KEC International Q2 FY27 Results (NSE: KEC)
Signal: Revenue declined
The read
This is a third consecutive quarter of YoY margin contraction: consolidated EBITDA margin fell from 7.1% in Q2 FY26 to 5.0%, after 7% and 6% in the preceding two quarters; revenue nevertheless rebounded sequentially from ₹5,023 crore in Q1 FY27 to ₹5,468 crore, while a record ₹39,946 crore order book and ₹13,500 crore YTD intake keep the recovery case dependent on execution normalisation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,468 Cr | -10.2% | N/A |
| Net profit | ₹30 Cr | -81.4% | |
| EBIT margin | 5.0% |
P&L walk
Consolidated revenue was ₹5,468 crore, down 10.2% YoY, while EBITDA fell 37.0% to ₹271 crore and margin contracted 210bps to 5.0%; interest intensity rose 70bps to 3.5% of revenue, leaving PAT down 81.4% to ₹30 crore.
Segments
The consolidated result was materially weaker than standalone: standalone PAT was ₹80 crore versus consolidated PAT of ₹30 crore, indicating that subsidiaries or other group entities dragged down consolidated earnings despite the parent remaining profitable.
Key positives
- YTD order intake exceeded ₹13,500 crore, including approximately ₹9,500 crore from T&D, giving the strongest order momentum in the disclosed period.
- Order book reached a record ₹39,946 crore, with order book plus L1 pipeline at approximately ₹43,500 crore and tender pipeline exceeding ₹2 lakh crore.
- Revenue improved sequentially from ₹5,023 crore in Q1 FY27 to ₹5,468 crore in Q2 FY27, although it remained down 10.2% YoY.
Key concerns
- Consolidated EBITDA fell 37.0% YoY to ₹271 crore and EBITDA margin contracted 210bps to 5.0%, the third consecutive quarter of YoY margin contraction.
- PAT fell 81.4% YoY to ₹30 crore as PBT declined 80.8% to ₹41 crore; the earnings decline was substantially sharper than the 10.2% revenue decline.
- Interest intensity rose from 2.8% to 3.5% of revenue, while net debt including acceptances stood at ₹7,793 crore and NWC remained elevated at 155 days.
- Management cited Middle East geopolitical and supply-chain disruptions, India T&D RoW and land-acquisition challenges, and calibrated supplies on select projects, leaving conversion of the ₹39,946 crore order book execution-sensitive.
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