Kalpataru Projects International Limited (KPIL), a leading infrastructure EPC company, has announced key board decisions and robust financial results for the second quarter.

Board Approves Extension of Bank Guarantees

The Board of Directors has extended the validity period for providing Counter Bank Guarantees not exceeding USD 10 Million to lenders of its subsidiary, Kalpataru IBN Omairah Company Limited (KIOCL). The guarantees, which are in favor of lenders including Saudi British Bank, will now be valid until September 30, 2027. This extension aims to support KIOCL's ongoing operations and client commitments.

New Senior Management Appointment

KPIL has appointed Mr. Sriram Pechiappan as President - Group Assurance and designated him as Senior Management Personnel, effective October 31, 2025. Mr. Pechiappan brings over 27 years of experience in Finance and Internal Audit, having previously worked with organizations like Reliance Industries Limited and Asian Paints Limited.

Q2 Financial Highlights

KPIL has reported impressive financial results for Q2:

The company's strong performance was driven by robust execution and a healthy order backlog. The EPC segment, in particular, showed significant growth with revenues increasing by 51% year-on-year.

Order Book and Future Outlook

As of September 30, 2025, KPIL's consolidated order book stands at ₹64,682.00 crore, providing clear visibility for future growth. The company has secured new orders worth ₹14,951.00 crore year-to-date, with an additional ₹5,000.00 crore worth of projects where it is favorably placed.

Manish Mohnot, MD & CEO of KPIL, commented on the results: "We have delivered another quarter of strong performance, building on the momentum of the previous quarter. This quarter happens to be the best ever Q2 in terms of revenue and profitability." He further added that the company remains committed to improving project delivery capabilities, strengthening its balance sheet, and investing in high-growth business verticals.

Segment Performance

The EPC segment continues to be the primary driver of growth, with revenues of ₹6,313.85 crore in Q2, up 31% year-on-year. The Development Projects segment also showed significant improvement, with revenues increasing to ₹167.58 crore from ₹53.40 crore in the same quarter last year.

KPIL's robust performance in Q2 demonstrates its strong market position and effective execution capabilities in the infrastructure sector. The company's strategic decisions, including the extension of bank guarantees and key leadership appointments, are likely to support its growth trajectory in the coming quarters.

Kalpataru Projects International Limited (KPIL) has announced a strong order book of ₹64,682 crore as of September 30, 2023, demonstrating the company's solid position in the infrastructure sector. This robust order book provides a clear pathway for business growth in the upcoming quarters.

Financial Performance

For the quarter ended September 30, 2023, KPIL reported:

• Consolidated revenue of ₹6,528.57 crore, marking a significant increase of 32% year-over-year
• Profit before tax (PBT) saw a substantial rise of 71% YoY to ₹322.00 crore
• PBT margin improved by 110 basis points to 4.9%
• Consolidated profit after tax (PAT) stood at ₹237.39 crore, representing a robust growth of 89% compared to the same quarter in the previous year

Order Inflows and Segment Performance

The company has secured new orders worth ₹14,951 crore year-to-date, reflecting a growth of approximately 26% YoY. Additionally, KPIL is favorably placed in orders worth about ₹5,000 crore, mainly in the Transmission & Distribution (T&D) business.

Segment-wise performance:

• T&D business: 51% YoY increase in revenue
• Buildings & Factories (B&F): 20% YoY growth
• Oil & Gas: 21% YoY increase
• Urban Infra: 65% YoY growth

Balance Sheet and Working Capital

KPIL has been focusing on strengthening its balance sheet through prudent capital management:

• Consolidated Net Debt to Equity ratio: 0.46x as of September 30, 2023
• Standalone net working capital days: Reduced by 16 days YoY to 102 days

Management Commentary

Manish Mohnot, MD & CEO of KPIL, commented on the results: "We have delivered another quarter of strong performance, building on the momentum of the previous quarter. This quarter happens to be the best ever Q2 in terms of revenue and profitability, as our consolidated revenue grew by 32% YoY, PBT grew by 71% YoY with margin expansion of 110 bps to 4.9% and PAT grew by 89% YoY."

He further added, "Looking ahead, we remain committed to improve our project delivery capabilities, further strengthen our balance sheet and continue investing to scale high-growth business verticals."

Outlook

With a robust order book and strong financial performance, Kalpataru Projects International appears well-positioned to capitalize on opportunities in the infrastructure sector. The company's focus on improving project delivery capabilities and strengthening its balance sheet may contribute to its growth trajectory in the coming quarters.