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Informist, Saturday, Aug. 8, 2026

MUMBAI – KEC International Ltd. is expected to report lower net profit for the June quarter as slower execution due to the war in West Asia is expected to weigh on the company's profitability, according to the brokerages tracking the company. The company's revenue is likely to grow only marginally as the war-led supply chain crisis has offset a strong pickup in the transmission and distribution sector.

The company is expected to report a net profit of INR 1.03 billion for the June quarter, down more than 17% from INR 1.25 billion year ago, according to the average of estimates from 11 brokerages. The highest estimate for the company's net profit is INR 1.26 billion from Kotak Securities Ltd. and the lowest is INR 782 million from PhillipCapital (India) Pvt. Ltd.

The company is expected to report revenues of nearly INR 51.29 billion for the June quarter, according to an average of 11 estimates. This will be up only 2% from INR 50.23 billion a year ago but down almost 20% sequentially from INR 63.90 billion. The highest estimate for the company's revenue is INR 52.81 billion from 360 ONE Capital Market Pvt. Ltd. and the lowest is INR 49.82 billion from Prabhudas Lilladher Pvt. Ltd.

KEC's large presence in West Asia makes it vulnerable to project delays and logistical issues due to the war, which will exert pressure on margins and impact overall profitability, Axis Securities Ltd. said. The company's net profit is likely to be lower due to lower sales, the brokerage added.

The company's earnings before interest, tax, depreciation, and amortisation are expected to be INR 3.37 billion for the June quarter, down almost 4% from INR 3.50 billion on a year-on-year basis. The highest estimate for the company's EBITDA is INR 3.69 billion from Axis Securities and the lowest is INR 3.11 billion from Nomura Equity Research.

The company's EBITDA margin is expected to contract 50 basis points to nearly 6.5% from 7.0% on year, due to labour supply issues and higher raw material costs, Motilal Oswal Financial Services Ltd. said. While the transmission and distribution segment showed decent performance, the impact of the war in West Asia is likely to reflect in the company's profitability in the June quarter, Nuvama Wealth Management said. The company's EBITDA margin is expected to be around 6.6%, the brokerage said, and added the company is likely to report a weak operating profit margin.

KEC can now also participate in tenders and projects of the Power Grid Corp. of India Ltd. as the latter has revoked its nine-month ban on KEC.

The engineering, procurement, and construction sector is expected to deliver mixed performance for the June quarter, according to Axis Securities.

Revenue growth is expected to remain largely flat due to execution challenges and weak order inflows, it said. However, the overall outlook remains positive, driven by sustained government infrastructure spending and expected recovery in highway project wins in the latter half of the financial year, it added.

KEC International is an infrastructure engineering, procurement, and construction company. Headquartered in Mumbai, it operates across power transmission, civil, and renewables with a global presence across six continents in over 100 countries. The company will detail its June quarter earnings Monday. Investors will watch management commentary on the water and transport segment, pace of execution of projects, and labour availability, according to brokerages.

Friday, shares of KEC International ended at INR 478.85 on the National Stock Exchange, up more than 1% from Thursday. The stock is down almost 2% since the company announced its March quarter earnings on May 18.

Of the 14 brokerage reports on the company available with Informist, 12 have a "buy" recommendation on the stock with an average target price of INR 666, which is 39% higher than its closing price Friday. Two have a "hold" recommendation on the stock with an average target price of INR 494.

Following are the June quarter earnings estimates of KEC Intl. from 11 brokerages in descending order of its net profit, in INR million:

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Edited by Pankaj Aher

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