RPP Infra quarterly profit falls 80% despite revenue growth

R.P.P. INFRA PROJECTS LIMITED reported consolidated net profit of Rs 2.82 crore for the quarter ended 30 September 2026, down 80% from Rs 13.82 crore a year earlier, despite revenue from operations rising 7% to Rs 338.83 crore. Higher raw-material consumption contributed to expenses increasing faster than income.

Why did RPP Infra’s September-quarter profit fall?

RPP Infra’s quarterly profit fell because total expenses rose faster than total income in the quarter ended 30 September 2026. Total expenses increased to Rs 337.79 crore from Rs 302.54 crore a year earlier, while total income rose to Rs 341.78 crore from Rs 321.51 crore, reducing profit before exceptional items and tax to Rs 3.99 crore from Rs 18.87 crore.

Raw-material and component consumption was the largest disclosed year-on-year cost increase. It rose by Rs 44.80 crore to Rs 99.08 crore from Rs 54.28 crore, exceeding the Rs 22.04 crore increase in revenue from operations. Subcontractor work bills were broadly unchanged at Rs 195.51 crore, against Rs 195.70 crore in the September 2025 quarter.

Several expense lines declined but did not offset the higher material cost. Construction expenses fell to Rs 19.49 crore from Rs 20.49 crore, employee-benefit expense fell to Rs 5.03 crore from Rs 7.75 crore, and other expenses declined to Rs 12.30 crore from Rs 18.21 crore. Finance cost, however, increased to Rs 5.11 crore from Rs 3.84 crore.

How did RPP Infra perform versus the June quarter?

RPP Infra’s net profit after tax was marginally higher sequentially at Rs 2.82 crore in the September 2026 quarter, compared with Rs 2.77 crore in the June 2026 quarter. Revenue from operations moved in the other direction, declining to Rs 338.83 crore from Rs 347.09 crore, while profit before tax rose to Rs 3.99 crore from Rs 3.60 crore.

The expense mix changed substantially between the two quarters. Raw-material consumption rose to Rs 99.08 crore from Rs 61.93 crore, while subcontractor work bills fell to Rs 195.51 crore from Rs 218.77 crore and construction expenses declined to Rs 19.49 crore from Rs 41.45 crore. Total expenses were Rs 337.79 crore, below Rs 345.04 crore in the June quarter.

Other income increased to Rs 2.94 crore from Rs 2.54 crore over the three-month comparison. Finance cost rose to Rs 5.11 crore from Rs 3.70 crore and tax expense increased to Rs 1.17 crore from Rs 0.83 crore. Basic and diluted earnings per share, or EPS, not annualised, were Rs 0.57 in September 2026 compared with Rs 0.56 in June 2026.

What do RPP Infra’s half-year results show?

RPP Infra reported higher first-half revenue but lower earnings for the half year ended 30 September 2026. Revenue from operations increased to Rs 685.92 crore from Rs 663.75 crore in the comparable 2025 period, while net profit after tax fell to Rs 5.59 crore from Rs 24.67 crore.

The six-month movement reflected a Rs 46.92 crore increase in total expenses, which rose to Rs 683.82 crore from Rs 636.90 crore. Profit before exceptional items and tax consequently declined to Rs 7.59 crore from Rs 33.69 crore. Raw-material and component consumption increased to Rs 161.01 crore from Rs 89.65 crore, whereas subcontractor work bills were nearly unchanged at Rs 414.28 crore against Rs 413.03 crore.

Tax expense fell to Rs 2.00 crore from Rs 8.59 crore, but the reduction did not prevent the decline in post-tax earnings. Finance cost was Rs 8.81 crore compared with Rs 8.42 crore, while other income fell to Rs 5.48 crore from Rs 6.84 crore. Half-year basic and diluted EPS, not annualised, was Rs 1.13 compared with Rs 4.98.

What changed in RPP Infra’s financial position and cash flow?

RPP Infra’s consolidated total assets rose to Rs 1,104.35 crore at 30 September 2026 from Rs 1,034.91 crore at 31 March 2026. Non-current assets increased to Rs 322.83 crore from Rs 267.41 crore, including capital work in progress of Rs 56.29 crore compared with Rs 11.82 crore at the March year-end.

Current assets increased to Rs 781.52 crore from Rs 767.50 crore, although cash and cash equivalents fell to Rs 16.71 crore from Rs 30.78 crore. Trade receivables reduced to Rs 103.26 crore from Rs 145.57 crore, while other financial assets increased to Rs 490.96 crore from Rs 422.30 crore.

Total liabilities rose to Rs 563.06 crore at 30 September 2026 from Rs 499.98 crore at 31 March 2026. Non-current borrowings increased to Rs 56.47 crore from Rs 2.57 crore and current borrowings rose to Rs 123.01 crore from Rs 98.43 crore. Total equity was Rs 541.29 crore, compared with Rs 534.93 crore at 31 March 2026.

For the half year ended 30 September 2026, RPP Infra reported net cash used in operating activities of Rs 32.60 crore, compared with Rs 7.33 crore generated in the prior-year half year. Investing activities used Rs 51.13 crore, compared with Rs 38.33 crore a year earlier, while financing activities generated Rs 69.67 crore against Rs 48.39 crore.

What is the review status and business scope of RPP Infra’s results?

RPP Infra’s consolidated financial results are unaudited, were reviewed by the Audit Committee, and were approved by the board on 13 November 2026. The company said it is primarily engaged in infrastructure construction covering roads and bridges, water pipelines and railways, and it reports operations as a whole for operating-segment purposes.

The filing says statutory auditors reviewed the consolidated results of group entities except R.P.P Infra Projects (Lanka) Limited, R.P.P Infra Overseas PLC, Mauritius, and RPP Realtors Pvt Ltd. The results were prepared under Indian Accounting Standards, or Ind AS, and were published under Regulation 33 of the Securities and Exchange Board of India listing regulations.

A separate standalone limited-review report dated 13 November 2026 said the auditor did not review financial information for two branches and relied on management-certified information. The Bangladesh branch showed assets of Rs 14.86 crore and revenue of Rs 1.38 crore at or for the period ended 30 September 2026, while the Sri Lanka branch showed assets of Rs 17.87 lakh and no revenue.

Conclusion

RPP Infra delivered Rs 338.83 crore of September-quarter revenue and Rs 685.92 crore of first-half revenue, but reported profit declined as expenses rose more rapidly. The key disclosed quarterly movement was raw-material consumption, which increased to Rs 99.08 crore, while net profit after tax was Rs 2.82 crore for the quarter and Rs 5.59 crore for the half year.

The next results will show whether raw-material consumption, which was Rs 161.01 crore in the half year, changes relative to revenue and whether operating cash flow improves after the Rs 32.60 crore outflow. Readers can also monitor cash and cash equivalents, which stood at Rs 16.71 crore on 30 September 2026, and the filing’s disclosed review exceptions for three group entities.