LIKHITHA - Likhitha Infra.
📢 Recent Corporate Announcements
Likhitha Infrastructure reported a weak set of numbers for Q3 FY26, with consolidated net profit declining 44.7% year-on-year to ₹9.44 crore. Revenue from operations also saw a contraction of 11.3% YoY, landing at ₹111.90 crore compared to ₹126.20 crore in the same quarter last year. While revenue grew 9.4% on a sequential (QoQ) basis, profitability was impacted by higher contract execution costs relative to the top line. The basic EPS for the quarter fell significantly to ₹2.39 from ₹4.38 in the previous year's corresponding period.
- Consolidated Net Profit fell 44.7% YoY to ₹9.44 crore from ₹17.07 crore in Q3 FY25.
- Revenue from operations decreased 11.3% YoY to ₹111.90 crore.
- Quarterly Earnings Per Share (EPS) dropped to ₹2.39 from ₹4.38 YoY.
- Nine-month (9M FY26) consolidated net profit stands at ₹34.67 crore on a revenue of ₹336.44 crore.
- The company continues to operate in a single segment focused on gas pipeline infrastructure.
Likhitha Infrastructure Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the quarter ended December 31, 2025. The company's Registrar, Bigshare Services, confirmed that no requests for dematerialization or rematerialization were processed during this period. Notably, the entire shareholding of the company is already maintained in demat form. This is a standard procedural disclosure required by Indian stock exchanges to ensure shareholding records are accurate.
- Quarterly compliance certificate filed for the period ending December 31, 2025.
- Entire shareholding of the company is confirmed to be in dematerialized form.
- Zero requests for rematerialization or dematerialization received during the quarter.
- Certificate issued by Registrar and Share Transfer Agent, Bigshare Services Private Limited.
Likhitha Infrastructure Limited has announced the closure of its trading window for all designated persons starting January 01, 2026. This is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the financial results announcement. The closure pertains to the unaudited financial results for the third quarter and nine-month period ending December 31, 2025. The trading window will remain closed until 48 hours after the results are officially declared to the stock exchanges.
- Trading window closure effective from January 01, 2026
- Pertains to financial results for the quarter and nine months ended December 31, 2025
- Applies to all Designated Employees, Persons, and their immediate relatives
- Window to reopen 48 hours after the declaration of financial results
Financial Performance
Revenue Growth by Segment
Cross-Country Pipelines (CCP) grew 15.8% to INR 326.31 Cr; City Gas Distribution (CGD) grew 17.9% to INR 126.54 Cr; Others (O&M, Tankage) grew 79.8% to INR 59.36 Cr.
Geographic Revenue Split
100% of revenue currently from India; international expansion initiated in Saudi Arabia (JV) and UAE (Abu Dhabi branch) to diversify revenue base.
Profitability Margins
EBITDA margin stood at 19.36% (INR 100.71 Cr); Net Profit margin was 13.35% (INR 69.43 Cr), showing stable profitability despite a 23.3% increase in revenue.
EBITDA Margin
19.36% in FY25, compared to 23.4% in FY24, reflecting a slight compression due to increased contract execution costs.
Capital Expenditure
Not explicitly disclosed as a single figure, but the company prioritizes investments in digital tools, safety enhancement, and skill development.
Credit Rating & Borrowing
CRISIL Ratings; Zero debt status implies minimal borrowing costs with finance costs representing only 0.22% of total expenses.
Operational Drivers
Raw Materials
Pipes, valves, and fittings (implied by pipeline infrastructure services) representing 16.81% of total expenses.
Capacity Expansion
Current order book of INR 1,200 Cr as of March 31, 2025, providing revenue visibility for the next 2-3 years.
Raw Material Costs
Cost of materials consumed was 16.81% of total expenses; Contract execution expenses (labor/sub-contracting) were the largest cost driver at 66.16%.
Manufacturing Efficiency
Service-based model focused on domain expertise; ROCE of 27.77% in FY25 indicates high capital efficiency.
Strategic Growth
Expected Growth Rate
23%
Growth Strategy
The company aims to achieve its growth targets through a three-pronged strategy: 1) Penetrating high-growth international markets, specifically Saudi Arabia and the UAE, to capitalize on Vision 2030 infrastructure projects; 2) Expanding its domestic footprint in alignment with the Petroleum and Natural Gas Regulatory Board's (PNGRB) agenda to increase India's gas grid; and 3) Leveraging its INR 1,200 Cr order book (2.3x FY25 revenue) to ensure steady execution and revenue recognition over the next 24-36 months.
Products & Services
Laying of cross-country oil and gas pipelines, City Gas Distribution (CGD) network implementation, tankage and terminal projects, and Operations & Maintenance (O&M) services.
Brand Portfolio
Likhitha Infrastructure.
New Products/Services
Expansion into international markets (Saudi Arabia and UAE) expected to contribute significantly to future revenue as operations commence.
Market Expansion
Establishment of a 60% owned Joint Venture in Saudi Arabia (Likhitha Hak Arabia) and a branch office in Abu Dhabi (UAE) during 2024.
Market Share & Ranking
Leading integrated service provider in India's oil and gas pipeline infrastructure sector with over 27 years of domain expertise.
Strategic Alliances
CPM Likhitha Consortium (80% JV partner) and Likhitha Hak Arabia Contracting Company (60% subsidiary in Saudi Arabia).
External Factors
Industry Trends
India's gas market expansion under PNGRB and Middle East's Vision 2030 frameworks are driving demand for integrated pipeline infrastructure, with the industry shifting towards more sophisticated safety and digital standards.
Competitive Landscape
Intense competition in tender-based bidding for oil and gas infrastructure projects.
Competitive Moat
27 years of operational excellence in a specialized niche with high entry barriers due to safety and technical requirements; Zero debt and high ROCE of 27.77% provide financial flexibility.
Macro Economic Sensitivity
Highly sensitive to government infrastructure spending and Petroleum and Natural Gas Regulatory Board (PNGRB) expansion agendas.
Consumer Behavior
Shift towards natural gas as a cleaner fuel in India is driving demand for CGD networks.
Geopolitical Risks
Regional instability in the Middle East could impact the new Saudi JV and Abu Dhabi branch operations.
Regulatory & Governance
Industry Regulations
Governed by Petroleum and Natural Gas Regulatory Board (PNGRB) expansion agendas and safety/quality standards in the infrastructure sector.
Environmental Compliance
Not disclosed in absolute INR; company follows 'Green Initiative' for paperless compliance.
Taxation Policy Impact
Effective tax rate of approximately 25.7% based on current tax of INR 24.11 Cr on PBT of INR 93.64 Cr.
Risk Analysis
Key Uncertainties
Tender-based revenue (100% impact if bids are lost), commodity price fluctuations (impacts material costs which are 16.8% of expenses), and project execution delays.
Geographic Concentration Risk
High concentration in India (100% of FY25 revenue), with strategic moves to diversify into Saudi Arabia and UAE.
Third Party Dependencies
High dependency on contract execution partners and vendors, with execution expenses making up 66.16% of total costs.
Technology Obsolescence Risk
Low risk in physical pipeline laying, but company is adopting digital tools to maintain competitive edge in safety and efficiency.
Credit & Counterparty Risk
Healthy receivables management; trade receivables decreased by INR 4.57 Cr during FY25 despite revenue growth.