RKEC Projects Limited (RKEC)
₹19.83 +1.48% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, RKEC Projects' revenue was ₹17.0 Cr (-77.7% year on year, -57.5% on the previous quarter), and net profit ₹-17.0 Cr (against a profit a year earlier); the operating margin was -111.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹17.0 | -77.7% | -57.5% |
| Operating profit | ₹-19.0 | to loss | loss narrowed |
| Net profit | ₹-17.0 | to loss | loss narrowed |
| EPS (₹) | -6.70 | to loss | loss narrowed |
| Operating margin | -111.8% | — | — |
RKEC exchange data
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📢 Recent Corporate Announcements
RKEC Projects Limited has submitted its 21st Annual Report for FY26 and scheduled its 21st Annual General Meeting for September 30, 2026. The report highlights cumulative business volume of Rs 4,913 Cr, comprising executed works worth Rs 2,529 Cr and works in progress valued at Rs 2,384 Cr. On a standalone basis, FY26 revenue dropped significantly to Rs 186.12 Cr compared to Rs 405.86 Cr in FY25, accompanied by an EBITDA loss of Rs 13.25 Cr. Key ongoing projects include the Farakka Barrage bridge project worth Rs 65,150 Lakhs (97.55% physical progress) and the Veraval Fishery Harbour package worth Rs 41,578 Lakhs (51.32% progress).
- 21st Annual General Meeting scheduled for 30th September 2026 via Video Conferencing.
- Total cumulative business volume reported at Rs 4,913 Cr, with works in progress of Rs 2,384 Cr.
- Sales in FY26 fell to Rs 186.12 Cr from Rs 405.86 Cr in FY25, resulting in an EBIDTA loss of Rs 13.25 Cr.
- Major active project includes Farakka Barrage bridge contract worth Rs 65,150 Lakhs at 97.55% completion.
- Fishery Harbour development at Veraval valued at Rs 41,578 Lakhs is at 51.32% physical progress.
RKEC Projects Limited disclosed aggregate debt defaults of ₹63.42 Cr (₹55.90 Cr principal and ₹7.52 Cr interest) as of July 31, 2026, across multiple banks and NBFC lenders including Bank of Baroda, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Mahindra Finance. Total outstanding borrowings from banks and financial institutions stood at ₹229.32 Cr against a market cap of ₹61 Cr. The company stated that it is seeking additional funds to discharge its debt liabilities.
- Total default amount stands at ₹63.42 Cr (Principal: ₹55.90 Cr, Interest: ₹7.52 Cr) as of July 31, 2026
- Total financial indebtedness and outstanding borrowings from banks/FIs reported at ₹229.32 Cr
- Default amount exceeds the entire market capitalization of ₹61 Cr and represents ~40.4% of TTM revenue (₹157 Cr)
- Defaults span multiple lenders including Bank of Baroda, HDFC Bank, CSB, Kotak Mahindra Bank, and Mahindra Finance
RKEC Projects reported a severe financial downturn in Q1 FY27 with revenue from contracts declining 77.2% YoY to ₹17.32 crore from ₹76.07 crore in Q1 FY26. The company posted a net loss of ₹17.30 crore against a net profit of ₹3.35 crore in the previous year quarter. Operational stress was compounded by multiple lenders initiating Debt Recovery Tribunal (DRT) proceedings over unpaid dues. In addition, Maharashtra Maritime Board terminated an ₹186.68 crore contract and encashed ₹29.87 crore of bank guarantees, while statutory TDS and GST dues remain unpaid.
- Revenue from contracts plunged 77.2% YoY to ₹17.32 crore from ₹76.07 crore in Q1 FY26.
- Net loss widened to ₹17.30 crore compared to a net profit of ₹3.35 crore in Q1 FY26.
- Multiple banks and financial institutions have initiated DRT proceedings against the company for recovery of dues.
- Maharashtra Maritime Board terminated the ₹186.68 crore Radio Jetty contract and encashed ₹29.87 crore in bank guarantees.
- Statutory liabilities for TDS and GST remained unpaid as of the quarter-end.
RKEC Projects reported a severe financial downturn for FY26, swinging to a Profit Before Tax (PBT) loss of Rs 47.39 Cr from a profit of Rs 29.98 Cr in FY25. The company's cash flow from operations turned deeply negative at -Rs 30.22 Cr, exacerbated by a sharp decline in revenue (down ~66% YoY based on context). Critically, the company disclosed significant unpaid statutory liabilities, including Rs 24.11 Cr in GST and Rs 2.27 Cr in TDS, which represent nearly 40% of its current market capitalization. High interest costs of Rs 25.09 Cr further strained the bottom line amidst a liquidity crunch.
- Profit Before Tax collapsed to a loss of Rs 47.39 Cr in FY26 compared to a profit of Rs 29.98 Cr in FY25.
- Net Cash from Operating Activities deteriorated to negative Rs 30.22 Cr from positive Rs 4.37 Cr YoY.
- Disclosed unpaid GST liabilities of Rs 24.11 Cr and TDS/TCS dues of Rs 2.27 Cr as of March 31, 2026.
- Interest expenses remained high at Rs 25.09 Cr, consuming a significant portion of the reduced revenue base.
- Trade payables saw a massive reduction of Rs 45.69 Cr, indicating heavy cash outflows to creditors despite operating losses.
RKEC Projects reported a severe financial downturn for FY26, posting a consolidated Loss Before Tax of ₹47.39 Cr compared to a profit of ₹29.98 Cr in FY25. Revenue for the full year contracted by approximately 67% to ₹139.75 Cr, down from ₹421.92 Cr in the previous year. The company's liquidity position is strained, evidenced by negative operating cash flows of ₹30.22 Cr and outstanding statutory liabilities including ₹24.11 Cr in unpaid GST. Amidst these results, the board appointed Mrs. Jeevan Jyoti Volla as an Independent Director for a five-year term.
- Consolidated Loss Before Tax of ₹47.39 Cr in FY26 vs ₹29.98 Cr profit in FY25
- Annual revenue fell ~67% YoY to ₹139.75 Cr from ₹421.92 Cr
- Negative cash flow from operations of ₹30.22 Cr for the year ended March 31, 2026
- Unpaid statutory liabilities reported: GST of ₹24.11 Cr and TDS of ₹2.27 Cr
- Appointment of Mrs. Jeevan Jyoti Volla as Independent Director for a term until August 2031
RKEC Projects Limited has announced the appointment of Mr. Vijay Jonnada as the Company Secretary and Compliance Officer, effective June 19, 2026. Mr. Jonnada is a returning professional who previously served in the same capacity at RKEC from 2019 to 2021. With over 20 years of experience across sectors like infrastructure, healthcare, and finance, he brings significant expertise in regulatory compliance and secretarial functions. This appointment ensures the company remains compliant with SEBI and Companies Act requirements.
- Mr. Vijay Jonnada appointed as Company Secretary and Compliance Officer effective June 19, 2026.
- The appointee previously held the same position at RKEC Projects from January 2019 to January 2021.
- Mr. Jonnada has over 20 years of professional experience, including a 7.5-year stint at S&P Capital IQ.
- His expertise covers SEBI LODR compliance, NCLT matters, and foreign direct investment (FDI) reporting.
The promoter and promoter group of RKEC Projects Limited have filed their annual declaration under Regulation 31(4) of SEBI (SAST) Regulations. The lead promoter, Garapati Radhakrishna, confirmed that no new encumbrances or pledges were created on their shareholding during the financial year ending March 31, 2026. This disclosure includes the entire promoter group consisting of nine individuals/entities. Such filings are mandatory annual requirements to ensure transparency regarding promoter share pledging activities.
- Annual declaration submitted under Regulation 31(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
- Promoters confirmed no direct or indirect encumbrances were made during FY 2025-26, other than those already disclosed.
- The declaration covers Garapati Radhakrishna, Garapati Parvathi Devi, and seven other members of the promoter group.
- The filing ensures compliance with stock exchange transparency norms regarding promoter skin in the game.
RKEC Projects Limited has informed the exchange that it is unable to submit its audited financial results for the fiscal year ended March 31, 2026, within the prescribed SEBI timeline. The company cited the absence of the lead statutory auditor, who is abroad until the second week of June, and the extensive travel of directors as primary reasons for the delay. Furthermore, the company is still in the process of reconciling and verifying certain financial information. This delay in regulatory compliance often signals potential weaknesses in internal reporting or administrative oversight.
- Failure to meet the SEBI deadline for filing audited financial results for the fiscal year ended March 31, 2026.
- Main partner of the Statutory Auditor is out of the country and expected back only by the second week of June 2026.
- Directors' involvement in project execution and monitoring cited as a reason for lack of time to review financial statements.
- Ongoing reconciliation and verification of financial documents are still under process, preventing timely finalization.
- Board meeting date for the approval of results will be intimated separately in due course.
RKEC Projects Limited has received a termination notice for the ₹186.67 Cr Passenger Jetty project near Gateway of India, Mumbai. The contract, originally awarded in October 2024, was terminated by the Maharashtra Maritime Board (MMB) citing project delays. RKEC claims the delays were caused by external factors like PILs and design changes, which were beyond their control. The company plans to initiate arbitration proceedings to recover costs and losses associated with the termination.
- Termination of EPC contract for Mumbai Passenger Jetty project valued at ₹186.67 Cr.
- Client (MMB) alleges delays, while RKEC cites PILs and design changes as external causes.
- The project was originally awarded in October 2024 and faced significant legal hurdles.
- RKEC intends to seek recovery of costs and opportunity losses through legal arbitration.
RKEC Projects Limited has notified the exchange that its trading window will be closed starting from the closing hours of March 31, 2026. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations for the purpose of declaring audited financial results for the quarter and year ending March 31, 2026. The restriction applies to all promoters, directors, and designated employees. The window will reopen 48 hours after the financial results are officially declared.
- Trading window closure effective from the closing hours of March 31, 2026.
- Closure pertains to the audited financial results for the quarter and year ended March 31, 2026.
- Window to remain closed until 48 hours after the declaration of financial results.
- Applies to all Promoters, Directors, Designated Employees, and their immediate relatives.
RKEC Projects Limited has received a severe credit rating downgrade from Infomerics, moving from 'IVR BBB' to 'IVR D' (Default). This downgrade impacts total bank facilities worth Rs 489.50 crore, including both existing and proposed long-term loans. The 'IVR D' rating signifies that the company is either currently in default or is expected to be in default soon regarding its financial obligations. This follows a period where the company was under 'Rating Watch with Developing Implications'.
- Total bank facilities of Rs 489.50 crore downgraded to 'IVR D' (Default status)
- Long-term bank facilities of Rs 359.75 crore downgraded from IVR BBB/RWDI
- Proposed long-term bank facilities of Rs 129.75 crore also moved to IVR D
- Major lenders affected include Bank of Baroda (Rs 257.03 Cr total) and ICICI Bank (Rs 50 Cr total)
- The rating action follows a review of FY2025 audited and 9MFY26 unaudited results
RKEC Projects Limited has disclosed a default on its debt obligations totaling ₹28.12 crore as of March 30, 2026. The default consists of ₹26.71 crore in principal and ₹1.41 crore in interest across multiple lenders including Bank of Baroda, HDFC, and ICICI Bank. The company's total financial indebtedness currently stands at ₹194.29 crore. Management has indicated they are pursuing additional fund infusions to discharge these liabilities.
- Total default amount of ₹28.12 crore reported across various banks and financial institutions.
- Principal repayment default stands at ₹26.71 crore while interest default is ₹1.41 crore.
- Total financial indebtedness of the company is reported at ₹194.29 crore.
- Lenders affected include Bank of Baroda, HDFC, Kotak Mahindra Bank, ICICI Bank, and several NBFCs.
- Company is currently seeking additional fund sanctions to address the liquidity shortfall.
RKEC Projects Limited has been awarded a prestigious work order from the National Highways Authority of India (NHAI) valued at Rs 40.50 Crore. The project involves the balance work of a new bridge on the Gandak river, including approaches and rehabilitation of existing Gandak and Mahi bridges in Bihar. The contract will be executed on an Engineering, Procurement, and Construction (EPC) mode. This win strengthens the company's infrastructure portfolio and provides revenue visibility for the upcoming quarters.
- Awarded a work order worth Rs 40.50 Crore from NHAI
- Project involves construction and rehabilitation of bridges on NH-19 in Bihar
- Execution to be carried out under the EPC (Engineering, Procurement, and Construction) model
- The order is bagged in the ordinary course of business, enhancing the current order book
RKEC Projects reported a weak set of results for Q3 FY26, with revenue from operations plunging 72.5% YoY to ₹32.65 crore. Net profit followed a similar trajectory, declining 73% YoY to ₹1.71 crore from ₹6.35 crore in the same period last year. A significant red flag was raised by the statutory auditors regarding unpaid statutory tax dues totaling ₹34.62 crore as of December 31, 2025. While the company remains profitable on a quarterly basis, the sharp contraction in execution and the tax liability overhang are major concerns.
- Revenue from operations fell sharply by 72.5% YoY to ₹3,265.05 Lacs in Q3 FY26.
- Net Profit declined 73% YoY to ₹170.98 Lacs compared to ₹634.74 Lacs in Q3 FY25.
- Statutory auditors highlighted accumulated unpaid statutory dues of ₹34.62 Crores.
- Earnings Per Share (EPS) dropped to ₹0.67 from ₹2.65 in the corresponding previous year quarter.
- Inventory levels rose to ₹24,008.95 Lacs from ₹19,658.04 Lacs in March 2025, indicating a potential slowdown in project completion.
RKEC Projects Limited has announced the closure of its trading window for all promoters, directors, and designated persons starting from the closing hours of December 31, 2025. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of the company's unaudited financial results for the quarter ended December 31, 2025. The trading window will remain closed until 48 hours after the financial results are officially announced. This is a standard regulatory procedure for listed companies to prevent insider trading during the earnings reporting period.
- Trading window closure begins from the closing hours of December 31, 2025.
- Closure is mandatory for the declaration of Unaudited Financial Results for the quarter ended December 31, 2025.
- Restriction applies to all Promoters, Directors, Designated Employees, and Connected Persons.
- The window will reopen 48 hours after the financial results are disclosed to the stock exchange.
Financial Performance
Revenue Growth by Segment
Consolidated revenue for FY2025 reached INR 399.01 Cr, representing a 16.98% increase from INR 341.08 Cr in the previous year. While segment-specific percentages are not disclosed, growth was driven by the completion of major projects worth INR 75.30 Cr and new project acquisitions totaling INR 386.22 Cr.
Geographic Revenue Split
Not specifically disclosed in percentages; however, the company is headquartered in Visakhapatnam and operates across India in sectors including ports, defense, and railways, with a significant presence in coastal infrastructure.
Profitability Margins
Net profit for FY2025 was INR 20.06 Cr, a 4.94% increase from INR 19.90 Cr in the prior year. Profitability was supported by enhanced project management and cost control measures, though margins face pressure from fluctuating material costs and interest expenses which stood at INR 19.48 Cr for FY2025.
EBITDA Margin
EBIDTA margins improved significantly to 58% in FY2025 from 50.85% in the previous year, a 715 basis point increase. This improvement is attributed to the company's strategy of fabricating its own machinery, which saves 30% to 40% on capital expenditure costs.
Capital Expenditure
Capital expenditures for FY2025 amounted to INR 37.12 Cr, primarily directed toward new construction equipment and technology upgrades, including a new project management software system to enhance operational efficiency.
Credit Rating & Borrowing
The company holds an IVR BBB rating with a Stable outlook (revised from Positive). Long-term secured bank borrowings stood at INR 33.76 Cr as of March 31, 2025. The company faces working capital constraints with a current cash credit limit of INR 37.5 Cr against a requirement of INR 65-70 Cr.
Operational Drivers
Raw Materials
Key raw materials include steel and cement. While specific cost percentages per material are not disclosed, they are identified as the primary drivers of cost volatility impacting the infrastructure sector.
Capacity Expansion
The company currently manages 14 active projects amounting to INR 600 Cr. It has a cumulative track record of completing 95 projects worth over INR 1,830 Cr. Expansion is focused on increasing tendering capability through its 'Super Special Class' registration with the Ministry of Defense.
Raw Material Costs
Raw material costs are subject to volatility; however, the company mitigates this risk through price escalation clauses in contracts. Operational improvements and process excellence are used to maintain margins despite these fluctuations.
Manufacturing Efficiency
The company achieves high efficiency by manufacturing its own machinery, reducing capex costs by 30-40%. It also reported a 15% reduction in workplace incidents through safety training investments.
Strategic Growth
Expected Growth Rate
8-10%
Growth Strategy
Growth will be achieved by leveraging a healthy unexecuted order book of INR 1,170 Cr, ensuring strong revenue visibility. The company plans to target higher-value contracts in urban transportation, port modernization, and coastal infrastructure while utilizing its 'Super Special Class' status for unlimited tendering in defense projects.
Products & Services
Infrastructure construction services specializing in Marine Works, Bridges, Ports, Dams, Airports, and Highways.
Brand Portfolio
RKEC Projects Limited.
New Products/Services
Expansion into specialized electrification works and increased focus on 'Gati Shakti' related infrastructure projects.
Market Expansion
Targeting expansion in urban transportation and coastal infrastructure sectors under the National Infrastructure Pipeline (NIP).
Strategic Alliances
The company operates the RKEC-YFC JV, which commenced work in FY 2024-25.
External Factors
Industry Trends
The industry is shifting toward digitization and process optimization. RKEC is positioning itself by implementing project management software and upskilling its workforce to meet regulatory and environmental compliance standards.
Competitive Landscape
Competes with several infrastructure firms for project concessions; competitive advantage is maintained through a track record of on-time delivery and technical expertise in marine works.
Competitive Moat
The company's moat is built on 35+ years of experience in complex marine and bridge works and its 'Super Special Class' registration with the Ministry of Defense, which provides a significant barrier to entry for smaller competitors.
Macro Economic Sensitivity
Highly sensitive to government infrastructure spending programs such as PM Gati Shakti and the Smart Cities Mission.
Consumer Behavior
Not applicable for B2B/Government contracting; demand is driven by government policy and industrial expansion.
Geopolitical Risks
Geopolitical tensions are noted as factors that may influence investor sentiment and project funding for large-scale infrastructure.
Regulatory & Governance
Industry Regulations
Operations are governed by Ministry of Defense tendering rules and SEBI (LODR) Regulations for listed entities. Project execution must adhere to stringent safety and environmental compliance norms.
Environmental Compliance
The company is ISO 14001 and OHSAS 18001 certified, indicating compliance with environmental and occupational health standards.
Taxation Policy Impact
The company reported a standalone Profit Before Tax of INR 29.96 Cr for FY2025. Specific effective tax rate % is not explicitly stated but deferred tax liabilities are noted at INR 1.79 Cr.
Legal Contingencies
The company failed to spend its 2% CSR requirement (INR 0.47 Cr) in FY2025, citing the allocation of funds to ongoing projects. No specific values for pending court cases were disclosed.
Risk Analysis
Key Uncertainties
Project completion risk is critical; the Farrakka project faced delays due to an accident, though an Extension of Time (EOT) was received. Such delays can impact financial viability by 10-15% depending on contract terms.
Geographic Concentration Risk
Heavy concentration in Indian infrastructure projects, particularly in coastal regions like Visakhapatnam.
Third Party Dependencies
Dependency on Bank of Baroda for working capital limits; current limits are deemed 'not very comfortable' for supporting increased turnover.
Technology Obsolescence Risk
The company is mitigating technology risks by investing in new project management software and construction technology upgrades.
Credit & Counterparty Risk
Receivables quality is generally high due to a reputed clientele (Government/Defense), but the business remains working capital intensive with a current ratio of 1.58.
