Axis Securities has reaffirmed its ‘Buy’ stance on three leading road‑infrastructure names—Kalpataru Projects, RITES and GR Infraprojects—following their Q1FY27 earnings. While the sector saw a modest decline in top‑line revenue, profit after tax (PAT) rose 12–15% year‑on‑year, surpassing market expectations and underscoring robust cost controls and efficient project execution. Kalpataru’s revenue slipped 4% due to a slowdown in highway contracts, yet its order book remains healthy with several high‑value toll‑way and bridge projects in the pipeline.
RITES, a PSU‑backed engineering firm, reported a 9% revenue dip but benefited from a 20% jump in government‑backed rail and road contracts, reflecting the ongoing infrastructure stimulus. GR Infraprojects, known for its public‑private partnership (PPP) focus, posted a 6% revenue decline but a 13% rise in PAT, driven by better margin management and a growing portfolio of toll‑road projects. The consistent buy recommendations come against the backdrop of the Nifty 50’s recent rally, where infrastructure stocks have been a key contributor.
For retail investors, these picks signal that despite short‑term revenue volatility, the long‑term upside from India’s infrastructure push—especially under the National Infrastructure Pipeline—remains attractive. In sum, Axis’s confidence in these firms is rooted in their solid order books, cost discipline and the broader policy momentum for roads and rail, offering a potentially resilient play for investors looking to diversify into the infrastructure space.