J Infratech Limited IPO

01At a glance

What the company does: builds and upgrades highways, bridges and flyovers on EPC (fixed-price construction) and HAM (part-paid by the authority during construction, the rest as annuities) terms, and runs some toll-collection and maintenance work (DRHP p.229, DRHP p.230).

Who pays it: government road agencies. NHIDCL was 50.46% of FY26 revenue and NHIDCL and NHAI together 87.08% (DRHP p.29); Government Entities were 90.32% of FY26 revenue (DRHP p.27).

Why it is raising money: ₹375.0 crore of the fresh issue for working capital and ₹50.0 crore to repay borrowings, with the rest for general corporate purposes (DRHP p.122, DRHP p.123).

How fast it has grown: revenue from ₹887.0 crore in FY24 to ₹1,721.8 crore in FY26, a CAGR of 39.3%, and profit after tax from ₹85.9 crore to ₹246.6 crore, a CAGR of 69.4% (our arithmetic, DRHP p.86).

The one thing to understand: profit has not turned into cash. Operating cash flow was −₹129.0 crore in FY25 and −₹55.1 crore in FY26 against profit of ₹195.3 crore and ₹246.6 crore, as inventories and other financial assets built up (DRHP p.88). Two customers make up 87.08% of revenue (DRHP p.29).

02The business, in plain words

J Infratech started in 2005 as a partnership firm, Jandu Construction Co., set up by Hari Niwas, and became a company in 2019 (DRHP p.237). It bids for road contracts tendered by national and state agencies, builds them with its own fleet and workforce, and is paid as work is certified.

A road agency tenders a highway stretch → J Infratech bids and wins it (19 of 71 bids in FY26) → it builds with 980 owned machines and 577 employees, plus sub-contractors → the agency pays against certified milestones, or for HAM projects partly during construction and the rest as annuities (DRHP p.31, DRHP p.230).

As of July 31, 2026 it had completed 35 projects and was executing 46 across 16 states and three union territories, with 1,122.53 lane km completed and about 6,940.55 lane km under way (DRHP p.230). EPC work was 73.32% of FY26 revenue and HAM 20.16%; the rest was toll receipts, scrap, management fees and finance income on annuity receivables (DRHP p.231).

It is starting a new line: two NMDC Limited letters of acceptance, dated June 9, 2026 and August 28, 2026, to lift 90 lakh and about 35 lakh wet metric tonnes of iron ore slimes in Chhattisgarh (DRHP p.235, DRHP p.236).

Earnings equation: Revenue = value of work certified in the year on the order book. The order book was ₹3,250.6 crore at March 2026 and ₹8,500.7 crore at July 31, 2026, after new HAM awards from the Government of Telangana (our arithmetic, DRHP p.233).

03Where the money comes from

Source: DRHP p.29.

Revenue depends on two customers: NHIDCL at ₹868.8 crore and NHAI at ₹630.5 crore in FY26 (our arithmetic, DRHP p.27). By state, Assam was 44.25% of FY26 revenue, Maharashtra 13.86% and Gujarat 10.74% (DRHP p.33).

The order book at July 31, 2026 is concentrated differently: Telangana is 64.68% of ₹8,500.7 crore, Assam 11.17% and Arunachal Pradesh 9.24% (DRHP p.32, DRHP p.33). HAM projects are 70.89% of that order book, against 12.00% at March 2026 (DRHP p.233).

04The growth record

Source: DRHP p.86, DRHP p.88, DRHP p.137. Crore figures are our arithmetic from the ₹ million the document prints.

Revenue CAGR FY24 to FY26 is 39.3% (our arithmetic, DRHP p.86). EBITDA CAGR is 59.5% (our arithmetic, DRHP p.137). PAT CAGR is 69.4% (our arithmetic, DRHP p.86). EBITDA margin moved from 19.2% to 25.1%, up 596 basis points (our arithmetic, DRHP p.137).

Revenue grew 66.74% in FY24, 59.10% in FY25 and 22.01% in FY26 (DRHP p.137). The restated accounts open FY24 with a ₹70.3 crore restatement reduction to retained earnings as at April 1, 2023 (DRHP p.87).

05What the growth is made of

The document gives project counts, not volumes and prices. Projects undertaken rose from 5 in FY24 to 9 in FY25 and 18 in FY26 (DRHP p.238). HAM revenue rose from ₹101.3 crore to ₹347.1 crore and EPC revenue from ₹783.7 crore to ₹1,262.4 crore between FY24 and FY26 (our arithmetic, DRHP p.30).

Read from the filing: the increase came from more projects in execution and a larger HAM share, but the offer document does not break revenue into work volume (lane km executed per year) and rate, so the growth cannot be split into volume and price.

Costs moved in the margin's favour as a share of revenue: raw materials fell from 34.96% of revenue in FY24 to 26.90% in FY26 (DRHP p.44), and contract labour from 10.73% of total expenses to 4.37% (DRHP p.42).

06Earnings quality

The one that needs explaining is cash. In FY26, other financial assets rose by ₹353.1 crore and inventories by ₹129.2 crore, which took operating cash flow below zero (our arithmetic, DRHP p.88). The company attributes this to the gap between execution spending and collection and to unbilled revenue recognised on percentage of completion (DRHP p.43).

The document gives two sets of receivable days. On closing balances they are 15, 19 and 16 days for FY24 to FY26, which the company says reflects bulk payments received at the end of each March (DRHP p.126, DRHP p.127). The FY24 auditor could not rely on the closing stock valuation and depended on management's valuation (DRHP p.462).

07The balance sheet

Source: DRHP p.137, our arithmetic for the crore figures.

Net debt was 1.1 times FY26 EBITDA (our arithmetic, DRHP p.137). By August 31, 2026, fund-based borrowings of the company and its subsidiaries were ₹752.5 crore, and bank guarantees, surety bonds and letters of credit outstanding were ₹767.6 crore (our arithmetic, DRHP p.468).

Contingent liabilities at March 31, 2026 were ₹1,148.3 crore, of which ₹1,077.9 crore was bank guarantees and surety bonds and ₹70.1 crore disputed GST (our arithmetic, DRHP p.89). After March 2026 an Assam GST order settled a ₹57.2 crore contingent item: ₹3.0 crore was adjusted as input tax credit and ₹1.7 crore appropriated to tax, interest and penalty (our arithmetic, DRHP p.89).

After the issue: the plan repays ₹50.0 crore of borrowings (DRHP p.123). Net debt at March 2026 less that repayment would be ₹411.9 crore, before any change since March (our arithmetic, DRHP p.123, DRHP p.137).

08What the money is for

Source: DRHP p.122, DRHP p.123. Percentages are our arithmetic on the ₹600.0 crore gross fresh issue.

Working capital: ₹150.0 crore in FY27 and ₹225.0 crore in FY28 (DRHP p.123). The company projects its working capital funding need rising from ₹362.4 crore at March 2026 to ₹777.9 crore at March 2027 and ₹975.2 crore at March 2028 (our arithmetic, DRHP p.125, DRHP p.126). Those projections are the company's, approved by its board (DRHP p.126).

Debt repayment: ₹50.0 crore in FY27 (DRHP p.123).

General corporate purposes: capped at 25% of gross proceeds (DRHP p.123). The company may also place up to ₹120.0 crore of shares before the RHP, which would reduce the fresh issue (DRHP p.122).

Into the business up to ₹600.0 crore gross (fresh issue) (DRHP p.1). To selling shareholders up to 1,00,00,000 shares; the amount depends on the price, which is not set (DRHP p.1).

09Who is selling

Source: DRHP p.1, DRHP p.112; percentages are our arithmetic.

Their weighted average cost of acquisition is ₹2.43 a share for Mohit Jandu and ₹3.22 for Kuldeep Kumar (DRHP p.1). Both gave shares to Hari Niwas by gift in the days before filing: 94,06,081 shares from Mohit Jandu on September 21, 2026 and 1,19,56,486 from Kuldeep Kumar on September 23, 2026 (DRHP p.114).

10Promoters

The promoters are Mohit Jandu, Hari Niwas, Kuldeep Kumar, Savitri and HN Family Trust (DRHP p.315). The document states that Hari Niwas and Savitri are spouses and that Mohit Jandu and Kuldeep Kumar are their sons (DRHP p.318). Mohit Jandu, 32, is Managing Director; Kuldeep Kumar, 34, is Whole-time Director (DRHP p.315, DRHP p.316). Hari Niwas was a director from October 2019 to April 11, 2025 (DRHP p.315).

HN Family Trust was formed on February 11, 2026, with Hari Niwas as settlor and Savitri, Kuldeep Kumar and Mohit Jandu as beneficiaries (DRHP p.316). It received 4,00,00,000 shares from Hari Niwas by gift on March 18, 2026 (DRHP p.111).

What the company pays them: remuneration to Mohit Jandu and Kuldeep Kumar together rose from ₹2.0 crore in FY24 to ₹9.0 crore in FY26 (our arithmetic, DRHP p.91). Hari Niwas received professional fees of ₹5.6 crore in FY26 under a consultancy agreement paying ₹0.37 crore a month (our arithmetic, DRHP p.91, DRHP p.280). Hari Niwas, Savitri and Priya are paid rent for leased premises (DRHP p.317).

Entities that transact with it: Godara Construction Company, described as a firm in which a promoter's sister is a partner, received sub-contract payments of ₹56.3 crore in FY26 against ₹1.3 crore in FY24 (our arithmetic, DRHP p.91). Two promoter group companies, J Estates Private Limited and Fantasy Exim Private Limited, hold development rights to company land under three collaboration agreements, with the company entitled to 25% or 40% of revenue (DRHP p.278, DRHP p.279).

Pledges and litigation: no promoter shares are pledged (DRHP p.112). Two regulatory actions are pending against promoters: a Haryana pollution board complaint over a hot mix plant and a forest offence report against Hari Niwas (DRHP p.473).

Cost of their shares: rights issues at ₹10 a share in 2021 and 2022, part-paid by converting partners' balances of ₹31.9 crore and ₹7.5 crore (DRHP p.104); a bonus of 100 for 631 in May 2022 and 1 for 1 in February 2026 (DRHP p.104). The last priced allotment was a ₹10 rights issue to Monika and Virender Singh in September 2024 (DRHP p.104).

11Who already owns it

Source: DRHP p.112, DRHP p.117.

Promoters hold 97.66% and the promoter group the rest; there are eight shareholders and no public, fund or institutional holder (DRHP p.110, DRHP p.116). The holding after the issue cannot be computed until the price fixes the number of new shares (DRHP p.117).

A year before the filing, Mohit Jandu held 32.50%, Hari Niwas 30.53% and Kuldeep Kumar 27.94% (DRHP p.116). The shift to Hari Niwas and the trust came through gifts, not sales (DRHP p.114).

12What changed just before the IPO

• Public company: converted from private to public limited, certificate dated November 26, 2024 (DRHP p.2).
• Auditor change: Mohit Bharti & Associates completed its term and S S Kothari & Co. LLP was appointed on September 30, 2025 (DRHP p.97).
• Bonus issue: one share for every share held, allotted February 16, 2026, doubling the count to 11,69,91,060 (DRHP p.104).
• Earlier bonus: 100 shares for every 631 held, May 25, 2022 (DRHP p.104).
• Share split: none in the last year (DRHP p.120).
• Last priced allotment: rights issue at ₹10 a share, September 30, 2024 (DRHP p.104).
• Pre-IPO placement: none made; up to ₹120.0 crore may be placed before the RHP (DRHP p.122).
• Promoter trust and gifts: HN Family Trust formed February 2026 and gifts among promoters in March, June and September 2026 (DRHP p.114, DRHP p.316).
• Promoter pay: remuneration of the two executive promoters rose from ₹2.0 crore in FY24 to ₹9.0 crore in FY26 (our arithmetic, DRHP p.91); consultancy agreement with Hari Niwas from April 12, 2025 (DRHP p.279).
• Revenue: from ₹887.0 crore in FY24 to ₹1,721.8 crore in FY26 (our arithmetic, DRHP p.86).
• Profit: PAT from ₹85.9 crore in FY24 to ₹246.6 crore in FY26 (our arithmetic, DRHP p.86).
• Receivable days: 32 in FY24 to 15 in FY26 (DRHP p.137).
• Order book: HAM awards from Telangana in June 2026 took the order book to ₹8,500.7 crore at July 31, 2026 (our arithmetic, DRHP p.233); 15 subsidiaries formed for them (DRHP p.466).
• New business: NMDC iron ore slime contracts from June and August 2026 (DRHP p.466).
• Contract loss: an NHIDCL project with an Azerbaijan-incorporated joint venture partner was terminated in June 2025 on national security grounds, cutting ₹172.5 crore from the order book (our arithmetic, DRHP p.34).

13Capacity and expansion

A contractor's capacity is its fleet, people and bonding limits rather than a plant. The company owned 980 machines, equipment and vehicles and hired 91 more at July 31, 2026 (DRHP p.134). Sanctioned working capital limits were ₹496.9 crore in FY26 (our arithmetic, DRHP p.37).

The issue does not fund equipment. It funds working capital, which the company links to executing the order book (DRHP p.125). The document does not give fleet utilisation.

14Market size and industry structure

As claimed: the road infrastructure market grew from ₹2,625.3 billion in FY21 to ₹5,394.2 billion in FY26, per the CARE report, with EPC around 50% of it in FY26 and HAM 31% (DRHP p.182). The report, "Research Report on Road and Infrastructure Sector in India" dated September 24, 2026 by CARE Analytics and Advisory Private Limited, was commissioned and paid for by the company (DRHP p.26).

The part that is addressable: roads and highways, including bridges, in the states where the company bids; the document does not size that subset.

What the company is today: FY26 revenue of ₹1,721.8 crore is about 0.3% of the ₹5,394.2 billion market figure (our arithmetic, DRHP p.86, DRHP p.182).

Structure: awards come through competitive bidding after pre-qualification, and price decides once bidders qualify (DRHP p.31). The industry report cited by the company, also commissioned by it, lists land acquisition delays and cautious bank lending among sector challenges (DRHP p.183).

15Competitive position

Source: FY26 figures, DRHP p.140, DRHP p.141, DRHP p.142; crore conversion is our arithmetic.

What the document offers as reasons customers choose it: execution in hilly and border terrain, an owned fleet, in-house design, and eight-plus years with NHAI and NHIDCL (DRHP p.133, DRHP p.235). Its bid-to-win ratio was 26.76% in FY26 (DRHP p.31). Its receivable days of 15 compare with 51 to 117 days for most named peers, which the company attributes to year-end collections (DRHP p.142, DRHP p.127).

16Peers the company named

Peers named in the offer document: PNC Infratech, KNR Constructions, Dilip Buildcon, H.G. Infra Engineering, IRB Infrastructure Developers, G R Infraprojects and Ceigall India (DRHP p.136).

Source: DRHP p.136, P/E at September 22, 2026 closing prices as the document computes it; crore figures our arithmetic.

Every named peer is larger: from 1.6 times the company's FY26 revenue (KNR) to 5.2 times (Dilip Buildcon) (our arithmetic, DRHP p.136). The peers' P/E ranges from 4.31 to 25.69 with an average of 11.62 (DRHP p.135). The document does not split the order books of IRB Infrastructure Developers and G R Infraprojects into EPC and HAM (DRHP p.140). No P/E is possible for J Infratech until a price band is set.

17Risks, in plain words

• Customers: NHIDCL and NHAI were 87.08% of FY26 revenue (DRHP p.29); a slowdown in their awards or payments reaches revenue directly.
• Order book geography: Telangana is 64.68% of the July 2026 order book, mostly from state HAM awards (DRHP p.32, DRHP p.230); the FY26 revenue split by state does not list Telangana (DRHP p.33).
• HAM funding: HAM projects are 70.89% of the July 2026 order book (DRHP p.233) and need equity contributions and financial closure (DRHP p.31).
• Cash: operating cash flow was −₹129.0 crore in FY25 and −₹55.1 crore in FY26 (DRHP p.43).
• Guarantees: ₹1,077.9 crore of bank guarantees and surety bonds at March 2026 (our arithmetic, DRHP p.89); an invocation would become a cash liability.
• Input costs: raw materials were ₹463.1 crore in FY26 (our arithmetic, DRHP p.44); bitumen and petroleum prices rose from February 2026 (DRHP p.44).
• Terminations: one project terminated in June 2025 (₹172.5 crore of order book) and a railway JV contract in October 2024 with ₹36.2 crore of claims raised (our arithmetic, DRHP p.34, DRHP p.36).
• New business: the NMDC slime contracts are a new line needing approvals the company says it may not yet hold (DRHP p.38).
• Issue-specific: the two selling promoters offer 84.1% of their own holdings (our arithmetic, DRHP p.1, DRHP p.112).

18Litigation and regulatory matters

Crore figures are our arithmetic. Subsidiaries have no outstanding litigation (DRHP p.475). The company owed ₹110.3 crore to 977 creditors at March 31, 2026, three of them material (our arithmetic, DRHP p.475, DRHP p.476).

19Related-party transactions

Source: DRHP p.91, DRHP p.92; crore figures our arithmetic.

Appeared in the last two years: revenue booked against each of the four individual promoters of about ₹8.2 to ₹8.4 crore in FY26 (DRHP p.92); part payments of ₹5.6 crore and ₹3.0 crore to Kuldeep Kumar and Mohit Jandu for property bought from them and the same amounts returned (DRHP p.93); the Hari Niwas consultancy from April 2025 (DRHP p.279). The FY25 auditor noted that documentation of the arm's length nature of some related-party transactions could be improved (DRHP p.460).

20What the offer document does not say

In the pages read for this study, the document does not give:

• Revenue by volume and rate: lane km executed in each year, so growth cannot be split.
• What the ₹33.1 crore of FY26 revenue booked against the four individual promoters was for, in the pages read (our arithmetic, DRHP p.92).
• How much equity the Telangana HAM projects need and when, in the pages read.
• Expected revenue or margin from the NMDC contracts.
• Fleet utilisation and the age of equipment.
• The price band, lot size, issue dates and post-issue shareholding, which is normal at DRHP stage.

21Five questions for management

1. How much equity must the company put into the 15 Telangana HAM subsidiaries, and in which years?
2. What share of FY26 revenue came from work executed through joint ventures, and what does the company keep of it?
3. What were the individual promoter revenue items in FY26 for, and will they recur?
4. What drove EBITDA margin from 19.2% in FY24 to 25.1% in FY26: mix, input costs or escalation claims?
5. What are the NMDC contracts expected to require in advances and working capital in FY27?

1Sources and cited facts

This study was read from 1 document the company filed. The 103 figures it cites are listed under the document each came from, with the page and the sentence as printed.