KEC International (KEC) investor relations material

Executive summary

• Delivered resilient Q1 FY27 performance with consolidated revenues of ₹5,024 crore, flat year-over-year, despite supply chain, geopolitical, and operational challenges.

• Net debt reduced by over ₹150 crore to ₹6,568 crore as of June 30, 2026, aided by improved collections and working capital management.

• Robust order intake exceeded ₹6,300 crore across business segments, with a strong L1 position and total order book plus L1 over ₹40,000 crore.

• Ongoing challenges in the Middle East, labor shortages, and a government investigation impacted execution and profitability, but gradual normalization is expected.

• Financial statements for Q1 FY27 were approved by the Board and reviewed by statutory auditors with no material misstatements.

Financial highlights

• Q1 FY27 consolidated revenue was ₹5,023.54 crore, nearly flat year-over-year; standalone revenue was ₹3,898.35 crore.

• Consolidated net profit was ₹72.62 crore, down from ₹124.60 crore in Q1 FY26; PAT margin at 1.4%.

• Standalone EBITDA margin declined to ~4%; consolidated EBITDA margin at 5.8%, down from 7.0% last year.

• Cables and conductors revenue grew 57% year-over-year to over ₹600 crore.

• SAE Towers revenue up 25% year-over-year to ₹450 crore.

Outlook and guidance

• Revenue growth guidance for FY27 maintained at 12%-15%, contingent on geopolitical developments.

• Margins expected to improve from Q3 onwards, but double-digit margins unlikely in FY27; high single-digit margins targeted for FY28.

• Strong multi-year growth opportunities in T&D, civil, and renewables, supported by robust tender pipelines over ₹2 lakh crore.

• Management expects improved execution and financial performance as supply chains normalize and labor availability improves.

• Working capital days targeted at 110 by year-end, with ₹1,200 crore debt reduction planned.