Buy

Q2FY26 performance: Interarch reported strong Q2FY26 performance with consolidated revenues growth of 51.9% YoY (up 29% QoQ) at 491 crore led by strong execution aided by new capacities and improved productivity across old capacities. Consolidated EBITDA margins were up 70 bps YoY (up 20 bps QoQ) at 8.5%. Overall, its consolidated EBITDA/PAT were up 65.1%/56.2% YoY at 42...

We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock.

Weak Quarter; Most of the pain priced in! About the stock: NCC is one of the leading infrastructure companies with Well-diversified order backlog, robust execution capabilities, and a strong focus on working capital to be key over next few years Q2FY26 Performance: NCC on standalone basis, reported a weak set of numbers for Q2FY26, with revenue at 3,726 crore, down 16.2% YoY, impacted by sluggish execution owing to extended monsoon. EBITDA declined 30.8% YoY to 277.5 crore, while margins contracted by 158 bps YoY to 7.4%. PAT stood at 101 crore,...

Harsha Engineers (Harsha) delivered a good set of results. While Revenue grew by 7% YoY, EBITDA grew by 28% YoY to Rs535Mn. EBITDA margin also increased by 220 bps YoY to 14.1%. India Engineering business continues to be steady aided by healthy demand momentum. The most positive aspect of the result was the continued improvement in the overseas subsidiaries with steady performance in the Chinese subsidiary and a considerable improvement at Harsha Romania. Harsha Romania reported positive EBITDA post several quarters with revenue growth of 38% on YoY basis in Q2FY26.The management...

NCC Limited reported a soft quarter as execution headwinds and workingcapital strain weighed on results. Consolidated revenue declined 12% YoY to Rs45.8bn vs 52.2bn in Q2FY25 with EBITDA at Rs3.9bn, reflecting a margin of 8.7% versus 8.5% last year. PAT stood at Rs1.55bn with a net margin of 3.4%. On a standalone basis, revenue fell 16% YoY to Rs37.7bn while PAT dropped 37% YoY to Rs1.bn. H1 FY26 revenue was Rs97.9bn, down 9.3% YoY, reflecting a calibrated execution approach amid delayed project mobilization, extended monsoons, and elongated client payment cycles. Management cited heavy rainfall across multiple states, ROW delays, and slower receipts in water/JJM...

We maintain our BUY rating on the stock.

Kalpataru Projects’ (KPIL) 2QFY26 performance was in line with our estimates as strong execution offset the impact of slightly lower margins. Revenue growth was driven by strong execution across T&D, B&F, and the oil & gas division.

Q2FY26 performance: L&T secured robust order inflows (OI) of 115784 crore up 45% YoY and up 23% QoQ, led by energy business which formed 35% of OI. The current order backlog (OB) stands at 667,047 crore up 31% YoY (49% international). Strong execution in the Energy Projects and Hi-tech manufacturing (revenues up 48% and 34% YoY) led to consolidated revenue growing by 10% YoY to 67984 crore for Q2FY26. Consolidated EBITDA grew 10% YoY to 6806 crore and EBITDA Margins came in at 10% down 30 bps YoY due to margin compression in IT & TS segment and energy projects. Consequently, PAT came in at 3926 crore up 16% YoY. On strong customer collection, the NWC ratio to sales improved significantly (200...

Prudent management, strong execution track record, healthy order book, strong balance sheet and robust return ratios are the key strengths of PSP. Q2FY26 Performance: The standalone revenue of 694 crore, was up 20% YoY, attributable to improved project execution which driven by better workflow, and improved labour activity post monsoon season. EBITDA at 48.1 crore, up 23.8%...

A Seasoned player in an under-penetrated PEB industry: Interarch has more than four decades experience in an under-penetrated PEB industry (~3-5%), which is expected to grow at ~9.5-10.5% CAGR over FY25EFY30E, potentially reaching 33,000-34,500 crore from 21,000 crore (~8.3% CAGR over FY19-FY25E). Interarch holds commanding position (only second to Kirby) with ~7% market share in an industry where top 6-7 players hold 80-85% market share of organised pie (42-47% as on FY25). It is expected to capitalise (outpacing industry growth) from the rising domestic steel consumption (industrial/manufacturing, infrastructure, and...

Our recent meeting with LT reinforces our thesis that execution growth will remain strong for the company over the next few years, driven by a strong order book. The company is selectively eyeing projects from domestic markets and expects international ordering to keep supporting growth.

Renewal Phase: Strengthening Legacy for Future Growth

L&T delivered a strong performance in the quarter, with revenue growth across all segments except for the Development Projects segment, accompanied by a robust *over or under performance to benchmark index increase in order inflow and a rise in profit. The company's outlook appears positive, driven by a growing project pipeline for the remaining nine months. Furthermore, L&T expects to achieve revenue growth of 15% and order inflow growth of 10% in FY26, indicating a promising performance in the upcoming quarters. A stable macroeconomic environment, strong government capital expenditure, and digital...

Beating ARe, HG Infra’s Q1 ~Rs17.1bn revenue (up 13.5% y/y) reflects its strong execution abilities. The dip in the 13.8% EBITDA margins (16.2%, Q1 FY25) is attributed to one-time provisions.

We change our rating on the stock from HOLD to BUY.

HG Infra (HGIEL) Q1FY26 performance was mixed, with a softer undertone despite healthy standalone revenue growth. On a standalone basis, revenue came in at Rs17,092.4mn, representing a 13.5% YoY increase but a 13.4% sequential decline. Profit after tax fell 10.1% YoY and 40.9% QoQ to Rs1,254.7 mn, as EBITDA margins contracted to 13.8% from 15.9% a year earlier. The fall in profitability was largely driven by a Rs43 crore one-off margin correction in the Ganga Expressway project due to a change in law provision, alongside higher finance costs and impairment provisions on receivables. Standalone PAT...

HGIEL posted 14%/1% YoY revenue/EBITDA growth in Q1FY26 to Rs17.1/2.5bn, respectively, while RPAT stood at Rs1.3bn.

With a 17% upside from the CMP, we maintain our long-term BUY rating on the stock.

KNR Constructions reported a sharp slowdown in execution, with consolidated revenue declining 38% YoY to Rs6bn and standalone revenue falling 45% YoY to Rs5bn, as most legacy projects neared completion and newly awarded contracts were still ramping up. Consolidated EBITDA stood at Rs2bn, translating to a strong margin of 29.9% due to segment mix effects, while standalone EBITDA fell 66% YoY to Rs0.6bn, with margins compressing to 13.6%. Consolidated PAT came in at Rs1bn (PAT margin 20.1%), down 26% YoY, while standalone PAT declined 62% YoY to Rs0.5bn (margin 10.6%). The divergence between...