Kalpataru Projects Q2 FY2025-26 Results: 32% Revenue Growth, 91% Profit Jump | Strong Order Book Boosts Outlook

🏗️ Kalpataru Projects International Ltd (KPIL) Q2 FY2025-26 Results: Strong Execution Drives 32% Revenue Growth & 91% Profit Jump

📘 Overview

Kalpataru Projects International Ltd (KPIL), one of India’s leading engineering, procurement and construction (EPC) companies, has reported an outstanding set of results for Q2 FY2025-26, with both revenue and profitability registering strong double-digit growth.

Driven by solid execution across power transmission, infrastructure, and international markets, the company’s consolidated revenue grew over 32% year-on-year, while net profit nearly doubled — a testament to KPIL’s disciplined strategy, project diversification, and operational excellence.

Let’s break down the company’s performance in detail, compare it with the previous quarters, and look at management’s forward guidance.

📊 Kalpataru Projects International Ltd Q2 Results Comparison

Source: Company Financial Statements & Exchange Filings (Oct 2025)

💡 Key Highlights

• Revenue up 32% YoY at ₹6,528 crore due to higher execution in India and international projects.

• Net profit surged 91% to ₹240 crore, showing strong operational leverage.

• EBITDA margin stable at 8.6%, despite raw material price fluctuations.

• Order book at a record ₹64,682 crore, giving high visibility for FY26-FY27.

• Debt reduced by 14% YoY, and working capital cycle improved to around 90 days.

📈 Revenue Performance

Kalpataru Projects International delivered a robust topline growth of 32% year-on-year during Q2 FY2025-26. This growth was broad-based across the Power Transmission & Distribution (T&D), Buildings & Factories (B&F), and Water & Urban Infrastructure segments.

The company’s focus on timely execution, international expansion, and operational efficiency helped it deliver strong revenue growth even amid competitive market conditions.

Sequentially, revenue was up 6% over Q1 FY2025-26, reflecting consistent progress in project delivery.

💰 Profit Growth

Profitability was the standout story of Q2 FY2025-26. KPIL’s net profit jumped 91% year-on-year to ₹240 crore, compared with ₹125 crore in Q2 FY2024-25.

This surge in profitability came from:

• Strong execution of high-margin projects,

• Improved cost control,

• Reduced finance costs due to debt repayment, and

• Favorable operating leverage.

Even though EBITDA margin declined marginally by 30 basis points (to 8.6%), absolute EBITDA rose 28% YoY — showing the strength of project execution.

🧱 Segment-wise Performance

⚡ Power Transmission & Distribution (T&D)

This continues to be KPIL’s core growth engine, contributing more than half of total revenue.

• Strong domestic demand and export orders drove growth.

• The company executed multiple cross-border transmission projects in Africa and the Middle East.

• India’s power grid modernization program also created opportunities for long-term growth.

🏗️ Buildings & Factories (B&F)

The B&F segment posted strong growth, driven by private-sector orders in industrial and commercial buildings. KPIL’s expertise in executing large-scale industrial plants and data centers continues to attract major clients.

💧 Water & Urban Infrastructure

This vertical recorded steady progress, supported by government schemes like the Jal Jeevan Mission and smart-city projects.
KPIL has also entered integrated EPC contracts in water treatment and urban wastewater projects.

🌍 International Business

Over 40% of KPIL’s total revenue now comes from international markets. The company’s subsidiaries in Africa, the Middle East, and Europe are witnessing strong traction in power, oil & gas, and infrastructure EPC contracts.

📦 Order Book and New Wins

At the end of Q2 FY2025-26, Kalpataru Projects reported an order book of ₹64,682 crore, the highest in its history.

During the quarter, it secured new orders worth ₹14,951 crore, reflecting a 26% YoY increase. The new projects include power T&D works, railway electrification, and civil construction projects across India, Africa, and South America.

This strong order inflow gives the company multi-year revenue visibility and supports sustainable growth through FY2026-27.

⚙️ Operational Efficiency and Balance Sheet

KPIL continued to strengthen its financial position in Q2 FY2025-26.

• Net debt reduced 14% YoY to ₹3,169 crore.

• Interest coverage ratio improved due to better profitability.

• Working capital days came down to around 90, compared to over 100 in FY2024-25.

Efficient working-capital management, coupled with improved project collections, contributed to stronger cash flows during the quarter.

🗣️ Management Commentary

Mr. Manish Mohnot, Managing Director & CEO of Kalpataru Projects International, said:

“We are pleased to deliver another quarter of strong growth in both revenue and profitability. This was our best-ever Q2 in terms of execution and earnings. Our record order book of ₹64,000+ crore gives us confidence for the remainder of FY26. We continue to focus on profitable growth, high-return projects, and efficient working-capital management.”

The management reaffirmed its guidance for FY2025-26 as follows:

• Revenue growth: 20-25% YoY

• EBITDA margin: 8.5-9.0%

• Debt reduction: Target to bring net debt below ₹3,000 crore by FY26-end

• Focus: Infrastructure diversification, export markets, and digital project monitoring tools

📊 Analyst and Market Reactions

Analysts and brokerage houses have reacted positively to KPIL’s Q2 numbers.

• ICICI Direct maintained a “BUY” rating, highlighting strong order inflows and robust execution pipeline.

• Motilal Oswal raised its FY26 EPS estimates, citing better-than-expected profit margins.

• HDFC Securities noted that KPIL’s balance-sheet strength and improved working capital make it one of the top EPC plays in India’s infrastructure sector.

⚠️ Challenges & Risks

Despite the upbeat performance, some challenges persist:

1. Input cost volatility: Rising steel, fuel, or logistics costs may impact future margins.

2. Project execution risks: Delays due to regulatory or weather issues can push back revenue recognition.

3. Global macro risks: Since a large share of KPIL’s business is international, geopolitical uncertainty or currency fluctuations could impact profitability.

However, KPIL’s diversified portfolio, strong management execution, and prudent financial control help mitigate these risks.

🧭 Future Outlook

Kalpataru Projects is poised to benefit from India’s infrastructure expansion drive, global energy transition investments, and demand for sustainable infrastructure.

Going forward, KPIL plans to:

• Expand in renewable transmission, urban infrastructure, and international turnkey projects.

• Continue improving margins through digital project management tools and supply-chain optimization.

• Strengthen its balance sheet with better receivables and lower leverage.

With a record order book and consistent financial discipline, KPIL is positioned for profitable, sustainable growth through FY2026 and beyond.

📌 Key Takeaways

✅ Revenue grew 32% YoY to ₹6,528 crore.
✅ Net profit surged 91% YoY to ₹240 crore.
✅ Record order book of ₹64,682 crore.
✅ Debt reduced and working capital improved.
✅ Management confident of continued growth with strong FY26 guidance.

🧾 Conclusion

Kalpataru Projects International Ltd has once again proven its strength as a leading global EPC powerhouse. Its Q2 FY2025-26 performance — highlighted by strong revenue, record profit, and a robust order book — underscores the company’s execution capability and strategic foresight.

As India and the world ramp up investments in energy, urban infrastructure, and construction, KPIL’s diverse portfolio and strong balance sheet give it a solid foundation for long-term growth.

For investors and industry watchers alike, Kalpataru Projects stands out as one of the most consistent performers in the EPC and infrastructure space in FY2025-26.