KEC International Q1FY26 Results: Revenue ₹5,023 cr

What KEC International reported for Q1FY26

KEC International Ltd., a heavy electrical equipment and infrastructure EPC company, announced its Q1FY26 results with a year-on-year improvement in key profitability metrics. Consolidated revenue came in at ₹5,023 crore versus ₹4,512 crore in the comparable period mentioned in the company’s highlights. EBITDA was reported at ₹350 crore against ₹294 crore, with EBITDA margin at 7.0% versus 6.5%. Profit before tax (PBT) stood at ₹159 crore against ₹112 crore, while profit after tax (PAT) was ₹125 crore against ₹88 crore. The company also highlighted lower interest cost intensity, with interest as a percentage of revenue at 3.0% compared with 3.4%.

Quarter-on-quarter picture: revenue and profit dipped from Q4

Alongside the year-on-year gains, the dataset also captures a sequential slowdown from the immediately preceding quarter. Revenue was stated at ₹5,022.88 crore, a quarter-on-quarter decline of 26.91% from ₹6,872.12 crore. Operating profit was ₹156.51 crore, down 17.86% QoQ from ₹190.54 crore. PBDT was ₹79.77 crore, down 33.80% QoQ from ₹120.49 crore. Profit before tax was stated at ₹158.51 crore, down 53.67% QoQ from ₹342.16 crore, and net profit was ₹124.60 crore, down 53.54% QoQ from ₹268.20 crore.

Consolidated performance: margins improved year-on-year

The consolidated snapshot points to a margin-led improvement versus the year-ago quarter. EBITDA margin expanded to 7.0% from 6.5%, while PBT margin improved to 3.2% from 2.5%. PAT margin rose to 2.5% from 1.9%. The interest-to-revenue ratio also moved down to 3.0% from 3.4%, which the company presented as part of the quarter’s financial highlights. These metrics matter for EPC companies where working capital intensity and funding costs can materially affect bottom-line outcomes.

Standalone numbers: revenue up, margins softer

On a standalone basis, KEC International reported revenue of ₹4,030 crore against ₹3,888 crore. Standalone EBITDA was ₹197 crore versus ₹198 crore, with margin at 4.9% compared with 5.1%. Interest as a percentage of revenue stood at 3.1% versus 3.5%. Standalone PBT was ₹50 crore against ₹43 crore, and PAT was ₹37 crore against ₹32 crore. The standalone margin movement contrasted with the consolidated expansion, reflecting differences in business mix and consolidation.

Orders: intake, order book, and L1 position

KEC International reported year-to-date order intake of ₹5,517 crore, primarily from its Transmission and Distribution (T&D) and Civil businesses. The company’s year-to-date order book was stated at ₹34,409 crore. It also disclosed an additional L1 (lowest bidder) position of over ₹6,000 crore. Separately, for FY25, KEC reported order intake of ₹24,689 crore and an order book of ₹33,398 crore as of March 31, 2025, with the combined order book and L1 position exceeding ₹40,000 crore.

Debt and working capital: key balance-sheet indicators

As of June 30, 2025, net debt including acceptances stood at ₹5,348 crore, which the company said was lower by around ₹250 crore compared with June 30, 2024. It also highlighted that this reduction came despite trailing 12-month revenue growth of over ₹2,000 crore (about 11% in the trailing 12 months, as stated). Net working capital (NWC) was reported at 128 days as of June 30, 2025 versus 122 days as of June 30, 2024. These two metrics are closely watched for EPC companies because they influence cash flows, interest costs, and execution capacity.

Management commentary: growth despite operational headwinds

Vimal Kejriwal, MD and CEO, said the company started the year on a strong note with healthy revenue growth, a substantial increase in profitability, and reduced debt levels. He cited headwinds such as persistent manpower shortages and geopolitical uncertainties. He also pointed to profitability growth, noting that PBT and PAT were described as growing by over 40%.

Context from the prior quarter and FY25: what changed

KEC had earlier reported Q4 FY25 consolidated revenue of ₹6,872 crore versus ₹6,165 crore in Q4 FY24, and FY25 revenue of ₹21,847 crore versus ₹19,914 crore in FY24. For FY25, PAT was reported at ₹571 crore compared with ₹347 crore in FY24. The company also disclosed that net debt including acceptances was reduced by over ₹500 crore to ₹4,558 crore as of March 31, 2025. It recommended a dividend of ₹5.5 per equity share (face value ₹2) for FY25, subject to shareholder approval.

Brokerage views and margin guidance in focus

After the March-quarter (Q4FY25) results, brokerages were described as divided on the stock’s outlook. The coverage cited execution as mixed, with softness in civil and railway segments. It also reported that Nomura reduced FY26 and FY27 EBITDA estimates by 1% and 3%, respectively, citing lower margin guidance. Management’s FY26 EBITDA margin guidance was stated at 8.0% to 8.5%, down from earlier guidance of 9%, due to persistent labour shortages in its civil division.

Key numbers at a glance

Why these results matter for investors

The quarter showed higher year-on-year profitability and improved interest cost intensity, alongside a large disclosed order book and L1 pipeline. At the same time, sequential comparisons captured a sharp drop from the immediately preceding quarter’s revenue and profit base, which had been described as the highest-ever quarterly revenue in Q4. The company’s disclosures keep attention on execution consistency across verticals, as well as labour availability and geopolitical factors that can affect project delivery. Working capital and net debt remain central to how the market evaluates earnings quality in EPC businesses.

Conclusion

KEC International’s Q1FY26 release combined year-on-year gains in revenue and margins with a sequential decline from Q4 levels, while highlighting order inflows, a sizeable order book, and a reduction in net debt as of June 30, 2025. The next set of updates investors will track includes progress on execution across business segments, working capital movement, and any further commentary on FY26 margin guidance amid labour-related constraints.