KEC International (KEC) Q2 25/26 earnings summary

Executive summary

• Achieved record Q2 FY26 revenues of INR 6,092 crore, up 19% year-on-year, with H1 revenue at INR 11,114 crore, up 15% year-on-year, in line with annual guidance.

• Q2 FY26 net profit reached INR 161 crore, up 88% year-on-year; H1 FY26 PAT was INR 285 crore.

• Order intake YTD exceeded INR 16,000 crore, up 20% year-on-year, with a record order book plus L-1 of INR 44,000 crore.

• T&D segment remains the primary growth driver, contributing 65% of revenues and securing 75% of new orders.

• Focus remains on execution, order book strength, and a substantial tender pipeline for sustained growth.

Financial highlights

• Q2 FY26 EBITDA margin improved by 80 bps to 7.1%; H1 margin at 7%, up 60 bps year-on-year.

• Q2 FY26 PAT margin was 2.6%; H1 net profit margin at 2.64% (consolidated).

• Interest expenses as a percentage of revenue reduced by 50 bps in both Q2 and H1, now at 2.8% in Q2.

• Net debt stood at INR 6,480 crore as of September 30, up from INR 5,265 crore a year ago.

• Basic/diluted EPS for H1 FY26 was INR 10.72, compared to INR 6.72 in H1 FY25.

Outlook and guidance

• Revenue growth for H1 aligns with full-year guidance; targeting 8% EBITDA margin for FY26, requiring 8.8-8.9% in H2.

• Debt expected to normalize to around INR 5,000 crore by year-end, with large collections and advances anticipated in Q3 and Q4.

• Robust international T&D outlook, with major initiatives in Saudi Arabia, UAE, Oman, and Americas.

• Civil business expected to grow 15-20% next year, with margins moving to higher single digits.

• Management maintains that the ongoing legal matter involving a government investigation is not expected to materially impact operations or financial results.