Kalpataru Projects Expects FY26 Revenue To Outperform 20% Guidance On Strong Execution Momentum

India's leading EPC player Kalpataru Projects International Ltd. expects to revise its FY26 revenue growth guidance upward from the initially projected 20% to around 25%, backed by strong execution momentum, said Amit Uplenchwar, Director at Kalpataru Projects to NDTV Profit.

Uplenchwar noted that the company has a healthy order book of over Rs 65,000 crore and it delivered its best Q1 with 35% revenue growth.

“I think this has been one of the best Q1s that we've had. We've had a very high growth of 35% this year. We had guided around 20% revenue growth for FY26. And I think I can say that, by the end of the year, our target is to increase that guidance and go to 25%, both on standalone and consolidated. Looking at the growth momentum we have and the orders in hand, I think that's what we should be aiming at,” the top executive said.

On concerns about working capital, he explained that it has not constrained the company's growth in the past. KPIL maintains net working capital days under 100, which is among the best in the industry, according to Uplenchwar.

“If you look at our metrics today and if you look at our peer group, we are keeping our net working capital days at less than 100, which, at our scale and size, with a diversified order book and sectoral as well as geographical spread, I think is one of the best in the industry,” he noted.

The company's debt-to-equity ratio is below 0.47 on a consolidated basis, even lower standalone, indicating near debt-free status, he added. According to Uplenchwar, the company's recent performance of 15% CAGR and record revenue growth of 35% in Q1FY26 gives a strong signal for its growth headroom.

Last year, KPIL posted a 4.5% profit before tax (PBT) margin. The company is guiding towards 5.5% PBT by FY26, a 100 basis point improvement.

“Last year we were at 4.5% PBT. We've already inched up beyond five this year, and we've guided at the beginning of the year to go close to 5.5, which is a 100 basis point expansion….And the kind of revenues that we are doing, I think this is one of the highest amongst the peer group,” he added.

Kalpataru Projects International Ltd. reported Q1 FY26 consolidated revenue rising 35% YoY to Rs 6,171 crore from Rs 4,587 crore. Ebitda grew 39% YoY to Rs 525 crore, up from Rs 379 crore, with margin improving by 20 basis points to 8.5%. Profit after tax (PAT) surged 154% to Rs 214 crore compared to Rs 84 crore in the same period last year.

On Aug. 9, KPIL surged 5.13% to close at Rs 1,170 a piece on NSE. In contrast, Nifty 50 closed 0.95% lower at 24,363 points.