KEC
Small CapKEC International Limited
Auto
KEC International Limited is a global EPC major with 8+ decades of experience, operating in 110+ countries. It specializes in Transmission & Distribution, Civil, Cables & Conductors, Transportation, Renewables, and Oil & Gas Pipelines.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -7% YoY · PAT -28% YoY · margin compression · +6% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,390 Cr | -7.0% | +6.5% |
| EBITDA | ₹448 Cr | -16.9% | +4.2% |
| Operating margin | 7.0% | -100 bps | +0 bps |
| PAT | ₹193 Cr | -28.0% | +52.0% |
| PAT margin | 3.0% | -88 bps | +90 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
KEC International reported record revenues of Rs. 23,506 Cr in FY26, up 8% YoY, with Operating PAT growing 18% and overall PAT increasing ~4x in three years. Order Book & L1 stands robust at over Rs. 40,000 Cr.
The company delivered strong FY26 results with record revenues and improved profitability, supported by a robust order book. While geopolitical issues and payment delays impacted some segments, strategic capacity expansion and diversification into new segments like Wind and Semiconductor EPC are positive.
Geographical Split of Current Order Book + L1
Latest issuer-disclosed distribution across 6 reported categories.
India T&D Market
Momentum continues in India T&D market amid rising peak demand and grid congestion.
Middle East T&D Demand
Increased T&D demand in the Middle East driven by rebuilding, grid redundancy, and renewable integration.
Renewables Sector
Rising opportunities in renewables to reduce hydrocarbon dependence; India’s renewable target scaled up to ~900 GW by 2035.
Urban Infra & Private Capex
Large opportunities in Urban Infra – Underground Metros, PSP, Elevated bridges. Gradual recovery in private capex especially in Metals & Mining.
Tower Manufacturing Capacity
Expanded tower manufacturing capacity in Dubai, Jabalpur, Jaipur & Butibori plants by 15% to over 4,80,000 MTPA.
Elastomeric Cables Production
Elastomeric cables are slated to commence production in Q2 FY27, followed by E-Beam process within the same quarter.
Sustained T&D Growth
Sustained growth momentum in T&D sector.
Expanding Export Markets
Expanding opportunities in export markets.
Renewable Energy Demand
Strong tailwinds from rising renewable energy demand & Data centres.
Capacity Expansion
Capacity expansion underway to support growth and scale.
Geopolitical Disruptions
Geopolitical disruptions in the Middle East led to delay in Revenues.
Labour Situation
Labour situation deteriorated again due to elections/ LPG availability issues.
Water Project Delays
Calibrated approach in executing Water projects due to delayed payments.
Metro Project Closure Costs
Closure costs related to the completion and delay of RODs for metro projects.
West Asia Crisis
West Asia crisis expected to accelerate investments in energy security, creating increased opportunities in Oil & Gas pipeline infrastructure, but also poses a risk.
Availability of Labour
Availability of Labour is identified as a key risk.
Delay in Payments in Water
Delay in Payments in Water projects is a key risk.
Delay in Claim Settlements
Delay in Claim Settlements is identified as a key risk.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation focuses on annual financial results (FY26 vs FY25, FY24, FY23) and annual growth rates for revenue and profitability. EPC projects often have long execution cycles, making year-over-year comparisons more meaningful for assessing overall business trajectory and financial health.
Order Book & L1
Robust Order Book & L1 of over Rs. 40,000 Cr. Order Book to Revenue Ratio of 1.7 times.
Revenue Growth
Record Revenues of Rs. 23,506 Cr in FY26, growth of 8% YoY.
Operating PAT Growth
Strong growth in Profitability – Operating PAT grew by 18% in FY26.
T&D Revenue Share
T&D Revenue share increased to 68% in FY26 from 59% in FY25.
Focus on Capital Efficiency
Management's key focus area includes Capital Efficiency.
Profitability Improvement
Management's key focus area includes Profitability Improvement.
Adjacent Growth
Management's key focus area includes Adjacent Growth.
Well Positioned for Opportunities
Company is well positioned to seize the multi decadal opportunities for growth.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Debt Levels | Higher working capital linked to revenue growth and inventory build-up. | Debt levels expected to normalise further by Q2 FY27. |
| Elastomeric Cables Production | Facility at Vadodara, Gujarat. | Slated to commence production in Q2 FY27, followed by E-Beam process within the same quarter. |
| Tenders Under Evaluation & Pipeline | Over Rs. 180,000 Cr. | Conversion of these tenders into firm orders to sustain growth momentum. |
| Middle East Revenue Realization | Delayed revenues due to geopolitical disruptions. | Resolution of geopolitical issues and improved dispatch/collection from the region. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -19.0% / mo · near 52W low
Technical chart
KECweekly · 6M-29.2%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 37.
- RSI(14) at 37 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Balance sheet contributes 7/15 to the score.
- Growth contributes 8/25 to the score.
- Cash flow contributes 3/10 to the score.
Main drags
- Fair-value margin of safety is negative at -101.1%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 4/30; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 46th percentile of the scored universe and 32nd percentile within Auto. Main check: cash conversion is weak at 52/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-414 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Auto: 32nd pctile, median 71 · Small: 51st pctile, median 65
189 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸8 years of positive FCF.
- ▸3/4 latest quarters had positive YoY revenue growth.
- ▸OPM spread across recent quarters is 2%.
Trust risks
- ▸Operating cash flow is negative at ₹-414 Cr.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 19.80
- P/B
- 2.09
- EV/EBITDA
- 9.82
- Market Cap
- 12851.00Cr
Profitability
- ROE
- 11.30%
- ROCE
- 14.50%
- ROA
- 2.41%
- Dividend Y
- 1.14%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 3.00%
- Revenue 3Y
- 11.00%
- EPS 3Y
- 55.00%
Balance Sheet
- Debt/Equity
- 0.87
- Interest Coverage
- 2.50×
- Altman Z
- 1.99
- Book Value
- 231.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 8/5
- OCF
- -414.00 Cr
- EPS TTM
- 22.75
Shareholding
- Promoter Hold
- 50.10%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 4%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.