KEC Q4 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹6,390 Cr
verified against source
Revenue YoY
8%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
KEC International delivered record FY26 revenue of Rs 23,556 crore (+8% YoY), with operating EBITDA growth of 21% and PAT growth of 18%, significantly outpacing revenue growth—demonstrating operating leverage despite a challenging environment. Q4 revenue came in at Rs 6,390 crore with EBITDA margin of 7%. The company's order book plus L1 position stands at an all-time high of over Rs 40,000 crore, providing 6-7 quarters of revenue visibility. The T&D segment contributed 68% of revenues (vs 59% last year) with 24% growth, while Cables & Conductors grew 23% to Rs 2,217 crore. However, Middle East disruptions cost approximately Rs 300-400 crore in Q4 revenue, with supply chain and logistics challenges expected to persist into Q1/Q2 FY27. Working capital days deteriorated to 101 from 88, and net debt remains elevated at Rs 6,722 crore. Management targets 12-15% revenue growth in FY27 with order intake guidance of Rs 30,000 crore, while debt reduction of Rs 1,000 crore is planned. Margin guidance remains withheld pending clarity on cost pass-through discussions with clients. Civil segment is expected to grow 30%+ as execution normalizes post labor disruptions and project plan changes. Key risk: geopolitical tensions in Middle East (27% of order book) and uncertain timeline for margin recovery beyond current 7-8% range.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets 12-15% revenue growth for FY27 based on robust order book of Rs 40,000+ crore and L1 position, though acknowledges Q1/Q2 may be impacted by ongoing disruptions.
- Order inflow guidance of Rs 30,000 crore for the year, with approximately 60% (Rs 17-18,000 crore) from T&D and Rs 8,000 crore from civil, balanced across other segments.
- Target to reduce net debt by Rs 1,000 crore—Rs 500 crore by end of H1 (bringing to ~Rs 6,000 crore) and another Rs 500 crore by year-end (to ~Rs 5,500 crore).
- Civil business expected to grow over 30% in FY27 driven by execution normalization post labor disruptions, completion of on-hold projects, and execution excellence program outcomes.
Risks flagged
- JNNURM collections remain unchanged from prior year at approximately Rs 50-60 crore received till date despite government assurances. Framework conditions and audit requirements still pending, delaying full disbursement. Receivables of Rs 800 crore remain outstanding.
- Management declined to provide margin guidance citing inability to quantify impact of freight, steel, and labor cost escalations. Discussions ongoing with Middle East clients on cost pass-through; some contracts have force majeure clauses while others remain under negotiation.
- Government tenders (NTPC, NLC) have seen significant undercutting by small EPC players making large-scale solar EPC unviable. KEC has shifted focus to private sector solar and wind; management admits solar market is shut for large players currently.
- DSO increased from 88 days to 101 days YoY despite Rs 450 crore collection spillover to April. Saudi retention releases (20% on large projects) and Dubai inventory liquidation expected to normalize collections by Q2. Current working capital days at 155+ vs target of 110.
Key quotes
- We lost around 300 to 380 or 400 crores of revenue in Q4 because of this slowdown and also we were not able to dispatch a lot of material which was lying in our Dubai factory, which led to an increase in our working capital as well as on the borrowing side.
- We have changed our order intake... we have stopped taking any order which has got any negative cash flow at all in the life of the project. So we let go. That's why when you look at my order intake to execution ratio it's one of the best in the industry.
- When do we reach double digit [margins] is a million dollar question... maybe FY29 or something. I don't think we can do it next year unless there is some major... So I think we'll have to wait for another year or so before we look at a double digit.
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