KEC International Q4 Review: Motilal Oswal Maintains 'Neutral' On Inline Revenue, Ebitda; Hikes Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

KEC International Ltd.’s Q4 FY25 performance was broadly in line on the revenue and Ebitda fronts, while PAT was above our estimate. Strong execution, especially in the transmission and distribution and cables segments (which reported higher revenue and profitability), propelled KEC’s revenue and Ebitda.

KEC’s margin surprised and reached 7.8% in Q4 FY25. Its FY25 order inflows jumped 36% YoY to Rs 247 billion, taking the total order book to Rs 334 billion, up 9% YoY (particularly driven by T&D). Looking ahead, T&D is expected to remain the key growth engine, supported by a strong order book and expanding global pipeline, while the non-T&D segment is expected to have a turnaround and start improving beyond FY26 through high-margin industrial, semiconductor, and export focused opportunities.

We raise our estimates by 1%/3% for FY26/27 to factor in KEC’s FY25 performance. We reiterate our Neutral rating on the stock with a revised target price of Rs 940, premised on 21x Mar’27 estimates.

Key risks and concerns

A slowdown in order inflows, higher commodity prices, an increase in receivables and working capital, and heightened competition are some of the key risks that could potentially affect our estimates.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.