Kalpataru Projects International Limited reported a consolidated net profit of ₹311.53 crore for the quarter ended June 30, 2026, marking a 46% year-on-year increase from ₹213.59 crore in Q1FY26. This strong bottom-line performance was driven by broad-based operational improvements, efficient working capital management, and significant margin expansion across key business verticals. India Ratings & Research (Ind-Ra) upgraded the company’s credit rating to IND AA+/Stable, reaffirming its strong financial profile and prudent capital structure.

The Board of Directors approved the unaudited financial results at its meeting held on August 11, 2026, with statutory auditors B S R & Co. LLP issuing an unmodified limited review report. The filing was submitted in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Consolidated Financial Performance

On a consolidated basis, revenue from operations grew to ₹6,407.97 crore in Q1FY27, up from ₹6,171.17 crore in the year-ago quarter. Management highlighted that comparable revenue, excluding income from Road Special Purpose Vehicles (SPVs) and the Brazil subsidiary which had minimal operations in FY27, surged by 9% to ₹6,396 crore from ₹5,888 crore. Consolidated EBITDA rose to ₹562 crore from ₹525 crore, with the EBITDA margin expanding by 30 basis points to 8.8% from 8.5%. Profit before tax (PBT) jumped 45% to ₹420.47 crore, reflecting a PBT margin expansion of 190 basis points to 6.6%.

*Excludes Road SPVs and Brazil subsidiary.

Standalone Results and Segment Growth

Standalone net profit rose 32% to ₹265.36 crore from ₹200.76 crore. Standalone revenue from operations increased 9% to ₹5,481.86 crore. Standalone EBITDA grew by 14% YoY to ₹488 crore, with the EBITDA margin up by 40 basis points nearing ~9%. Standalone PBT increased by 32% YoY to ₹361 crore, with the PBT margin at 6.6%, up 120 basis points.

The Engineering, Procurement and Construction (EPC) segment remained the primary revenue driver, contributing ₹6,345.64 crore on a consolidated basis. Transmission and Distribution (T&D) revenue grew 10% to ₹2,924 crore, supported by healthy execution and a robust order backlog. Buildings & Factories (B&F) revenue expanded 15% to ₹1,588 crore, while Oil & Gas revenue rose 18% to ₹693 crore due to execution in Saudi projects. Conversely, Water business revenue declined 7% to ₹626 crore amid lower collections in Jal Jeevan Mission (JJM) projects.

Balance Sheet and Order Book

The company strengthened its balance sheet, with consolidated net debt down by 67% YoY to ₹917 crore as on June 30, 2026. Net Working Capital days declined by 11 days YoY to 80 days. The consolidated debt-equity ratio improved to 0.34 times from 0.62 times in Q1FY26. Interest service coverage ratio (ISCR) stood at 6.15 times versus 3.81 times in the prior year. Standalone net debt was ₹752 crore as on June 30, 2026, compared to ₹749 crore for the period ended March 31, 2026.

As of June 30, 2026, Kalpataru Projects International maintained a consolidated order book of ₹66,607 crore, an all-time high. Order inflows till date in FY27 stood at ₹7,668 crore, with further favourably placed/L1 orders worth ~₹7,300 crore, led by T&D and B&F business. In FY27 till date, the company secured projects worth ₹4,163 crore in the T&D segment alone. The Swedish subsidiary, LMG, reported revenue of ₹833 crore with an order book of ₹4,266 crore.

What the Numbers Show

The divergence between reported revenue growth (4%) and comparable revenue growth (9%) highlights the strategic normalization of the portfolio as low-margin or non-operational entities like the Brazil subsidiary are phased out. The significant expansion in PBT margin (+190 bps) outpaced EBITDA margin improvement (+30 bps), indicating effective control over finance costs, which dropped to ₹82 crore from ₹122 crore. This operational leverage suggests that the company is not only growing top-line revenues but also enhancing profitability through disciplined cost management and favorable project mix execution. The credit rating upgrade to IND AA+ positions KPIL among an elite group of large-scale EPC players with such financial standing.

Kalpataru Projects International kalpataru projects international has approved a capital expenditure of Rs. 150 crores to establish a rolling mill at its Raipur Plant. The Board of Directors sanctioned the investment on August 11, 2026, marking a strategic move toward backward integration in its manufacturing operations. This expansion aims to enhance operational efficiency by internalizing key production stages at the existing facility.

The decision was ratified during a Board meeting that commenced at 12:00 noon IST and concluded at 02:15 p.m. IST. In compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR Regulations"), the company notified both the BSE Limited and the National Stock Exchange of India Ltd. regarding the outcome of the proceedings.

Investment Details

The approved capital expenditure is capped at Rs. 150 crores. The project focuses specifically on the installation of a rolling mill unit within the Raipur Plant infrastructure.

Strategic Implications

The move to integrate backward through the addition of a rolling mill suggests a focus on securing supply chain resilience and potentially reducing dependency on external vendors for raw materials or semi-finished goods. By bringing this production stage in-house at the Raipur facility, Kalpataru Projects International Limited aims to optimize cost structures and improve control over quality and timelines for its downstream operations.

The disclosure was signed by Shweta Girotra, Company Secretary, and submitted to the exchanges on August 11, 2026. The filing confirms that the proposal was approved inter alia among other agenda items discussed during the session.