KPIL 9M FY26: Revenue +27%, PBT +69%, debt down

Strong 9M FY26 print beats guidance

Kalpataru Projects International Limited (KPIL) reported a sharp acceleration in performance through the third quarter and the first nine months of FY26, outpacing its own full-year revenue growth guidance. Consolidated revenue for 9M FY26 came in at INR 19,365 crore, up 27% year-on-year. The company had guided for full-year revenue growth of about 25%, and the nine-month performance already ran ahead of that marker. Profitability expanded faster than revenue, indicating improved execution and better operating leverage. Profit before tax (PBT) before exceptional items rose 69% year-on-year in 9M FY26 to INR 889 crore. Profit after tax (PAT) for 9M FY26 was INR 600 crore, up 72% year-on-year, while EPS for 9M FY26 was INR 35.48.

Q3 FY26 snapshot: higher revenue, steady margins

In Q3 FY26, consolidated revenue rose to INR 6,665 crore from INR 5,732 crore, a 16% year-on-year increase. Core EBITDA for the quarter stood at INR 513 crore versus INR 479 crore, up 7% year-on-year. PBT before exceptional items increased to INR 277 crore from INR 202 crore, a 37% rise. PAT was INR 149 crore versus INR 140 crore, up 7%, and EPS increased to INR 8.91 from INR 8.67. The quarterly numbers point to continued volume growth, while profitability improvements were more pronounced on a nine-month basis.

Segment execution: T&D and B&F lead, Oil & Gas accelerates

KPIL’s growth was described as broad-based, with most verticals delivering double-digit expansion. The Transmission and Distribution (T&D) segment remained the core driver, with 9M FY26 revenue increasing 37% year-on-year to INR 8,992 crore. Buildings and Factories (B&F) also expanded, with revenue up 17% to INR 4,870 crore. Oil and Gas recorded 58% growth, supported by execution in a Saudi project mentioned by management. Urban Infra and Railways grew 61% and 15% respectively.

Water business: revenue dip linked to collections

The Water business saw a revenue decline, attributed to delayed fund releases by clients. KPIL indicated expectations of improved collections in Q4 FY26. The commentary suggests the issue was more about timing of receipts rather than project capability. For investors, this matters because working capital and collections can directly influence net debt and cash flows in EPC businesses. KPIL’s subsequent balance sheet metrics reflected a tighter focus on cash conversion.

Key financials at a glance

Order book: multi-year visibility, fresh wins

KPIL’s consolidated order book stood at INR 63,287 crore as of December 31, 2025, which the company said provides revenue visibility for about three years. Year-to-date in FY26, it secured new orders worth INR 19,456 crore, with another INR 7,000+ crore described as “favorably placed”. Based on these figures, management positioned itself to meet an annual inflow target of INR 26,000+ crore.

Within the portfolio, the T&D order backlog was reported at over INR 25,752 crore, up 12% year-on-year. B&F order book increased 40% year-on-year to INR 18,596 crore, with project additions spanning data centers, residential complexes, hospitals, and industrial works. Separately, KPIL announced on January 1, 2026, that it and its joint venture secured INR 719 crore of new orders, including an elevated metro rail project in Thane, Maharashtra. In another exchange-linked update included in the source text, KPIL also referenced FY26 order intake to date of INR 9,443 crore at that point in time.

Balance sheet: net debt falls, working capital improves

Deleveraging was a key theme in FY26 updates. Consolidated net debt declined 29% quarter-on-quarter to INR 2,240 crore, while standalone net debt reduced 16% quarter-on-quarter to INR 1,849 crore. Net working capital days improved to 79 days at consolidated level and 97 days at standalone level, both below the year-end target of 100 days stated in the source. KPIL attributed this improvement to stronger operating performance, timely project delivery, and a more disciplined bidding approach aimed at improving returns on invested capital.

Asset monetisation: Vindhyachal Road exit and Indore inventory

KPIL completed the divestment of its 100% stake in the Vindhyachal Road asset in January 2026. The transaction was based on an enterprise value of approximately INR 799 crore and resulted in net cash inflows exceeding INR 600 crore. The company also said it was on track to fully monetise its Indore real estate project inventory before the end of March 2026. These actions were positioned as steps to reduce leverage and redeploy capital into core EPC operations.

Earlier checkpoints: Q2 FY26, FY25 close, and market details

For Q2 FY26 (quarter ended September 30, 2025), consolidated revenue was reported at INR 6,529 crore, up 32% year-on-year, with consolidated PBT of INR 322 crore (up 71%) and consolidated PAT of INR 237 crore (up 89%). PBT margin was 4.9%, with a 110 bps increase, while EBITDA was INR 561 crore and EBITDA margin was 8.6% (down 30 bps). For H1 FY26, consolidated revenue was INR 12,700 crore (up 33%), PBT was INR 612 crore (up 88%), PAT was INR 451 crore, net debt was INR 3,169 crore (down 14%), and net working capital days improved to 90 days.

KPIL’s FY25 consolidated revenue was reported at around INR 22,316 crore, with FY25 net debt at INR 1,953 crore and net working capital at 94 days. Order inflows for FY25 were stated at INR 25,475 crore and closing order book at INR 64,495 crore as of March 31, 2025, with a proposed dividend of INR 9 per share for FY25 (subject to shareholder approval at the AGM). A separate snapshot in the source text cited promoter pledge at 8.2%.

The stock update included in the source noted a close of INR 1,256.20 (down 0.49%) on the referenced day, with a market capitalisation of around INR 21,500 crore. The 52-week range was listed as INR 786.30 to INR 1,352.85.

Outlook: revenue growth and margin expansion targets

Management reiterated expectations of around 25% revenue growth for FY26 and guided to earnings improvement, citing at least 50 bps margin expansion at standalone level and 100 bps at consolidated level. The company also said it was confident of achieving consolidated EPS exceeding INR 50 per share for the year, and it expects growth momentum to continue with margin improvement in FY27. The stated tailwinds included energy transition, sustainable mobility, urbanisation, and digital transformation.

Why the update matters

KPIL’s FY26 commentary combines three elements investors typically track in EPC companies: execution-led revenue growth, profitability improvement, and tighter working capital translating into lower net debt. The segment mix also shows that T&D and B&F are not the only contributors, with Oil and Gas and Urban Infra showing high growth rates during the period. At the same time, the Water segment reminder highlights how client-side fund release cycles can affect near-term revenue and collections.

Conclusion

KPIL’s 9M FY26 results show revenue growth of 27% and a 69% rise in PBT before exceptional items, alongside improved working capital and lower net debt. The order book of INR 63,287 crore as of December 31, 2025 supports multi-year execution visibility. The next operational monitorables flagged in the updates are Q4 FY26 collections in the Water segment, continued order inflows toward the INR 26,000+ crore target, and progress on the Indore inventory monetisation targeted before end-March 2026.