Earnings Outlook
Strong execution in T&D to boost Kalpataru's Apr-Jun sales
This story was originally published at 20:52 IST on 6 August 2025
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By Arundathi A R
MUMBAI – Kalpataru Projects International Ltd. is expected to post a robust on-year growth in its top line and bottom line for the June quarter, according to brokerages tracking the company. The company's net sales are expected to rise due to strong execution of projects in the power transmission and distribution, buildings and factories, and oil and gas segments, despite the slowdown of its water segment during the quarter due to delayed payments.
The engineering and construction company is expected to post a net profit of INR 1.54 billion for the June quarter, up 32% on year but down 36.3% over the trailing quarter, according to the average of estimates from seven brokerages. The bottom line growth is substantially higher than the 12% average growth for the industry estimated by Motilal Oswal Financial Services Ltd.
The company's net sales for the latest quarter are expected at INR 46.52 billion, up 25% on year but down 25% on quarter. The company's revenue growth also exceeds the 14% average growth for the industry estimated by Motilal Oswal.
Anand Rathi Share and Stock Brokers Ltd. has the highest estimate for net profit at INR 1.86 billion in the June quarter and Kotak Institutional Equities has the lowest estimate at INR 1.21 billion. Nuvama Wealth Management Ltd. has the highest estimate for net sales in Apr-Jun at INR 55.04 billion and Kotak Institutional has the lowest estimate at INR 43.38 billion.
Kalpataru Projects has a diversified portfolio of projects in power transmission and distribution, buildings and factories, water supply and irrigation, railways, oil and gas pipelines, urban mobility, highways, and airports.
The company's strong execution of projects in transmission and distribution, as well as the buildings and factories segments, is expected to drive its revenue growth for the reporting quarter, according to brokerages. "We expect Kalpatru's standalone revenue to grow by about 22%, driven by strong execution in T&D (transmission and distribution) and B&F (buildings and factories) business," Prabhudas Lilladher said.
Kalpataru Projects has secured new orders for its power transmission and distribution overseas business, valued at around INR 9.9 billion during the June quarter. The company reached an order book of INR 71.5 billion with these orders, which gives good visibility for its growth, according to Prabhudas Lilladher.
The company is expected to post INR 37.89 billion as its order inflow from its residential building projects in India for the reporting quarter, according to Elara Securities.
The company's earnings before interest, tax, depreciation, and amortisation for the June quarter are expected to be INR 3.97 billion, up 5% on year but down 24% over the trailing quarter, according to the average of estimates from five brokerages. The highest estimate for EBITDA is INR 4.62 billion by Nuvama Wealth and the lowest is INR 3.68 billion by Kotak Institutional. The company's EBITDA margin is expected to remain flattish at 8.5%, according to Prabhudas Lilladher.
The company will announce its earnings for the June quarter Thursday. Market participants will watch the management's commentary on the pace of execution, payment collections from water projects, execution of rail projects, margin outlook, and update on the working capital cycle.
Wednesday, shares of Kalpataru Projects closed at INR 1,115.80 on the National Stock Exchange, down 1.3%. The stock is almost unchanged since May 16, when the company announced its March quarter earnings. All 10 brokerage reports on the company available with Informist have a ‘buy' recommendation on the stock with an average target price of INR 1,421.
Following are the Apr-Jun earnings estimates for Kalpataru Projects International Ltd., in INR million, based on reports from seven broking firms in descending order of estimate of net profit:
Brokerages | Net sales | Net profit | EBITDA |
Anand Rathi Share and Stock Brokers Ltd. | 46,471.00 | 1,855.00 |
|
Prabhudas Lilladher Pvt Ltd. | 45,514.00 | 1,677.00 | 3,869.00 |
JM Financial Institutional Securities Pvt.Ltd. | 44,663.00 | 1,567.00 | 3,752.00 |
Sharekhan Ltd. | 44,660.00 | 1,560.00 |
|
Motilal Oswal Financial Services Ltd. | 45,898.00 | 1,545.00 | 3,901.00 |
Nuvama Wealth Management Ltd. | 55,044.00 | 1,362.00 | 4,624.00 |
Kotak Institutional Equities | 43,384.00 | 1,206.00 | 3,683.00 |
Average | 46,519.14 | 1,538.86 | 3,965.80 |
End
IST, or Indian Standard Time is five and a half hours ahead of GMT
Edited by Saji George Titus
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