KEC International Targets 15% Growth In FY26 Driven By Strong Demand In T&D Segment

KEC International Ltd. is targeting 15% growth in FY26, driven largely by strong momentum in its transmission and distribution (T&D) business, the company’s MD and CEO, Vimal Kejriwal, said on Aug. 26. Calling the estimate realistic, Kejriwal expressed confidence in the company’s capacity to meet rising demand both in India and abroad in the T&D segment.

“Three years back, our India transmission revenue was close to Rs 2,000 crore. This year, we will do more than Rs 7,000 crore. So clearly, I think we have the capacity ... .I think with whatever 15% growth and all your targets, I think we have the capability and the capacity to deliver, not only ourselves, but I think all the competition has also ramped up,” he told NDTV Profit.

He explained that KEC International’s business is split into two main parts: 60% is transmission-related and 40% is non-transmission.

“So, I don't see a similar growth rate happening on the non-transmission side. Which is why the 15% would be a weighted average of the transmission growth, which would be more than 15% and the others, which may be less than 15%,” the CEO said.

He also expressed strong confidence in the long-term growth of the power transmission sector. He highlighted that India’s renewable energy target has been raised to 600 GW by 2032, creating significant demand in both domestic and international markets.

“Now government has changed the target to 600 gigawatt (renewable energy) by 2032…so, we are seeing a great opportunity….and what we have talked about is also the international market, we are seeing huge demand happening in the Middle East and the Americas, those are two areas. So, put together, we are very comfortable for the next five, six years,” he said.

While the outlook remains positive for the next few years, Kejriwal acknowledged ongoing execution challenges.

“So, if you look at challenges, they are, in a way, manifold. First and foremost, which we have been talking about for a long time, has been the labour availability, which, fortunately, has seen some improvement…The second one clearly talks about supply chain…what we are seeing is that capacity has ramped up. So, slowly, that capacity constraint is easing out,” he said.

Kejriwal further noted that project timelines are being adjusted to reflect current realities, with substations now expected to take 15–18 months.

In Q1FY26, KEC International’s consolidated revenue increased 11.3% year-on-year to Rs 5,023 crore from Rs 4,512 crore in Q1FY25. The RPG Group flagship’s Ebitda grew 19% to Rs 350 crore from Rs 294 crore in Q1FY25. Profit after tax (PAT) surged 42% to Rs 125 crore, compared to Rs 88 crore in the same quarter a year ago.

Shares of KEC International ended 0.61% lower at Rs 819.7 apiece on the NSE on Tuesday, compared to a 1% decline in the benchmark Nifty 50.