KEC International Q2 FY27: Revenue Down 10% to ₹5,468 Cr, Order Book at ₹40,000 Cr
KEC International reported Q2 FY27 revenues of ₹5,468 crore, down 10% YoY. PAT declined 82% to ₹30 crore due to Middle East disruptions and Indian T&D challenges. The company's order book stands at ₹40,000 crore, with an order book + L1 position of ₹43,500 crore. Net debt is ₹7,793 crore, expected to reduce to ₹6,000 crore by year-end.
The substantial decline in revenue and profitability, along with elevated debt levels, has a significant impact on the company's financial health and investor sentiment. The reasons cited for the decline (geopolitical issues, supply chain disruptions) also suggest potential ongoing challenges.
The company reported a significant year-on-year decline in revenue, PBT, PAT, and EBITDA for Q2 FY27, indicating a negative financial performance for the quarter. While the order book remains strong, the immediate financial results are a cause for concern.
KEC International Limited has announced its financial results for the quarter and half-year ended September 30, 2026. For Q2 FY27, the company reported consolidated revenues of ₹5,468 crore, a decrease of 10% compared to ₹6,092 crore in Q2 FY26. Profit Before Tax (PBT) stood at ₹41 crore, down 81% from ₹213 crore year-on-year, and Profit After Tax (PAT) was ₹30 crore, an 82% decline from ₹161 crore in the same period last year. EBITDA also saw a significant drop of 37% to ₹271 crore.
The company's performance was impacted by supply chain disruptions in the Middle East, Right of Way (RoW) and land acquisition challenges in India's T&D segment, and calibrated supplies amidst elevated global costs. Despite these headwinds, KEC International achieved sequential revenue growth, primarily driven by its T&D business.
The order intake for the year-to-date (YTD) stands at over ₹13,500 crore, with approximately 70% from the T&D segment. The company boasts its highest-ever order book of around ₹40,000 crore, and with the L1 (Lowest Implied Offer) position, the total order book and L1 position stands at approximately ₹43,500 crore. The tender pipeline exceeds ₹2 lakh crore, with over 50% from T&D.
Net debt, including acceptances, was ₹7,793 crore as of September 30, 2026. This elevated level is attributed to a spillover of collections of around ₹600 crore (realized in October 2026), strategic inventory accumulation of approximately ₹160 crore to manage commodity price volatility, and lower-than-expected realization in Water & Metro projects. The company expects its net debt to reduce to around ₹6,000 crore by the end of the fiscal year.
Key business highlights for Q2 FY27 include T&D revenues of ₹3,686 crore, with significant orders from PGCIL totaling over ₹3,000 crore. The Civil segment reported revenues of ₹957 crore, impacted by slower execution of water projects and labor shortages. Renewables revenue was ₹13 crore, with ongoing solar and wind energy projects totaling over 950 MW. Cables & Conductors saw a revenue growth of 17% to ₹613 crore, with new capacities expected to commence production in Q3 FY27. The Transportation segment revenue was ₹224 crore, and the Oil & Gas Pipelines segment grew by 77% to ₹92 crore, with a merger of its subsidiary underway.
Management commentary indicates confidence in improved performance in the coming quarters, citing the strong order book and tender pipeline. However, headwinds such as geopolitical and supply chain uncertainties in the Middle East, delays in project finalization, prolonged resolution of legal claims, payment delays in water projects, and continued RoW issues in India T&D are noted. The company is also focusing on ESG goals, aiming for targets in diversity, safety, CSR, circularity, water positivity, and carbon emission reduction by FY30.
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