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Informist, Monday, Nov. 10, 2025

By Akash Mandal

MUMBAI – KEC International Ltd.'s consolidated net profit for the September quarter is likely to double on year on the back of improved margins due to a better revenue mix and completion of legacy projects. While its top line for the quarter is likely to grow in double digits due to higher order inflows and better order execution, it could mark the slowest pace of on-year growth in five quarters due to a high base and some challenges that the company faced in the water segment.  

For the September quarter, the engineering, procurement, and construction major is expected to report a consolidated net profit of INR 1.71 billion, up over 37% sequentially, an average of estimates from 12 brokerages showed. Kotak Securities Ltd. has the highest estimate for the company's bottom line at INR 2.11 billion, while Sharekhan Ltd. has the lowest estimate at INR 1.35 billion.

Its consolidated revenue for the quarter is seen growing 14% on year and nearly 16% sequentially to INR 58.17 billion in the second quarter of the current financial year, according to the average of estimates from 12 brokerages. The growth in the top line will be helped by higher order execution in the power transmission and distribution segment, but will be partially offset by continued labour challenges and collection delays in its water segment, many brokerages said. Nuvama Wealth Management Ltd. said the commentary on the company's water segment and labour shortages in the segment will be monitored. This segment saw a ramp down in executions during the quarter owing to elections, the brokerage noted.

Estimates for the company's top line for Jul-Sept range from INR 59 billion by HDFC Securities Ltd. and INR 55.17 billion by Anand Rathi Share and Stock Brokers Ltd.

The Mumbai-based company's consolidated earnings before interest, tax, depreciation, and amortisation, or EBITDA, for the quarter are likely to grow 35% on year and over 23% sequentially to INR 4.32 billion in Jul-Sept, an average of estimates from 10 brokerages showed. The highest EBITDA estimate is INR 4.63 billion from Kotak, while the lowest is INR 4 billion from Prabhudas Lilladher Pvt. Ltd.

The company's EBITDA margin for the quarter is likely to come in at 7.0-7.9%, up from the 6.3% reported in the year-ago quarter and 7% in the June quarter. The margin is likely to be higher due to higher revenue mix from the more profitable transmission and distribution segment, lower contribution from the railways segment, and higher operating leverage, brokerages said. The margins will also be helped by margin stabilisation in its civil segment, Motilal Oswal Financial Services Ltd. said.

The company will detail its September quarter earnings Monday. The management's commentary on the pace of execution, labour availability, payment collections in the water segment, outlook for margin, debt levels, and working capital cycle will be the key aspects to monitor in this quarter, brokerages said. They remain positive on the company due to a robust order book and good order inflows during the quarter under review.

In Jul-Sept, the company saw order inflows of around INR 65 billion, driven by the transmission and distribution segment, Nomura said. These are down 21% from the year-ago quarter due to a high base, but are up 18% sequentially. The reporting quarter also saw the company win its largest-ever engineering, procurement, and construction order of INR 32 billion to build 400 kilovolts of transmission lines in the United Arab Emirates, and to supply towers, hardware, and poles in the Americas. Shares of the company had surged over 8% to a three-month high post the order win.

In the June quarter, the company had reported a consolidated net profit of INR 1.25 billion, up 42% on year. Its top line had risen 11% on year to INR 50.23 billion. The stock has fallen over 13% since then and is currently on a 12-session declining run, including Monday, during which it has fallen 12%. At 1002 IST, its shares traded 1.2% lower at INR 750.20 on the National Stock Exchange. Of the 16 brokerage recommendations available on the company with Informist, 13 have a 'buy' or equivalent rating on the stock, with an average target price of INR 994. The remaining three have a 'hold' or equivalent rating. . 

Following are the Jul-Sept earnings estimates for KEC International Ltd., from 12 brokerages in descending order of the estimate of net profit in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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