KEC International Limited – Investor Presentation Summary

Key Operational Highlights

  • Revenues of ₹5,468 Cr in Q2 FY27, representing a 9% sequential growth from Q1 FY27 but a 10% decline year-over-year (YoY).
  • Performance was impacted by supply chain disruptions in the Middle East, Right of Way (RoW) and land acquisition challenges in India T&D, and calibrated supplies amidst an elevated global cost environment.
  • Year-to-date (YTD) order intake stands at over ₹13,500 Cr, with approximately 70% coming from the T&D business.

Segment-wise Performance

T&D Business:

  • Revenues of ₹3,686 Cr in Q2 FY27, a 10% YoY decline.
  • YTD Orders of ~₹9,500 Cr secured across India, Middle East, Africa, SAARC, and Americas.
  • Secured substantial orders/L1 from PGCIL of over ₹3,000 Cr, including the largest-ever order in India T&D from PGCIL.
  • Robust order book & L1 of over ₹28,000 Cr.

Civil Business:

  • Revenues of ₹957 Cr in Q2 FY27, a 1% YoY decline; impacted by slower execution of water projects and persistent labour shortage.
  • YTD Order Intake of ~₹1,200 Cr.
  • Widened presence in the B&F (Buildings & Factories) and Hospital segments.
  • Order book & L1 of over ₹10,000 Cr.

Transportation Business:

  • Revenues of ₹224 Cr in Q2 FY27; focus on completion of ongoing projects.
  • Entered the ROCS (Rigid Overhead Catenary System) segment by securing a new order for Jaipur Metro Rail Corporation.
  • Continue to bid for opportunities in TCAS (Kavach), technologically enabled areas of Metros, and tunnel ventilation.

Cables & Conductors Business:

  • Revenues of ₹613 Cr in Q2 FY27, growth of 17% YoY.
  • Elastomeric cables and E-Beam part of the facility commissioned; production to commence in Q3 FY27.
  • Aluminium Conductor capacity expansion Phase II underway.

Renewables Business:

  • Secured YTD orders of over ₹1,150 Cr.
  • Secured two large orders in Q2 in Wind EPC and one order in Solar EPC from renowned private developers.
  • Executing solar and wind energy projects with a cumulative capacity of over 950 MW.

Oil & Gas Pipelines Business:

  • Revenues of ₹92 Cr in Q2 FY27, growth of 77% YoY.
  • Continuous pressure on order book due to low tender pipeline and highly competitive market in India.
  • Merger of KEC Spur Infra (Oil & Gas Pipelines subsidiary) with the KEC Civil Hydrocarbon segment underway.

Financial Highlights

Consolidated (₹ crore):

  • Revenue: ₹5,468 (Q2 FY27), ₹10,491 (H1 FY27)
  • EBITDA: ₹271 (Q2 FY27), ₹562 (H1 FY27)
  • PAT: ₹30 (Q2 FY27), ₹102 (H1 FY27)
  • EPS: Not Specified
  • Margins: EBITDA Margin 5.0% (Q2 FY27), 5.4% (H1 FY27); PAT Margin 0.5% (Q2 FY27), 1.0% (H1 FY27)
  • YoY comparison: Revenue -10% (Q2), -6% (H1); PAT -82% (Q2), -64% (H1)
  • Drivers of financial performance: Impacted by geopolitical and supply chain disruptions, RoW challenges, and elevated costs.
  • Comparison to market estimates: Not Specified
  • Key Risks: Supply chain disruptions, geopolitical uncertainties, RoW issues, delay in payments in Water projects, prolonged resolution of legal claims in Transportation and Metro projects.

Standalone (₹ crore):

  • Revenue: ₹4,161 (Q2 FY27), ₹8,059 (H1 FY27)
  • EBITDA: ₹170 (Q2 FY27), ₹326 (H1 FY27)
  • PAT: ₹80 (Q2 FY27), ₹81 (H1 FY27)
  • Margins: EBITDA Margin 4.1% (Q2 FY27), 4.0% (H1 FY27); PAT Margin 1.9% (Q2 FY27), 1.0% (H1 FY27)

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Balance Sheet Snapshot

  • Net Debt incl. Acceptances: ₹7,793 Cr as on 30 Sep'26 (₹6,722 Cr as on 31-Mar-26)
  • Net Working Capital (NWC): 155 days as on 30 Sep'26
  • Financial Health Insights: Debt levels are elevated due to a spillover of collections of ~₹600 Cr (realized in Oct'26), additional strategic inventory of ~₹160 Cr to manage commodity price volatility, and lower than expected realization in Water & Metro projects. Net Debt is expected to come down to ~₹6,000 Cr by the end of the year.

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Increased by ₹1,071 Cr from 31-Mar-26 to 30-Sep-26

Investment Rationale: Not Specified

Strategic & R&D Initiatives

Investments in Innovation: Elastomeric cables and E-Beam facility commissioned; Aluminium Conductor capacity expansion Phase II underway.

Expected impact on growth: Production of new cables to commence in Q3 FY27.

Strategic Rationale: Expanding manufacturing capabilities and entering new technological segments like ROCS and TCAS (Kavach).

Industry Trends & Business Environment

Macro/Industry Trends: Strong multi-year T&D investment cycle globally; robust momentum in India T&D; healthy International T&D pipeline; rising investments in Renewables, Storage & Grid Flexibility; AI/Data Centre boom driving opportunities.

Impact on Company: Provides a strong tender pipeline exceeding ₹2 lakh crore and record order book visibility.

Management Commentary & Growth Outlook

Strategic Outlook: "We navigated a challenging operating environment... we are confident of an improved performance in the coming quarters." - Vimal Kejriwal, Managing Director & CEO.

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Headwinds include geopolitical uncertainties, prolonged dispute resolutions, payment delays in Water projects, RoW issues, and elevated working capital.

ESG Updates

  • Key Initiative: Deployment of Train Collision Avoidance System (TCAS) Kavach Project in Uttar Pradesh.
  • ESG & Sustainability Goals FY 2030 include targets for Diversity & Inclusion (25% increase), Occupational Health & Safety (Zero Harm), CSR (3 lac beneficiaries), Sustainable Procurement (70% key suppliers ISO 14001 certified), Circularity (30% waste reduction), Water (20% reduction at sites, 25% at plants), and Carbon Emission (20% GHG reduction).
  • Key ongoing initiatives include unconscious bias training, AI-based safety monitoring, rural upliftment programs, supplier relationship deepening, waste repurposing, and community water projects.