Kalpataru Projects International Limited has disclosed multiple regulatory challenges through a comprehensive filing dated February 27, 2026, revealing penalties from UAE authorities and tax assessment issues from Indian authorities.

UAE NAFIS Program Violations

The company received intimations from its UAE branch offices regarding penalties imposed by local authorities for violations related to the National In-Country Value Program (NAFIS) pertaining to Emiratization regulations compliance.

The orders were received on February 26 and 27, 2026, respectively. The company stated that these penalties do not have any significant impact on its operations.

Brazilian Subsidiary Loan Guarantee

Kalpataru Projects remitted BRL 85.14 million to Banco HSBC S.A., Brazil, following an early prepayment request for a loan from Fasttel Engenharia S.A., its step-down wholly owned subsidiary. The company had provided corporate guarantees aggregating to BRL 91.56 million for Fasttel's loan, issued on January 31, 2025, and October 8, 2025.

Income Tax Assessment Order

The Income Tax Department issued an Assessment Order under Section 143(3) of the Income Tax Act, 1961, for assessment year 2023-24. The Assessing Officer made certain additions and disallowances while initiating penalty proceedings.

Company's Response Strategy

Kalpataru Projects maintains confidence in defending these matters before appellate authorities. The company plans to file appeals against the tax assessment order within prescribed timelines and believes these issues will not significantly impact its financial position or operations.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding these regulatory developments.

Kalpataru Projects International has announced its Q3FY26 quarterly results for the quarter ended December 31, 2025, delivering strong financial performance with significant revenue growth and improved profitability across key metrics. The company has set ambitious targets including consolidated EPS over INR 50 this year and outlined comprehensive capex plans for sustained growth.

Financial Performance Highlights

The infrastructure and power transmission company demonstrated robust growth momentum in Q3FY26, with consolidated revenue reaching Rs. 6,665.42 crores compared to Rs. 5,732.48 crores in the corresponding quarter of the previous year. The company achieved consolidated net profit attributable to owners of Rs. 152.17 crores versus Rs. 141.96 crores in Q3FY25.

Strategic Targets and Capital Expenditure Plans

The company has set ambitious financial targets, aiming for consolidated EPS over INR 50 this year while focusing on net working capital optimization and order inflows. Management has outlined a structured capex approach with INR 700-758 crore allocated for FY2026, and similar projections planned for FY2027, demonstrating commitment to sustained infrastructure investment and growth.

FY2026 Growth Outlook and Margin Expansion

The company expects around 25% revenue growth for FY2026 with significant earnings improvements and ongoing margin enhancement. Management anticipates margin improvements of 50 basis points for standalone operations and 100 basis points for consolidated operations, reflecting enhanced operational efficiency and project execution capabilities. Detailed financial figures and comprehensive guidance will be revealed in the April earnings call.

Segment-wise Performance Analysis

The company's Engineering, Procurement and Construction (EPC) segment continued to be the primary revenue driver, generating Rs. 6,573.59 crores in Q3FY26 compared to Rs. 5,616.28 crores in the same quarter last year. Development Projects segment contributed Rs. 50.66 crores while the Others segment added Rs. 59.44 crores to the total revenue.

Nine-Month Performance Overview

For the nine months ended December 31, 2025, the company reported consolidated revenue of Rs. 19,365.16 crores compared to Rs. 15,249.01 crores in the corresponding period last year, representing a growth of 27.00%. Net profit attributable to owners reached Rs. 605.84 crores versus Rs. 360.29 crores in the previous year, demonstrating strong operational momentum supporting the ambitious EPS targets.