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Informist, Wednesday, Jan. 28, 2026

By Shreya Shetty

MUMBAI - KEC International Ltd. is expected to post a double-digit on-year growth in profit for the December quarter due to improved execution of orders in its transmission and distribution, cable, and civil businesses. The company is also likely to post a double-digit growth in revenue due to strong order inflows.

KEC International is expected to post consolidated net profit of INR 1.99 billion for the December quarter, up nearly 54% on year, according to the average of estimates from 10 brokerage firms. The company's consolidated revenue for the latest quarter is expected to rise nearly 16% to INR 61.87 billion, according to the average of the estimates.

The company's revenue is expected to rise in the range of 14-17% on year, according to the average of estimates. The growth in revenue is expected to be primarily driven by a strong order inflow and healthy execution in its transmission and distribution segment, which is likely to be partially offset by an increase in cost of labour and collection challenges in the water segment. Most brokerages pointed out the strong order inflow in the company's civil segment contributed to its revenue growth. Further growth was prevented due to "weak execution in civil segment amid labour challenges and delayed JJM (Jal Jeevan Mission) receivables," JM Financial Institutional Securities Pvt. Ltd. said.

The highest estimate for the company's net profit is INR 2.32 billion from Kotak Securities Ltd. and the lowest estimate is INR 1.77 billion from Motilal Oswal Financial Services Ltd. The highest estimate for the company's revenue is INR 63.12 billion from Mirae Asset Sharekhan Ltd. and the lowest estimate is INR 61.07 billion from Elara Securities (India) Pvt. Ltd. "We expect KEC to see 17% revenue growth in 3QFY26, as strong execution in the T&D (transmission and distribution) and buildings segments is partially offset by soft execution in the water segment," according to Kotak.

KEC International is expected to report consolidated earnings before interest, tax, depreciation, and amortisation of INR 4.73 billion, according to the average of nine estimates. The company's EBITDA was INR 3.74 billion in the year-ago quarter.

The company's EBITDA margins are expected to improve 40–100 basis points on year due to a pickup in execution, operating leverage, completion of legacy projects in the previous quarters, and a favourable job mix, according to analysts. However, the improvement is likely to be partially offset by lower contribution from the railway segment. Weak civil segment execution is also expected to prevent a further improvement, according to JM Financial.

From the trailing quarter, the company's net profit is expected to rise nearly 24% and revenue is seen up nearly 2%. KEC International had reported consolidated net profit of INR 1.61 billion for the September quarter on revenue of INR 60.92 billion. In the year-ago quarter, the company had reported consolidated net profit of INR 1.30 billion on revenues of INR 53.49 billion.

The company will disclose its December earnings Friday. The management's commentary on execution pace, labour availability, payment collections in water, and non-transmission and distribution pipeline will be the key aspects to monitor in this quarter, according to the brokerages. "Awaiting commentary on water and transportation segment which have been laggards even as the transmission and distribution showing is impressive," according to Nuvama Wealth Management Ltd.

More clarity on the impact of Power Grid Corp. of India Ltd.'s exclusion order is also awaited, according to brokerages. On Jan. 8, the Delhi High Court upheld an order issued by Power Grid Corp. of India Ltd. banning KEC International Ltd. from participating in any of its tenders for a period of nine months started Nov. 18, 2025. However, the court said it would hear KEC International's plea on a limited aspect that other companies were also banning the petitioner from future tenders on the basis of Power Grid Corp.'s ban, due to specific conditions in their tender process.

Wednesday, shares of KEC International closed at INR 663.15 on the National Stock Exchange, up 5.9%. The stock is down over 8% since the company reported its results for the September quarter.

Of the 17 research recommendations on KEC International available with Informist, 15 have a "buy" recommendation on the stock, while two have a "hold" recommendation. The average target price of the "buy" recommendations is INR 962, implies an upside of 31% from the current market price.

KEC International is an engineering, procurement, and construction company under RPG Group. It specialises in infrastructure across power transmission and distribution, railways, civil, urban infra, solar, oil and gas pipelines, and cables.

Following are the Oct-Dec earnings estimates for KEC International Ltd., from 10 brokerages in descending order of the estimate of net profit in INR billion:

End

US$1 = INR 91.78

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

Edited by Akul Nishant Akhoury

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