RKEC Projects Reports Sharp Revenue Drop and Sixth Consecutive Quarterly Loss
The infrastructure firm's revenue fell 77% year-on-year amid project terminations and severe financial distress.
RKEC Projects reported a severe contraction in Q1 FY27, with revenue down 77% and a net loss of ₹17.3 crore. The company faces a distressed turnaround phase with significant unpaid liabilities.
RKEC Projects' first-quarter earnings for FY27 reveal a company in deep financial distress, with revenue collapsing and losses continuing for a sixth straight quarter. The results underscore severe operational challenges, including the termination of a major contract and mounting statutory liabilities.
The company reported revenue of ₹17.32 crore for the quarter ended June 2026, a staggering 77.2% drop from the ₹76.07 crore it earned in the same quarter last year. Sequentially, revenue fell 57.1% from the ₹40.41 crore reported in Q4 FY26. The net loss for the quarter stood at ₹17.3 crore. While this represents a 58.3% improvement from the massive ₹41.48 crore loss in the prior quarter, it is a severe reversal from the ₹3.37 crore profit reported a year ago.
The recent financial trajectory shows a stark deterioration from a position of modest profitability.
Revenue (₹ Cr)
Profit (₹ Cr)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 17.32YoY -77% | 40.41 | 76.07 |
| Profit (₹ Cr) | -17.30YoY -613% | -41.48 | 3.37 |
This collapse in the top line was driven by a sharp decline in business activity. According to StockFin, revenue has collapsed from ₹76 crore in June 2025 to just ₹17 crore in June 2026. A primary catalyst was the termination of a significant ₹186.67 crore EPC contract for a passenger jetty project in Mumbai in April 2026, as reported by ScanX Trade. The client, the Maharashtra Maritime Board, cited alleged delays, though RKEC attributes them to external factors like public interest litigations and design changes.
The resulting net loss reflects not just vanishing revenue but also persistent cost pressures and a deteriorating margin structure. Despite expenses falling 57% quarter-on-quarter, according to Kotak Neo, operating margins have collapsed into deeply negative territory. StockFin analysis indicates the company's operating profit margin was -120% in Q1 FY27, meaning costs far exceeded the meager revenue generated.
Compounding the operational woes are severe liquidity issues. The company has disclosed defaults on loan repayments totaling over ₹63 crore in principal and interest as of July 2026, according to StockFin. Furthermore, reports highlight persistent unpaid statutory liabilities exceeding ₹25 crore for GST, TDS, and provident fund, posing immediate cash and legal risks. Management has not provided explicit forward guidance on a recovery, focusing instead on governance changes like appointing a new independent director.
Live Chart
· RKEC
(BSE)
ISIN: INE786W01010
The stock market has reflected this bleak outlook. The share price closed at ₹25.02 on the results date, having fallen 61.7% over the past year. The stock now trades at a price-to-earnings ratio of 7.6, a 67% discount to the industry average, signaling deep investor skepticism about near-term earnings recovery.
Key Points
- Revenue contracted 77.2% year-on-year to ₹17.32 crore, marking a sixth consecutive quarter of declining sales.
- The company reported a net loss of ₹17.3 crore, an improvement from Q4 but a severe reversal from the profit of ₹3.37 crore in Q1 FY26.
- A major ₹186.67 crore Mumbai jetty contract was terminated in April 2026, significantly impacting revenue visibility.
- RKEC faces acute financial stress, with disclosed loan defaults and over ₹25 crore in unpaid statutory liabilities creating cash and legal risks.
- The stock has fallen 61.7% over the past year and trades at a deep discount to the sector, reflecting the severe operational and financial challenges.
The path to stability for RKEC hinges on resolving its liquidity crisis and securing new project awards in a supportive infrastructure sector, where broader demand for marine projects remains robust.
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