KEC International (KEC) Q3 25/26 earnings summary

Executive summary

• Achieved record Q3 revenue of INR 6,001 crore, up 12% year-on-year, and nine-month revenue of INR 17,116 crore, up 14% year-on-year, driven by strong T&D and Cables & Conductors performance.

• T&D segment contributed 67% of total revenue for nine months, up from 57% last year, reflecting strategic focus.

• Secured multiple strategic orders, resulting in a robust order book and L1 position exceeding INR 41,000 crore.

• Exceptional expense of INR 59 crore in Q3 due to new labour code provision.

• Profit after tax for the quarter was INR 127.46 crore, with nine-month PAT at INR 457 crore.

Financial highlights

• Q3 EBITDA grew 15% year-on-year to INR 430 crore; nine-month EBITDA up 22% to INR 1,211 crore.

• Q3 EBITDA margin rose to 7.2%; nine-month margin at 7.1%.

• Q3 operating PBT up 37% year-on-year; nine-month operating PBT up 53%.

• Q3 operating PAT at INR 171 crore; nine-month PAT at INR 457 crore.

• Interest expenses as % of revenue reduced by 30-40 bps year-on-year to 2.9%.

Outlook and guidance

• Margins for FY26 expected between 7%-7.5%, lower than earlier guidance due to delays in high-margin projects and under-recovery of overheads.

• FY27 margins expected to improve, with a target of 9%-10% by FY28 as legacy issues resolve.

• Order intake target for next year is INR 30,000-35,000 crore.

• Net debt targeted at INR 5,500 crore by year-end.

• Management believes ongoing legal matters and new labour codes will not materially impact operations.