Kalpataru Projects International Q1 FY27 earnings call

Kalpataru Projects International Limited (KPIL) delivered a strong Q1 FY27, with consolidated revenue growing 9% year-on-year to INR 6,408 crores. Standalone revenue also increased by 9% to INR 5,482 crores. Consolidated EBITDA grew 7% to INR 562 crores, with the EBITDA margin expanding by 30 basis points to 8.8%. Consolidated PBT and PAT saw significant increases of 45% and 46% respectively, reaching INR 420 crores and INR 312 crores, reflecting strong operating leverage and improved business mix.

The company achieved its highest ever order book of INR 66,607 crores as of June 30, 2026, providing robust revenue visibility for approximately 2.5 years. Year-to-date FY27 order inflow stood at INR 7,668 crores, further bolstered by an additional INR 7,300 crores in L1 positions. Management reiterated its FY27 order inflow target of INR 30,000 crores, with a potential for an upward revision by Q2 FY27, despite some global order placement delays.

KPIL maintained a healthy balance sheet, with a consolidated net debt-to-equity ratio of 0.1x and Return on Capital Employed (ROCE) remaining within the targeted 21-22% range. Standalone and consolidated net debt remained stable quarter-on-quarter at INR 752 crores and INR 917 crores, respectively, despite capital expenditure exceeding INR 250 crores in Q1 FY27. Net working capital days saw significant improvement, declining by 11 days year-on-year to 80 days on a consolidated basis.

Key business segments demonstrated strong growth. The T&D business (excluding Fasttel) grew nearly 10% YoY in revenue and secured over INR 4,100 crores in YTD FY27 orders. The Buildings & Factories segment reported a 15% YoY revenue increase and secured record orders over INR 2,800 crores. The water business achieved a major breakthrough with its first Middle East order valued at INR 344 crores, and LMG Sweden delivered 8% YoY revenue growth to INR 833 crores. The domestic T&D market is projected to offer an annual addressable market of INR 1-1.25 trillion for the next five years.

KPIL reaffirmed its FY27 guidance of at least 15% revenue growth on an annualized basis and an unchanged PBT margin improvement of over 75 basis points. The company navigated early quarter labor shortages due to state elections, slower receivables in the water business, and global supply chain constraints from Middle East disruptions. Management emphasized the resilience of its diversified business model and its ability to deliver robust performance despite these challenges, with the KEPL project arbitration expected to yield only positive outcomes.

The company announced plans to set up a rolling mill in Raipur as part of its backward integration strategy, with continuous exploration for other value chain products to enhance growth and profitability. Internationally, KPIL remains bullish on opportunities in the Middle East for Oil & Gas and T&D, and in Europe and Latin America. The company is also actively exploring opportunities in data centers and specialized urban infrastructure, aiming to qualify for larger and more complex projects.