Synopsis: A power infrastructure major closes FY26 with record revenues and a bulging order book, but a weak final quarter marked by collection delays and global disruptions keeps investors cautious.
Record annual revenues and a strengthened order book tell one story, but the January to March quarter tells quite another. The final three months of FY26 saw revenues decline, margins slip, and profit fall sharply compared to the same period last year. Collection delays, Middle East disruptions, and slower payments in the water business all played a role in what was otherwise a strong year for the infrastructure EPC major.
With a market cap of Rs. 13,165 Crore, the shares KEC International Ltd. are trading at a price of Rs.494.75 per share i.e. 10.8% down from its previous closing price of Rs.548.55. It currently trades at a P/E of 38.6.
T&D Leads, Civil Follows – How KEC’s Order Book Is Divided
KEC’s order book stood at ₹36,267 crore as of March 31, 2026, and its composition tells you a lot about where the company is headed. Nearly two-thirds of this book belongs to the Transmission and Distribution business – 56% from KEC’s own T&D operations and another 7% from its subsidiary SAE Towers. This reflects KEC’s deliberate push to ride India’s ongoing power infrastructure boom, where demand for new transmission lines, substations, and grid capacity is growing rapidly.
Civil construction is the second largest segment, contributing 27% of the order book. This covers a wide range of projects – residential and commercial buildings, factories, data centres, and water supply projects. Cables and Conductors hold 2% of the order book, while Transportation accounts for 7%. Renewables and Oil and Gas together make up the remaining 1%.
Within the order book, domestic and international markets are almost evenly split, with domestic projects contributing 52% and international the remaining 48% – a sign of KEC’s strong global presence across the Middle East, Africa, Americas, and SAARC regions.
What strengthens this picture further is the fresh order intake of ₹25,280 crore during FY26, with T&D contributing a dominant 70% of inflows. More than half the new orders came from international markets, reflecting KEC’s growing global footprint. The company has also secured over ₹1,000 crore in fresh orders in the early weeks of FY27, and has a massive tender pipeline of over ₹1,80,000 crore under evaluation – giving it strong visibility for the quarters ahead.
Full Year Was Strong, But Q4 Disappointed
For the full year FY26, consolidated revenues grew 8% to ₹23,506 crore, a record high for the company. EBITDA rose to ₹1,659 crore with margins improving to 7.1% from 6.9% the previous year. Operating PAT – which strips out one-off items – grew 18% to ₹650 crore, while operating PBT grew 21% to ₹848 crore. Interest costs as a percentage of revenues also eased slightly to 2.8% from 3.0%, even as absolute interest costs stayed flat at ₹664 crore – a sign that the company is managing its debt load better as revenues grow.
The Q4 FY26 quarter, however, was clearly soft. Revenues fell 7% year-on-year to ₹6,390 crore. EBITDA margins compressed to 7.0% from 7.8% in Q4 FY25. PAT dropped 28% to ₹193 crore. Management attributed the weakness to a spillover of roughly ₹450 crore in collections from large clients that came in only in the first week of April. Additional pressure came from higher inventory buildup due to delayed shipments out of Dubai amid Middle East disruptions, and slower collections in the Water business segment.
Net debt including acceptances rose to ₹6,722 crore as of March 2026 compared to ₹4,558 crore a year ago. Management expects debt levels to improve by Q2 FY27 as collections normalise and execution momentum picks up across businesses.
About the Company
KEC International is an RPG Group company and one of India’s largest EPC players, with operations spanning Transmission and Distribution, Civil, Transportation, Oil and Gas, Renewables, and Cables and Conductors. It operates eight manufacturing facilities and has a presence in over 110 countries.
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