KEC International Ltd Q1 FY27 Results Analysis: PAT Plunges 42%, Cables Segment Surges 57%

KEC International Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 5,023.54 Cr (+0.01% YoY) and PAT growth of -41.72% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

KEC's Q1 FY27 results showed a sharp deterioration: EBITDA margin fell 118 bps to 5.79%, PAT dropped 41.7%, and the balance sheet weakened with higher debt and stretched working capital. Positives were limited to the cables segment, which grew 57% YoY, and the PGCIL ban revocation post-quarter. The core EPC business struggled with margin compression and execution headwinds.

Key Investment Insights

Key Positives

• Cables segment revenue grew 56.92% YoY to Rs.600.67 Cr and segment result grew 160.09% YoY to Rs.27.96 Cr.
• PGCIL ban revoked effective June 26, 2026, ahead of earlier management guidance of Sep-Oct 2026.
• Consolidated order book stood at Rs.36,267 Cr as of March 31, 2026, providing strong revenue visibility.
• Net worth grew 7.6% YoY to Rs.5,754.67 Cr, driven by retained profits.

Risk Factors

• EBITDA margin contracted 118 bps YoY to 5.79%, the primary driver of profit decline.
• PAT declined 41.72% YoY to Rs.72.62 Cr, with EPS falling 41.67% to Rs.2.73.
• Debt/Equity ratio rose to 0.88 from 0.79 a year ago, and Interest Service Coverage Ratio fell to 1.77 from 2.13.
• Debtor days worsened to 109 from 98 a year ago, reflecting payment delays in water projects.
• EPC segment revenue declined 3.32% YoY and segment margin compressed 142 bps to 5.72%.
• Standalone PAT virtually collapsed to Rs.0.52 Cr from Rs.36.83 Cr a year ago, hit by lower operating profit and higher finance costs.