KEC International shares rise post Q1 results, order win; Should you buy?

KEC International shares rose after its first-quarter profit rose by over 42 per cent, along with order wins worth ₹1,509 crore

Shares of KEC International advanced on Wednesday after its first-quarter profit rose by over 42 per cent, along with an update regarding an order worth ₹1,509 crore. 

 

The civil construction firm's stock rose 1.42 per cent to ₹872.4 per share. The stock pared some gains to trade 0.9 per cent higher at ₹868 apiece, compared to a 0.22 per cent advance in Nifty 50 as of 11:20 AM. 

 

Shares of the company have been on a downward trend since July and are down 6 per cent so far this month. The counter has fallen 28 per cent this year, compared to a 5 per cent advance in the benchmark Nifty 50. KEC International has a total market capitalisation of ₹23,047.60 crore.   Track LIVE Stock Market Updates Here

KEC International Q1 results 

The company reported a strong performance for the quarter ended June 2025 (Q1 FY26), with standalone net profit rising 42.27 per cent year-on-year (Y-o-Y) to ₹124.60 crore, compared to ₹87.58 crore in the same period last year. Revenue from operations grew 11.33 per cent to ₹5,022.88 crore, up from ₹4,511.89 crore in the quarter ended June 2024.

 

The company's operating performance also saw improvements, with Ebitda rising 29.5 per cent Y-o-Y to ₹350 crore, while the Ebitda margin expanded to 7 per cent from 6 per cent a year earlier. 

 

"With a strong focus on execution, a robust and diversified order book & L1 of over Rs. 40,000 crore and a substantial tender pipeline, we are well positioned to deliver sustained profitable growth in the coming quarters," Vimal Kejriwal, managing director and chief executive officer, said. 

KEC International wins new orders worth ₹1,509 crore 

The infrastructure engineering, procurement, and construction (EPC) major secured new orders worth ₹1,509 crore across its various business verticals, it said in a statement on Wednesday. The company secured various orders in its transmission & distribution business, along with contracts in the transportation and cables and conductors business.  

Analysts on KEC International's Q1 results 

Nomura maintained its Buy rating on KEC International with a target price of ₹985, citing robust growth prospects in the Transmission and Distribution segment.

 

The company’s Ebitda for Q1 FY26 was in line with expectations, while the order pipeline remains strong. Nomura expects a 37 per cent compound annual growth rate (CAGR) in earnings per share (EPS) over FY25–FY28, led primarily by momentum in the T&D business.

 

The brokerage highlights sustained opportunities in grid integration, substations, and high-voltage direct current (HVDC) technologies, with a favourable demand outlook across key regions such as the Middle East, Africa, and the Americas.

 

Meanwhile, Antique Stock Broking retained a 'Hold' rating, revising the target price to ₹954 from ₹919 per share. The brokerage highlights several positives, including an improved operating margin profile, better working capital management, the turnaround of SAE into profitability, and strong momentum across key business segments.

 

However, Antique believes that these positives are largely priced into the current stock valuation, prompting it to maintain a neutral stance despite the company’s improving fundamentals.