2 weeks ago
KEC International shares hit 52-week low as Q1 profit falls
KEC International is a big company that builds things like power lines, roads, and pipelines in more than 110 countries.
It recently told people how much money it made in the first three months of its financial year.
The company made a lot less profit than last year — its profit went down by 42 percent.
It earned about the same amount of money, but its costs went up a lot.
This happened partly because of trouble in the Middle East, where shipping things costs more and takes longer.
Because of these problems, the company's shares fell to their lowest price in a year.
People who study companies, called analysts, still think the company will do well later on.
They say the cost problems might last a few more months but the company is trying to get customers to pay for the extra costs.
For regular people, this news is about a big company having a tough few months.
KEC International shares hit a 52-week low and have lost 9% since Q1 earnings were announced on August 10.
Consolidated net profit fell 42% to Rs 73 crore in Q1FY27 from Rs 125 crore in Q1FY26, while revenue stayed flat at Rs 5,024 crore.
EBITDA slipped 17% year-on-year to Rs 291 crore, with the margin down 120 basis points to 5.8% in the June 2026 quarter.
Middle East geopolitical disruptions and supply chain challenges, affecting about 25% of the order book, deferred Rs 300 crore of revenue in 1QFY27.
Axis Direct cut its price target to Rs 540 from Rs 590 and Motilal Oswal reiterated a buy call, with the article citing price targets of both Rs 580 and Rs 290.
- Who
- KEC International, a global infrastructure EPC company and flagship of the RPG Group
- What
- Reported a 42% drop in Q1FY27 net profit to Rs 73 crore, sending its shares to a 52-week low
- Where
- India-headquartered company with significant project exposure in the Middle East, mainly Saudi Arabia and the UAE
- When
- Quarter ended June 2026 (Q1FY27); earnings announced on August 10
- Why
- Geopolitical disruptions and supply chain challenges in the Middle East raised freight, fuel, and insurance costs and delayed execution
Key facts
- Q1FY27 net profit
- Rs 73 crore, down 42% from Rs 125 crore in Q1FY26
- Q1FY27 revenue
- Rs 5,024 crore, flat year-on-year
- EBITDA and margin
- Rs 291 crore, down 17% YoY; margin 5.8%, down 120 bps
- Share price decline
- 9% since results; 43% over one year; 46% over two years
- Middle East order book exposure
- About 25% of order book, or roughly Rs 10,000 crore, split between Saudi Arabia and the UAE
- Deferred revenue
- Rs 300 crore deferred in 1QFY27, with some spillover expected into Q2
- Axis Direct price target
- Rs 540, cut from Rs 590, with buy call maintained
- Motilal Oswal price target
- Rs 580 and Rs 290 both cited in the article, with buy call reiterated
Quotes
Motilal Oswal
Financial analyst team at Motilal Oswal Securities
“We value the stock at 15x FY28E EPS to arrive at our TP of Rs 290. Reiterate BUY.”
businesstoday.in










