KEC International (KEC) Q2 25/26 earnings summary

Executive summary

• Achieved record Q2 FY26 consolidated revenue of ₹6,092 crore, up 19% YoY, and H1 revenue of ₹11,114 crore, up 15% YoY, with significant profitability improvements and record order intake.

• EBITDA grew 34% in Q2 and 27% in H1; EBITDA margin improved to 7.1% in Q2 (up 80 bps YoY).

• PAT reached ₹161 crore in Q2 FY26 (up 88% YoY) and ₹285 crore in H1 FY26.

• Order book plus L1 position reached a record over ₹44,000 crore, with robust pipeline and strategic wins.

• Net debt stood at ₹6,480 crore as of September 30, 2025, expected to normalize as collections improve.

Financial highlights

• Q2 FY26 consolidated revenue: ₹6,092 crore (+19% YoY); H1: ₹11,114 crore (+15% YoY).

• Q2 EBITDA: ₹430 crore (+34% YoY); margin at 7.1% (+80 bps YoY).

• Q2 PAT: ₹161 crore (+88% YoY); H1 PAT: ₹285 crore (+65% YoY).

• Interest cost reduced to 2.8% of revenue in Q2 FY26.

• Basic/diluted EPS for H1 FY26 was ₹10.72, up from ₹6.72 in H1 FY25.

Outlook and guidance

• H2 expected to contribute 60% of annual revenue, with margins targeted at 8% for FY26, implying 8.8-8.9% in H2.

• Strong international T&D outlook, with major initiatives in Saudi Arabia, UAE, Oman, and Americas.

• Civil business expected to reach ₹5,000 crore revenue for FY26, with margins improving to higher single digits.

• Debt expected to reduce to ₹5,000 crore by year-end as large collections and advances are received.

• Management does not expect ongoing legal matters to materially impact operations or financial results.