KEC International Eyes At Least 8% Margin In FY26 On Strong Transmission Order Book
The engineering, procurement and construction company has an order-book-intake target of about Rs 30,000 crore for FY26.
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KEC International Ltd. is expecting an Ebitda margin of 8% to 8.5% in FY26, according to its Chief Executive Officer Vimal Kejriwal.
"In FY26, we should grow at 15%-plus (revenue) from the 10% that we grew last year," he said during a conversation with NDTV Profit on Thursday. "In FY25, we ended at around Rs 22,000, so we'll add 15%, our margin calculates for around 7%."
"What we are expecting against that 7%, we should be doing around 8% to 8.5% next year," Kejriwal said.
The margin target will be achieved by increasing the contribution of the transmission and distribution segment and improving the non-T&D margins slightly.
The engineering, procurement and construction company has an order-book-intake target of about Rs 30,000 crore for FY26. "We expect that T&D would be around Rs 20,000, around 70% should be from the T&D business," he said.
In terms of revenue contribution, he expects the distribution between T&D and non-T&D to be 65% to 35% in FY26. Currently, 60% of the revenue comes from the T&D division.
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A key focus for the company is expanding its international footprint, particularly in west Asia, the Americas, and Australia, alongside a strong domestic presence in India.
Kejriwal emphasised that the company is strategically repositioning its portfolio by reducing exposure to lower-margin businesses like transportation. Two years ago, revenues from the transportation business stood at Rs 3,800 crore. It fell to Rs 2,200 crore in FY25.
Instead, it is prioritising high-value areas such as metro projects, tunnel ventilation, and international civil and railway contracts, particularly in west Asia and Africa.
The company also recently secured orders worth Rs 2,211 crore. Out of this, 92% pertained to the T&D segment from international clients. "So, most of these orders are around 18–24 months. So, the revenues would start, let's say in around three, four months and then go over the next six or seven quarters," Kejriwal added.
