KEC International: No Near-Term Triggers. Maintain ADD

We attended the KEC International Annual Investor Conference 2026. Management highlighted healthy execution across key businesses, strong order inflows, and a robust T&D order pipeline. However, margin pressures, supply chain issues, and project execution challenges are expected to persist in the near term.

The company remains focused on disciplined project selection, working capital management, debt reduction, and improving profitability. We maintain an ADD rating with a target price of INR 557.

• Q4FY26 financial performance: Revenue stood at INR 63.8bn (-7.6% YoY), EBITDA at INR 4.5bn (-16.8% YoY), while APAT came in at INR 1.9bn (-28.1% YoY).
• Balance sheet health: The company has revised its strategy to focus on higher-margin short-cycle T&D orders and improve profitability. Working capital correction may aid debt reduction.
• Strong order pipeline: KEC sees significant opportunities in T&D transmission, railways, civil infrastructure, and cables businesses.
• T&D business momentum: The order book remains strong with growing opportunities in domestic and international transmission projects.
• Business outlook: FY27 is expected to remain volatile due to geopolitical disruptions, delayed project execution, labor shortages, and supply-chain-related challenges.
• Focus areas: Management continues to prioritize margin expansion, debt reduction, disciplined bidding, and working capital efficiency.

Consolidated Financial Summary (INR mn)

Source: Company, HSIE Research

ADD

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• BSE