Archive · 12 Nov 2025
Brokerages Bullish on KEC International After Strong Q2 Earnings
Imagine KEC International is a construction company that builds big electricity grids and other infrastructure.
They just announced their results for the last three months, and they did really well!
Their sales went up a lot, and they made more profit than before.
Because of this good news, some financial experts, like those at Nomura and Motilal Oswal, are now recommending people buy KEC's stock.
They think the company will keep doing well because India is investing a lot in electricity grids, and KEC is also winning big projects in other countries.
While some parts of their business are still a bit slow, like the civil construction, the main electricity grid part is very strong.
The company has a lot of orders to work on, which is good for the future.
They also have some debt, but experts believe it will go down soon.
So, overall, the experts are optimistic about KEC's future.
KEC International shares surged 3.3% after Q2 results led to multiple brokerages turning bullish.
Nomura and Motilal Oswal initiated 'Buy' ratings, projecting 15-20% upside with target prices of Rs 985 and Rs 920 respectively.
Q2 results showed a 19% year-on-year revenue increase to Rs 6,091 crore and an 88% surge in profit after tax to Rs 161 crore.
The company secured significant international projects, including its largest EPC contract worth Rs 3,100 crore in the UAE.
Analysts are optimistic about KEC's core transmission and distribution business, expecting debt normalization and margin improvement.
- Who
- KEC International, Nomura, Motilal Oswal Financial Services, and other brokerages.
- What
- KEC International's shares rose after strong Q2 results, leading multiple brokerages to upgrade their ratings and price targets, citing improved execution, stabilising non-T&D operations, and expected debt normalization. The company secured significant international projects.
- When
- Wednesday, following the release of September-quarter results and subsequent brokerage reports.
- Where
- India, with significant project wins in the Middle East, Africa, and CIS regions.
- Why
- Strong Q2 revenue growth, margin expansion, profit surge, and a robust order book, coupled with positive future outlooks from analysts regarding capital expenditure cycles and debt reduction, have driven the bullish sentiment.
Nomura
Motilal Oswal
Rating and Target Price
Nomura
Reiterated 'Buy' with a target price of Rs 985, implying xx% upside.
Motilal Oswal
Upgraded to 'Buy' from 'Neutral' with a revised target price of Rs 920, implying xx% upside.
Valuation Metric
Nomura
Valuing KEC at 20 times projected June 2027 earnings.
Motilal Oswal
Stock trades at 19.1 times FY27 and 15.1 times FY28 projected earnings.
FY26 EBITDA Margin Expectation
Nomura
Company guidance of 8% EBITDA margin for FY26 is achievable.
Motilal Oswal
Expects EBITDA margins to improve to 7.7% in FY26.
- Q2 Revenue Growth
- 19% year-on-year
- Q2 EBITDA Growth
- 34% year-on-year
- Q2 Profit After Tax Growth
- 88% year-on-year
- Q2 EBITDA Margin
- 7.1% (improved from 6.3%)
- Order Book
- Rs 39,325 crore (15% year-on-year growth)
- Year-to-Date Order Inflows
- Rs 16,050 crore
- Net Debt
- Rs 6,480 crore
- Working Capital Days
- 125 days
Sources
KPIT Tech shares: MOFSL sees 24% upside post Q2; upbeat on solutions led shift despite softer margins
KPIT Technologies: Strong deal flow, but can it keep the engine running?
Q2 Earnings signal a turning point? 3 reasons why Kotak predicts 10% growth in FY26 - Industry News
