Kalpataru Projects International (KPIL IN) – Management Meet Update – Middle East impact limited; Strong T&D outlook – BUY
Published on 30 Mar 2026
We interacted with the management of Kalpataru Projects International (KPIL), wherein it highlighted a resilient growth outlook driven by a strong T&D pipeline across geographies, with international markets expected to outpace domestic supported by better margins and payment cycles. While Middle East exposure remains limited (10–11% of order book), near-term execution may see minor slippages (~INR2bn) due to geopolitical disruptions. Medium-term opportunities, however, remain intact. The B&F segment continues to see strong traction led by data centers and core infrastructure, with sustained double-digit growth visibility, while the O&G business is witnessing improving traction in international markets with ~$1bn opportunity pipeline over the next 2 years. The stock is trading at P/E of 15.4x/12.4x on FY27/28E core-EPS. We roll forward to Mar’28 and maintain our ‘BUY’ rating valuing the core business at P/E of 16x Mar’28E (18x Sep’27E earlier), arriving at revised SoTP-derived TP of INR1,466 (Rs1,489 as earlier), factoring in a cautious stance on KPIL’s Middle East exposure.
