1. At a Glance – The EPC Heavyweight Jogging with a Loaded Backpack
KEC International Ltd is that classic Indian EPC story where execution muscles are solid, order book is obese, margins are slowly improving, and the balance sheet is… let’s say breathing heavily. As of 30 January 2026, the stock trades at ₹667, nursing a -18% one-year return, while fundamentals are quietly doing push-ups behind the scenes.
Market cap stands at ₹17,757 Cr, revenue TTM at ₹23,988 Cr, and PAT TTM at ₹728 Cr. Q3 FY26 delivered ₹6,001 Cr revenue (+12% YoY) and ₹174 Cr PAT (+34.5% YoY). EBITDA margin clocked in at 7.2%, which in EPC land is like scoring above average in a government exam.
Order book (including L1) has crossed ₹41,000 Cr, spread across 110+ countries with 275+ ongoing projects. Promoters hold a steady 50.1%, zero pledging, while FIIs have been steadily shopping—until they weren’t in Dec’25. Debt remains chunky at ₹5,308 Cr, making working capital discipline the main villain and hero of this story.
In short: business momentum strong, valuation mid, execution intense, cash flow moody. Let’s dive.
2. Introduction – RPG Blood, EPC Sweat, and Cash Flow Tears
KEC International is the infrastructure arm of the RPG Group, which means pedigree is not the problem. The company has been around for decades, survived multiple capex cycles, commodity shocks, and government mood swings. Today, it plays across Power T&D, Civil, Railways, Renewables, Oil & Gas, and Cables—basically anywhere steel, concrete, and deadlines collide.
FY25–FY26 marks a transition phase. Transmission & Distribution has become the clear alpha generator, renewables are scaling fast (from a tiny base), transportation has lost its swagger, and civil is stuck in water-project payment hell. Add to that: labour shortages, new labour code provisioning, and Power Grid’s temporary exclusion drama (now stayed by Delhi HC).
Yet,
despite the noise, KEC posted 60% TTM profit growth, expanded margins, raised ₹870 Cr via QIP, and continues to win chunky international orders—especially in the Middle East.
This is not a turnaround story. This is an execution endurance test.
3. Business Model – WTF Do They Even Do?
KEC is a global EPC contractor with a bias towards power infrastructure. Think of them as the company that builds the electrical spine of nations while juggling 20 spreadsheets of receivables.
Segment-wise madness:
- Power T&D (57% of FY25 revenue): The crown jewel. Transmission lines up to 1,200 kV, substations, HVDC, underground cabling. Grew 48% between FY23–FY25. Tender pipeline > ₹60,000 Cr.
- Civil (20%): Buildings, factories, metros, data centres, water projects. Growth decent, cash collection… questionable.
- Transportation (9%): Railways, signalling, KAVACH. Revenue down 44% vs FY23 due to competition and project delays.
- Cables (8%): Now housed in a WOS. Stable margins, heavy capex underway.
- Renewables (4%): Solar, wind, green hydrogen EPC. Revenue up 870% from FY23 base.
- Oil & Gas (2%): International pipelines; domestic pipeline muted.
KEC doesn’t invent tech. It executes at scale. That’s the edge—and the headache.
4. Financials Overview – Numbers That Actually Matter
EPS Annualisation Rule Applied:
Q3 → Average of Q1, Q2, Q3
