Kalpataru Projects International Limited has officially signed a Share Sale, Exit, and Release Agreement on February 23, 2026, to acquire the remaining 35% stake in its Saudi Arabian subsidiary, Kalpataru IBN Omairah Company Limited (KIOCL). The agreement was executed in the Kingdom of Saudi Arabia, with the company receiving intimation on February 24, 2026.

Transaction Details

The acquisition involves purchasing 175 equity shares representing the remaining 35% stake from joint venture partner BIN Omairah Contracting Company Limited. Upon completion, KIOCL will become a wholly owned subsidiary of Kalpataru Projects International.

Financial Performance of KIOCL

The target entity operates in the power transmission and distribution sector, similar to Kalpataru Projects International's core business. KIOCL's recent financial performance shows varied results across the years.

For FY 2025, KIOCL reported a loss after tax of approximately SAR 22.96 million and a negative net worth of SAR 53.94 million as of March 31, 2025.

Strategic Impact and Regulatory Requirements

The acquisition will strengthen Kalpataru Projects International's presence in the Saudi Arabian market, providing complete operational control over its Middle Eastern subsidiary. KIOCL, incorporated on June 1, 2015, is currently executing various high voltage transmission line and substation projects in Saudi Arabia.

The transaction requires customary approvals from the Saudi Business Centre and other relevant authorities in the Kingdom of Saudi Arabia. The acquisition does not fall under related party transactions, as the 35% stake is being purchased from an unrelated entity. The consideration will be paid through cash via banking channels.

Kalpataru Projects International has announced its Q3FY26 quarterly results for the quarter ended December 31, 2025, delivering strong financial performance with significant revenue growth and improved profitability across key metrics. The company has set ambitious targets including consolidated EPS over INR 50 this year and outlined comprehensive capex plans for sustained growth.

Financial Performance Highlights

The infrastructure and power transmission company demonstrated robust growth momentum in Q3FY26, with consolidated revenue reaching Rs. 6,665.42 crores compared to Rs. 5,732.48 crores in the corresponding quarter of the previous year. The company achieved consolidated net profit attributable to owners of Rs. 152.17 crores versus Rs. 141.96 crores in Q3FY25.

Strategic Targets and Capital Expenditure Plans

The company has set ambitious financial targets, aiming for consolidated EPS over INR 50 this year while focusing on net working capital optimization and order inflows. Management has outlined a structured capex approach with INR 700-758 crore allocated for FY2026, and similar projections planned for FY2027, demonstrating commitment to sustained infrastructure investment and growth.

FY2026 Growth Outlook and Margin Expansion

The company expects around 25% revenue growth for FY2026 with significant earnings improvements and ongoing margin enhancement. Management anticipates margin improvements of 50 basis points for standalone operations and 100 basis points for consolidated operations, reflecting enhanced operational efficiency and project execution capabilities. Detailed financial figures and comprehensive guidance will be revealed in the April earnings call.

Segment-wise Performance Analysis

The company's Engineering, Procurement and Construction (EPC) segment continued to be the primary revenue driver, generating Rs. 6,573.59 crores in Q3FY26 compared to Rs. 5,616.28 crores in the same quarter last year. Development Projects segment contributed Rs. 50.66 crores while the Others segment added Rs. 59.44 crores to the total revenue.

Nine-Month Performance Overview

For the nine months ended December 31, 2025, the company reported consolidated revenue of Rs. 19,365.16 crores compared to Rs. 15,249.01 crores in the corresponding period last year, representing a growth of 27.00%. Net profit attributable to owners reached Rs. 605.84 crores versus Rs. 360.29 crores in the previous year, demonstrating strong operational momentum supporting the ambitious EPS targets.