KP Green Engineering Closes FY26 With Record Highs; EBITDA Grew 117% and PAT Increased 85% YoY

Synopsis: Reporting audited consolidated results for H2 and full-year FY26, KP Green Engineering posted revenue of Rs. 1,245.57 crore (up 79% YoY) and PAT of Rs. 135.74 crore (up 85% YoY), with EBITDA more than doubling to Rs. 249 crore as the newly commissioned galvanising plant brought fresh capacity online and order diversification widened into telecom, railways, and road infrastructure.

With a market capitalisation of Rs. 2,360.75 crore, the shares of KP Green Engineering Limited were last recorded at Rs. 472.15 per share, down 4.34 percent from its previous close of Rs.493.55. It is trading at a P/E of 22.63

The fabrication and galvanising arm of the KP Group delivered what the company itself called “magnificent performance”. The numbers back that characterisation. For full-year FY26, consolidated revenue from operations was Rs. 1,246 crore, up 79 percent from Rs. 695 crore in FY25. EBITDA grew 117 percent to Rs. 249 crore from Rs. 115 crore a year earlier, with EBITDA margins expanding roughly 340 basis points to approximately 20 percent. PAT for the full year was Rs. 136 crore, up 85 percent from Rs. 73 crore, with EPS rising to Rs. 27.1 from Rs. 14.70.

The second half of FY26 (October 2025 to March 2026) was the stronger of the two halves. H2 FY26 revenue was Rs. 713 crore, up 65 percent over H2 FY25’s Rs. 432 crore. EBITDA for the period was approximately Rs. 147 crore, up 108 percent year-on-year with H2 EBITDA margins at around 21 percent. PAT for H2 FY26 stood at Rs. 77 crore, a 68 percent increase from Rs. 46 crore in the comparable prior-year period. Half-year EPS was Rs. 15.4.

The single most consequential operational development in FY26 was the commissioning of the galvanising plant during the second half, bringing total manufacturing capacity to 4,00,500 metric tonnes per annum. The expansion was funded through a combination of debt and internal accruals: fixed assets (PPE) on the consolidated balance sheet grew from Rs. 208 crore in FY25 to Rs. 455.50 crore in FY26, more than doubling while total assets expanded from Rs. 734 crore to Rs. 1,587 crore. Capital expenditure outflows for the year were Rs. 365.94 crore on an investing cash flow basis, financed partly through Rs. 205.37 crore in net financing inflows.

Finance costs rose sharply as a consequence; from Rs. 8.91 crore in FY25 to Rs. 41.45 crore in FY26, a 365 percent increase. Depreciation charges similarly moved up, from Rs. 5.86 crore to Rs. 23.34 crore. Both are structural costs of the capacity build-out and will persist at elevated levels until the new asset base is fully utilised and revenue generated from incremental capacity offsets the fixed cost drag.

Balance Sheet and Working Capital Watch

With scale-up comes working capital expansion, and the numbers here warrant attention. Inventories surged from Rs. 136.85 crore in FY25 to Rs. 464.99 crore, a 240 percent increase in a single year. Trade receivables rose from Rs. 270.60 crore to Rs. 316.01 crore. On the payables side, trade payables grew from Rs. 142.64 crore to Rs. 328.84 crore, suggesting the company is partly financing its inventory build through supplier credit. Total borrowings (current and non-current) stood at Rs. 261.60 crore at year-end, up from Rs. 92.42 crore in FY25. 

Operating cash flow was a positive Rs. 155.41 crore for the year, providing some reassurance that the working capital cycle is generating cash, though debtor days have stretched to 142 days. Net worth grew to Rs. 457.57 crore from Rs. 324 crore. The board recommended a final dividend of Re. 0.30 per equity share of face value Rs. 5, subject to shareholder approval at the upcoming AGM.

Business Overview

KP Green Engineering Limited is the flagship manufacturing entity of the KP Group, incorporated in 2001 and headquartered in Surat, Gujarat. The company fabricates and galvanises steel products used in renewable energy infrastructure, power transmission, telecom towers, railways, and road projects. 

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