The shares of KEC International Ltd are in focus after the company has announced its plans for FY26. In this article, we will dive into the details of it how it plans its topline, bottomline, and many changes in the upcoming period.
With a market capitalization of Rs 23,905 crores, the shares of KEC International Ltd are currently trading at Rs 898 per share, down by 31.56 percent from its 52-week high of Rs 1,312 per share. Over the past five years, the stock has delivered an impressive return of 267 percent.
What has the management announced?
KEC International Ltd has laid out its guidance on how it will perform in the next fiscal year. As per sources, in FY26, the company is expecting its revenue to grow over 15 percent from its existing 10 percent. During the same period, it aims to clock an EBITDA margin between 8-8.5 percent from its existing 7 percent by increasing the contribution from the transmission and distribution (T&D) segment and achieving a modest improvement in non-T&D business profitability.
As far as its order book is concerned, it has a total order book (+L1) worth over Rs 40,000 crore. However, it mentioned that it’s eyeing a robust order inflow of Rs 30,000 crore in FY26 alone, of which 70 percent (around 20,000 crore) would be from the T&D business. The company aims to shift its revenue mix to a 65:35 ratio between T&D and non-T&D segments in FY26, up from the current 60% contribution from T&D.
A major strategic focus is expanding its international presence in West Asia, the Americas, and Australia, while strengthening its position in the Indian market. Management also highlighted efforts to streamline the portfolio by cutting exposure to low-margin segments like transportation, which contributed Rs 3,800 crore in revenue two years ago, and now it stands at Rs 2,200 crore.
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Financial Highlights
The company reported a revenue of Rs 21,847 crore in FY25, up by 9.70 percent from its FY24 revenue of Rs 19,914 crores. Additionally, it reported a net profit growth of 64.55 percent to Rs 571 crore in FY25 from Rs 347 crores in FY24.
The stock delivered an ROE and ROCE of 12.09 percent and 16 percent respectively, and is currently trading at a P/E of 41.50x as compared to its industry peers of 23.48x.
KEC International Limited is a multinational EPC company specializing in projects for power transmission, railways, civil, solar, and oil & gas. The company carries out turnkey solutions for projects for transmission lines, substations, and railway electrification projects, as well as civil works for industrial, residential, and public infrastructure projects. The company also does EPC contracts for solar projects, as well as manufactures a wide range of products for power and specialty cables. KEC works in India and in over 100 countries around the world.
Written by Satyajeet Mukherjee
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