Kalpataru Projects International reported that the Hon'ble Delhi High Court upheld its earlier order partially setting aside an arbitral award in favor of its joint venture, Kurukshetra Expressway Private Limited (KEPL), against the National Highways Authority of India (NHAI). The court's decision, dated September 28, 2026, specifically denies KEPL's claim for Termination Payment and associated interest, while upholding awards on other claims.

The dispute stems from a concession agreement executed in July 2010 for the four-laning of the Rohtak-Bawal section of NH-71 in Haryana. KEPL terminated this agreement in October 2021, citing force majeure due to farmer protests that halted toll collection. Following termination, KEPL initiated arbitration, securing awards against NHAI which included the disputed Termination Payment. NHAI challenged these awards under Section 34 of the Arbitration and Conciliation Act, 1996.

Legal Proceedings Timeline

The legal battle has seen multiple developments since the initial arbitration awards were received in August 2024. The table below outlines the key procedural milestones disclosed by the company:

Impact on Joint Venture

KEPL, in which Kalpataru holds a 49.57% equity stake, stated that it believes it has a strong case to challenge the current order. The company is taking appropriate legal steps, including filing an appeal under Section 37 of the Arbitration and Conciliation Act, 1996. The financial impact on Kalpataru Projects International remains uncertain until the awarded claims are crystallized and any further legal outcomes are determined.

The termination of the concession agreement previously led to KEPL's account being classified as a Non-Performing Asset (NPA) under RBI guidelines after it failed to pay interest to lenders in October 2021. This classification occurred because the company could not honor lender payments following the cessation of toll revenue due to the force majeure event.

What the Numbers Show

While specific monetary values of the arbitral award are not disclosed in the filing, the judicial distinction between claim types is significant. The court upheld awards on all claims except the Termination Payment and interest thereon. This suggests that the judiciary recognized certain liabilities of NHAI towards KEPL but rejected the compensation mechanism for the project's early termination. For investors, the concentration of the dispute around the Termination Payment highlights that the primary financial recovery expected from this litigation has been legally blocked at the appellate stage, shifting focus to the strength of KEPL's further appeal.

Kalpataru Projects International has secured a mega order worth ₹4,000.00 crore for the Engineering, Procurement and Construction (EPC) of a gas pipeline project in the United Arab Emirates. The awarding entity is classified as International, with the specific name not disclosed in the filing.

Order Details and Financial Context

The newly disclosed order is dated 28 September 2026. It represents a significant addition to the company's recent inflow. The total disclosed order book for the last three fiscal quarters now stands at ₹19,469.00 crore across 7 orders. This backlog provides 2.82 quarters of coverage against the average quarterly revenue of ₹6,902.93 crore.

The table below summarizes the quarterly order inflow as per pre-computed data:

Note: The pre-computed quarterly summary lists specific totals for Q2FY27 and Q1FY27. The new order is included in the total disclosed book figure provided in the input data.

Recent Order History

The following table details the order history, including the latest international win and previous domestic and overseas contracts:

Execution and Revenue Quality

Revenue conversion has shown variability, with Q4FY26 delivering the highest topline among the last three quarters. Operating Profit Margins (OPM) have remained within a narrow band of 7.26% to 8.77%, indicating stable execution efficiency despite fluctuating revenue volumes. There are no net loss quarters in the recent period.

Revenue Growth Context

As Kalpataru Projects International sustains order wins across T&D, B&F, and other verticals, its annual revenue has grown from ₹16,435.60 crore in FY23 to ₹27,247.90 crore in FY26. This trend aligns with the high volume of mega orders disclosed in recent quarters.

Working Capital and Balance Sheet

The company maintains a Current Ratio of 1.25x. The Total Liabilities/Equity ratio stands at 2.58x, which includes trade payables and other non-debt liabilities. Operating Cashflow was positive at ₹1,534.40 crore in FY26, supporting the conversion of accruals into cash.

Key Observations

• Backlog signal: The total disclosed order book of ₹19,469.00 crore provides 2.82 quarters of coverage against average quarterly revenue.
• Geographic diversification: The new order is for a project in the United Arab Emirates, adding to the mix of domestic and overseas orders.
• Valuation check (as of 28 Sep 2026): P/E of 21.0x against ROCE of 20.51%.