KEC International Q4 FY26: revenue, orders, debt update

Record FY26, softer Q4 sets the tone

KEC International Ltd (BOM:532714) reported its highest-ever annual revenue and order intake for FY26, even as the March quarter was weighed down by supply-chain disruptions and working capital pressure. For the full year ended March 31, 2026, consolidated revenue from operations rose 7.59% year-on-year to INR 23,505.54 crore, which the company also described as record revenue of around INR 23,506 crore. The growth was primarily driven by the Transmission and Distribution (T&D) business and the Cables and Conductors segment.

In Q4 FY26, consolidated revenue declined 7.01% year-on-year to INR 6,389.75 crore, while EBITDA margin narrowed to 7% from 7.8% a year earlier. Management said site execution remained unaffected, but supply-chain disruptions led to deferred revenues in the quarter. The company quantified the Q4 revenue loss due to supply-chain issues at about INR 380 crore to INR 400 crore.

FY26 profitability: operating metrics improved

Alongside the 8% annual revenue growth cited by the company, profitability improved on operating measures. KEC reported operating profit before tax (operating PBT) of INR 848 crore for FY26, with operating PBT margin expanding by 40 basis points to 3.6%. Operating profit after tax (operating PAT) was stated at INR 650 crore, with operating PAT margin improving by 30 basis points to 2.6%. The company also said that while revenue increased 8%, operating PBT grew 21% and operating PAT grew 18%.

For the full year, consolidated net profit rose 6.10% to INR 605.59 crore. The company’s commentary linked the stronger annual performance to execution strength in T&D and an increased share of T&D in the revenue mix.

Q4 FY26 snapshot: profit drops, margins tighten

For the March quarter, KEC reported consolidated net profit of INR 192.79 crore, down 28.11% from INR 268.19 crore in Q4 FY25. Profit before tax in Q4 FY26 stood at INR 257.73 crore, a 24.67% decline year-on-year. EBITDA for the quarter was INR 448 crore, down 16.88% from INR 539 crore in the year-ago period, with EBITDA margin at 7%.

Following the Q4 result, the stock reaction highlighted investor sensitivity to quarterly profitability, with the share price reported to have fallen 8.89% to INR 500 in that session.

T&D leads growth and expands its revenue share

T&D remained the key driver of FY26 performance. The company said the T&D segment’s contribution to overall revenue increased to 68% in FY26, compared with 59% in the previous year. For the year, T&D delivered milestone revenue of INR 15,883 crore, representing 24% growth, supported by execution across domestic and international markets.

On the order side, T&D secured inflows of INR 17,700 crore across India, the Middle East, the Americas, Africa and the CIS region. KEC also noted that India orders included its largest-ever domestic T&D integrated order of over INR 1,000 crore from a reputed private player.

Other segments: cables strong, others smaller in FY26

The Cables and Conductors business reported record revenue of about INR 2,217 crore, a 23% year-on-year growth, and the company noted it achieved its highest-ever profitability during the year. Transportation business revenue for FY26 was reported at INR 1,555 crore. The oil and gas pipeline business recorded FY26 revenue of INR 258 crore.

While the company’s transcript points to broad-based segment updates, the quarter saw weaker execution in non-T&D businesses, with references to softer execution in areas like transportation and other non-T&D verticals in external commentary included in the material.

Order intake hits a record; visibility improves

KEC reported an all-time high consolidated order intake of INR 25,280 crore in FY26, with 70% of the inflows coming from the T&D business across India and international markets. The company also indicated a strategic shift in the order profile, with the average order size increasing from INR 350 crore last year to over INR 500 crore this year. It also said the number of orders reduced by about 25% despite higher order inflows, reflecting a focus on larger orders.

As of March 31, 2026, the closing order book was INR 36,267 crore. In addition, the company cited an L1 position of over INR 3,000 crore, taking the combined order book plus L1 to over INR 40,000 crore. Management said this provides visibility for the next six to seven quarters.

Tender pipeline and early FY27 order wins

The company highlighted a robust tender pipeline exceeding INR 1,80,000 crore, particularly across the T&D and civil businesses. It also said the order intake trend continues into FY27, with new orders of over INR 1,000 crore announced till date across T&D, transportation, renewables, and cables and conductors.

Separately in the provided material, KEC disclosed new orders worth INR 1,002 crore across multiple segments, spanning T&D, renewables, transportation, and cables and conductors, including orders in India and the Americas.

Working capital: receivables and inventory weigh on debt

KEC disclosed that net debt, including acceptances, stood at INR 6,722 crore as of March 31, 2026, down by INR 84 crore compared with December 31, 2025. The company linked higher inventory levels to delayed dispatches and strategic inventory build-up. It also reported a rise in receivable days from 88 to 101, attributing this to a spillover of collections that affected working capital.

These indicators matter because they influence cash conversion and interest costs, particularly in a quarter where revenue was deferred due to supply-chain disruptions.

Market impact: what the numbers imply for investors

The immediate market reaction centered on the Q4 profit decline and narrower EBITDA margin at 7%. At the same time, FY26 revenue growth and record order intake support the longer execution runway, with order book plus L1 above INR 40,000 crore. Management’s emphasis on larger average order sizes also points to tighter project control, though the quarter showed that supply-chain disruptions can still defer revenue and pressure near-term margins.

From an operational lens, the combination of higher inventory, increased receivable days, and net debt of INR 6,722 crore highlights why investors typically track working capital movements closely for EPC and infrastructure players.

Outlook: FY27 growth and order intake targets

In the conference call, the company guided for revenue growth of 12% to 15% and an order intake target of around INR 30,000 crore. The outlook is framed against a backdrop of disruptions that deferred Q4 revenue and impacted margins, but with management reiterating that site execution remained unaffected.

Key figures at a glance

Conclusion: strong backlog, near-term execution discipline in focus

KEC International ended FY26 with record revenue and an all-time high order intake, led by T&D and supported by growth in cables and conductors. The March quarter, however, showed how supply-chain disruptions and working capital slippage can defer revenue and compress margins. With order book plus L1 above INR 40,000 crore and visibility of six to seven quarters, the next focus areas remain execution, collections, and delivery against the FY27 targets of 12% to 15% revenue growth and about INR 30,000 crore order intake.