HSIE Institutional Report: Kalpataru Projects International Feb, 06 2026

Steady Show; Improving Financial Strength

Kalpataru Projects International’s (KPIL) Q3FY26 revenue/EBITDA/APAT were reported at INR 57.9/4.8/2.3bn, a beat of +2.4/in line/11.1% to our estimates, respectively. KPIL secured new orders worth INR 194.5bn in YTDFY26, taking the total order book (OB) to INR 632.8bn (excl L1 INR 70bn, ~3.2x FY25 revenue). The company is now targeting FY26 revenue growth of ~25%+, with an EBITDA margin band of 8.5-8.7% and a PBT margin of 5.5%, along with an expected order inflow of INR 250bn+ in FY26. Most low-margin legacy projects are now closed, with only ~INR 10bn remaining out of an INR 630bn order book, positioning margins for gradual improvement despite some newer urban infra orders carrying lower initial margins. Given the robust order booking, stable growth outlook, and a strong balance sheet (BS) and NWC, we retain our P/E target multiple at 20x. Maintain a BUY rating on the stock with increased TP of INR 1,566/sh (20x Dec-27E EPS rollover fromSep-27E).

Q3FY26 Financial Highlights

KPIL generated a revenue of INR 57.9bn (+19.9/+6.8% YoY/QoQ, beat by 2.4%) with an EBITDA of INR 4.8bn (+19.8/+7.6% YoY/QoQ, in line). EBITDA margin came in at 8.3% (-1.2/+6.4bps YoY/QoQ, vs our estimate of 8.5%). APAT stood at INR 2.3bn (+48.3/+16.7% YoY/QoQ, a beat by 11.1%).

Diversified Order Book Amid Macro Headwinds

In YTDFY26, KPIL received an order inflow of INR 194.5bn, which takes its OB to INR 632.8bn (excl L1 INR 70bn). Domestic/international OB comprises 63/37% respectively, with OI coming in at 74%/26% for the two respectively, T&D and BNF leading the charge. In 9MFY26, revenue from T&D grew +37% YoY on the back of project execution and healthy order mix in India and overseas markets, while water lagged due to payment delays from UP and Jharkhand.

NWC Supports Balance Sheet

KPIL’s standalone NWC improved by nine days YoY to 97 days in Q3FY26 (Q2:102 days), with KPIL guidance at under 100 days for FY26. Standalone net debt decreased to INR 18.4bn in Q3FY26 (Q2FY26: INR 21.8bn), with net debt to equity at 0.2x as of Dec’25 (vs. 0.3x as of Sept’25). Capex for KPIL in 9MFY26 stood at INR 5bn.

Standalone Financial Summary (INR mn)

Change in Estimates (INR mn)

Source: HSIE Research (HSIE Results Daily Report – 06 Feb 26 )