Kalpataru Projects International (KPIL IN) – Q4FY26 Result Update – Healthy Q4; T&D outlook intact amid ME risk – BUY
Published on 16 May 2026
Kalpataru Projects International (KPIL) reported healthy revenue growth of 12.2% YoY in Q4FY26, while EBITDA margin expanded to 9.6%. Sustained momentum across T&D and B&F reinforces management’s guidance of >INR300bn order intake in FY27, with execution ramp-up expected to support ~15%+ revenue growth. Improving collections in the Water segment, continued debt reduction, and net working capital days of 90 further strengthen balance sheet health. Additionally, a robust domestic T&D tender pipeline exceeding INR1.0trn, coupled with strong B&F opportunities and expected tender finalizations in Smart Infra and O&G during H2FY27, enhances growth visibility. However, potential disruptions arising from the West Asia conflict remain a key monitorable for execution going forward. We revise our FY27E EPS estimate by -4.6% factoring in supply chain disruptions and execution challenges arising out of Middle East conflict. We maintain our ‘Buy’ rating valuing the core business at a PE of 16x Mar’28E (same as earlier) arriving at a SoTP derived TP of INR1,466 (same as earlier).
