KEC International Q3FY26 Concall Decoded: ₹6,001 Cr revenue quarter, but margins decided to take a chai break
1. Opening Hook
India’s infrastructure story is booming—power demand is hitting record highs, renewables are exploding, and everyone suddenly wants more transmission lines than WhatsApp forwards.
Enter KEC International, riding the power grid wave with record quarterly revenue of ₹6,001 crore. Sounds impressive… until you notice margins still behaving like a moody monsoon.
Management says execution is strong, the order book is gigantic, and transmission demand is exploding globally. Analysts nodded politely, then immediately asked why margins keep slipping and debt keeps creeping up.
Between delayed metro inaugurations, labour shortages, water project payment drama, and clients who keep redesigning buildings mid-construction… the quarter had plenty of “character.”
But beneath the chaos lies a massive ₹41,000 crore order visibility and a ₹1.8 lakh crore tender pipeline.
Read on. The story gets more interesting as we decode the numbers and the management optimism.
EBITDA Margin 7.2% (+20 bps YoY) – Margins improved… but still look like they skipped leg day.
Operating PBT +37% YoY – Interest savings quietly doing more work than project managers.
Order Book ₹36,725 Cr – Infrastructure backlog big enough to keep contractors awake for years.
Order Intake ₹19,300 Cr YTD – Transmission business hogging 70% of the spotlight.
Net Debt ₹6,806 Cr – Working capital decided to take a long vacation.
Transmission Revenue +31% YoY – India’s grid expansion working overtime.
Cable Business Revenue +37% YoY – Copper prices high, but orders still rolling in.
3. Management’s Key Commentary
“We delivered record revenues of ₹6,001 crores this quarter with strong execution in T&D.” (Translation: Transmission towers are the only thing in this company that move faster than analyst questions. 😏)
“Our EBITDA margin improvement reflects lower progress in water projects and delays in claim settlements.” (Translation: When high-margin projects pause and low-margin ones run, margins start crying quietly.)
“Our order book stands at ₹36,725 crores and with L1 positions crosses ₹41,000 crores.” (Translation: Work visibility isn’t the problem. Turning it into profits faster is.)
“Debt increased due to higher strategic inventory and delayed payments in water projects.” (Translation: Clients haven’t paid yet, but suppliers definitely have.)
“We have consciously decided to degrow the transportation segment for a couple of years.” (Translation: Railway projects were such a headache that management decided to politely walk away.)
“T&D margins are in double digits on a core basis.” (Translation: If you remove every problematic segment, the business looks fantastic.)
“Margins could have been closer to 9–10% without these headwinds.” (Translation: Remove delays, redesigns, labour shortages, land issues and politics… and voilà!)
