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  2. Reports KEC International Ltd: Q2FY26 Result Update
580.10 10.85 (1.91%)

KEC International Ltd: Q2FY26 Result Update
27-11-2025

Performance Overview 

KEC delivered a strong Q2 with 19% revenue growth and 34% EBITDA growth, supported by better margins in the T&D business. Profit grew sharply as interest costs reduced and execution improved across major segments. For H1, growth is on track with guidance, and the order book at Rs. 39,325 crore plus strong L1 wins gives multi-year visibility. Net debt rose to Rs. 6,480 crore due to higher scale and delayed collections, but management expects year-end debt near Rs. 5,000 crore. Margin guidance of about 8% for FY26 remains intact, backed by high-quality T&D orders and lower exposure to old low-margin projects.

Business Segments

Transmission & Distribution (T&D): 

  • T&D remains the growth engine with Q2 revenue of Rs. 4,080 Cr (+44% YoY), taking its share to 67% of sales. The business enjoys double-digit EBITDA margins and strong execution across India, Middle East, CIS and Americas. 

  • Year till date T&D order intake is ~Rs. 12,000 Cr, including KEC’s largest EPC order (>Rs. 3,100 Cr) in UAE and a >Rs. 1,000 Cr substation order in Saudi, plus a growing HVDC portfolio (5 projects under execution). Record T&D order book plus L1 is ~Rs. 29,000 Cr, giving strong medium-term visibility.

 Civil: 

  • Revenue declined due to monsoon disruptions and slower payments in water projects. However, strong orders in buildings, factories and data centres give confidence, with margins expected to improve as old metro projects close.

 Transportation (Railways & Metros): 

  • Transportation is completing old metro projects that dragged profitability. New KAVACH signalling orders and a more selective bidding strategy should improve margins as the business shifts to higher-tech, better-quality opportunities.

 Cables & Conductors:

  •  This division is growing steadily with improving margins from a better product mix. New elastomeric and E-Beam cable capacities will target high-performance sectors like defence, rail and autos, driving higher-value growth.

 Renewables:

  •  Renewables grew on the back of large solar projects in Karnataka and Rajasthan. KEC is now focusing on selective, profitable solar, wind and BESS projects, targeting Rs. 3,000–4,000 crore revenue over 2–3 years.

 Oil & Gas Pipelines: 

  • Revenues remain low due to weak domestic tendering, but the focus is shifting to the Middle East. Recent prequalifications and potential international wins should help rebuild this business over time.

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580.10 10.85 (1.91%)
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