KEC International , a leading global infrastructure Engineering, Procurement and Construction (EPC) major, has set its sights on achieving a 15% growth target for the fiscal year 2026, primarily driven by the robust performance of its transmission and distribution business.

Transmission Business Leads Growth

Vimal Kejriwal, Managing Director and CEO of KEC International, highlighted the company's impressive growth trajectory in the transmission sector. The India transmission revenue has seen a remarkable surge, escalating from Rs 2,000.00 crore three years ago to over Rs 7,000.00 crore in the current year. This segment now comprises a significant portion of the company's business mix, with 60% attributed to transmission-related operations and the remaining 40% to non-transmission activities.

Growth Projections and Market Outlook

The company anticipates that the transmission segment will outpace other divisions, projecting growth above 15%, while other segments may experience growth below this benchmark. This optimistic outlook is underpinned by India's ambitious renewable energy target of 600 GW by 2032, coupled with strong international demand, particularly in the Middle East and Americas.

Q1FY26 Financial Performance

KEC International has reported robust financial results for the first quarter of fiscal year 2026:

The company's financial performance demonstrates solid growth across key metrics compared to the same quarter in the previous year.

Operational Challenges and Adaptations

While the growth outlook remains positive, KEC International acknowledges certain execution challenges, including labor availability and supply chain constraints. However, the company reports improvements in both areas. In response to these challenges, project timelines have been adjusted, with substations now expected to take 15-18 months to complete.

Recent Corporate Actions

In a recent development, KEC International issued a corporate guarantee of USD 13.20 Million on August 26, 2025, in favor of an overseas bank. This guarantee was extended to support banking facilities for Al Sharif Group & KEC Limited Company, a subsidiary of KEC International. The company clarified that this transaction does not involve any interest from the Promoter/Promoter Group/Group Companies and is treated as a contingent liability on KEC International's books.

As KEC International continues to navigate the dynamic infrastructure sector, its strong performance in the transmission business and strategic adaptations position the company for potential growth in the coming years. However, investors and stakeholders should closely monitor the execution of projects and the impact of operational challenges on the company's future performance.

KEC International , a global infrastructure Engineering, Procurement, and Construction (EPC) major, has taken a significant step to support its overseas operations. The company announced the issuance of a corporate guarantee worth USD 13.20 million for its subsidiary, Al Sharif Group & KEC Limited Company.

Guarantee Details

The corporate guarantee was provided to an overseas bank that has extended banking facilities to the subsidiary. This financial move is aimed at supporting the operations of Al Sharif Group & KEC Limited Company, which is based in Saudi Arabia.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, KEC International disclosed the details of this transaction to the National Stock Exchange of India Limited and BSE Limited. The company emphasized that the guarantee represents a contingent liability and currently has no impact on its operations.

Transparency in Transactions

KEC International has explicitly stated that neither the promoter, promoter group, nor any group companies have any interest in this transaction. This disclosure ensures transparency and adherence to corporate governance norms.

Financial Implications

While the corporate guarantee does not have an immediate impact on KEC International's financials, it is recorded as a contingent liability. This means that the company may be required to fulfill this obligation in the future, depending on the financial performance of its subsidiary.

Strategic Support for Subsidiary

The issuance of this guarantee demonstrates KEC International's commitment to supporting its international subsidiaries. Al Sharif Group & KEC Limited Company, as a subsidiary operating in Saudi Arabia, plays a crucial role in KEC's global operations, particularly in the Middle Eastern market.

This strategic move by KEC International underscores the company's focus on strengthening its international presence and supporting its subsidiaries in securing necessary financial facilities for their operations. As the infrastructure sector continues to grow globally, such financial backing can be instrumental in helping subsidiaries compete effectively in their respective markets.