KEC International Limited Q2 FY26 Concall Decoded: ₹44,000 Cr order book, margins flexing muscles, debt sweating nervously
1. Opening Hook
KEC just dropped a “record quarter” press release like it was Diwali bonus season, while quietly asking banks to stay calm about debt. Revenues hit an all-time high, margins finally remembered how to expand, and the order book ballooned to a size that needs its own PIN code.
Transmission is partying like it’s 2019, Civil is still blaming the monsoon, and Water is… well, still thirsty for payments. Management sounded confident, analysts sounded suspicious, and somewhere in Saudi Arabia, retention money is holding everyone hostage.
If you think this is just another EPC turnaround story, read on. The real drama sits in working capital, Civil margins, and whether “double-digit T&D margins” can keep carrying the entire family. Things get interesting very fast.
2. At a Glance
Revenue up 19% YoY – Record quarter, execution engines finally firing on all cylinders.
EBITDA up 34% – Margins stretched like yoga instructors after lockdown.
EBITDA margin at 7.1% – Still chasing the magical 8%, but jogging confidently.
PBT up 88% – Operating leverage showed up uninvited and stole the show.
Order intake ₹16,000 Cr YTD – T&D doing heavy lifting, others tagging along.
Order book + L1 at ₹44,000 Cr – Management flexed this number repeatedly.
Net debt ₹6,480 Cr – CFO says “temporary,” lenders say “we’re watching.”
3. Management’s Key Commentary
“We have delivered record revenues in Q2.” (Translation: Finally, no excuses needed this quarter 😏)
“T&D contribution has increased to 65% from 55% last year.” (Translation: One business is carrying the whole company on its back.)
“EBITDA margins expanded by 80 basis points.” (Translation: After years of dieting, margins found carbs.)
“PBT growth of 88% reflects our focus on profitable growth.” (Translation: Turns out profits matter more than topline headlines.)
“Net debt increased due to inventory build and delayed payments.” (Translation: Yes, debt is high, please look at Saudi retention 🙃)
“T&D business continues to maintain double-digit margins.” (Translation: Please don’t ask about Civil margins right now.)
“We expect debt levels to normalize going forward.” (Translation: Q4 cash flows, please don’t disappoint us 😬)
