KEC International (KEC) Q1 25/26 earnings summary

Executive summary

• Achieved consolidated revenue of ₹5,023 crore in Q1 FY26, up 11% year-over-year, led by strong T&D execution in India and abroad, with robust order inflow across segments.

• EBITDA grew 19% year-over-year to ₹350 crore, with margin improvement to 7% from 6.5% in Q1 FY25.

• PBT and PAT increased by 41% and 42% respectively, with PAT at ₹125 crore, reflecting improved profitability and operational efficiency.

• Order inflow exceeded ₹5,500 crore, with a robust order book of ₹34,409 crore and L1 position over ₹6,000 crore; order book plus L1 exceeded ₹40,000 crore.

• Net debt reduced by ₹250 crore year-over-year to ₹5,348 crore, despite revenue growth.

Financial highlights

• T&D segment contributed 63% of revenues, up from 55% last year; consolidated revenue was ₹5,022.88 crore, up from ₹4,511.89 crore year-over-year.

• EBITDA margin improved to 7%; interest expenses reduced to 3% of revenue.

• PBT margin rose to 3.2% from 2.5% year-over-year; PAT margin to 2.5% from 1.9%.

• Net working capital days at 128, with guidance to reduce to 110 days.

• Basic/diluted EPS (consolidated) stood at ₹4.68, up from ₹3.41 year-over-year.

Outlook and guidance

• Standalone margins for FY26 guided at 8%-8.5%, with FY27 expected to improve by 50-100 bps.

• Revenue and order inflow guidance maintained for the year; management expects sustained profitable growth supported by a robust and diversified order book.

• Non-T&D growth expected to pick up from Q2, with significant uptick in Q3 and Q4; Civil execution to improve as water segment payments are released.

• Working capital and debt levels expected to improve, targeting ₹4,500 crore debt by year-end.

• Management asserts that a pending legal matter is not expected to materially impact operations or financial results.