KEC International Q1 profit falls 42% as margins remain under pressure
KEC International Limited reported broadly stable consolidated revenue of Rs 5,024 crore for the quarter ended June 30, 2026, compared with Rs 5,023 crore in Q1 FY26. However, profitability declined as operating margins came under pressure, with consolidated profit after tax (PAT) falling to Rs 73 crore from Rs 125 crore.
Consolidated EBITDA declined to Rs 291 crore from Rs 350 crore, while the EBITDA margin narrowed to 5.8% from 7.0% in the corresponding quarter last year.
Debt and orders
KEC International reduced consolidated net debt, including acceptances, by more than Rs 150 crore during the quarter to Rs 6,568 crore as of June 30, 2026, compared with March 31, 2026.
Net working capital improved to 134 days from 137 days.
The company recorded year-to-date order intake of Rs 6,303 crore across transmission and distribution, civil, renewables, cables and conductors, and transportation. Its combined order book and L1 position stood at more than Rs 40,000 crore.
Standalone performance
Standalone revenue declined to Rs 3,898 crore from Rs 4,030 crore in Q1 FY26. EBITDA fell to Rs 156 crore from Rs 197 crore, with the margin declining to 4.0% from 4.9%.
Standalone PAT stood at Rs 1 crore, compared with Rs 37 crore in the year-ago quarter.
Commenting on the results, Mr. Vimal Kejriwal, Managing Director and CEO of KEC International, said: “We delivered a resilient performance for the quarter, by maintaining revenues, strengthening our order book, reducing debt and building a healthy growth pipeline, despite a challenging operating environment. The performance for the quarter could have been better but for the continued geopolitical disruptions in the Middle East, labour shortages and calibrated execution of water projects due to delayed payments.”
He added: “While certain near-term challenges persist, we believe they are largely transitory. With supply chains gradually normalising, labour availability improving, an Order Book and L1 position of over Rs. 40,000 crore, a robust tender pipeline exceeding Rs. 2 lakh crore, and strong opportunities across both domestic and international markets, we remain confident of delivering stronger execution and improved financial performance in the coming quarters.”
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