Kalpataru Projects International Limited (KPIL) has announced securing new orders and notification of awards worth approximately ₹719.00 crores. The leading EPC player in power transmission and distribution (T&D) and civil infrastructure sector achieved this milestone along with its joint venture partners, leading to positive market response with shares gaining 1%.

Stock Performance and Market Response

Shares of Kalpataru Projects International gained on Thursday following the order announcement, trading 1% higher at ₹1,213.00. Despite the recent positive momentum, the stock remains down 8% over the last 12 months, reflecting broader market challenges in the infrastructure sector.

Major Order Details

The significant order win includes an elevated metro rail project in Thane, Maharashtra, marking a strategic expansion in the company's urban infrastructure portfolio. The company secured these orders through its joint venture partnership, though the specific share allocation has not been disclosed.

Management Commentary

Manish Mohnot, MD & CEO of KPIL, expressed satisfaction with the new order acquisition, particularly highlighting its significance for the Urban Infrastructure business vertical. "The elevated metro rail order in Thane has strengthened our presence in the growing urban transportation EPC business, reinforcing our confidence in the growth potential of our Urban Infra business in India," Mohnot stated.

The management emphasized that their strong order intake, diversified order book, and robust execution capabilities position the company favorably to deliver on growth targets in the coming quarters.

Business Challenges and Strategic Focus

Despite the positive order wins, the company continues to navigate challenges in the water infrastructure segment. Projects linked to the Jal Jeevan Mission account for around 10% of the firm's total order book, with receivables above ₹1,000.00 crores due to payment delays.

Company director Amit Uplenchwar indicated that the firm's diverse business mix will help manage current challenges while maintaining focus on growth in the transmission and distribution (T&D) sector.

Company Profile and Strategic Positioning

KPIL operates as one of the largest specialized EPC companies with expertise across multiple sectors including Power Transmission & Distribution, Buildings & Factories, Water Supply & Irrigation, Railways, Oil & Gas Pipelines, Urban Mobility, Highways, and Airports. The company maintains an extensive global presence, currently executing projects in over 30 countries with a footprint spanning 75 countries worldwide.

The new order reinforces KPIL's leadership position in its major business segments, supported by strong organizational capabilities, superior technical expertise, and adherence to best-in-class sustainability standards.

Kalpataru Projects International Limited has received a penalty order of ₹1.51 crores from the GST Authority, as disclosed under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015. The order was received on December 30, 2025, at approximately 1:14 PM IST by a consortium in which the company is a member.

GST Authority Order Details

The GST Authority issued the order under Section 74 of the Central Goods and Services Tax Act, 2017, along with relevant provisions of the State Goods and Services Tax Act, 2017. The penalty pertains to alleged violations during the financial years 2018-19 to 2022-23.

Nature of Alleged Violations

The GST Authority has demanded tax, interest, and penalty from the consortium on specific grounds:

• Excess availment of Input Tax Credit (ITC)
• Short payment of tax during the specified period
• Additional demands for tax and interest components beyond the penalty

Company's Response and Next Steps

Kalpataru Projects International has indicated strong confidence in defending the matter before the Appellate Authority. The company stated that the order was issued without considering the reply and documentary evidence submitted by the consortium during the proceedings.

The consortium plans to file an appeal before the Appellate Authority against the GST order within the prescribed timelines. This approach suggests the company believes it has substantial grounds to challenge the penalty and associated demands.

Financial Impact Assessment

According to the company's disclosure, the penalty of ₹1.51 crores does not have any significant impact on Kalpataru Projects International's operations or financial position. This assessment indicates that while the penalty represents a regulatory challenge, it is not expected to materially affect the company's business activities or financial performance.

The disclosure was signed by Company Secretary Shweta Girotra and filed in compliance with regulatory requirements for transparency regarding legal and regulatory developments affecting listed entities.