R.P.P. Infra Projects Ltd (NSE: RPPINFRA) stock falls as FY25 results reveal growth mixed with caution

R.P.P. Infra Projects Ltd saw its stock decline by 2.01% to ₹140.24 on June 6, 2025, following the release of its Q4 and full-year FY25 financial results through an investor presentation filed with stock exchanges. The Indian engineering, procurement, and construction company reported a steady revenue performance and a sizable order book, yet investors appeared cautious due to substantial write-offs, overseas project execution uncertainties, and a decline in earnings per share.

The share price movement comes at a time when the stock has already shed significant value from its 52-week high of ₹255.30, recorded on December 18, 2024. Volatility was further underscored as the stock touched a fresh 52-week low of ₹101.30 on June 5, 2025, the day before the financial disclosure.

R.P.P. Infra Projects Ltd, which was listed on Indian bourses in 2010, operates across infrastructure development, buildings, and water management segments. The firm is now under the leadership of Chairman and Managing Director Arulsundaram and Whole-Time Director and CFO Nithya Arulsundaram.

What do R.P.P. Infra Projects’ FY25 results reveal about its business trajectory?

For the financial year ended March 31, 2025, R.P.P. Infra Projects Ltd posted standalone revenues of ₹1,431.55 crore, reflecting year-on-year growth from ₹1,332.39 crore in FY24. Gross profit also rose from ₹191.21 crore to ₹203.33 crore, yet EBITDA declined to ₹107.08 crore from ₹115.29 crore in the previous fiscal, with EBITDA margins falling to 7.48% from 8.65%.

The infrastructure EPC player reported a net profit of ₹64.57 crore, marginally lower than ₹65.52 crore in FY24, bringing the net margin to 4.57% versus 4.92% a year earlier. The modest dip in bottom-line figures is attributed to one-off expenses, increased project costs, and higher provisioning. These pressures are reflected in the earnings per share, which fell from ₹17.31 to ₹13.20 despite overall stable profitability. The EPS decline was primarily due to an increase in share capital following equity dilution from warrant conversions.

Quarterly results for Q4 FY25 indicated revenue of ₹407.02 crore, EBITDA of ₹36.04 crore, and net profit of ₹22.04 crore. This performance was comparable to the preceding quarters, though the market response was muted due to other financial and operational disclosures.

What impacted financial performance despite revenue growth?

R.P.P. Infra Projects Ltd flagged several material items that negatively impacted its FY25 financial position. The termination of a Chennai Petroleum Corporation Limited (CPCL) project caused a direct gross loss of ₹15 crore, with only ₹41 crore of the total ₹254 crore project value executed before cancellation.

Additionally, the Indian EPC company wrote off ₹7.65 crore in bad debts from an arbitration case involving NTECL that has been pending since 2014. Site assets worth ₹2.04 crore were marked as obsolete, while ₹1.79 crore of bank guarantees invoked by NTPC were also written off.

Further, retention receivables of ₹3.16 crore were expensed, and an onerous loss provision of ₹1.38 crore was recognized for BHEL and two other projects. Although the firm received ₹38.16 crore from share warrants during the year—adding to ₹12.72 crore previously received—the dilution effect weighed on investor perception.

Land purchases worth ₹88.53 crore, including parcels in Kanchipuram acquired using share warrant money and cash profits, added to capital investments but did not immediately enhance income or margins.

What is the current status of R.P.P. Infra Projects’ order book?

As of March 31, 2025, R.P.P. Infra Projects Ltd reported an order book of ₹2,762.89 crore across 47 projects. The portfolio includes ₹1,844.31 crore in infrastructure work, ₹392.03 crore in buildings, and ₹526.55 crore in water management. The order book remains geographically diversified, with large contracts in Tamil Nadu (₹1,203.76 crore), Uttar Pradesh (₹635.85 crore), and Maharashtra (₹601.23 crore).

The Indian infrastructure player was awarded 19 new projects worth ₹1,878.04 crore during FY25, with Maharashtra, Tamil Nadu, and Uttar Pradesh being the top contributors. Additionally, projects worth ₹543.21 crore remain in L1 status, suggesting more business visibility for FY26. If converted, these contracts would lift the pending execution value above ₹3,300 crore, a significant buffer for near-term revenue.

However, execution timelines, funding constraints, and profitability margins across these contracts will likely determine investor confidence in the coming quarters.

What is the risk-reward profile of the Sri Lanka project?

A notable development in FY25 was the company’s entry into international markets via a ₹764 crore residential complex project, “Legend 96,” in Sri Lanka. The project has received approval from the Sri Lanka Board of Investments. Funding proposals have been submitted to Bank of Ceylon and Commercial Bank for in-principle clearance.

This diversification into overseas EPC is viewed with mixed sentiment. While it opens a new growth vertical, investors are wary of execution challenges, currency volatility, and political or macroeconomic risk associated with the Sri Lankan market. The funding status of this project remains a critical variable in investor decision-making going forward.

What are the liquidity and solvency metrics saying?

As per the latest data, R.P.P. Infra Projects Ltd has maintained a stable balance sheet profile. The debt-to-equity ratio improved to 0.07x from 0.10x in FY24, while the current ratio held steady at 1.67x, indicating comfortable short-term liquidity. Total equity rose to ₹521.13 crore, supported by share warrant inflows and retained earnings.

However, non-current liabilities declined significantly, and total liabilities moved from ₹408.26 crore in FY24 to ₹412.32 crore in FY25. This suggests a disciplined approach to leverage, though the relatively low capex intensity might also signal conservative expansion amid uncertain economic conditions.

From a capital structure perspective, dilution from warrant conversions increased the number of shares outstanding to nearly 4.96 crore, impacting EPS even though the company remains profitable on an absolute basis.

How are institutional and retail investors reacting?

R.P.P. Infra Projects Ltd is categorized under the BE series on the NSE and falls under the ESM–2 surveillance framework, which restricts intraday trading and enforces periodic call auctions. This regulatory classification often reflects underlying liquidity constraints or price volatility risks.

On June 6, 2025, the stock recorded a trade volume of just 0.20 lakh shares with a traded value of ₹0.27 crore. Institutional ownership remains limited, with retail participation dominating, making the stock more vulnerable to sentiment-driven swings.

Market participants appear to be adopting a wait-and-watch approach. While the company’s revenue pipeline appears intact, the operational write-offs, overseas project uncertainties, and absence of clear analyst coverage are leading to cautious trading activity.

What lies ahead for R.P.P. Infra Projects Ltd in FY26?

Analysts and investors will closely watch three core developments in FY26: the financial closure and execution of the Sri Lanka residential project, the conversion of L1 pipeline into confirmed orders, and the ability to scale margins without recurring losses from project terminations or legal disputes.

The company’s low gearing, strong order inflows, and internal control improvements signal operational maturity, but confidence will depend on translating the ₹2,762 crore order book into consistent top- and bottom-line growth.

If the management is able to stabilize margins and reduce non-core write-offs while maintaining execution momentum, R.P.P. Infra Projects Ltd could see a valuation rerating. However, the stock’s current position near its 52-week low suggests that investors are yet to price in this upside.