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, and H1 revenue of INR 11,114 crore, up 15% year-on-year, with significant improvements in profitability and order intake.

• Q2 FY26 PAT reached INR 161 crore, up 88% year-on-year, and H1 PAT was INR 285 crore, up 65% year-on-year.

• Order intake YTD exceeded INR 16,000 crore, 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.

• Standalone Q2 FY26 revenue was INR 4,948.53 crore, with net profit at INR 105.72 crore.

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 PBT grew 88% year-on-year, with PBT margin up 130 bps to 3.5%.

• Interest expenses as a percentage of revenue reduced by 50 bps in both Q2 and H1.

• Net debt stood at INR 6,480 crore as of September 30, 2025, 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.

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

• Railway business expected to stabilize and return to growth after ongoing consolidation.

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