Kalpataru Projects International Limited (NSE: KPIL, BSE: 522287), one of India’s leading engineering, procurement and construction firms, has posted its strongest-ever second-quarter financial results, driven by a sharp surge in Transmission and Distribution (T&D) project execution and margin expansion across verticals. For the quarter ended 30 September 2025, consolidated revenue rose 32 percent year-on-year to ₹6,529 crore, while profit before tax grew 71 percent to ₹322 crore. The profit after tax figure nearly doubled to ₹237 crore, reflecting a strong operating environment and execution-led gains across core sectors.
Standalone results were similarly encouraging, with Kalpataru Projects International Limited reporting revenue of ₹5,419 crore, up 31 percent compared to the same quarter last year. The company also reported a 51 percent increase in standalone net profit, totaling ₹200 crore. Order inflows for the year-to-date period stood at ₹14,951 crore, with a robust consolidated order book of ₹64,682 crore as of 30 September 2025.
How is Kalpataru Projects International sustaining record revenue and profitability growth across core EPC segments?
The growth momentum for Kalpataru Projects International Limited in Q2 FY26 was fueled by strong execution across high-margin infrastructure verticals, especially Transmission and Distribution, Buildings and Factories, Oil and Gas, and Urban Infrastructure. Revenue from the T&D segment rose 51 percent year-on-year to ₹3,031 crore during the quarter, with international subsidiaries such as LMG Sweden and Fasttel Brazil contributing significantly to topline expansion. The Buildings and Factories segment delivered a 20 percent increase in revenue, supported by robust real estate demand and large-scale project execution capabilities.
Urban Infrastructure posted the strongest year-on-year revenue growth among segments at 65 percent, while Oil and Gas revenues climbed 21 percent due to improved progress in key international projects. These execution wins were backed by effective working capital management and a leaner cost structure, which helped Kalpataru Projects International Limited maintain consolidated EBITDA margins at 8.6 percent during the quarter.
What are the financial performance highlights for Kalpataru Projects International in H1 FY26?
For the half-year ended 30 September 2025, Kalpataru Projects International Limited reported consolidated revenue of ₹12,700 crore, marking a 33 percent increase compared to the same period last year. Consolidated EBITDA rose to ₹1,087 crore, maintaining a stable EBITDA margin of 8.6 percent. Profit before tax for H1 FY26 reached ₹612 crore, a sharp 88 percent year-on-year increase, while net profit rose 115 percent to ₹451 crore.
On a standalone basis, revenue for the first half of FY26 stood at ₹10,459 crore, up 33 percent, while standalone EBITDA reached ₹876 crore. Standalone profit before tax came in at ₹546 crore, with PAT increasing to ₹401 crore. These results signal improved profitability across business lines and underline Kalpataru Projects International Limited’s ability to deliver consistent financial performance amid a competitive EPC environment.
How large is Kalpataru Projects International’s current order book and what is driving FY26 order inflows across domestic and global markets?
As of 30 September 2025, Kalpataru Projects International Limited’s consolidated order book stood at ₹64,682 crore. This reflects the impact of strong new order wins worth ₹14,951 crore booked during the year-to-date period of FY26. The company also indicated it is favorably placed for another ₹5,000 crore worth of projects, predominantly in the Transmission and Distribution segment. Around 63 percent of the new orders in FY26 so far have originated from international markets, reinforcing the company’s global footprint and execution credentials in regions such as Scandinavia, the Middle East, and Latin America.
The company’s order book composition remains balanced, with 46 percent in T&D and 54 percent across Buildings and Factories, Water, Oil and Gas, Railways, and Urban Infrastructure. The project mix suggests high revenue visibility for the next few quarters, particularly in power transmission and real estate-driven construction.
How are institutional investors and mutual funds interpreting Kalpataru Projects International’s Q2 FY26 results and balance sheet strength?
Kalpataru Projects International Limited has continued to attract attention from domestic mutual funds and long-term institutional investors. As of 30 September 2025, domestic institutional investors held 44.1 percent of the company’s equity, while foreign institutional investors owned 12 percent. Public shareholders accounted for 10.4 percent. Promoter holding stood at 33.6 percent, with no significant pledging reported.
Among the top investors in Kalpataru Projects International Limited are SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon Life India Asset Management, and Vanguard International. The sustained growth in order book, margin expansion, and prudent balance sheet management have supported a stable-to-positive investor outlook. Dividend payout ratios have steadily improved over recent years, reaching 25.3 percent in FY25, indicating a shareholder-aligned capital allocation strategy.
How is Kalpataru Projects International managing debt and capital efficiency to support growth?
The company reported a consolidated net debt of ₹3,169 crore as of 30 September 2025, reflecting a 14 percent year-on-year reduction. The net debt-to-equity ratio improved to 0.46x on a consolidated basis and 0.29x on a standalone basis, demonstrating conservative leverage and robust internal accruals. Working capital efficiency also improved, with consolidated net working capital days reducing to 90 from 98 a year ago.
Kalpataru Projects International Limited has invested approximately ₹2,400 crore in capital expenditure between FY22 and H1 FY26. These investments have gone into upgrading equipment, construction tools, and logistics infrastructure to support faster and more efficient project delivery. The company also expects to close the divestment of Vindhyachal Expressway Private Limited in the second half of FY26, which could release further capital for reinvestment or balance sheet strengthening.
What are the key risks and growth opportunities analysts see for Kalpataru Projects International?
Analysts covering the infrastructure EPC sector note that Kalpataru Projects International Limited is well-positioned to ride the next wave of public and private capital expenditure in power transmission, mass housing, metro rail, and water infrastructure. The company’s diversified order book, strong execution track record, and established presence in over 30 countries provide multiple levers for growth.
Risks in the near term include delays in client fund releases, particularly in the water segment, where revenue declined marginally due to slower execution cycles. However, the management maintains a sharp focus on working capital discipline and project closure to mitigate execution lags. The uptick in international orders, particularly from energy transition and sustainable infrastructure projects, is expected to serve as a key revenue stream over the next two to three years.
What sustainability and CSR initiatives did Kalpataru highlight in its Q2 FY26 disclosures?
Kalpataru Projects International Limited emphasized its continued progress on ESG and community impact goals. Its international T&D business maintained carbon neutrality for the second year in a row. The company also adopted a roadmap to achieve water neutrality by 2032 and carbon neutrality by 2040, supported by solar energy installations and process innovations.
On the social front, the company operated mobile health units serving more than 30,000 beneficiaries and completed 250 cataract surgeries in underserved districts. It also launched skill development programs for women, supported digital classroom feasibility studies, and conducted an artificial limb fitment drive in Guyana benefiting 100 people with disabilities. These efforts reflect the company’s long-term commitment to inclusive growth and community engagement across its geographies of operation.
What is the outlook for Kalpataru Projects International in FY26 and beyond?
With a record order book, healthy operating margins, and rising institutional ownership, Kalpataru Projects International Limited enters the second half of FY26 with strong momentum. Management has reiterated its intent to focus on high-growth verticals, scale international operations, and strengthen project delivery capabilities. The company is expected to benefit from megatrends such as energy transition, urban mobility, and water infrastructure development, which align with national and global investment priorities.
Given its financial prudence, execution track record, and sector tailwinds, Kalpataru Projects International Limited is expected to sustain its leadership in the EPC space. Analysts expect continued revenue growth, margin stability, and long-term value creation for shareholders.
What are the key takeaways from Kalpataru Projects International’s Q2 FY26 results and investor update?
- Kalpataru Projects International Limited reported its highest-ever quarterly revenue at ₹6,529 crore in Q2 FY26, reflecting a 32 percent year-on-year increase driven by robust execution across Transmission and Distribution, Urban Infrastructure, and Oil and Gas segments.
- Consolidated profit before tax grew by 71 percent to ₹322 crore, while profit after tax surged 89 percent to ₹237 crore, indicating strong margin expansion and operational leverage.
- Year-to-date order inflows for FY26 stood at ₹14,951 crore, with the consolidated order book reaching ₹64,682 crore as of 30 September 2025, providing high revenue visibility for future quarters.
- The Transmission and Distribution segment grew 51 percent year-on-year in Q2, supported by large international contributions from subsidiaries in Sweden and Brazil. Urban Infrastructure revenue climbed 65 percent.
- The company reported a 14 percent year-on-year reduction in net debt, with a consolidated net debt-to-equity ratio of 0.46x and standalone ratio at 0.29x, reflecting prudent capital allocation.
- Domestic institutional investors increased their shareholding to 44.1 percent, while dividend payout for FY25 improved to 25.3 percent, reinforcing confidence in future earnings stability.
- Sustainability milestones included maintaining carbon neutrality across international T&D operations and continued progress toward long-term ESG goals, including water neutrality by 2032.
- Management remains optimistic about growth in high-potential verticals such as power transmission, urban mobility, and real estate-linked infrastructure, with capex already directed toward capacity building.
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