Likhitha Infrastructure Limited reported a 47.23% year-on-year decline in standalone net profit for the first quarter of FY27. The Hyderabad-based oil and gas pipeline infrastructure provider posted a net profit of ₹7.34 crore for the quarter ended June 30, 2026, compared to ₹13.91 crore in the same period last year.

The company’s financial performance was weighed down by a significant contraction in revenue and margins. Standalone revenue from operations fell 30.51% to ₹85.06 crore, down from ₹122.41 crore in Q1FY26. This decline in topline growth directly impacted profitability metrics across the board.

Financial Performance

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped 39.92% to ₹12.34 crore. Consequently, the EBITDA margin contracted to 14.27% from 16.60% in the previous corresponding quarter. Profit before tax (PBT) also declined sharply by 45.05% to ₹10.31 crore.

For the full fiscal year FY26, the company had reported a standalone net profit of ₹40.02 crore, a decline of 42.31% from ₹69.37 crore in FY25. Annual revenue for FY26 stood at ₹456.73 crore, down 10.83% from ₹512.22 crore in FY25.

What the Numbers Show

A notable divergence exists between the decline in operating profits and the stability of other income. While EBITDA fell nearly 40%, other income remained flat at ₹1.34 crore against ₹1.31 crore in Q1FY26. This indicates that the profit contraction was driven entirely by core operational headwinds rather than changes in non-operating income streams. Additionally, total expenditure decreased proportionally with revenue, falling to ₹74.09 crore from ₹103.17 crore, suggesting cost controls were maintained relative to the lower business volume.

Order Book and Outlook

Despite the quarterly earnings dip, the company maintains a robust order book. As on June 30, 2026, Likhitha Infrastructure’s outstanding order book stood at approximately ₹1,454 crore. The company continues to expand its footprint across 20 states and two union territories in India, alongside international operations in Saudi Arabia, Nepal, and the UAE.

The firm recently secured a significant international order worth ₹510 crore (USD 54 million) from CPECC in Abu Dhabi, marking a key milestone in its global expansion strategy. The company operates through four primary segments: City Gas Distribution (CGD), Cross Country Pipeline (CCP), Operation & Maintenance (O&M), and Tankage construction.

Likhitha Infrastructure Limited reported a significant contraction in profitability for the first quarter of FY26, with consolidated net profit falling 47% year-on-year to ₹731.12 lakh. The decline was driven by a sharp drop in operational income, as revenue from operations contracted 30% to ₹8,505.85 lakh compared to ₹12,240.55 lakh in Q1FY25.

The Hyderabad-based infrastructure firm’s standalone net profit for the quarter ended June 30, 2026, stood at ₹734.14 lakh, down from ₹1,390.53 lakh in the corresponding period of the previous fiscal year. Standalone revenue from operations decreased to ₹8,505.85 lakh from ₹12,240.55 lakh year-ago.

Financial Performance Highlights

Total expenses for the consolidated entity rose marginally to ₹7,612.23 lakh in Q1FY26 from ₹7,505.53 lakh in Q1FY25, despite the lower revenue base. Contract execution expenses, a key cost driver for the company, stood at ₹5,063.56 lakh, down from ₹6,910.04 lakh in the prior year period. However, this reduction was not sufficient to offset the top-line decline.

Other income for the consolidated group remained relatively stable at ₹133.89 lakh, compared to ₹130.08 lakh in Q1FY25. Finance costs increased slightly to ₹42.78 lakh from ₹27.41 lakh year-ago.

What the Numbers Show

The divergence between the 30% revenue decline and the near-flat expense trajectory highlights margin pressure. While contract execution costs fell by approximately 27%, other expenses and employee benefits did not decrease proportionally to the revenue drop. This suggests fixed-cost rigidity in the short term, contributing to a sharper fall in operating profit than in top-line sales.

Additionally, the subsidiary Likhitha HAK Arabia Contracting Company in Saudi Arabia reported a minor loss of ₹3.01 lakh for the quarter, which was included in the consolidated results without independent audit review.

Corporate Governance Update

In other developments, the Board of Directors appointed Ms. Vaishali Tiwari as Company Secretary and Compliance Officer with immediate effect. Ms. Tiwari, a qualified member of the Institute of Company Secretaries of India (Membership No. A79996), has been designated as Key Managerial Personnel.

The unaudited financial results were reviewed by NSVR & Associates LLP, the statutory auditors, in accordance with SEBI regulations. The board meeting concluded at 1:04 pm on August 14, 2026.