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Kalpataru Projects International LtdQ4 FY27

Kalpataru Projects International Ltd Q4 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: 1,384P/E: 21.2Market Cap: ₹21.5K CrSector: Construction

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2
  • 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)

Margin guidance

Category 2
  • 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.

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Fundraise plans

Yes
  • 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.

Order book

Yes
  • 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.

Capex plans

Yes
  • 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.

How does Kalpataru Projects International Ltd rank vs peers in Construction?

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1Kalpataru Projects International Ltd
Rev 2Mar 2

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