Kalpataru Projects International has incorporated LM Operation Center India Private Limited as a wholly owned step-down subsidiary. The new entity was registered on August 14, 2026, to strengthen the company’s engineering and project execution capabilities in India.

The incorporation was disclosed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received the Certificate of Incorporation from the Ministry of Corporate Affairs on September 1, 2026.

Subsidiary Details

LM Operation Center India Private Limited is a first-level step-down subsidiary of Linjemontage I Grästorp AB ("LMG AB"), which is itself a first-level step-down subsidiary of Kalpataru Projects International.

The authorised capital stands at ₹3 crore, comprising 30 lakh equity shares of ₹10 each. The subscribed capital is ₹1.5 crore, representing 15 lakh equity shares. LMG AB, along with its nominee shareholder, has subscribed to 100% of the equity share capital through a cash subscription via banking channels.

Strategic Rationale

The new entity is incorporated to establish an operation centre in India. This move is intended to enhance LMG AB’s project and engineering execution capabilities. As a related party transaction, the acquisition involves no interest from the promoter group or other group companies outside the immediate subsidiary structure.

No governmental or regulatory approvals are required for this incorporation. The entity has not yet commenced business operations, so turnover figures are not applicable.

Kalpataru Projects International has secured new orders totalling ₹3,526 crore from domestic clients. The scope covers an EPC contract for an industrial plant in India, orders within the Power Transmission and Distribution (T&D) segment, and residential building projects. As a confirmed work order, the value is firm and executable, enabling the company to commence execution and recognise revenue as per project milestones.

Order in financial context

The ₹3,526 crore order constitutes approximately 51% of the company's average quarterly revenue of ₹6,902.93 crore over the last four quarters. The total disclosed order book, summing the orders disclosed across the last three fiscal quarters, stands at ₹9,918 crore. This backlog provides coverage of 1.44 quarters of average quarterly revenue. With trailing twelve-month revenue at ₹27,611.70 crore, the book-to-bill ratio is approximately 0.36x, indicating that new order inflows are tracking closely with revenue recognition rather than building a large surplus backlog.

Company order track record

Order inflow velocity has been robust in the recent quarter. In Q1FY27, the company recorded a total inflow of ₹9,918 crore, driven by multiple large contracts. The current order value of ₹3,526 crore is consistent with the company's typical per-order size, which has ranged between ₹2,002 crore and ₹2,957 crore in recent filings.

Execution and revenue quality

The company has demonstrated improving margin quality in recent quarters. Operating Profit Margin (OPM) expanded to 8.77% in Q1FY27 from 7.26% in Q3FY26, while net profit rose to ₹311.50 crore from ₹149.10 crore over the same period. Revenue in Q1FY27 was ₹6,485.20 crore, slightly lower than Q4FY26's ₹7,880.70 crore but above the Q3FY26 level of ₹6,693.80 crore. There are no signs of execution stress or net losses in the last three quarters.

Revenue growth: order wins translating to revenue

As Kalpataru Projects International has sustained order wins, its annual revenue has grown from ₹14,866.30 crore in FY22 to ₹27,247.90 crore in FY26, representing a YoY growth of 21.8% based on the latest annual data. This consistent topline expansion underscores the company's ability to convert large infrastructure orders into billable revenue over multi-year cycles.

Working capital and execution capacity

The balance sheet shows a current ratio of 1.25x, providing sufficient short-term liquidity to fund working capital requirements for ongoing projects. The Total Liabilities/Equity ratio stands at 2.58x, which includes trade payables and other non-debt liabilities, not just interest-bearing debt. Operating cashflow in FY26 was ₹1,534.40 crore, generating positive free cashflow of ₹724.10 crore after capex of ₹810.30 crore, indicating efficient conversion of backlog into cash.

Key observations

• Margin improvement: OPM expanded to 8.77% in Q1FY27 from 7.26% in Q3FY26, signalling better cost control or a favourable project mix.
• Cash generation: Positive free cashflow of ₹724.10 crore in FY26 demonstrates that the company is converting profits to cash, not merely growing accruals.
• Valuation (as of August 14, 2026): P/E of 20.7x against ROCE of 20.51%. (P/E is price-derived and will change; ROCE is from audited financials.)
• Leverage flag: Total Liabilities/Equity of 2.58x; the balance sheet carries elevated liabilities, and the ability to fund working capital for the existing backlog warrants monitoring.
• Execution rate: The ₹9,918 crore backlog conversion pace and OPM sustainability across new industrial and T&D contracts remain key metrics to watch.