KEC International: Is It the Right Time to Buy After a 15% Crash Following Q4 Results?

Synopsis: The share of this company fell nearly 15 percent after Q4 FY26 results, despite brokerages indicating up to 50 percent upside based on revised target prices, as weak execution and margin pressure weighed on sentiment.

The share of this company, which is a global infrastructure Engineering, Procurement, and Construction (EPC) major headquartered in Mumbai, India, gained investor focus after brokerages gave their view after Q4

With a market capitalization of Rs 12,458 crore, KEC International Ltd’s share made a day low of Rs 466.10 per share, down by 14.8 percent from its Friday’s close price of Rs 546 per share. The share of the company delivered a negative return of 43 percent over the last year.

Brokerage’s View 

Elara Capital maintained its ‘Buy’ rating on KEC International Ltd but cut its target price to Rs 700 from Rs 930, implying around 50 percent upside from current levels. The brokerage cited weaker Q4 performance due to execution delays and geopolitical disruptions in the Middle East.

Elara Capital maintained its ‘Buy’ rating on KEC International Ltd despite a weaker Q4 performance, which was impacted by geopolitical disruptions in the Middle East. The brokerage noted that operational headwinds weighed on execution during the quarter, leading to softer financial performance.

For Q4, revenue declined around 7 percent YoY, mainly due to shipment delays and slower project execution across key regions. The slowdown was largely attributed to logistical challenges and temporary disruptions in project movement.

EBITDA margin also contracted by 80 basis points YoY to about 7 percent. Following the weaker-than-expected performance, Elara Capital revised its earnings estimates downward, factoring in execution delays and continued geopolitical uncertainty.

Motilal Oswal revised its target price for KEC International Ltd to Rs 630 from Rs 750, citing margin pressure and weaker execution in non-T&D segments despite continued strength in core T&D business momentum.

Motilal Oswal Financial Services maintained its ‘Buy’ rating on KEC International Ltd, highlighting that despite weak Q4 FY26 results, the company continues to benefit from strong momentum in its transmission and distribution (T&D) business.

The brokerage noted that geopolitical disruptions weighed on overall execution and impacted near-term performance, particularly in non-T&D segments. However, it expects the T&D and civil businesses to drive steady execution going forward, supported by a healthy order book.

At the same time, Motilal Oswal has cut its earnings estimates, factoring in margin pressure and weaker execution in non-T&D segments. Despite near-term challenges, the brokerage remains positive on the company’s long-term growth outlook.

Emkay downgraded the stock to ‘Add’ from ‘Buy’ due to weak execution and pressure on profitability. The brokerage also cut its target price to Rs 600 from Rs 875, reflecting a weaker near-term earnings outlook.

Emkay downgraded the stock to ‘Add’ from ‘Buy’, citing weak execution and continued pressure on profitability. The brokerage highlighted that Q4 performance was impacted by supply chain disruptions and labour shortages, which weighed on operational efficiency and overall earnings visibility.

Additionally, elevated debt levels and high working capital requirements remained key concerns for the company. Due to these execution challenges and near-term operational headwinds, Emkay cut its earnings estimates for FY27 and FY28, reflecting a softer growth outlook ahead.

Conclusion: The 15 percent correction in KEC International Ltd reflects weak Q4 FY26 execution, margin pressure, and geopolitical disruptions impacting performance. Despite earnings decline, brokerages still see up to 50 percent upside, making the near-term outlook dependent on execution recovery and margin improvement.

About the Company

KEC International Ltd is a global infrastructure Engineering, Procurement, and Construction (EPC) major headquartered in Mumbai, India. The flagship company of the USD 5.2 billion RPG Group, it specializes in executing large-scale, complex projects spanning power transmission and distribution, civil infrastructure, transportation, renewables, and cables.

Financial Highlights: The revenue from operations decreased by 7 percent to Rs 6,390 crore in Q4 FY26 (Mar 2026) from Rs 6,872 crore in Q4 FY25 (Mar 2025), and EBIDT decreased by 17 percent to Rs 448 crore in Q4 FY26 from Rs 539 crore in Q4 FY25. This was accompanied by a net profit decline of 28 percent to Rs 193 crore in Q4 FY26 from Rs 268 crore in Q4 FY25, resulting in an EPS decrease of 28 percent to Rs 7.24 per share in Q4 FY26 from Rs 10.08 per share in Q4 FY25. 

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