Kalpataru Projects International Ltd reports a record-breaking first quarter with increased profits and historic order book, maintaining positive guidance for FY27 amid strong segment performance and regional expansion opportunities.
Kalpataru Projects International Ltd said its first quarter to June delivered record revenue, earnings before interest, tax, depreciation and amortisation and profit, as the engineering, procurement and construction group continued to benefit from stronger execution across its core businesses. Consolidated revenue rose 9% year on year and profit after tax increased 46%, with EBITDA margin improving to 8.8% and pre-tax profit margin climbing 190 basis points to 6.6%, according to the company’s earnings update.
The quarter also ended with a record order book of ₹66,607 crore, supported by ₹7,668 crore of fresh wins and another ₹7,500 crore in projects where the company is the lowest bidder, a position in India known as L1. Kalpataru has kept its full-year guidance unchanged, targeting at least 15% revenue growth in FY27 and more than 75 basis points of margin expansion, while also aiming for ₹30,000 crore of order inflows over the year, according to management commentary cited in industry reports.
Chief executive Manish Mohanok said the strongest margin contributors remain transmission and distribution, buildings and factories, and oil and gas, where EBITDA is close to double digits. He said the company expects large oil and gas awards in the second half of the year, after delays in contract placements, and that bids in the Middle East range from $100 million to $500 million. Kalpataru has also qualified for work with major utilities across the region, including in Saudi Arabia, the United Arab Emirates, Kuwait and Qatar, and said its first Middle East water treatment contract, worth ₹344 crore, could open further opportunities in plants, pipelines and desalination.
Not all parts of the portfolio are moving at the same pace. The water business still faces slower collections, with billed and unbilled receivables at about ₹1,500 crore, and the company is holding back from new domestic water bids until cash collections improve. Management also pointed to early-quarter labour shortages linked to state elections and supply chain friction tied to wider Middle East disruption. Even so, the balance sheet remains conservative, with net debt to equity at 0.1 times and working capital days down 11 to 12 year on year, while the company said it expects operating cash flow to stay healthy. Industry reports also noted that Kalpataru is investing more than ₹800 crore in capital expenditure this year to support growth in T&D, B&F, international projects and plant modernisation.
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