Annu Projects’ Kerala BharatNet subcontract is 74% of order book

Annu Projects Limited’s Kerala BharatNet Phase III subcontract represented Rs 746.923 crore, or 74.32%, of its Rs 1,005.055 crore order book on June 30, 2026. The disclosed concentration makes conversion of recorded unexecuted work predominantly dependent on executing one telecom project subcontracted by G R Infraprojects Limited.

How concentrated is Annu Projects’ Kerala BharatNet order book?

Annu Projects’ order book was concentrated in the Kerala BharatNet subcontract because its Rs 746.923 crore outstanding value was larger than the next four projects combined. Order book is the unexecuted value of awarded direct contracts and subcontracts after revenue already recognised is deducted. Annu Projects reported 23 ongoing projects with an aggregate order book of Rs 1,005.055 crore as of June 30, 2026.

The five largest projects totalled Rs 922.184 crore, or 91.76% of the order book. That left Rs 82.871 crore, or 8.24%, across the other 18 ongoing projects. The Kerala BharatNet subcontract alone was about 10.87 times the Rs 68.699 crore order book of the second-largest project, a Kerala sewage-network contract.

Annu Projects calculates order book from the aggregate value of ongoing projects, adjusted for scope changes and reduced by work already executed. The measure excludes escalation, is not audited and may differ from methods used by other companies. Annu Projects also states that orders may be modified, cancelled, delayed, put on hold or not fully paid.

What is included in the Kerala BharatNet subcontract?

The Kerala BharatNet subcontract covers design, supply, construction, installation, upgradation, operation and maintenance of the middle-mile network in the Kerala Telecom Circle under Package 16. Annu Projects emerged as the L1 bidder, meaning the lowest bidder, in a consortium with G R Infraprojects Limited and SRIT India Private Limited under a letter of intent dated May 20, 2025.

Annu Projects says it will execute all optical fibre cable, or OFC, infrastructure activities and maintenance services for the project. Its work was estimated at Rs 918.55 crore including goods and services tax, or GST, representing about 81.00% of the project’s total contract value. The two disclosed Kerala work components had a combined basic contract value of Rs 778.432 crore as of June 30, 2026.

The Rs 746.923 crore order book comprises Rs 470.036 crore for the engineering, procurement and construction, or EPC, component and Rs 276.887 crore for operations and maintenance, or O&M. The EPC element had an expected completion date of June 16, 2028, while the O&M element was scheduled through July 31, 2035. The June 16, 2025 date for the EPC element was the allotment date because the project had not commenced when disclosed.

The Kerala schedule extends beyond Annu Projects’ other large telecom assignments. Package F OFC maintenance rework had Rs 52.679 crore outstanding and an expected completion date of September 30, 2026, while the defence optical-network subcontract had Rs 33.248 crore remaining with the same expected completion date. Conversion of the Kerala balance depends on mobilisation, construction progress, milestone billing, customer verification and continuation of the subcontract arrangement with G R Infraprojects Limited.

How does the Kerala BharatNet concentration compare with revenue mix?

Annu Projects’ recognised revenue was more diversified than its June 2026 order book: sewerage infrastructure accounted for 52.67% and telecom infrastructure for 41.50% of Fiscal 2026 revenue. Revenue from operations rose to Rs 241.248 crore in Fiscal 2026 from Rs 180.066 crore in Fiscal 2025 and Rs 153.982 crore in Fiscal 2024.

Sewerage infrastructure generated Rs 127.077 crore in Fiscal 2026, compared with Rs 100.115 crore from telecom infrastructure. This differed from Fiscal 2024, when telecom contributed 52.78% of Rs 153.982 crore revenue and sewerage contributed 38.54%. Gas pipeline revenue was Rs 9.719 crore, or 4.03%, in Fiscal 2026, while other activities contributed Rs 4.337 crore, or 1.80%.

The outstanding-work mix was substantially more telecom-dependent. Telecom infrastructure accounted for Rs 833.284 crore, or 82.91%, of the June 2026 order book, while sewerage infrastructure accounted for Rs 150.360 crore, or 14.96%. Gas pipeline represented Rs 10.098 crore and railway signalling represented Rs 11.313 crore; the Kerala BharatNet subcontract was about 89.64% of telecom order book based on the disclosed values.

Customer revenue was also concentrated, though across more than one counterparty. Annu Projects’ top 10 customers contributed Rs 236.323 crore, or 97.96%, of Fiscal 2026 revenue. A2Z Infra Engineering Limited contributed 26.61%, Bihar Urban Infrastructure Development Corporation Limited 23.08%, and G R Infraprojects Limited 12.43%.

What supports or could interrupt backlog conversion?

Annu Projects’ conversion of order book into revenue depends on execution, billing and payment under individual contracts. Its project lifecycle describes tender award, planning, deployment of equipment and workforce, execution, quality checks, billing, project reconciliation, handover and completion. Final completion certificates are subject to inspection, testing and approval by relevant authorities under contractual specifications.

Annu Projects owned 558 machines and equipment and employed 469 permanent staff as of June 30, 2026. Its fleet included horizontal directional drilling machines, excavators, splicing machines, optical time-domain reflectometers and high-density polyethylene pipe-welding machines. The company also assigns part of its work to subcontractors that provide manpower and equipment support, which means project delivery can involve external execution resources.

The reported order book increased before the June 2026 position. It was Rs 938.653 crore in Fiscal 2026, compared with Rs 479.673 crore in Fiscal 2025 and Rs 707.765 crore in Fiscal 2024. The corresponding book-to-bill ratios, calculated as order book divided by revenue from operations, were 3.89 times, 2.66 times and 4.60 times, respectively.

Annu Projects states that order book does not necessarily indicate future earnings in full. Its calculation excludes escalation and is based on work awarded but not yet executed, rather than a forecast of billing or collection. The Rs 746.923 crore Kerala BharatNet value therefore remains dependent on the project progressing under its disclosed EPC and O&M schedules.

Conclusion

Annu Projects’ Fiscal 2026 revenue came from sewerage, telecom and gas infrastructure, but its June 30, 2026 order book was dominated by the Kerala BharatNet subcontract. The Rs 746.923 crore project represented nearly three quarters of the Rs 1,005.055 crore backlog, making its execution, billing and collection profile central to conversion of recorded unexecuted work into operating revenue.

The disclosed dates to watch are June 16, 2028 for the Kerala EPC component and July 31, 2035 for the O&M component. Annu Projects has stated that it intends to continue bidding for telecom, sewerage and gas pipeline projects and is exploring railway signalling opportunities, so project additions outside the Kerala subcontract would affect the future concentration of its order book.