💰 Financial Performance

Revenue Growth by Segment

Total income grew by 209.27% YoY, reaching INR 157.01 Cr in Q1 FY26 compared to INR 50.77 Cr in Q1 FY25, driven primarily by large-scale telecom infrastructure projects.

Geographic Revenue Split

The company is heavily concentrated in Maharashtra (100%), specifically operating out of Navi Mumbai and Thane, focusing on high-growth connectivity hubs like the Samruddhi Expressway and Mumbai Metro lines.

Profitability Margins

Net Profit Margin declined from 10.43% in Q1 FY25 to 8.60% in Q1 FY26. This compression is attributed to raw material expenses rising 222.52% YoY, outpacing revenue growth.

EBITDA Margin

EBITDA Margin stood at 12.69% in Q1 FY26, a decrease from 14.70% in Q1 FY25, representing a 201 bps contraction despite a 167.03% increase in absolute EBITDA to INR 19.93 Cr.

Capital Expenditure

Historical CapEx is reflected in a 1,047% increase in depreciation and amortization, which rose from INR 0.43 Cr in FY24 to INR 4.99 Cr in FY25. The company has a project pipeline of INR 400 Cr for 2024-25.

Credit Rating & Borrowing

Finance costs increased by 64.27% YoY to INR 0.13 Cr in Q1 FY26 from INR 0.08 Cr in Q1 FY25, indicating increased utilization of credit lines to fund working capital for large projects.

⚙️ Operational Drivers

Raw Materials

Raw material expenses (primarily fiber cables and infrastructure components) represent 86.3% of total income, amounting to INR 135.52 Cr in Q1 FY26.

Import Sources

Sourced primarily from within India, specifically Maharashtra, to support localized infrastructure projects like the Mumbai Metro and Samruddhi Expressway.

Key Suppliers

Not explicitly named, but includes major telecom equipment manufacturers and cable suppliers required for high-value telecom infrastructure facilities.

Capacity Expansion

KDL expanded its operational capacity by incorporating three subsidiaries in 2024: Franken Telecom, Wolter Infratech, and KDL Realinfra, to diversify into specialized engineering and civil works.

Raw Material Costs

Raw material costs surged 222.52% YoY to INR 135.52 Cr in Q1 FY26, reflecting the scale-up of project execution and potential inflationary pressure on infrastructure inputs.

Manufacturing Efficiency

Employee costs as a percentage of revenue improved significantly, dropping from 0.78% in Q1 FY25 to 0.36% in Q1 FY26, demonstrating high operating leverage as the company scales.

Logistics & Distribution

Distribution costs are integrated into project execution expenses for laying fiber networks along expressways and metro corridors.

📈 Strategic Growth

Expected Growth Rate

150%

Growth Strategy

KDL aims to achieve INR 1,000 Cr in revenue for FY2025-26 by leveraging its three new subsidiaries to capture emerging opportunities in specialized engineering and by executing a robust pipeline of fiber network projects along major Indian expressways.

Products & Services

Fiber network laying, communication corridors, specialized telecom infrastructure facilities, and civil engineering works for metro and expressway projects.

Brand Portfolio

Kore Digital Limited (KDL).

New Products/Services

Specialized engineering and civil infrastructure services launched through Wolter Infratech Private Limited (incorporated July 9, 2024).

Market Expansion

Expanding footprint in high-value projects across Maharashtra, targeting a revenue jump from INR 400 Cr in projects to INR 1,000 Cr by the end of FY26.

Market Share & Ranking

Positioned as a dependable telecom infrastructure provider in Maharashtra with over 14 years of industry expertise.

Strategic Alliances

Maintains relationships with leading telecom operators; however, specific JV partner names for the new subsidiaries were not disclosed beyond 98% ownership.

🌍 External Factors

Industry Trends

The industry is shifting toward 5G and high-speed communication corridors; KDL is positioning itself to capture this by building specialized infrastructure along expressways, targeting a 150% revenue increase.

Competitive Landscape

Competes with regional and national telecom infrastructure providers and civil engineering firms in the Maharashtra connectivity market.

Competitive Moat

Moat is based on 14 years of execution experience in the complex Maharashtra regulatory environment and established credibility with major telecom operators, which is sustainable but faces competition from larger EPC firms.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and government infrastructure budgets, as revenue is tied to public-sector linked projects like the Mumbai Metro.

Consumer Behavior

Increasing demand for data and connectivity is driving telecom operators to expand fiber footprints, directly benefiting KDL's core service offering.

Geopolitical Risks

Low direct exposure, but global supply chain disruptions could impact the pricing and availability of imported telecom fiber components.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Companies Act 2013 and telecom infrastructure standards; notably, the auditor reported that the company did not use accounting software with an audit trail (edit log) facility as required.

Environmental Compliance

Not disclosed in absolute INR; subject to environmental norms for fiber laying and civil works.

Taxation Policy Impact

Effective tax rate is approximately 25%, with tax expenses of INR 4.61 Cr on PBT of INR 18.12 Cr in Q1 FY26.

Legal Contingencies

Management confirmed there are no pending litigations against the company having a material impact on its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The auditor expressed an inability to independently verify the commercial substance of business advances totaling INR 87.14 Cr to Kashvee Infraprojects and SSV Alpha Broadband, posing a potential 55% risk to FY25 PAT if these are unrecoverable.

Geographic Concentration Risk

100% of operations and projects are concentrated in Maharashtra, making the company vulnerable to regional policy shifts or economic downturns in the state.

Third Party Dependencies

Heavy reliance on government project timelines and third-party statements for financial projections.

Technology Obsolescence Risk

Risk of shifting to satellite-based or alternative connectivity technologies, though current 5G trends favor fiber-optic expansion.

Credit & Counterparty Risk

Significant credit exposure through business advances to related or third-party entities (INR 83.64 Cr to one entity), which exceeds the company's annual PAT.