Prabhudas Lilladher's research report on Kalpataru Projects International
Kalpataru Projects International (KPIL) reported revenue growth of 35.4% YoY driven by strong execution across T&D, B&F and O&G, while EBITDA margin remained flat YoY at 8.5%. The management has reiterated its guidance for 20–25% revenue growth in FY26, supported by a robust tendering pipeline of ~Rs1.2trn in the T&D segment over the next 12–18 months. The B&F segment continues to deliver strong performance, aided by significant order wins, despite persistent labor constraints. In the O&G segment, execution ramp-up of the large Saudi Aramco order is expected to act as a key growth catalyst. The Water segment, however, remains affected by collection delays. For FY26, the management anticipates total order intake of Rs260–280bn, ensuring healthy multi-year revenue visibility. Balance sheet strength is also expected to improve, driven by debt reduction and targeted reduction in NWC days to below 100.
Outlook
We revise our FY26/FY27E EPS estimates by +3.2%/+1.0% factoring in strong execution momentum in the T&D segment. We maintain ‘Accumulate’ rating with a revised SoTP-based TP of Rs1,366 (Rs1,268 earlier) valuing the core business at a PE of 18x on Mar’27E (17x Mar’27E earlier).For all recommendations report, click here
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