KEC International (KEC) Q3 25/26 earnings summary

Executive summary

• Achieved record Q3 revenue of INR 6,001 crore, up 12% year-on-year, with nine-month revenue at INR 17,116 crore, up 14% year-on-year.

• T&D and Cables & Conductors segments led growth, with T&D contributing 67% of nine-month revenues and strong international momentum.

• Order intake YTD reached INR 19,300 crore, with a robust order book and L1 position totaling over INR 41,000 crore.

• Exceptional expense of INR 59 crore in Q3 due to new labour code provision.

• Profit after tax for the quarter was INR 127.46 crore; nine-month PAT was INR 412.81 crore.

Financial highlights

• Q3 EBITDA grew 15% year-on-year to INR 430 crore; nine-month EBITDA up 22% to INR 1,211 crore.

• Q3 EBITDA margin rose to 7.2%; nine-month margin at 7.1%.

• Q3 operating PBT grew 37% year-on-year; nine-month operating PBT up 53%.

• Q3 operating PAT at INR 171 crore; nine-month PAT at INR 457 crore.

• Interest expenses as % of revenue reduced by 30-40 bps in Q3 and nine months.

Outlook and guidance

• FY26 EBITDA margin guidance revised to 7-7.5% from 8-8.5% due to delays in high-margin projects and slower closure of legacy projects.

• Margins expected to improve in FY27 and reach 9-10% by FY28 as legacy issues resolve.

• Order intake target for next year set at INR 30,000-35,000 crore.

• Net debt targeted to reduce to INR 5,500 crore by year-end.

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