Kalpataru Projects International Limited — Q2 FY26 earnings call

Call held 31 Oct 2025

Management summary

KPIL delivered a robust Q2 FY26 with record revenue and profitability, led by exceptional execution in the T&D and B&F segments. While the company raised its full-year revenue growth guidance to 25%+, it continues to face working capital headwinds due to delayed payments in the Water business, particularly in UP and Jharkhand. Management remains bullish on the ₹1.5 trillion T&D tender pipeline and is focused on stabilizing international subsidiaries while improving overall PBT margins.

Highlights

  • Consolidated revenue grew 32% YoY to record highest-ever second quarter performance

  • Consolidated PAT reported a strong growth of 89% YoY for Q2 FY26

  • Consolidated order book stands at ₹64,682 crores as of September 30, 2025

  • Revenue guidance for FY26 raised to 25% plus growth (from 20-25%)

  • T&D segment delivered 51% YoY revenue growth supported by India and Sweden markets

  • B&F order book grew 43% YoY to an all-time high of ₹18,758 crores

  • Consolidated net debt stood at ₹3,169 crores, impacted by delayed water project collections

  • Management reaffirmed guidance of improving PBT margin by at least 50 basis points in FY26

Concerns

  • Delayed collections in Water projects (UP & Jharkhand)

Key financials

  1. Consolidated Revenue ₹4,930 Cr +32%YoY
  2. Consolidated EBITDA Margin 8.6%
  3. Consolidated PBT Margin 4.9%
  4. Consolidated PAT ₹125.5 Cr +89%YoY
  5. Consolidated Order Book ₹64,682 Cr
  6. Consolidated Net Debt ₹3,169 Cr

What they filed

Q1 FY27: revenue up 8.8%, net profit up 31.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4,136 4,826 6,204 5,040 5,419 +31%5,788 +20%6,964 +12%5,482 +9%
EBITDA348 402 523 428 447 +28%481 +20%672 +28%488 +14%
Net profit132 157 242 201 200 +52%211 +34%220 −9%265 +32%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • T&D
    51% Revenue Growth₹26,276 Cr Order Book
  • B&F
    20% Revenue Growth₹18,758 Cr Order Book
  • Water
    ₹517 Cr Revenue-5% Revenue Growth₹8,379 Cr Order Backlog
  • LMG Sweden
    ₹720 Cr Revenue89% Revenue Growth

Guidance & targets

Revenue

  • Consolidated Revenue Growth Revenue · FY26 · High confidence 25% plus

    Previously 20% to 25% → 25% plus

    On the guidance front, we are on track to achieve targeted revenue growth of 25% plus at both standalone and consol level, compared to our earlier guidance of 20% to 25%.

    — Manish Mohnot, MD & CEO

Profitability

  • PBT Margin Improvement Profitability · FY26 · High confidence 50 basis points
    On the standalone and consol PBT margin, we reaffirm our guidance of FY26 of improving PBT by a minimum of 50 basis points.

    — Manish Mohnot, MD & CEO

Other

  • Order Inflow Other · FY26 · Medium confidence ₹ 25,000 crores plus
    Further, we are positive to achieve a targeted order inflow of ₹ 25,000 crores plus for full year '26.

    — Manish Mohnot, MD & CEO

Debt

  • Working Capital Days (Consol) Debt · FY26 · Medium confidence < 85-90 days
    I think we continue to stay on a target of less than 100 days for standalone and less than 90 days on consol or less than 85 days on consol.

    — Manish Mohnot, MD & CEO

  • Shree Shubham Logistics External Debt Debt · by year-end FY26 · High confidence ₹ 40-50 crores

    Previously ₹ 90 crores → ₹ 40-50 crores

    Our target is to bring this -- reduce this by at least a further 50%, get it to levels of ₹ 40 crores to ₹ 50 crores by the year-end.

    — Manish Mohnot, MD & CEO

Risks & concerns

  • Delayed collections in Water projects (UP & Jharkhand)

    high

    Receivables from UP and Jharkhand are stuck for 15-16 months due to central government funding approval delays for JJM projects.

    Both acknowledged

  • Fasttel Subsidiary Performance

    medium

    Fasttel is expected to degrow and continues to report negative EBITDA/PBT due to project delays and client issues.

    Management acknowledged

  • Commodity Price Spikes (Copper/Aluminum)

    low

    Management states they are 90%+ hedged on aluminum and have minimal exposure to copper price volatility.

    Analyst downplayed

Areas of evasion (2)

  • Quantifying the exact total quantum of arbitration claims for WEPL.
  • Specific names of the HVDC lines in the pipeline.

Q&A highlights

3 direct
Water Business Receivables and Debt Impact Direct
If this had come on time, our debt should have been lower by at least like ₹ 800 crores, ₹ 900 crores?

Reveals that the company's debt levels are significantly inflated by nearly ₹900 crores due to payment delays in government water projects (JJM).

Asked by Parikshit Kandpal

T&D Tender Pipeline and Domestic Award Slowdown Direct
We have got orders in excess of ₹ 2,500 crores plus in the first 6 months, which is around 30% higher than what it was in the previous year... I believe the next 6 to 12 upto 18 to 24 months, there will be good orders.

Addresses concerns about a slowdown in domestic TBCB project awards, highlighting a massive ₹1.5 trillion pipeline ahead.

Asked by Sumit Kishore

Margin Trajectory and One-off Provisions Direct
We have also in the current quarter, provided for around ₹30 crores of warranty guarantee provision... I don't see any reason why it should come down on an annualized basis in any form.

Confirms that underlying margins are stronger than reported, as they absorbed a ₹30 crore one-time provision while maintaining guidance.

Asked by Bhoomika Nair

1 min read 5 chapters

Detailed narrative

T&D Segment Powers Growth Engine

The T&D business was the primary driver this quarter, delivering a massive 51% YoY revenue growth. This was supported by robust execution in India, Sweden (LMG), and other international markets. The segment's order book stands at ₹26,276 crores, and management is eyeing a massive ₹1.5 trillion tender pipeline over the next 12-18 months, including major HVDC projects in India.

Water Business: A Working Capital Drag

While the Water business has a strong backlog of over ₹8,379 crores, it has become a significant drain on cash flow. Receivables have reached ₹1,551 crores, with ₹737 crores stuck in Uttar Pradesh alone for over 15 months. Management noted that if these payments were on time, consolidated net debt would be lower by approximately ₹800-900 crores.

B&F Reaches All-Time High Order Book

The Buildings & Factories (B&F) segment maintained strong momentum with a 20% YoY revenue increase. The order book grew by 43% YoY to a record ₹18,758 crores. Management highlighted their success in large-sized design-build projects and repeated orders from marquee developers, positioning B&F as a high-growth, double-digit EBITDA margin business.

International Subsidiary Divergence

There is a clear performance gap between international subsidiaries. LMG Sweden is thriving with 89% revenue growth and a ₹3,600 crore backlog, prompting management to explore fundraising/valuation options. Conversely, Fasttel in Brazil is struggling with negative margins and project delays, with management pivoting toward stabilization rather than growth.

Margin Resilience Despite Provisions

KPIL reported a sharp 110 bps improvement in consolidated PBT margins to 4.9%. This was achieved despite absorbing a ₹30 crore warranty provision and a ₹90 crore negative delta in forex impact compared to the previous year. Management remains confident in their guidance of a minimum 50 bps PBT margin improvement for the full year FY26.

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