RKCPL IPO

RKCPL Limited IPO Strengths

Established Roads & Railways EPC Expertise

RKCPL Limited is an established civil construction and infrastructure EPC player focusing on roads and railways across India. The company has successfully completed over 80 projects, leveraging its expertise in complex structural works like elevated roads, bridges, and railway structures. Its focused approach and ability to execute intricate projects on time solidify its strong market credentials and client relationships.

Diversified and Growing Order Book

The company maintains a significant and diversified Order Book (₹26,175.07 million as of July 31, 2025) across highway and railway verticals, mitigating sectoral risk and providing future revenue visibility. This order book is also geographically spread across multiple states and largely comprises contracts from major public sector clients, including NHAI and Indian Railways, ensuring stability.

Integrated Business Model for Comprehensive Services

RKCPL offers a comprehensive range of services from conceptualization to operation and maintenance through its integrated business model. This model features an in-house team of engineers and a large, owned fleet of construction equipment. This approach minimizes reliance on external vendors, enables high-quality oversight, reduces costs, and facilitates the timely completion of projects.

Experienced Promoters and Management

The company benefits from qualified and experienced promoters who possess over 44 years of experience in the construction business, providing vision and operational expertise. This leadership, combined with a supporting senior management team, is a competitive advantage. Their successful track record and industry knowledge position the company well to capitalize on future growth.

Healthy Financials and Strong Credit Profile

RKCPL demonstrates healthy profitability with consistent growth in financial metrics like Revenue, EBITDA, and PAT, driven by disciplined bidding and operational efficiencies. The company has also secured favorable credit ratings from CRISIL Ratings (e.g., ‘CRISIL A/Stable/CRISIL A1’ for bank facilities), reflecting its financial stability and balance sheet strength.

More About RKCPL Limited

RKCPL Limited is a prominent civil construction and infrastructure development company with extensive experience in executing specialised structural works across India. Its portfolio includes elevated roads, flyovers, bridges, highways, expressways, road over bridges, drainage, and canal systems.

The company’s operations are primarily divided into:

• EPC (Engineering, Procurement, and Construction) Projects

• HAM (Hybrid Annuity Model) Projects

Recognised for delivering technically demanding projects with precision and quality, RKCPL has been classified as Class I (Super) by the Director General, Central Public Works Department. This certification enables the company to bid for projects up to ₹6,500 million.

Operational Excellence and Financial Performance

RKCPL Limited ranked second highest in both ROE and ROCE among its peers in Fiscal 2025, reflecting strong financial efficiency.

• EBIDTA Margin: Increased from 15.46% (FY 2023) to 21.56% (FY 2025)

• PAT Margin: Rose from 11.20% (FY 2023) to 12.95% (FY 2025)

As of July 31, 2025, the company had successfully completed over 80 projects and had 17 ongoing projects—comprising 14 EPC and 3 HAM projects—with an order book value of ₹26,175.07 million.

Corporate Evolution

The foundation of RKCPL’s construction legacy dates back to the early 1980s, established by Mr. Ram Kumar Goyal. Over the years, the business transitioned from a sole proprietorship to a partnership firm and later, in 2013, to a corporate entity under the Companies Act, 1956.
In 2021, RKCPL Limited formally acquired M/s Ram Kumar Contractor, consolidating decades of expertise under a single corporate framework.

Key Clients and Projects

RKCPL’s clients include major public sector organisations such as:

• NHAI

• MoRTH

• Public Works Departments (PWDs)

• Northern Railways

• Faridabad Metropolitan Development Authority

Notable projects include the Haridwar Elevated Flyover, Bhatinda Rail Over Bridge, and Six-Laning of Dehradun–Ganeshpur Highway.

Commitment to Quality and Sustainability

RKCPL ensures timely project delivery through advanced project management, in-house equipment, and regular progress monitoring. The company integrates environmental, social, and governance (ESG) practices—adopting solar power systems, dust collectors, and other eco-friendly technologies—to ensure sustainable operations.

Industry Outlook

The Indian civil construction and infrastructure industry is witnessing robust expansion, supported by large-scale government investments, rising urbanisation, and rapid economic growth. The sector contributes nearly 8–9% of India’s GDP and remains one of the country’s largest employment generators.

The overall construction market in India is projected to grow from around USD 687 billion in 2024 to approximately USD 1.56 trillion by 2034, reflecting a CAGR of about 8–9%. Growth is being driven by massive infrastructure programmes such as Bharatmala Pariyojana, Gati Shakti, and Smart Cities Mission, which are aimed at improving connectivity and urban infrastructure across the nation.

Roads, Bridges, and Highway Segment

The roads and highways segment, where RKCPL Limited primarily operates, holds a central position in India’s infrastructure development strategy. The market is valued at over USD 140 billion in 2024 and is expected to reach around USD 340 billion by 2033, growing at a CAGR of about 10%. The bridge and flyover infrastructure segment is also forecast to expand steadily at 4–6% CAGR over the next decade, supported by government efforts to replace ageing bridges and improve intercity connectivity.

Key growth drivers include:

• Rising investments in expressways and economic corridors.

• Increasing demand for sustainable and technically advanced civil structures.

• Expanding network of highways and urban mobility projects.

How Will RKCPL Limited Benefit

• The company’s expertise in EPC and HAM projects aligns perfectly with the government’s increasing preference for these models in large-scale infrastructure development.

• Expansion of national highways, expressways, and bridges will create sustained demand for RKCPL’s specialised civil engineering capabilities.

• Being classified as Class I (Super) enables RKCPL to bid for high-value government projects, strengthening its competitive position.

• Continuous investment in urban mobility, smart cities, and inter-state connectivity will open new business opportunities across multiple regions.

• The company’s proven track record in timely project execution and high-quality structural work positions it favourably for repeat contracts and long-term partnerships.

• Emphasis on sustainable construction practices and ESG compliance enhances credibility and aligns with evolving government and investor expectations.

Peer Group Comparison

Name of the Company	Face Value (₹/share)	Closing Price (₹)	Revenue (₹ million)	EPS (₹)	ROE (%)	P/E Ratio	RoNW (%)
RKCPL Limited*	10	N.A.	12,706.61	12.47	28.92	43.11	N.A.
Peer Group
Ceigall India Ltd	5	280.55	34,367.32	17.04	15.57	105.69	16.46
GR Infra Projects Ltd	5	1,310.30	73,947.04	104.88	11.97	877.03	12.50
HG Infra Engineering Ltd	10	998.20	50,561.82	77.55	17.13	452.62	12.87
KNR Constructions Ltd	2	209.71	47,531.66	35.62	22.08	161.34	5.89
PNC Infratech Ltd	2	307.85	67,686.84	31.79	13.62	233.45	9.68
J Kumar Infra Ltd	5	640.25	56,934.88	51.70	12.98	397.42	12.38
Ashoka Buildcon Ltd	5	193.98	100,366.28	60.35	41.38	149.22	3.21

Key Strategies for RKCPL Limited

Strategic Expansion and Market Leverage

RKCPL aims to strategically expand its geographical footprint across India, moving beyond its existing markets. The company plans to maximize opportunities by undertaking larger, complex projects and may diversify into new infrastructure sectors like metros and airports, managing risk by initially limiting expansion to core competency areas.

Focus on EPC, HAM, and BOT Projects

The company will continue its core focus on EPC and HAM projects, leveraging its proven execution track record. RKCPL intends to increase its penetration in BOT (Build-Operate-Transfer) projects, capitalizing on its financial strength and recent favorable changes to the BOT model. This expansion will broaden its operational portfolio.

Concentrated Growth in Railway Projects

RKCPL is committed to expanding its market position in the high-growth railway sector, which is supported by increased government allocation. The company will leverage its existing road and railway expertise to bid for more projects, including complex structural work, to further diversify its capabilities and maintain financial discipline.

Venturing into Metro Projects

Recognizing India’s rapidly expanding urban transit network, RKCPL plans to venture into the metro rail sector. The focus will be on executing large-scale civil infrastructure works, such as viaducts, depots, and structural components. This move allows the company to capitalize on a growing market and leverage its technical expertise.

Targeting Airport Infrastructure Projects

To diversify its portfolio, RKCPL intends to enter the airport infrastructure business. It plans to apply its experience from roadways and bridges to bid for projects including runway construction and terminal building design. This move aligns with the government’s significant long-term capital expenditure plans for the aviation sector.