Kalpataru Projects International (KPIL IN) – Q3FY26 Result Update – Healthy Q3; sustained momentum in T&D and B&F – BUY
Published on 05 Feb 2026
Kalpataru Projects International (KPIL) reported healthy 19.9% YoY revenue growth and flattish YoY EBITDA margin of 8.3%. Backed by sustained momentum in T&D and B&F, a healthy L1 position of ~Rs70bn underpins management’s FY26 order intake guidance of ~Rs260bn. Improving collections in the water segment further support growth visibility and strengthening balance sheet metrics. Steady execution ramp-up of the Saudi Aramco project (with ~50% completion) is driving growth in the O&G segment, while the company’s proven execution capabilities continue to support momentum in B&F and Smart Infrastructure. Additionally, anticipated domestic T&D tendering of ~Rs900bn annually provides strong multi-year revenue visibility, despite near-term headwinds in certain key subsidiaries such as Fasttel. The stock is trading at a P/E of 16.3x/13.1x on FY27/28E core-EPS. We maintain our ‘Buy’ rating valuing the core business at a PE of 18x Sep’27E (same as earlier) arriving at a revised SoTP derived TP of Rs1,489 (Rs1,494 earlier).
