K2 Infragen Limited (K2INFRA)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, K2 Infragen's revenue was ₹94.0 Cr (-1.1% year on year, +3.3% on the previous half-year), and net profit ₹6.0 Cr (-14.3% year on year); the operating margin was 9.6%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹94.0 | -1.1% | +3.3% |
| Operating profit | ₹9.0 | -18.2% | -35.7% |
| Net profit | ₹6.0 | -14.3% | -14.3% |
| EPS (₹) | 4.83 | -17.0% | -15.7% |
| Operating margin | 9.6% | — | — |
K2INFRA delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 87.5% of the K2INFRA shares traded on NSE were taken to delivery, against the stock's own 20-session average of 83.22%. That is close to its usual level. Turnover was only ₹2 lakh, so a handful of trades can move this figure. Volume was 0.2 times its average, well below normal.
Delivery in the last 5 sessions: 84.6% · 71.4% · 72.7% · 64.7% · 87.5%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Promoter and Non-Executive Director Rajesh Tiwari acquired 27,600 equity shares of K2 Infragen Limited via open market purchase on September 28, 2026. The transaction was valued at approximately ₹11,89,680 (around ₹43.10 per share). Following this acquisition, his holding increased from 6,85,460 shares (5.4322%) to 7,13,060 shares (5.6510%). Against a market cap of ₹55 Cr, this purchase represents a modest ~0.02% of the company's valuation.
- Rajesh Tiwari acquired 27,600 equity shares via open market on 28-09-2026
- Total transaction value stood at ₹11,89,680.00
- Individual shareholding increased from 5.4322% (6,85,460 shares) to 5.6510% (7,13,060 shares)
- Transaction took place on the NSE Emerge platform
K2 Infragen Limited has informed the exchanges that its management will participate in the Arihant Capital - Bharat Connect Conference on September 25, 2026, at 11:00 AM IST via virtual mode. The company noted that only publicly available information will be discussed and no unpublished price sensitive information (UPSI) will be shared. This represents a routine investor interaction for the small-cap infrastructure engineering firm (Market Cap: ₹55 Cr).
- Investor meeting scheduled for September 25, 2026, at 11:00 AM IST
- Conducted virtually at the Arihant Capital - Bharat Connect Conference
- No Unpublished Price Sensitive Information (UPSI) to be discussed
K2 Infragen Limited has issued the notice for its 11th Annual General Meeting (AGM) scheduled for September 29, 2026. Key special resolutions include seeking shareholder approval to enhance borrowing limits under Section 180(1)(c) up to ₹500 crore (relative to current debt of ₹105 crore and net worth of ₹90 crore) and a corresponding limit for creating security on assets under Section 180(1)(a). The e-voting cut-off date is set for September 22, 2026, with the remote voting period spanning September 26 to September 28, 2026.
- 11th AGM scheduled for Tuesday, September 29, 2026, via Video Conferencing.
- Proposed special resolution to enhance borrowing limits under Section 180(1)(c) up to ₹500 crore.
- Proposed special resolution to create charges/security under Section 180(1)(a) up to ₹500 crore.
- Remote e-voting window runs from September 26, 2026 (9:00 AM) to September 28, 2026 (5:00 PM) with cut-off on September 22, 2026.
- Cost auditor remuneration proposed at ₹2,00,000 for FY 2026-27.
K2 Infragen Limited has approved the acquisition of an additional 30.53% equity stake in its subsidiary, K2 Nextgen Solutions Private Limited, for a cash consideration of ₹22,89,750 (₹15 per share for 1,52,650 shares). Following this transaction, K2 Nextgen Solutions will become a wholly owned subsidiary (100% ownership). The target operates in the Information Technology sector and reported revenue of ₹56.82 lakh in FY26, making the financial impact immaterial relative to K2 Infragen's TTM revenue of ₹331 Cr.
- Acquiring 30.53% stake (1,52,650 equity shares) at ₹15 per share for ₹22,89,750
- Shareholding in K2 Nextgen Solutions to increase from 69.47% to 100.00%
- Target recorded FY26 revenue of ₹56.82 lakh (vs ₹34.78 lakh in FY25 and ₹25.16 lakh in FY24)
- Transaction is on an arm's-length basis with promoter group interest and expected to close within 3 months
K2 Infragen Limited has informed the exchange that Mr. Naresh Kumar has resigned from his position as Executive Director, effective from the close of business hours on September 2, 2026. The resignation was attributed to personal reasons and other professional commitments. Following his departure, he also ceases to be a member of the Executive Committee and other Board committees.
- Mr. Naresh Kumar resigned as Executive Director effective close of business hours on September 2, 2026
- Ceased to be a member of the Executive Committee and all other Board committees
- Reason provided: Personal reasons and other professional commitments
K2 Infragen's Board approved the acquisition of an additional 30.53% stake (1,52,650 shares) in subsidiary K2 Nextgen Solutions Private Limited for ₹22.90 lakh (at ₹15/share), making it a 100% wholly-owned subsidiary. The target entity operates in Information & Technology and reported FY26 revenue of ₹56.82 lakh. In addition, Executive Director Naresh Kumar resigned effective September 2, 2026, citing personal reasons and professional commitments. The 11th Annual General Meeting has been scheduled for September 29, 2026.
- Acquisition of 1,52,650 equity shares (30.53% stake) in K2 Nextgen Solutions for ₹22,89,750
- Post-transaction, K2 Nextgen Solutions becomes a 100% Wholly Owned Subsidiary
- Target entity FY26 revenue stood at ₹56.82 lakh (vs ₹34.78 lakh in FY25 and ₹25.16 lakh in FY24)
- Resignation of Executive Director Naresh Kumar effective September 02, 2026
- 11th AGM scheduled for September 29, 2026, with cut-off date of September 22, 2026
K2 Infragen Limited disclosed an open-market share purchase by Promoter-Managing Director Pankaj Sharma under SEBI PIT Regulations. Mr. Sharma acquired 6,000 equity shares on August 28, 2026, for a total value of Rs 3,03,120. Post-transaction, his direct shareholding increased from 21,03,141 shares (16.67%) to 21,09,141 shares. Given the nominal size of the purchase relative to the company's Rs 61 Cr market cap, the financial impact is minimal.
- Promoter-Managing Director Pankaj Sharma purchased 6,000 equity shares on August 28, 2026
- Total transaction value stood at Rs 3,03,120.00 via open market purchase on NSE Emerge
- Pre-acquisition holding was 21,03,141 shares (16.6673%)
- Post-acquisition holding increased to 21,09,141 shares
K2 Infragen Limited has appointed Virendra Kumar as Head of HR & Administration to strengthen its leadership team. Kumar brings nearly 25 years of experience, including tenures at major industry players like Larsen & Toubro (L&T) and Voltas Limited. This move is aimed at professionalizing organizational processes as the company scales its operations, which currently generate TTM revenue of ₹331 Cr. For a micro-cap company with a ₹62 Cr market cap, attracting talent from Tier-1 EPC firms is a notable step in organizational development.
- Virendra Kumar appointed as Head - HR & Administration with nearly 25 years of professional experience.
- Appointee has a background in major firms including L&T, Voltas Limited (a Tata Enterprise), and Era Infra.
- Company is managing a growth phase with TTM revenue of ₹331 Cr and a target of ₹450 Cr in tenders for H1 FY 25-26.
- The appointment focuses on strengthening people practices and workplace culture to support sustainable growth.
K2 Infragen has secured an investment-grade credit rating of 'ACUITE BBB- | Stable' for its bank facilities totaling Rs 200 crore. This rating covers Rs 127 crore in long-term borrowings and Rs 73 crore for short-term working capital requirements. For a company with a market cap of only Rs 66 crore, this Rs 200 crore facility represents a significant financial milestone, equivalent to ~60% of its TTM revenue. The rating is expected to optimize borrowing costs and enhance the company's eligibility for larger-scale infrastructure tenders.
- Assigned 'ACUITE BBB-' rating for long-term and 'ACUITE A3' for short-term bank facilities.
- Total rated quantum of Rs 200 crore, which is approximately 3x the company's current market capitalization.
- Breakdown includes Rs 127 crore for long-term debt and Rs 73 crore for working capital needs.
- Rating supports the company's strategy to bid for larger tenders in Power, Water, and Road sectors.
- Company maintains a TTM revenue of Rs 331 crore with an operating profit margin of 12.4%.
K2 Infragen has incorporated a new subsidiary, K2IL Bhongir Private Limited, as a Special Purpose Vehicle (SPV) on July 29, 2026. The SPV is dedicated to executing a Hybrid Annuity Mode (HAM) project involving the construction and maintenance of roads in the Bhongir Circle, Telangana. K2 Infragen holds a 74% stake in the entity with an initial investment of Rs 74,000. This move marks the formal transition from project award to the execution phase for this specific infrastructure contract.
- Incorporated K2IL Bhongir Private Limited as an SPV on July 29, 2026
- K2 Infragen holds 74% control through 7,400 equity shares
- Initial cash consideration for the stake is Rs 74,000 at a face value of Rs 10 per share
- SPV authorized capital set at Rs 5,00,000 with paid-up capital of Rs 1,00,000
- Project involves construction and maintenance of PRED roads under the TGRDP Hybrid Annuity Mode
Acuité Ratings & Research has assigned a first-time investment-grade rating of 'ACUITE BBB-' (Stable) for K2 Infragen's long-term bank facilities and 'ACUITE A3' for short-term facilities. The total rated quantum of Rs 200 Cr is substantial, representing nearly 3x the company's current market capitalization of Rs 67 Cr. This rating covers existing facilities from major lenders like Union Bank, ICICI, and HDFC, as well as a proposed Rs 52 Cr long-term facility. For a company with a Debt/Equity of 1.17, this formal credit assessment is a critical step for future borrowing and project bidding.
- Total bank facilities assigned credit ratings amount to Rs 200.00 Cr.
- Long-term rating of ACUITE BBB- (Stable) assigned to Rs 127.00 Cr in facilities.
- Short-term rating of ACUITE A3 assigned to Rs 73.00 Cr in facilities.
- Includes a significant proposed long-term bank facility of Rs 52.00 Cr for future expansion.
- Rating covers diverse instruments including Cash Credit (Rs 25 Cr at Union Bank) and Bank Guarantees (Rs 30 Cr at HDFC).
Financial Performance
Revenue Growth by Segment
The company reported a massive 76.5% revenue growth in H1 FY 2025-26. Segmental revenue for H1-FY26 is dominated by Road & Bridge Projects at 84.35%, followed by Water Supply Projects (WSP) at 7.91%, Railway Projects at 5.58%, Power Infrastructure at 1.64%, and Civil Infrastructure at 0.52%.
Geographic Revenue Split
Operations are spread across Uttar Pradesh, Rajasthan, Madhya Pradesh, Karnataka, Haryana, Gujarat, Punjab, Delhi NCR, Odisha, and Bihar. While specific percentage splits per state are not disclosed, the company is actively executing projects in these 10 regions to mitigate geographic concentration risk.
Profitability Margins
Net Profit Ratio decreased from 11.50% in FY24 to 7.94% in FY25, a 30.93% decline, because net profit growth did not keep pace with the 35% revenue increase. However, H1 FY26 saw a 70% jump in profit, with annualized ROCE improving significantly from 22.5% to 29.7%.
EBITDA Margin
EBITDA margin for H1-FY26 stood at 14.85%, showing recovery from the FY25 margin of 12.53%. The FY25 EBITDA was INR 20.31 Cr, a 5% decrease from INR 21.43 Cr in FY24, primarily due to a 45% increase in land development and construction costs.
Capital Expenditure
Gross Fixed Assets increased by 9% to INR 13.07 Cr in FY25 from INR 12.01 Cr in FY24. The company invested in a fleet of 64+ state-of-the-art construction machines, including tippers and excavators, to support its EPC project execution.
Credit Rating & Borrowing
Interest costs rose by 19% to INR 3.20 Cr in FY25. The Debt-Equity ratio stood at 0.72x in FY25 and increased to 0.81x by H1-FY26, reflecting higher borrowing to fund the expanding order book and working capital needs.
Operational Drivers
Raw Materials
Specific raw material names are not listed, but 'Land development and construction costs' represent the largest expense at INR 108.02 Cr, accounting for 73.6% of total revenue in FY25.
Import Sources
Materials are sourced domestically from states where projects are active, including Uttar Pradesh, Gujarat, Rajasthan, Karnataka, Madhya Pradesh, Odisha, Bihar, and Haryana.
Key Suppliers
The company works with and serves major industry players including L&T, TATA, HG Infra, GR Infra, and Vindhya Telelinks Ltd., who act as both clients and partners in the project value chain.
Capacity Expansion
The company currently operates a fleet of 64+ construction machines. It is expanding into the renewable energy sector with a planned 2 MW Solar IPP plant in Haryana and aims to further increase RE assets through mergers and acquisitions.
Raw Material Costs
Construction costs rose 45% YoY to INR 108.02 Cr in FY25. The company manages these costs through a well-defined procurement policy for raw materials, consumables, and key spares to ensure availability for planned schedules.
Manufacturing Efficiency
The company achieved an 83% on-time project delivery rate in FY25. Operating leverage improved in H1-FY26 as employee expenses grew only 48% while profits rose 70%, indicating higher workforce productivity.
Logistics & Distribution
Distribution and mobilization costs are integrated into the construction cost of INR 108.02 Cr. The company uses its own fleet of 64+ machines to optimize these logistics costs.
Strategic Growth
Expected Growth Rate
59%
Growth Strategy
Growth will be driven by diversifying into high-margin sectors like Railways and Water (Jal Jeevan Mission), expanding the Renewable Energy portfolio through a 2 MW solar plant in Haryana, and aggressive bidding for NHAI and T&D projects totaling approximately INR 450 Cr.
Products & Services
EPC services for Road & Bridge construction, Water Supply infrastructure, Railway projects, Power Transmission & Distribution, and Solar Power generation (IPP model).
Brand Portfolio
K2 Infragen, Animaus Energy (wholly owned subsidiary), K2 Cloud Private Limited.
New Products/Services
Entry into the Independent Power Producer (IPP) model with solar assets and Tariff-Based Competitive Bidding (TBCB) projects in FY 26-27 to generate regular annuity income.
Market Expansion
Expanding presence in the Transmission & Distribution (T&D) and Railway sectors, with direct biddings for tenders valued at INR 450 Cr in H1 FY 25-26.
Strategic Alliances
The company maintains strategic client relationships with NHAI, North Western Railways, HSIIDC, and Hindustan Copper Ltd.
External Factors
Industry Trends
India is in a major infrastructure build-out phase across roads, railways, and power. K2IL is positioning itself as a complete solution provider across the value chain to capture this growth.
Competitive Landscape
Faces intense competition in the EPC market which could impact contract win rates. Mitigation involves positioning as a specialized provider for 'challenging' infra projects.
Competitive Moat
Moat is built on an integrated EPC model, a large in-house fleet of 64+ machines (reducing rental costs), and a proven track record of 48 executed projects with an 83% on-time delivery rate.
Macro Economic Sensitivity
Highly sensitive to India's infrastructure build-out. Economic downturns are mitigated by diversifying into multiple sub-sectors like water and railways to maintain a resilient revenue model.
Geopolitical Risks
The company monitors changes in government policies and regulations which could disrupt business operations or impact growth prospects in the domestic infra space.
Regulatory & Governance
Industry Regulations
Operations are governed by NHAI standards, Railway bidding norms, and Jal Jeevan Mission guidelines. The company also complies with SEBI Regulation 30 for investor disclosures.
Environmental Compliance
Maintains ISO 14001:2015 for Environmental Management Systems and ISO 45001:2018 for Occupational Health and Safety.
Taxation Policy Impact
The effective tax rate is approximately 22%, based on FY25 PBT of INR 14.97 Cr and PAT of INR 11.65 Cr.
Legal Contingencies
The company appointed Cost Auditors for FY 2025-26 with a ratified remuneration of INR 2,00,000. No major pending court cases or litigation values were disclosed.
Risk Analysis
Key Uncertainties
The primary uncertainty is the 113% surge in trade receivables (INR 129.66 Cr), which could impact liquidity if collection cycles lengthen further.
Geographic Concentration Risk
While operating in 10 states, the company has a focused presence in North India (UP, Haryana, Rajasthan).
Third Party Dependencies
Low dependency on equipment rentals due to owning 64+ machines, but high dependency on government tender timelines for the INR 450 Cr bidding pipeline.
Technology Obsolescence Risk
Risk of rapid technological advancements rendering current construction solutions obsolete; mitigated by continuous R&D and technology upgrades.
Credit & Counterparty Risk
Exposure to government bodies (NHAI, Railways) and large EPC firms (L&T, TATA), which generally represent high-quality but sometimes slow-paying counterparties.
