Likhitha Infrastructure Limited, incorporated in 1998, is an established service provider in the Oil & Gas pipeline infrastructure sector. The company has methodically built its capabilities over more than two decades, achieving public listing on the BSE and NSE in 2020. Its core business is structured around four primary segments: City Gas Distribution (CGD) Projects, Cross Country Pipeline (CCP) Projects, Operation & Maintenance (O&M) Services, and Tankage solutions. The CGD segment focuses on creating last-mile connectivity by laying steel and MDPE pipelines for domestic, commercial, and industrial consumers. The CCP segment involves large-scale pipeline laying projects across the nation, including all associated civil, electrical, and instrumentation work. Since 2014, the company has also offered O&M services, providing skilled manpower for network maintenance, emergency repairs, and operational management. The Tankage segment involves the construction of fuel depots and storage facilities. Likhitha's mission is to deliver premier services that support India's strategic goal of self-reliance in green fuel. This mission is backed by a vision for global expansion and a commitment to the highest international standards of Quality, Health, Safety, and Environment. The company has a significant operational footprint, with a presence across 20 states and 2 Union Territories in India, and has recently expanded its reach internationally by establishing a joint venture in the Kingdom of Saudi Arabia.

Official Website: http://www.likhitha.co.in/

• Q3 FY26 Performance: The company reported a significant decline in its third-quarter performance compared to the same period last year.

• Revenue stood at Rs. 111.40 crores, a decrease of 11.79% from Rs. 126.29 crores in Q3 FY25.

• EBITDA contracted sharply by 39.59% to Rs. 14.83 crores from Rs. 24.55 crores in Q3 FY25.

• Profit Before Tax (PBT) fell by 45.48% to Rs. 12.66 crores.

• Net Profit (PAT) saw a similar decline of 45.43%, coming in at Rs. 9.43 crores compared to Rs. 17.28 crores in the prior year's quarter.

• Nine-Month (9M) FY26 Performance: The negative trend continued for the nine months ending December 31, 2025.

• Revenue for 9M FY26 was Rs. 336.04 crores, down 17.23% from Rs. 406.01 crores in 9M FY25.

• EBITDA decreased by 10.08% to Rs. 52.83 crores.

• PBT dropped by 35.32% to Rs. 46.98 crores.

• Net Profit for the nine-month period was Rs. 34.87 crores, a 32.61% reduction from Rs. 51.74 crores in 9M FY25.

• Full-Year Comparison (Standalone): Looking at the full-year historical data provides context for the recent quarterly performance.

• Revenue in FY25 grew to Rs. 517.84 crores from Rs. 428.18 crores in FY24.

• Net Profit also increased from Rs. 66.03 crores in FY24 to Rs. 69.37 crores in FY25.

The company's financial performance in Q3 and the first nine months of FY26 shows a material contraction in both revenue and profitability compared to the previous year.

• Integrated Service Portfolio: Likhitha offers an end-to-end service suite within the oil and gas pipeline infrastructure space, covering City Gas Distribution (CGD), Cross Country Pipelines (CCP), Operations & Maintenance (O&M), and Tankage. This integrated model allows it to serve diverse client needs across the project lifecycle.

• Established Client Relationships: The company has a strong clientele composed of major public and private sector entities in the Indian energy industry, including GAIL, IndianOil, ONGC, HPCL, and Torrent Gas. These long-standing relationships provide a stable base of business.

• Extensive Geographic Footprint: With operations spread across 20 states and 2 Union Territories, the company has a Pan-India presence. This wide reach enables it to participate in infrastructure projects across the country and adapt to regional opportunities.

Likhitha's unique position is derived from its comprehensive service offerings, strong relationships with key industry players, and a widespread national presence.

• Order Book Visibility: As of December 31, 2025, the company holds an outstanding order book of approximately Rs. 925 crores. This provides a clear line of sight into future revenue streams and upcoming project execution.

• Recent Performance Contraction: Despite a healthy order book, the company's recent financial results indicate a slowdown. Revenue for the nine months of FY26 declined by 17.23% year-over-year, reversing the growth trajectory seen from FY24 to FY25.

• International Expansion: The formation of a joint venture in Saudi Arabia in 2023 marks a significant step towards global expansion, opening a new geographic market for growth beyond India.

While the current order book suggests future activity, the recent decline in revenue and profitability presents a challenge to the company's near-term growth trajectory.

• Global Expansion: The newly established joint venture in the Kingdom of Saudi Arabia presents a significant opportunity to tap into the large-scale infrastructure projects in the Middle East, diversifying revenue sources away from the domestic market.

• India's Green Fuel Initiative: The company's mission is aligned with India's push towards green fuels, particularly natural gas. The continued expansion of the City Gas Distribution (CGD) network across the country provides a sustained pipeline of opportunities for its core business segment.

• Leveraging Pan-India Presence: With projects in over 20 states, Likhitha is well-positioned to secure new contracts as energy infrastructure development continues to be a priority across different regions of India.

The primary opportunities for Likhitha lie in international expansion into new markets and capitalizing on the domestic energy infrastructure build-out driven by policy initiatives.

• Pursue Global Services: The company has a stated vision to expand its services globally. The joint venture in Saudi Arabia is the first concrete step in executing this long-term strategy.

• Contribute to National Energy Goals: Likhitha's mission is to support India's self-reliance on green fuel. This indicates a strategic focus on participating in projects related to natural gas and other cleaner energy sources, which are national priorities.

The company's future plans are centered on a dual strategy of internationalizing its operations while continuing to deepen its involvement in India's domestic energy transition.

• Q3 FY26 Margin Compression: The standalone EBITDA margin for Q3 FY26 was 13.22%, a significant reduction from 19.24% in Q3 FY25. This points to increased cost pressures or a shift in project mix during the quarter.

• Nine-Month FY26 Margin Performance: For the nine months ending in December 2025, the standalone EBITDA margin was 15.58%. While higher than the third quarter's margin, it is still lower than the 16.92% margin recorded for the same period in the previous year (9M FY25).

• Historical Full-Year Margin Trend: The EBITDA margin declined from 23.08% in FY24 to 19.38% in FY25, indicating that margin pressure was present even before the current fiscal year.

The company is experiencing a clear trend of margin compression, which has accelerated in the most recent quarter and has negatively impacted overall profitability.

• Fluctuations in Earnings: As demonstrated by the recent quarterly results, the company's revenue and profitability can be volatile. This is inherent in a project-based business model that is dependent on the timing and execution of large contracts.

• Project Execution Risk: The business is exposed to potential time and cost overruns on its contracts, which can directly impact profitability and margins.

• Economic and Policy Risk: The company's prospects are tied to the overall economic growth in India and government policies related to energy infrastructure. Any slowdown in economic activity or adverse policy changes could impact the pipeline of new projects.

• International Operations Risk: As the company expands globally, it will face new risks associated with managing international operations, including regulatory, geopolitical, and currency-related challenges.

• Margin Pressure: The consistent decline in EBITDA margins is a key risk, as continued pressure could further erode profitability even if revenue stabilizes.

The primary risks facing the company are operational, including project execution and margin management, alongside broader macroeconomic and policy-related uncertainties.

• Outstanding Order Book: The company reported an outstanding order book of approximately Rs. 925 crores as of December 31, 2025, which underpins near-to-medium term revenue visibility.

• Saudi Arabia Joint Venture: In 2023, the company successfully incorporated a joint venture in the Kingdom of Saudi Arabia. This marks its first major international foray and a key strategic milestone.

The strong order book provides operational stability, while the successful establishment of an international joint venture signals a new phase of strategic expansion for the company.