Kalpataru Projects Q2 profit rises 23% as EPC revenue grows

Kalpataru Projects International Limited reported consolidated profit after tax of Rs 291.95 crore for the quarter ended September 30, 2026, up 23% from Rs 237.39 crore a year earlier, as engineering, procurement and construction (EPC) segment revenue rose to Rs 6,946.74 crore and segment result reached Rs 459.57 crore.

How did Kalpataru Projects perform in Q2 FY27?

Kalpataru Projects’ consolidated profit after tax rose to Rs 291.95 crore in Q2 FY27 from Rs 237.39 crore in Q2 FY26, while revenue from operations increased 7% to Rs 7,004.27 crore from Rs 6,528.57 crore. Profit before tax rose 24% to Rs 397.76 crore from Rs 321.59 crore, based on unaudited consolidated results approved on November 5, 2026.

The year-on-year profit increase was not repeated sequentially. Profit after tax declined from Rs 311.53 crore in the quarter ended June 30, 2026, and profit before tax declined from Rs 420.47 crore, although revenue from operations increased from Rs 6,407.97 crore. Basic and diluted earnings per share were Rs 16.92 in Q2 FY27, compared with Rs 14.06 a year earlier and Rs 18.16 in the preceding quarter.

Kalpataru Projects’ total income, including other income, was Rs 7,048.29 crore against Rs 6,551.96 crore in the prior-year quarter. Other income rose to Rs 44.02 crore from Rs 23.39 crore, but was below Rs 77.20 crore in Q1 FY27. Total expenses increased to Rs 6,650.53 crore from Rs 6,230.37 crore, leaving profit before exceptional items and tax of Rs 397.76 crore.

Which segment drove Kalpataru Projects’ quarterly earnings?

EPC was the principal driver of Kalpataru Projects’ Q2 FY27 result, with segment revenue of Rs 6,946.74 crore and segment result of Rs 459.57 crore. Compared with Q2 FY26, EPC revenue increased from Rs 6,313.85 crore and EPC segment result rose from Rs 325.90 crore, an increase of Rs 133.67 crore.

The development-project business, defined by Kalpataru Projects as operation and maintenance of infrastructure projects, moved in the opposite direction. Segment revenue fell to Rs 9.32 crore from Rs 167.58 crore in Q2 FY26, while segment result fell to Rs 0.02 crore from Rs 133.97 crore. Development-project segment assets also declined to Rs 615.59 crore at September 30, 2026, from Rs 1,775.76 crore a year earlier.

Other segments reported revenue of Rs 70.64 crore, compared with Rs 65.21 crore a year earlier, and a segment result of Rs 2.68 crore after a loss of Rs 12.32 crore. Before inter-segment eliminations, total segment revenue reached Rs 7,026.70 crore; Rs 22.43 crore of inter-segment revenue was eliminated to arrive at reported revenue from operations of Rs 7,004.27 crore.

What changed in Kalpataru Projects’ costs and margins?

Kalpataru Projects’ finance costs decreased 34% year on year to Rs 90.54 crore in Q2 FY27 from Rs 136.95 crore, while its net profit margin rose to 4.2% from 3.6%. The reported operating margin was 8.3%, compared with 8.6% in Q2 FY26 and 8.8% in Q1 FY27.

Project-related spending increased faster than revenue in some categories. Erection, subcontracting and other project expenses rose to Rs 2,873.00 crore from Rs 2,392.25 crore, while other expenses rose to Rs 586.96 crore from Rs 506.08 crore. Cost of materials consumed declined to Rs 2,329.94 crore from Rs 2,386.29 crore, and employee benefits expense declined to Rs 686.44 crore from Rs 709.45 crore.

Tax expense was Rs 105.81 crore in Q2 FY27, comprising current tax of Rs 79.48 crore and deferred tax of Rs 26.33 crore. In Q2 FY26, tax expense was Rs 84.20 crore because a current-tax charge of Rs 94.53 crore was partly offset by deferred tax of Rs 10.33 crore. That change contributed to the difference between the 24% increase in pre-tax profit and the 23% increase in profit after tax.

What do Kalpataru Projects’ half-year numbers show?

Kalpataru Projects’ consolidated profit after tax for the half year ended September 30, 2026 rose 34% to Rs 603.48 crore from Rs 450.98 crore in the comparable period. Revenue from operations increased 6% to Rs 13,412.24 crore from Rs 12,699.74 crore, and profit before tax increased to Rs 818.23 crore from Rs 611.81 crore.

EPC revenue for the first half rose to Rs 13,292.38 crore from Rs 12,358.75 crore, while its segment result rose to Rs 898.58 crore from Rs 679.90 crore. Development-project revenue fell to Rs 20.68 crore from Rs 241.43 crore and its segment result was a loss of Rs 3.01 crore, compared with a profit of Rs 173.87 crore in the prior-year half.

Cash generation also changed materially. Net cash generated from operating activities was Rs 1,179.77 crore in the first half of FY27, compared with net cash used in operations of Rs 411.71 crore in the prior-year period. Trade and other receivables generated Rs 363.30 crore of cash in FY27’s first half, compared with use of Rs 1,109.06 crore a year earlier.

How did Kalpataru Projects’ balance sheet and financing position move?

Kalpataru Projects’ total equity increased to Rs 8,638.94 crore at September 30, 2026 from Rs 7,732.60 crore at March 31, 2026, while total assets rose to Rs 27,869.33 crore from Rs 27,712.85 crore. Non-current borrowings declined to Rs 244.43 crore from Rs 611.31 crore and current borrowings declined to Rs 2,445.82 crore from Rs 2,695.65 crore.

The reported debt-equity ratio was 0.32 times at the end of Q2 FY27, versus 0.67 times a year earlier and 0.34 times at June 30, 2026. Current assets stood at Rs 23,095.72 crore against current liabilities of Rs 18,198.21 crore, producing a reported current ratio of 1.27 times, compared with 1.25 times in Q2 FY26.

Kalpataru Projects also completed a transaction involving step-down subsidiary Linjemontage i Grästorp AB. Following its September 25, 2026 Nasdaq Stockholm listing, Kalpataru Power Transmission Sweden AB divested 13,319,670 shares for net consideration of Rs 568 crore. As Kalpataru Projects retained control, the filing says the transaction was recorded directly in other equity rather than the profit and loss statement; after the overallotment issuance, its shareholding will be 66.45%.

Conclusion

Kalpataru Projects’ Q2 FY27 profit increase was supported by a Rs 133.67 crore year-on-year rise in EPC segment result, which outweighed the sharp reduction in the development-project segment’s contribution. Consolidated revenue rose to Rs 7,004.27 crore and lower finance costs of Rs 90.54 crore also accompanied profit after tax of Rs 291.95 crore.

Next, readers should watch whether EPC segment revenue and profit continue to rise after first-half figures of Rs 13,292.38 crore and Rs 898.58 crore, respectively, and whether development projects recover from a first-half segment loss of Rs 3.01 crore. Kalpataru Projects also disclosed that Kurukshetra Expressway Private Limited has filed a Special Leave Petition before the Supreme Court following the September 28, 2026 judgment, with management stating it will monitor the matter and reassess accounting implications as necessary.