supported by faster turnkey execution and continued consultancy revenue.

GR Infraprojects

GR Infraprojects is another infrastructure company highlighted by Axis Securities.

The company had an order book of approximately ₹25,319 crore as of June 30, 2026, covering highways, roads, railways, transmission, telecom and tunnel projects.

This order book provides revenue visibility for approximately 24–36 months, according to the brokerage.

Management has guided for 15%–20% revenue growth in FY27, with revenue expected to reach approximately ₹11,000–₹12,000 crore by FY28.

Axis Securities expects revenue, EBITDA and PAT to grow at CAGRs of approximately 17%, 10% and 11%, respectively, between FY26 and FY28E.

The company has also set an ambitious FY27 order inflow target of ₹20,000–₹22,000 crore.

Its balance sheet remains relatively strong, with borrowings of approximately ₹239 crore and a debt-to-equity ratio of 0.03x.

Key Infrastructure Metrics

Kalpataru Projects International

Order book: ₹66,607 crore

L1 pipeline: ₹7,500 crore

FY26–FY28E revenue CAGR: 15%

RITES

Order book: ₹9,450 crore

Q1FY27 new orders: ₹674 crore

FY26–FY28E revenue CAGR: 17%

GR Infraprojects

Order book: ₹25,319 crore

FY27 order inflow target: ₹20,000–₹22,000 crore

FY27 revenue growth guidance: 15%–20%

What to Watch

Investors and market participants tracking the infrastructure sector can monitor

• New order inflows
• Project execution
• Order-book conversion
• Revenue growth
• EBITDA margins
• Government infrastructure spending
• Debt levels
• Export project execution

The ability of these companies to convert their existing order books into revenue will remain an important factor for future performance.

Key Takeaways

Kalpataru Projects International, RITES and GR Infraprojects are among the infrastructure companies highlighted by Axis Securities following Q1FY27 results.

Kalpataru Projects has a large and diversified order book, while RITES continues to benefit from strong order inflows and its consultancy business.

GR Infraprojects has a sizeable order book, a diversified project pipeline and relatively low leverage.

The infrastructure sector's future performance will depend heavily on project execution, fresh order inflows, margins and government spending.

The figures and views presented in this article are based on the information attributed to Axis Securities and are provided for educational purposes.

Disclaimer

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