/** blogpostTitle: KEC International Q4 FY26: record FY26, weak quarter, strong pipeline blogpostSlug: kec-q4fy26 blogpostCoverImageUrl: null blogpostCoverImageDescription: Ultra realistic corporate finance cover image showing a clean desk with a laptop displaying a revenue and margin dashboard for an infrastructure EPC company: a line chart rising from FY23 to FY26 (revenue up to INR 23,506 crore) and a bar chart for EBITDA margin improving to 7.1%. In the blurred background, subtle industrial elements like steel transmission towers, a substation yard, and a construction site silhouette to represent T&D and civil EPC. Neutral lighting, no logos, no text labels. blogpostShortTitle: KEC FY26 record revenue, pipeline focus */

KEC International Q4 FY26: record FY26, weak quarter, strong pipeline

KEC International closed FY26 with its highest ever consolidated revenue and profits, even as the March quarter was disrupted by logistics and labour issues. For FY26, the company reported revenue of INR 23,506 crore, up 8% year on year, and EBITDA of INR 1,659 crore with margin at 7.1% versus 6.9% in FY25. Operating profit after tax came in at INR 650 crore with operating PAT margin at 2.8%.

Q4 FY26 looked different. Revenue declined 7% year on year to INR 6,390 crore and EBITDA margin fell to 7.0% from 7.8% in Q4 FY25. Management attributed a meaningful part of the quarterly softness to the geopolitical situation in the Middle East, which triggered shipment delays, port congestion, and higher freight costs. On the concall, the CEO estimated that around INR 380 to 400 crore of revenue was deferred in Q4 due to the supply side disruptions.

The year’s story, however, remained one of scale and a sharper mix. Transmission and Distribution became an even larger driver of the consolidated profile. Management said T&D contributed 68% of revenue in FY26 versus 59% in FY25.

FY26 financial performance: margins improved, exceptionals explained

The company presented operating numbers excluding exceptional items. In FY26, it recorded a provision of INR 59 crore towards the new labour code. In FY25, it had recognised INR 24 crore of income from an arbitration award.

On a reported basis including exceptional items, FY26 PBT was INR 789 crore and PAT was INR 606 crore, with PAT margin of 2.6%.

Interest cost remained flat year on year at INR 664 crore, while interest as a percentage of sales reduced to 2.8% from 3.0% because of higher revenues.

Segment performance: T&D grew, non-T&D lagged

T&D was the standout in FY26. The segment delivered revenue of INR 15,883 crore, up 24% year on year. Management also highlighted a strong order intake in T&D of around INR 17,700 crore across India and international markets.

Other businesses were mixed.

Civil reported revenue of INR 3,823 crore for FY26. Management said revenue was constrained by labour availability, delayed release of work fronts in some projects, and slower payments in water projects. The company said it commissioned the Bheden water project in Odisha supplying water to over 58,000 households.

Transportation reported FY26 revenue of INR 1,555 crore. Management’s focus in this segment remained on completing existing projects and being selective on bidding, with orders including TCAS Kavach and a railway siding project.

Cables and Conductors delivered FY26 revenue of INR 2,217 crore, up 23%, and management stated that the segment achieved its highest ever profitability during the year. It also reiterated that elastomeric cable production is expected to start in Q2 FY27, followed by commissioning of the E-Beam process in the same quarter.

Renewables recorded revenue of INR 516 crore. Management said the business entered wind EPC with two orders for 100+ MW of wind projects and commissioned around 1,000 MW of solar capacity across Rajasthan and Karnataka.

Oil and Gas Pipelines reported revenue of INR 258 crore. The company said it secured two international orders in Africa and the Middle East, and entered the GCC region with a composite station works project.

Order book, working capital, and what management is watching

FY26 order intake was reported at INR 25,280 crore. The order book as on 31 March 2026 stood at INR 36,267 crore. Management also stated that order book plus L1 was over INR 40,000 crore and that tenders under evaluation and in pipeline were over INR 1,80,000 crore.

The balance sheet remains a key monitor. Net debt including acceptances was INR 6,722 crore as of 31 March 2026. Net working capital stood at 137 days. Management explained that debt could have been lower but for a spillover of about INR 450 crore in collections into early April, higher inventory due to delayed dispatches in Dubai amid Middle East disruptions, strategic inventory build due to volatile steel prices, muted collections in the water business, and revenue-driven debt.

On the concall, management guided that debt levels are expected to improve by Q2 FY27. It also shared an internal target of reducing debt by about INR 1,000 crore in FY27, with around INR 500 crore reduction by end of Q2 and another INR 500 crore by year-end. On working capital, it mentioned a target of about 110 days by end of FY27.

The most important operating risk discussed was the Middle East disruption. The company said the region accounts for around 27% of the overall order book and L1 position. Management stated that project sites continue to operate, but supply chains and freight are a challenge, and the company is in discussions with clients regarding compensation for higher logistics costs.

Takeaways from FY26

KEC’s FY26 performance was driven by T&D scale-up and steady margin improvement over the last three years, with EBITDA margin at 7.1% in FY26 versus 4.8% in FY23 as shown in the presentation. The March quarter showed how quickly external disruptions can affect execution-heavy businesses, but the company ended the year with a record order intake and a large order pipeline.

The near-term focus, based on management commentary, is straightforward: protect margins amid freight and supply disruptions, improve collections and working capital, and convert a large tender pipeline into higher-quality orders while keeping leverage in check.