Kalpataru Projects International Ltd Q1 FY27 Earnings Analysis

- Kalpataru Projects expects full-year order wins to exceed INR 30,000 crores in FY27, indicating strong growth. - Top-line growth is guided at around 15%+ for FY27. - T&D segment is a major growth driver with a domestic pipeline exceeding INR 1 lakh crore and international markets (trillion-dollar scale) bidding in next 6-9 months. - Power T&D expected to grow by 20%. - LMG business saw 64% revenue growth; FY27 international T&D order inflow expected between INR 8,000-9,000 crores. - Selective growth planned in Urban Infrastructure and Oil & Gas sectors, with Oil & Gas traction expected to pick up in Q3-Q4. - Capacity expansions and investment in automation support growth, with INR 800+ crores capex planned. - Focus on large-scale, complex projects with higher margins rather than pure volume growth. - Order book visibility currently at approximately 2.5 years, supporting sustained revenue growth.

- Kalpataru Projects International Limited expects continued growth driven by domestic orders between INR 6,000 crores to INR 7,000 crores. - Full-year order wins for FY '27 are projected to exceed INR 30,000 crores. - Topline growth guidance is around 15% plus for FY '27. - Consolidated PBT margins are expected to expand by approximately 75 basis points. - EBITDA margins for T&D, B&F, and Oil & Gas businesses are expected to remain strong at double-digit levels (10%-11%+). - Standalone tax rate is projected in the range of 26%-28%, consolidated 28%-30%. - Operating cash flows are strong; however, capex spending will continue at INR 800+ crores, supporting growth and margin expansion. - International T&D business is expected to generate between INR 8,000 crores to INR 9,000 crores with a balanced domestic and international order mix. - The margin improvement and return ratio expansion are expected to significantly drive profits and EPS growth.

- Kalpataru Projects International Limited has been investing strategically in capex post-COVID, driven by strong growth visibility. - Current capex includes investments in aluminum shuttering, site equipment (TSEs, cranes), plant modernization, and international expansions, especially in Saudi and other geographies. - The capex for the current year (FY27) is budgeted at INR 800+ crores, focusing on Buildings & Factories (B&F), Transmission & Distribution (T&D), international expansion, and further plant capacity expansion. - Future capex plans include potentially expanding plant capacity with an update expected by end of Q2 FY27. - The company is funding capex from internal free cash flows, maintaining capital discipline. - Additionally, there are expected inflows from divestments of noncore assets and possible strategic investments in the Swedish subsidiary that may strengthen the balance sheet and support growth.

- The company expects debt to increase in proportion to its growth and capex plans, with capex around INR 800+ crores forecasted for the next year. - Debt levels are currently sustainable but will grow alongside business expansion; no indication of significant surge beyond business-related needs. - The company plans to fund capex primarily from operational cash flows and potential one-off inflows such as divestments or strategic investments. - No explicit mention of new equity fundraising. - Strategic investments and divestments might bring additional cash flows to strengthen the balance sheet. - The firm emphasizes disciplined capital allocation and does not foresee large deviations from current leverage aligned to business growth.

- Total order book at end of FY26: INR 65,457 crores (all-time high) - Since fiscal year-end, new orders worth INR 1,833 crores secured - Additional L1 orders placed: INR 3,200 crores - T&D order book: INR 28,572 crores - Water backlog: INR 5,800 crores (approx. 75% is JJM projects) - Water receivables outstanding: ~INR 1,600 crores, expected to clear by September - Order inflow guidance for FY27: Expected to exceed INR 30,000 crores - T&D and B&F expected to contribute approximately two-thirds of FY27 order inflow - International footprint expanding, with growth expected in Oil & Gas, Urban Infra, and Water international segments - Focus on large-scale, complex projects with clients largely retained over decades