Q2 FY27 results analysis · November 05, 2026
Kalpataru Projects International Ltd (KPIL) Q2 FY27 Results Analysis: PAT Jumps 23%, EBITDA Margin Slips 31 bps
+23.0%PAT year on year, Rs. 291.95 Cr
Source: Quarterly results filing (NSE)
Quick summary
Kalpataru Projects International Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 7,004.27 Cr (+7.29% YoY) and PAT growth of +22.98% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 7,004.27 Cr (+7.29% YoY) |
| PAT (Q2) | Rs. 291.95 Cr (+22.98% YoY) |
| EBITDA margin | 8.29% (-31 bps YoY) |
| EPS (Q2) | Rs. 16.92 (+20.34% YoY) |
Quarter Snapshot
KPIL delivered record revenue of Rs.7,004.27 Cr (+7.29% YoY) with PAT up 22.98% and H1 PBT margin expansion of 128 bps versus management's +75 bps FY27 target, while cash conversion (CFO/PAT 1.95x) and deleveraging (D/E 0.32x vs 0.67x) were the standout quality signals. The offset is that core EBITDA margin slipped 31 bps YoY to 8.29% and EBITDA growth of 3.48% lagged revenue, with the FY27 revenue guide of ≥15% now requiring +23.26% H2 growth. Order momentum (>Rs.22,000 Cr YTD plus >Rs.4,000 Cr UAE LoA) and the LMG listing proceeds support the balance-sheet and visibility narrative.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Reported revenue | "in-line at best pending the quarter's book-to-bill" — conversion the laggard | +7.29% YoY, +9.31% QoQ — better than Q1's +3.84% but below a 15% FY27 run-rate | Partially |
| Margins | "flat-to-mildly-compressing" on copper/zinc uncovered tail + event costs | 8.29% vs 8.60% YoY / 8.77% QoQ — mildly compressed | Played out |
| Steel inventory gain fade (Q1 note) | "higher replacement costs will pressure subsequent quarters" | EBITDA +3.48% lagging revenue +7.29%; materials +19.59% QoQ | Played out |
| Forex/other income | "roughly neutral-to-modestly-favourable" vs Q2 FY26 forex loss base | Other income Rs.44.02 Cr vs Rs.23.39 Cr; interest income Rs.26.03 Cr vs Rs.10.99 Cr | Played out |
| Finance costs vs Rs.67–68 Cr guide | flagged as a watch item | Standalone Rs.80.48 Cr / consolidated Rs.90.54 Cr — above guide | Contradicted |
| Order momentum | "top of the funnel ran hot" | Not disclosed in this filing (order book absent); announcements support >Rs.22,000 Cr YTD | Not observable in filing |
| KEPL petition status | watch item | SLP filed; no provision (filing Note 7) | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Order inflow > Rs.30,000 Cr, FY27 (consolidated); upward revision possible "at the end of Q2 FY27" | Q1 FY27 earnings call | >Rs.22,000 Cr YTD by 21 Oct 2026 plus UAE gas pipeline LoA >Rs.4,000 Cr (28 Sep 2026), per company announcements; order book not disclosed in this filing | On Track |
| Revenue growth ≥15%, FY27 (consolidated) | Q1 FY27 earnings call (revised from 20% at the Q4 FY26 call) | H1 +5.61% YoY; required H2 growth now +23.26% (H2 must deliver ~Rs.17,802 Cr vs H2 FY26 Rs.14,443 Cr) | Stretch |
| PBT margin +75 bps, FY27 (consolidated) | Q1 FY27 earnings call | H1 PBT margin 6.10% vs 4.82% = +128 bps; Q2 YoY +75 bps | On Track |
| Interest cost Rs.67–68 Cr (near term, standalone basis per Q1 print) | Q1 FY27 earnings call commentary | Standalone Q2 finance costs Rs.80.48 Cr (consolidated Rs.90.54 Cr) | Missed |
| Capex ~Rs.800 Cr, FY27 | Q1 FY27 earnings call | H1 capex Rs.584.20 Cr (incl. Rs.150 Cr rolling-mill approval, 11 Aug 2026) | On Track |
| NWC <100 days, FY27 | Q1 FY27 earnings call | Filing proxy: debtors 94 days (vs 104 YoY); NWC days not restated in filing | Too Early |
| Core segments (B&F/T&D/O&G) 20%+ growth, FY27 | Q1 FY27 earnings call | Not disclosed by vertical in filing; consolidated EPC +10.01% YoY | Too Early |
| "Well on track to reach our targeted goal of INR 30,000 crores of order inflow" | Q1 FY27 call | >Rs.22,000 Cr YTD by 21 Oct + >Rs.4,000 Cr UAE LoA (company announcements; not in filing) | Too Early / on-track per announcements |
| "Profitability growth continues to outpace our targeted levels" | Q1 FY27 call | PBT +23.69% YoY on revenue +7.29%; PBT margin +75 bps YoY — confirmed this quarter | Confirmed |
| Margin stability despite commodity/labor/supply constraints | Q1 FY27 call | Core EBITDA margin 8.29% (−31 bps YoY, −48 bps QoQ); other expenses +15.98% YoY — PBT margin held, EBITDA-level margin slipped | Partially |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| Core EBITDA margin | 8.6% | 7.7% | 8.2% | 8.8% | 8.3% |
| Consolidated D/E (Reg 52) | 0.67× | 0.43× (FY26) | 0.35× | 0.34× | 0.32× |
| Debtors days (Reg 52, consol) | 104 | 111 (FY26) | 111 (FY26) | 113 | 94 |
| Order book | Rs.64,682 Cr | Rs.63,287 Cr | Rs.65,457 Cr | Rs.66,607 Cr | not in filing |
Key Investment Insights
Key Positives
- Consolidated revenue of Rs.7,004.27 Cr grew 7.29% YoY and 9.31% QoQ, a quarterly record in the disclosed series, despite a ~Rs.158 Cr negative mix swing from divested road SPVs
- EPC segment revenue grew 10.01% YoY with EBIT margin expanding 145 bps (5.16% to 6.62%) and EBIT up 41%
- PAT grew 22.98% YoY to Rs.291.95 Cr; H1 PAT up 33.82% YoY; H1 PBT margin +128 bps vs management's +75 bps FY27 target
- H1 CFO of Rs.1,179.77 Cr vs −Rs.411.71 Cr YoY; CFO/PAT 1.95x; FCF +Rs.595.57 Cr
- Debt/equity fell to 0.32x from 0.67x YoY; borrowings down Rs.616.71 Cr vs March 2026; ISCR 5.63x vs 3.63x
- LMG listed on Nasdaq Stockholm with Rs.572.02 Cr net proceeds recognized in other equity; net worth up 21.95% YoY
- Standalone revenue grew 14.65% YoY with PBT up 34.86%; subsidiaries now contribute Rs.19.95 Cr (6.9% of consolidated PAT) after exits of loss-making units
- Finance costs fell 33.89% YoY to Rs.90.54 Cr
Risk Factors
- Core EBITDA margin slipped 31 bps YoY and 48 bps QoQ to 8.29%, the first sequential margin step-down in the disclosed trend
- Core EBITDA grew only 3.48% against revenue growth of 7.29%; profitability growth came from finance costs, not operating leverage
- Other expenses grew 15.98% YoY on 7.29% revenue growth, with the quantum not itemized
- Standalone Q2 finance costs of Rs.80.48 Cr exceeded management's Rs.67–68 Cr near-term guide
- FY27 revenue guidance of ≥15% growth requires H2 growth of +23.26% YoY versus +5.61% delivered in H1
- KEPL/NHAI arbitral award dispute remains open with an SLP filed before the Supreme Court; management believes no provision is required
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