Kalpataru Projects International (KPIL IN) – Q2FY26 Result Update – Execution ramp up propels strong Q2 growth – BUY
Published on 31 Oct 2025
Kalpataru Projects International (KPIL) reported strong 31.0% YoY revenue growth, driven by robust execution across T&D and B&F, though EBITDA margin contracted slightly by 17bps due to project mix and slower water execution. Backed by sustained momentum in T&D, management raised its FY26 revenue growth guidance to 25%+. The company’s proven capability in executing large civil projects continues to open new growth avenues in B&F, while steady ramp-up of the Saudi Aramco project is supporting O&G performance. However, persistent collection delays in the Water segment (outstanding collections of Rs15.5bn) remain a drag while company focuses on closure of existing railway projects. Management expects order inflows of Rs250bn+ in FY26, backed by a sharp expansion in the T&D tendering pipeline from ~Rs1.2trn to ~Rs1.5trn across domestic and international markets, reinforcing strong multi-year revenue visibility. The stock is trading at a P/E of 17.6x/14.7x on FY27/28E core-EPS. We roll forward to Sep’27E and upgrade our rating from ‘Accumulate’ to ‘Buy’ given the expansion in the T&D tendering pipeline in domestic and international markets. We value the core business at a PE of 18x on Sep’27E (18x Mar’27E earlier) arriving at a revised SoTP-based TP of Rs1,494 (Rs1,366 earlier). Upgrade to ‘Buy’.
