KPIL Q3 FY26 earnings call.
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Revenue
₹6,665 Cr
verified against source
Revenue YoY
27%
reported change
EBITDA
Pending
latest reported figure
Source
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Actual signal trajectory
Where this quarter sits.
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What the record says.
KPIL delivered an exceptionally strong Q3 FY26 with consolidated revenue of Rs 6,665 crore in the quarter and Rs 19,365 crore for 9M FY26, growing 27% YoY—already ahead of full-year 25% guidance at both standalone and consolidated levels. EBITDA margins remained healthy at 8.3% consolidated and 8.4% standalone for 9M FY26. PBT before exceptional items expanded by 110bps and 80bps at consolidated and standalone levels respectively, exceeding the company's full-year margin improvement guidance. The order book stands at Rs 63,287 crore with YTD inflows of Rs 19,456 crore plus Rs 7,000+ crore in L1 positions, positioning the company to meet its Rs 26,000+ crore annual inflow target. The balance sheet strengthened significantly with consolidated net debt declining 29% QoQ to Rs 2,240 crore. Management completed the Vindia Road divestment (Rs 600+ crore net proceeds) and expects to fully monetize the Indore project by March 2026. Water business remains a pain point with four-digit crore receivables outstanding, though January collections of Rs 250 crore indicate early improvement. Brazil losses (Rs 186 crore YTD) should diminish as the legacy order book below Rs 100 crore is nearly complete. The key risk is execution concentration in T&D and B&F while water cash flows normalize. Management guided for approximately 25% full-year revenue growth, 100bps standalone and 200bps consolidated PBT margin improvement, and consolidated EPS exceeding Rs 50, with growth momentum expected to sustain into FY27.
Colored figures show movement against the previous available record.
Guidance to track
- Both standalone and consolidated revenue expected to grow approximately 25% for full year FY26, already ahead of guidance at 9M stage with 27% growth.
- Consolidated PBT margin expected to improve by 100 basis points for FY26, driven by execution of higher-margin order book and working capital efficiency gains.
- Management targets consolidated EPS exceeding Rs 50 per share for the current fiscal year, reflecting strong profitability improvement.
- YTD inflows of Rs 19,456 crore plus Rs 7,000+ crore in L1 positions well-position the company to achieve annual order inflow target of Rs 26,000+ crore.
Risks flagged
- Outstanding receivables in water business remain in four-digit crore range. While collections improved in January 2026 (Rs 250 crore received) and central budget allocation of Rs 67,000 crore provides visibility, management acknowledged having faced similar hopes in previous quarters without full resolution. Execution speed constrained by cash flow limitations.
- Brazil segment reported EBITDA loss of Rs 186 crore and PBT loss of Rs 237 crore in 9M FY26. With legacy order book below Rs 100 crore nearly complete, management is reviewing Brazilian operations' future. These losses have been a dampener on consolidated performance for multiple quarters.
- Famu (Fasteners) segment has nearly negligible order backlog. Management explicitly stated they are 'not very optimistic' and the business is 'on a downturn.' Strategic review to conclude in Q4 FY26 with decisions on whether to slow, close, or maintain at nominal level. Total loss funding provided Rs 40 crore in first half.
- While aluminum, zinc, and copper are 80-95% hedged, steel cannot be hedged as no forward market exists. Company holds 50,000+ tonnes inventory against total order book of ~300,000 tonnes. Management believes Rs 5,000-7,000 per tonne further increase would not materially impact margins given contingency provisions in tenders, but analyst questions on commodity pass-through in PGCIL contracts (fixed price EPC) highlight execution risk.
Key quotes
- This has been an exceptionally strong year operationally, financially and strategically.
- Our consolidated order book remains exceptionally strong standing at rupees 63,287 crores as of 31st December 25. This provides us with significant revenue visibility for the quarters ahead.
- We have built a high quality order backlog that ensures long-term revenue visibility with improved margins going forward.
- Water [is a] pain point clearly... we are hoping that would improve significantly in February March. The budget allocation to water at 67,000 cr is a huge number and they also indicated that out of the current year at 67,000 hardly 25-30% has been spent.
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