Following the Q1FY27 earnings season, Axis Securities named Kalpataru Projects International, GR Infraprojects, and RITES as its top conviction stock picks in the infrastructure sector, citing robust order books and steady revenue visibility. The brokerage remains bullish on these companies due to their strong execution momentum, healthy balance sheets, and diversified project pipelines across road and non-road infrastructure segments.Key Highlights of Axis Securities' Top Infra RecommendationsBrokerage firm Axis Securities issued a 'Buy' rating for all three companies following the announcement of their Q1FY27 financial results. While road infrastructure companies faced revenue growth pressure due to execution delays, non-road and diversified players demonstrated strong financial health and margin improvement.Company NameBrokerage RatingTarget PriceKey Growth Drivers & Order Book HighlightsKalpataru Projects InternationalBuy₹1,500Record order book of ₹66,607 crore, strong T&D traction, and AA+ credit rating.GR InfraprojectsBuy₹1,020Order book of ₹25,319 crore and near debt-free balance sheet (Debt/Equity: 0.03x).RITES LimitedBuy₹250Record order book of ₹9,450 crore and steady consultancy order inflows.Stock-Wise Performance and Brokerage Rationale1. Kalpataru Projects International Limited (KPIL)Kalpataru Projects International reported a 46% year-on-year surge in consolidated net profit to ₹312 crore for Q1FY27.Order Visibility: As of June 30, 2026, the company’s order book reached an all-time high of ₹66,607 crore, with an additional L1 pipeline of nearly ₹7,500 crore.Diversification: The order backlog is led by Power Transmission & Distribution (T&D) at 44%, Buildings & Factories (B&F) at 29%, Water projects at 11%, alongside Oil & Gas and Urban Infra.Financial Position: Axis Securities expects KPIL to deliver a 15% revenue CAGR over FY26–FY28E, supported by an AA+ (Stable) credit rating and improving working capital cycles.2. GR Infraprojects LimitedGR Infraprojects demonstrated solid execution despite broader sector headwinds in road construction, posting Q1FY27 consolidated revenue of ₹2,784 crore (up 40% YoY) and net profit of ₹357 crore.Order Book & Guidance: The company's order book stood at ₹25,319 crore, spanning highways, railways, transmission, and tunnel works, offering revenue visibility for 24–36 months. Management has guided for 15%–20% YoY top-line growth in FY27.Balance Sheet Strength: Standalone net debt remains exceptionally low at ₹239 crore, resulting in a conservative debt-to-equity ratio of 0.03x.Inflow Target: The company is pursuing an aggressive order inflow target of ₹20,000–₹22,000 crore in FY27 across transportation, power transmission, and hydro segments.3. RITES LimitedTransport infrastructure consultancy and engineering firm RITES maintained its strong position in consultancy and international export orders.Order Book Strength: RITES secured 128 new orders worth ₹674 crore during Q1FY27, expanding its overall order backlog to a record ₹9,450 crore.Consultancy Margins: Axis Securities highlighted that a balanced mix of high-margin consultancy assignments and turnkey execution provides strong long-term revenue visibility and cash flow stability.Sector Trends and OutlookIn its quarter update, Axis Securities noted a divergence between road and non-road infrastructure companies. Road EPC players faced subdued volume growth due to delayed project appointments and monsoon disruptions, whereas non-road players—especially those involved in power transmission, urban infrastructure, and railways—delivered superior operational margins and consistent order inflows. With government capital expenditure expected to accelerate in the second half of FY27, these top three conviction picks are well-positioned for sustainable long-term value creation.Also Read :- Vijay Shekhar Sharma’s Resilient Asset Management Sells 1.92 Crore Paytm Shares: Key Details
