Kalpataru Projects Q1 FY26: Revenue up 35%, PAT up 154%

Key updates in Q1 FY26

Kalpataru Projects International Limited (KPIL) reported a strong set of numbers for the quarter ended June 2025 (Q1 FY26), led by faster execution and a healthy order backlog. The company said the quarter marked its highest ever Q1 revenue and profitability. Consolidated revenue rose sharply year-on-year, while profitability grew faster than revenue as margins improved. KPIL also reported a year-on-year reduction in net debt and a decline in net working capital days, signalling tighter balance sheet management.

Alongside KPIL’s results, the broader “Kalpataru” group also saw a strong operational update from realty developer Kalpataru Ltd, which reported higher pre-sales, collections, and better sale realisations for FY26. Since the two entities operate in different businesses, investors typically track KPIL for EPC execution and order book trends, and Kalpataru Ltd for project launches, sales velocity, and cash collections.

KPIL revenue and cost movement from the quarterly table

The quarterly data for KPIL shows revenue at ₹6,171.17 crore for the June 2025 quarter versus ₹4,587.00 crore a year ago. Compared with the March 2026 quarter number shown in the table, revenue was lower sequentially. Total operating expense for the June 2025 quarter stood at ₹5,775.27 crore versus ₹4,328.00 crore in June 2024. Selling, general and administrative (SG&A) expenses were ₹668.24 crore in June 2025 compared with ₹442.00 crore in June 2024.

Operating income was ₹395.90 crore in June 2025 versus ₹259.00 crore in June 2024, indicating stronger operating performance year-on-year. Diluted normalised EPS was reported at 12.51 for the quarter compared with 5.71 in the year-ago period.

KPIL Q1 FY26 profitability: EBITDA, PBT, PAT

KPIL reported that Q1 FY26 revenue grew 35% year-on-year to ₹6,171 crore. EBITDA increased 39% year-on-year to ₹525 crore, with an EBITDA margin of 8.5%. Profit before tax (before exceptional items) grew 112% year-on-year to ₹290 crore, with the PBT margin expanding by 170 bps to 4.7%. Profit after tax rose 154% year-on-year to ₹214 crore, with PAT margin at 3.5% compared with 1.8% in Q1 FY25.

The company attributed the better profitability to improved operating performance in the quarter, alongside execution strength supported by the order backlog. It also indicated that profitability growth outpaced revenue growth in Q1 FY26.

Balance sheet indicators: net debt and working capital

KPIL reported net debt of ₹2,765 crore, down 26% year-on-year. Net working capital days declined by 12 days year-on-year to 91 days as of 30 June 2025. These two metrics are closely tracked in EPC businesses because receivables cycles, mobilisation advances, and inventory movement can materially impact cash flows.

The working capital update also aligns with KPIL’s comment that it expects collection intensity to improve going forward. Lower working capital days typically reduce interest costs and can support steadier execution without increasing leverage, although the sustainability depends on customer payment behaviour and project mix.

Order inflows and order book: visibility for execution

KPIL reported order inflows of ₹9,899 crore till date in FY26. Its order book stood at ₹65,475 crore as of 30 June 2025, up 14% year-on-year. The company described the order book as fairly diversified, which matters in EPC because sector and geography concentration can increase volatility in execution.

Separately, the material also references new orders and notifications of awards totalling about ₹3,789 crore secured by KPIL and its international subsidiaries. Order inflows and the order book are key indicators for future revenue conversion, especially when management highlights robust execution as the primary driver.

Segment highlights mentioned by KPIL

KPIL’s Transmission and Distribution (T&D) business delivered 56% year-on-year revenue growth, supported by execution in India and overseas markets. The company received new T&D orders of ₹3,188 crore, and its T&D order book stood at ₹26,725 crore, up 30% year-on-year.

In the Buildings and Factory (B&F) business, KPIL reported a 13% year-on-year increase in revenue. It said it secured record orders worth ₹6,711 crore, taking the B&F order book to an all-time high level of over ₹16,600 crore. In Oil and Gas, revenue more than doubled to ₹588 crore, with progress linked to the Saudi project.

KPIL also reported revenue of ₹254 crore from its Railway business during the quarter. For its Road BOOT assets, daily revenue rose to ₹0.726 crore in Q1 FY26 from ₹0.636 crore in Q1 FY25.

Realty arm Kalpataru Ltd: FY26 operational update

In a separate operational update, Mumbai-based real estate developer Kalpataru Ltd reported its highest-ever operational performance during FY25-26. Pre-sales rose 17% year-on-year to ₹5,280 crore, up from ₹4,531 crore in the previous year. For the fourth quarter, pre-sales rose 6% to ₹1,833 crore.

Collections for the year rose 34% year-on-year to ₹4,960 crore, while quarterly collections in the January to March period jumped 41% to ₹1,487 crore. The company’s average sale realisation during the year grew 20% to ₹16,719 per sq ft, and during the fourth quarter it rose 6% year-on-year to ₹15,969 per sq ft.

The material also cites additional operational numbers: in H1 FY26, pre-sales were ₹2,577 crore (up 43% year-on-year) and collections were ₹2,308 crore (up 37%). Q2 FY26 pre-sales were ₹1,329 crore (up 19%), with collections of ₹1,162 crore (up 37%), and average sales realisation of ₹16,977 per sq ft. Another update mentions pre-sales of ₹1,249 crore (up 83% year-on-year), collections of ₹1,147 crore (up 37%), area sold of 0.56 million sq ft (down 9%), and average sales realisation of ₹22,476 per sq ft.

Snapshot table: KPIL Q1 FY26 financial and operating metrics

Snapshot table: Kalpataru Ltd operational metrics cited

Market impact: what investors typically track from these updates

For KPIL, the combination of faster revenue growth, higher margins, and falling net debt is usually read as a sign of better execution and improving cash conversion. The order book of ₹65,475 crore and order inflows of ₹9,899 crore till date in FY26 provide a data-backed view of revenue visibility, especially when supported by segment-level wins. Investors also watch whether net working capital days remain around the reported 91 days, because a reversal can pressure free cash flows even if accounting profits rise.

For Kalpataru Ltd, the operating metrics put the focus on pre-sales, collections, and realisation per square foot. Higher collections can indicate stronger cash flows, which matter for project completion and funding needs. Changes in area sold and realisation trends, where available, help interpret whether growth is coming from volumes, pricing, or mix.

Why the numbers matter: grounded takeaways

KPIL’s reported year-on-year growth rates show that profitability improved faster than revenue in Q1 FY26, with margin expansion visible across EBITDA, PBT, and PAT metrics. The company’s segment disclosures suggest that T&D remained a major growth driver, while B&F continued to scale with a record order intake figure. The reduction in net debt and improvement in working capital days, if sustained, can lower financial risk in a capital-intensive EPC model.

For Kalpataru Ltd, the FY25-26 operational update highlights improved sale realisations and higher collections, which are crucial for real estate companies navigating project pipelines and cash flow planning. The cited guidance numbers in the material, including pre-sales of ₹7,000 crore and collections of ₹5,700 crore for FY26, provide a benchmark that markets may compare against future quarterly updates.

Conclusion

KPIL’s Q1 FY26 results combined strong year-on-year revenue growth with sharper gains in EBITDA, PBT, and PAT, alongside lower net debt and improved working capital days as of 30 June 2025. Separately, Kalpataru Ltd reported higher FY25-26 pre-sales, collections, and sale realisations. The next set of quarterly updates and order announcements will be important for tracking execution pace, working capital discipline, and the trajectory of sales and collections in the realty business.