1 week ago
Axis Securities Picks Three Infrastructure Stocks After Mixed Q1 Results
Infrastructure companies had a mixed first quarter in FY27.
Road companies saw their revenue fall compared with the same period last year.
Their profits rose sharply, partly because some companies reported special one-time items.
Non-road infrastructure companies generally performed better because they completed projects steadily.
Axis Securities selected Kalpataru Projects International, RITES and GR Infraprojects as its preferred stocks.
Kalpataru has a large order book across several infrastructure businesses.
RITES won many new orders and expects more export work.
GR Infraprojects has projects in roads, railways, transmission, telecom and tunnels.
The brokerage believes these companies can grow because they have substantial future work and strong finances.
Axis Securities reported a 3% year-on-year revenue decline among covered road infrastructure companies in Q1FY27.
EBITDA increased 6% year on year, while PAT rose 47%, partly aided by exceptional items.
Kalpataru Projects International retained a Buy rating with a ₹1,500 target price.
RITES retained a Buy rating with a ₹250 target price after securing 128 orders worth ₹674 crore.
GR Infraprojects retained a Buy rating with a ₹1,020 target price and an order book of ₹25,319 crore.
- Who
- Axis Securities and the infrastructure companies it covers, particularly Kalpataru Projects International, RITES and GR Infraprojects.
- What
- The brokerage identified three infrastructure stocks as top conviction picks after reviewing Q1FY27 results.
- Where
- The companies operate across infrastructure projects including roads, railways, transmission, buildings, water, telecom and tunnels.
- When
- The assessment concerns Q1FY27 results, with order-book figures reported as of 30 June 2026.
- Why
- Axis Securities cited strong order books, project pipelines, revenue visibility, execution prospects and financial strength.
Key facts
- Road infrastructure revenue
- Revenue declined 3% year on year in Q1FY27, versus Axis Securities’ forecast of 1% growth.
- Road infrastructure EBITDA
- EBITDA rose 6% year on year, below the brokerage’s 9% estimate.
- Road infrastructure PAT
- PAT increased 47% year on year, compared with the brokerage’s 10% expectation.
- Kalpataru order book
- ₹66,607 crore as of 30 June 2026, plus an additional L1 pipeline of ₹7,500 crore.
- RITES order book
- ₹9,450 crore after securing 128 new orders worth ₹674 crore in Q1FY27.
- GR Infraprojects order book
- ₹25,319 crore as of 30 June, covering highways, roads, railways, transmission, telecom and tunnels.
- Recommended stocks
- Kalpataru Projects International, RITES and GR Infraprojects, each with a Buy recommendation.
Sources
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