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Axis Securities keeps Buy calls on Kalpataru, RITES, GR Infraprojects
In Q1 FY27, the brokerage said road infrastructure firms saw revenues fall 3% year over year but PAT jump 47%, even as EBITDA and adjusted margins lagged expectations.
LiveMint Markets reports that Axis Securities maintained “Buy” recommendations on infrastructure names Kalpataru Projects International, RITES, and GR Infraprojects after reviewing their Q1 FY27 performance.
According to the brokerage, road infrastructure companies under its coverage posted a 3% year on year decline in revenue, after Axis expected 1% growth, citing slower project execution at HG Infra Engineering. EBITDA rose 6% year on year, but came in below Axis’s 9% estimate, while PAT surged 47% year on year, beating the brokerage’s 10% growth expectation.
Axis Securities attributed margin strength in part to exceptional items, saying EBITDA margin was 14.7% in Q1 FY27 versus its estimates of 11.5% and 10.3% in Q4 FY26, with adjusted margins still below expectations. The brokerage also said non-road infrastructure firms delivered stronger growth, supported by healthy execution and robust order books.
For Kalpataru Projects International specifically, Axis retained its “Buy” rating and set a target price of ₹1,500. The brokerage cited an order book of ₹66,607 crore as of June 30, 2026, plus an additional L1 pipeline of ₹7,500 crore, and expects the company to deliver 15% revenue CAGR over FY26 to FY28E.