KEC International Q1 FY27 Revenue Flat at ₹5,024 Cr

Revenues maintained at ₹5,024 Cr, flat compared to Q1 FY26 (₹5,023 Cr).
Performance impacted by the West Asia crisis, shortage of labour, and slower execution in water projects.
Key drivers: Resilient execution across most business verticals despite challenging environment.

T&D: Revenue of ₹3,217 Cr, up 2% YoY. Comprises T&D (KEC) at ₹2,767 Cr (-1% YoY) and SAE Towers at ₹450 Cr (+25% YoY).
Non T&D: Revenue of ₹2,026 Cr, up 2% YoY.
Civil: Revenue of ₹993 Cr, up 6% YoY.
Transportation: Revenue of ₹259 Cr, down 45% YoY.
Oil & Gas Pipelines: Revenue of ₹117 Cr, up 93% YoY.
Renewables: Revenue of ₹56 Cr, down 58% YoY.
Cables & Conductors: Revenue of ₹601 Cr, up 57% YoY.
T&D Share of total revenue: 64% (vs. 63% in Q1 FY26). Non T&D Share: 36% (vs. 37% in Q1 FY26).
Explanation of significant changes: Transportation revenue decline due to focus on completion of ongoing projects; Renewables decline due to project phasing; Cables & Conductors growth driven by strong order inflow.

Revenue: ₹5,024 Cr.
EBITDA: ₹291 Cr.
PAT: ₹73 Cr.
EPS: Not Specified.
Margins: EBITDA Margin 5.8%, PAT Margin 1.4%, PBT Margin 1.8%.
YoY/QoQ comparison: Revenue flat YoY; EBITDA down 17% YoY; PAT down 42% YoY; PBT down 43% YoY.
Drivers of financial performance: Lower margins due to geopolitical disruptions, labour shortages, and elevated costs.
Comparison to market estimates: Not Specified.
Key Risks: Geopolitical uncertainty in the Middle East, supply chain and logistics disruptions, elevated costs, longer lead times, delays in project awards, delays in legal closure of disputes, delays in payments in Water projects, and ROW issues in India T&D.

Net Debt/Equity: Not Specified.
Reserves: Not Specified.
Current Assets/Liabilities: Not Specified.
Working Capital/Leverage Metrics: Net Working Capital (NWC) at 134 days as on 30 Jun'26 (vs. 137 days as on 31 Mar'26).
Financial Health Insights: Net Debt including Acceptances reduced to ₹6,568 Cr as on 30 Jun'26 from ₹6,722 Cr on 31 Mar'26. Reduction hampered by delayed collections from Afghanistan (expected in Q2) and higher strategic inventory levels.

Capital Expenditure: Not Specified.
Free Cash Flow: Not Specified.
Operating Cash Flow: Not Specified.
Net Debt Movement: Net Debt reduced by ₹109 Cr to ₹4,492 Cr; Interest Bearing Acceptances reduced by ₹45 Cr to ₹2,075 Cr.
Investment Rationale: Elastomeric cables production to commence in Q2 FY27; E-Beam plant commissioning in Q3 FY27.

Investments in Innovation: Commissioning of new cable manufacturing facilities (Elastomeric, E-Beam).
Expected impact on growth: New facilities to enhance product portfolio and capacity.
Strategic Rationale: Merger of subsidiary KEC Spur Infrastructure Private Limited initiated to integrate Oil & Gas Pipelines portfolio into Civil – Hydrocarbon segment for a unified approach.

Macro/Industry Trends: Strong multi-year T&D opportunity driven by rising power demand, grid expansion, renewable integration, and grid modernisation; AI-led Data Centre expansion; gradual recovery in private capex; increasing opportunities in Commercial Real Estate and Urban Infra.
Impact on Company: Robust tender pipeline of over ₹2 lakh crore providing strong revenue visibility; opportunities in domestic and international markets.

Strategic Outlook: "We remain confident of delivering stronger execution and improved financial performance in the coming quarters" - Vimal Kejriwal, Managing Director & CEO.
FY Guidance: Not Specified.
Market Share Targets: Not Specified.
Risks and Opportunities: Near-term challenges (geopolitical, supply chain) are transitory; expect improvement with normalising supply chains and improving labour availability.

Diversity & Inclusion: Target to increase diversity by 25% by FY30; initiatives include 'Support Beam' program and sessions on 'Creating Respectful & Inclusive Workplace'.
Occupational Health & Safety: Target of 'Zero Harm'; managing high-consequence activities through Fatality Prevention Programme.
Corporate Social Responsibility: Target to reach 3 lac CSR beneficiaries by FY30; initiatives include restoring urban green spaces and training women in hand spinning.
Sustainable Procurement: Target of 70% of key suppliers to be ISO 14001 certified and comply with ethical labour practices by FY30; assessed 100% of key suppliers against ESG criteria.
Circularity: Target to reduce waste intensity by 30% by FY30; initiatives include reusing waste materials.
Water Positive Approach: Target to reduce water intensity by 20% for project sites and 25% for manufacturing plants by FY30; initiatives include digital monitoring.
Carbon Emission: Target to reduce GHG emissions intensity by 20% by FY30; initiatives include optimising energy systems and real-time fuel monitoring.