KEC International (KECI IN) – Q3FY26 Result Update – Soft Q3, execution delays in civil will be watchful – Downgrade to ‘Accumulate’
Published on 31 Jan 2026
In the near term, KEC face delays in execution and closure of civil projects along with slippage collections which will be key monitorable however we remain positive on KEC for the long term given its 1) strong order book, 2) healthy execution momentum, 3) robust T&D outlook, especially in renewable energy, and 4) expansion of Cables business. The stock is currently trading at a P/E of 16.3x/12.1x on FY27/28E earnings. We downgrade our rating from ‘Buy’ to ‘Accumulate’ due to slowdown progress in water projects, delays in projects closure and execution of new projects. We value the business at a PE of 15.5x Sep’27E (17x Sep’27E earlier) arriving at a TP of Rs748 (Rs932 earlier).
