KEC Intl slips 7% on Power Grid projects ban; should you buy, hold or sell?

KEC International share price today: Shares of KEC International slipped 7 per cent to ₹724.60 on the BSE in Wednesday’s intra-day trade after the Power Grid Corporation of India Ltd (PGCIL) barred the company from new tenders for nine months, effective November 18, 2025.

 

At 09:45 AM; KEC International share price was quoting 6 per cent lower at ₹735.40, as compared to 0.05 per cent rise in the BSE Sensex. The stock price of a global infrastructure Engineering, Procurement and Construction (EPC) major had hit a 52-week low of ₹605.05 on April 7, 2025. It had hit a 52-week high of ₹1,312 on December 4, 2024.  FOLLOW STOCK MARKET UPDATES LIVE

Why were KEC International shares under pressure today?

 

KEC International informed stock exchanges on Monday, November 18, 2025 after market hours that the company has received a letter from PGCIL informing that the company has been excluded from participating in tenders of PGCIL and award of contracts by it for a period of 9 months from November 18, 2025. While PGCIL has restricted fresh tender participation, ongoing projects remain unaffected, and KEC is evaluating legal options, including seeking reconsideration.

KEC International stock: Should you buy or sell the stock?

 

KEC International said the Company does not envisage any major impact on its operations and financial position, considering the strong order book and tender pipeline.

 

The company further said it upholds the highest standards of corporate governance, ethics, and compliance in all its operations and conducts its business with integrity, transparency, and adherence to applicable laws and regulations.

 

The action follows a CBI case filed in March, where a PGCIL senior general manager (GM) and a KEC employee were arrested for an alleged ₹2.5 lakh bribery incident linked to contract-related favours. The nine-month exclusion from PGCIL tendering is a setback, given PGCIL’s relevance in the domestic transmission and distribution (T&D) ecosystem; however, the impact is likely limited as KEC has a strong diversified order book, according to ICICI Securities.

 

As of March 2025, the T&D segment accounted for 59 per cent of KEC’s total order book. Civil accounted for 26 per cent, followed by transportation (11 per cent) and cables (2 per cent), the FY25 annual report data showed.

 

The outlook for the T&D sector remains encouraging, driven by strong tendering activity across domestic and international markets.   ALSO READ | Groww parent shares drop 6%, first pullback since debut; Q2 results soon 

In India, the push to meet the country’s ambitious target of 600 GW of non-fossil fuel capacity by 2032 is driving continuous investments in transmission lines, substations, and underground cabling. 

 

On the international front, the Company continues to see promising opportunities across regions such as the Middle East, Africa, CIS, and the Americas. The Middle East is witnessing strong tailwinds in the T&D sector as countries such as Saudi Arabia, UAE, and Oman build regional interconnections and scale up transmission to meet national electri¬cation and renewable energy goals, the company said.

 

Meanwhile, going ahead, Motilal Oswal Financial Services analysts expect KEC International to benefit from a strong prospect pipeline in T&D, a strong order book of ₹39,000 crore leading to a healthy 17 per cent CAGR in execution, margin improvement over a low base of last year, and the easing of its working capital cycle on improved customer advances and the release of retention money. 

 

However, the brokerage firm has cut its estimates by 11 per cent/9 per cent/5 per cent for FY26/27/28 to bake in higher debt and slightly higher NWC.

 

A slowdown in order inflows, higher commodity prices, an increase in receivables and working capital, and heightened competition are some of the key risks that could potentially affect our estimates, the brokerage said in its Q2 results update.