KEC International Limited Earnings Summary — Q1 FY2027
KEC International Reports Stable Q1 Revenue Amid Strong T&D Traction and Improved International Profitability
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 21.4% sequentially in Q1 FY2027.
- Revenue of ₹5,024 Cr is 0.0% higher year-on-year.
- Revenue has compounded at -8.7% annualised over the last 10 quarters.
- Net profit of ₹73 Cr is 41.7% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -27.9% annualised across the period.
- Operating margin stands at 5.8% in Q1 FY2027.
- Operating margin compressed by 118 bps year-on-year.
- Over the last two years operating margin has contracted by 20 bps.
- PBT margin is 1.8%.
- Expenses grew 1.3% against revenue growth of 0.0%.
- Operating profit of ₹291 Cr is 16.9% lower year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 35/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 5,024 | 6,390 | 6,001 | 6,092 | 5,023 | 6,872 | 5,349 | 5,113 | 4,512 | 6,165 |
| Expenses | Stable | 4,733 | 5,942 | 5,571 | 5,661 | 4,673 | 6,333 | 4,975 | 4,793 | 4,242 | 5,777 |
| Operating Profit | Stable | 291 | 448 | 430 | 430 | 350 | 539 | 374 | 320 | 270 | 388 |
| Operating Margin | Stable | 5.8% | 7.0% | 7.2% | 7.1% | 7.0% | 7.8% | 7.0% | 6.3% | 6.0% | 6.3% |
| Other Income | Volatile | 14 | 30 | -49 | 5 | 5 | 20 | 1 | 7 | 43 | 8 |
| Interest | Stable | 164 | 170 | 171 | 171 | 151 | 170 | 170 | 168 | 155 | 154 |
| Depreciation | Stable | 51 | 51 | 50 | 51 | 46 | 47 | 45 | 45 | 47 | 48 |
| Profit Before Tax | Volatile | 90 | 258 | 160 | 213 | 159 | 342 | 160 | 113 | 112 | 193 |
| Tax | Volatile | 17 | 65 | 32 | 52 | 34 | 74 | 30 | 28 | 24 | 42 |
| Net Profit | Volatile | 73 | 193 | 127 | 161 | 125 | 268 | 130 | 85 | 88 | 152 |
| Net Margin | Stable | 1.4% | 3.0% | 2.1% | 2.6% | 2.5% | 3.9% | 2.4% | 1.7% | 1.9% | 2.5% |
Key Takeaways
- Revenue remained virtually flat YoY at ₹5,023.54 crore, as growth in the Cables segment (+56.9% YoY) offset a slight decline in the core EPC business.
- Consolidated Net Profit declined 41.7% YoY to ₹72.62 crore, impacted by lower segment results in EPC and higher finance costs compared to the prior year period.
- The T&D segment continues to be the primary driver, though EPC segment results fell to ₹262.85 crore from ₹339.35 crore in the same quarter last year.
- International operations showed resilience, with subsidiaries contributing ₹68 crore in profit after tax, indicating a healthy mix outside of standalone domestic operations.
- Working capital remained a focus, with the Debt Equity ratio holding relatively steady at 0.88x compared to 0.87x in the prior quarter.
- The Order Book remains robust at over ₹36,000 crore, supported by significant L1 positions, providing roughly 6-7 quarters of revenue visibility.
Management Guidance
Management expects debt levels to improve by Q2 FY27 following collections in the water business. They are maintaining a calibrated approach in Water and Transportation projects to optimize working capital and ensure profitability.
Sentiment Shift
Stable
While quarterly profits dipped, the massive order book and strategic shift toward larger, higher-margin T&D projects in the Middle East and India provide a stable outlook despite short-term supply chain disruptions.
Outlook
The outlook remains positive for T&D, particularly in India (765kV/HVDC) and the Middle East (Saudi Arabia/UAE). Renewables and specialized Civil projects (Semiconductors, Data Centers) are emerging as new growth frontiers.
From the Annual Report (Key Quotes)
“Our performance would have definitely been better but for the geopolitical disruption in the Middle East led to deferment of revenues.”
“We have achieved our highest ever revenues, profitability and order intake during the year [FY26], despite a challenging operating environment.”
“The transmission sector is witnessing a structural shift, with large intrastate projects increasingly moving to the TBCB route.”
Official Quarterly Documents
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This summary is AI-generated from KEC International Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.