Kalpataru Proj.

Kalpataru Projects International Limited reported a stellar FY26, surpassing its own targets for revenue growth, profitability, and order inflows. Consolidated revenue grew 22% Y-o-Y to ₹27,143 crores, while PBT before exceptional item^📎s surged 62% to ₹1,334 crores. This led to a 120 basis point expansion in consolidated PBT margins, reaching 4.9%, exceeding the guided range of 4.5-4.75%. Consolidated PAT crossed the ₹1,000 crores threshold, reaching ₹1,031 crores, an 82% Y-o-Y increase, and consolidated EPS jumped 71% to ₹61 per share.

The company achieved order wins exceeding ₹26,000 crores in FY26, with nearly half of these bookings coming from large ticket orders over ₹1,000 crores. This strong momentum resulted in an all-time high order book of ₹65,457 crores at the end of FY26, providing robust revenue visibility for the next 2.5-3 years. Post fiscal year-end, KPIL has already secured new orders worth ₹1,833 crores and is L1 in projects valued at ₹3,200 crores, primarily in the T&D and B&F segments. For FY27, the company targets order wins exceeding ₹30,000 crores, with a strategic focus on high-margin, large-scale projects.

KPIL demonstrated excellent financial health, significantly reducing net debt by over 50% to ₹915 crores, resulting in a multi-year historic low net debt to equity ratio of 0.1x. The working capital cycle was optimized to 75 days, and finance cost to sales reduced by 80 basis points to 1.8%. The company generated ₹1,535 crores in operating cash flow, a 68% jump, which fueled a ROCE exceeding 21%, even while investing nearly ₹900 crores in capex during FY26. This underscores a core commitment to disciplined growth and strict capital management.

Most business units, excluding Water, reported robust growth in FY26. The Oil & Gas vertical saw a phenomenal 55% Y-o-Y revenue growth, B&F delivered 19% top-line growth, and T&D grew 25% Y-o-Y. Urban Infra also grew 49% Y-o-Y, securing ₹2,000 crores in orders. Management indicated that T&D, B&F, and Oil & Gas are all operating at double-digit EBITDA margins (10-11%+) and are expected to continue driving growth, with a strong pipeline in residential, data centers, airports, industrial plants, and Middle East Oil & Gas.

For FY27, KPIL guides for top-line growth of around 15% plus and a 75 basis point expansion in consolidated PBT margins. However, management anticipates Q1 and Q2 FY27 to be challenging for growth due to global geopolitical scenarios, labor availability issues (exacerbated by Indian elections), and ongoing supply chain disruptions. These factors led to a ~₹200-250 crores revenue loss in Q4 FY26, primarily from supply chain rather than site construction.

The Water business, despite strong Q4 collections, still has approximately ₹1,600 crores in outstanding receivables. Management is optimistic that the majority of this will be recovered in the first two quarters of FY27, with total collections for FY26 expected to exceed ₹2,500 crores. Furthermore, KPIL is focused on reducing non-core assets, aiming to bring Shree Shubham Logistics' external debt closer to zero by June 2026 through asset sales and a shift to a rental model, reinforcing its commitment to a leaner balance sheet.

Over the past five years, KPIL has invested nearly ₹3,000 crores in strategic capex to upgrade its asset base, enhance execution capabilities, and secure complex multi-geography projects. This includes investments in aluminum shuttering, equipment, and plant modernization. The company plans to continue this with over ₹800 crores in capex for FY27, funded entirely by internal cash flows. KPIL is also aggressively scaling its internal capabilities, expanding specialized design engineering and project execution teams to support its growth trajectory.