Kalpataru Projects International Ltd Q4 FY26 Earnings Analysis

- Kalpataru Projects International Limited expects revenue growth of approximately 25% for FY26 at both standalone and consolidated levels. (Page 11) - The company anticipates continued strong growth momentum supported by robust order book and improved margins, with growth potentially exceeding 20% per annum over the next 2-3 years. (Pages 7, 11, 16) - T&D segment is expected to see order inflows increase by at least 15-20% annually, driven by domestic and international market opportunities, including India, CIS countries, Sweden, and Latin America. (Page 15) - Capacity for transmission is planned at 275,000 to 300,000 tons for the next two years, with capacity expansion expected to meet demand as needed. (Page 16) - Growth will be supported by multiple segments including T&D, building & factories (B&F), oil & gas, and urban infrastructure. (Pages 4,7,16) - The company expects margin improvements and balanced resource allocation to sustain growth while maintaining financial discipline. (Pages 16,17)

- Kalpataru Projects International Limited expects revenue growth of approximately 25% for FY26 at both standalone and consolidated levels. - Earnings are anticipated to improve with minimum margin expansion of 50 basis points standalone and 100 basis points consolidated in FY26. - The company targets consolidated EPS to exceed INR 50 per share in the current year (FY26). - Going forward into FY27, an improved margin trajectory is expected, supported by strong order backlog in T&D, B&F, and oil & gas segments. - ROCE has improved by over 500 basis points over the last 5 years, indicating better returns on capital deployed. - Management remains confident about sustained growth and margin improvement beyond FY26, driven by robust execution and strategic orderbook mix. - Legacy low-margin orders are largely behind, and newer orders carry double-digit margins, further underpinning profit growth.

- Current year capex outflow is targeted around INR 700-750 crores; INR 500+ crores already incurred in 9M FY26. - Similar capex levels are expected for FY27 due to strong business traction and healthy cash flows. - Capex on transmission segment expected at INR 100-150 crores next year, mainly for plant expansion (CNC machines, staging shuttering, girders, TSE equipment). - Capacity expansion is simple and quick (adding CNC machines takes ~3 months); current capacity of 275,000-300,000 tons considered sufficient for next 2 years. - Strategic investments include exploration of fund raising options in Sweden to generate additional cash flows in FY26-27. - Focus on capacity expansion in transmission to handle increasing order inflows (over 90% capacity booked for next year). - Overall capex aimed at sustaining growth across multiple infrastructure segments including T&D, building & factory, and urban infra.

- Kalpataru Projects International Limited has appointed bankers to advise on fundraising in Sweden. - The fundraising process is progressing well but exact options and timing are not yet determined. - Fundraising is expected to take place in FY26-27. - No specific details on whether the fundraising will be debt or equity have been provided. - The purpose of the fundraising is to generate further cash flows to support the business. - The company is focused on balance sheet strengthening through debt reduction and asset monetization prior to this fundraising.

- As of December 31, 2025, Kalpataru Projects International Limited's consolidated order book stands at INR 63,287 crores, providing strong revenue visibility. - Year-to-date FY26 new orders total INR 19,456 crores. - Additional favorably placed orders exceed INR 7,000 crores, mainly in the T&D business. - T&D order backlog is INR 25,752 crores, up 12% YoY. - B&F order book grew 40% YoY to INR 18,596 crores. - The company is L1 (leading bidder) for over INR 5,800 crores in T&D orders and INR 1,100 crores in B&F. - They have bid for 4-5 large projects in Saudi and ADNOC, expected decisions in next 3-6 months. - For the next 2 years, capacity on transmission is sufficient with 90%+ already booked and including L1 orders, nearly fully booked. - The company expects order inflows in T&D to increase 15-20% annually going forward.