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.

• EBITDA grew 19% year-over-year with margin improvement to 7%, and PAT increased 42% to ₹125 crore.

• Order inflow exceeded ₹5,500 crore, with a robust order book above ₹40,000 crore and L1 position over ₹6,000 crore.

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

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2025, were approved and reviewed by the Board and auditors.

Financial highlights

• T&D segment contributed 63% of revenues, up from 55% last year, with T&D revenues at ₹3,157 crore, up 26% year-over-year.

• Consolidated EBITDA margin improved to 7%; PBT margin rose to 3.2% from 2.5% year-over-year.

• PAT margin improved to 2.5% from 1.9% year-over-year; consolidated net profit for the quarter was ₹124.60 crore.

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

• Interest expenses as a percentage of revenue decreased to 3.0% from 3.4%.

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, with management optimistic across major businesses.

• Non-T&D growth expected to pick up from Q2, with significant uptick in Q3 and Q4.

• 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.