KEC International Wins Record India T&D Contract, Bags Rs.1,150 Crore Orders

KEC International Secures ₹1,150 Crore in New Orders, Lands Largest-Ever India T&D Contract

KEC International Ltd has strengthened its growth pipeline by securing fresh orders worth ₹1,150 crore, including the largest-ever contract in its India transmission and distribution (T&D) business. The latest wins reinforce the RPG Group company’s position in the power infrastructure space and support management’s confidence in meeting its margin and revenue growth guidance for the year.

The engineering, procurement and construction (EPC) major said the orders were secured in the normal course of business, reflecting steady execution momentum despite a mixed operating environment across infrastructure segments.

Landmark India T&D Order Signals Rising Grid Investment

The highlight of the order inflow is a large composite contract awarded to KEC’s India T&D business by a reputed private sector player. The project involves the construction of a 765 kV transmission line along with a 765/400 kV air-insulated substation on a turnkey basis.

This contract marks the largest order ever won by KEC in the domestic T&D segment, underlining its growing scale and execution capabilities in high-voltage power transmission. For investors, the size and complexity of the project signal increasing private sector investment in grid expansion, driven by rising power demand, renewable integration, and the need for long-distance transmission infrastructure.

The order also strengthens KEC’s domestic order book at a time when India’s power sector continues to prioritise grid reliability and capacity augmentation.

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Civil Business Order Adds Depth to Diversified Portfolio

Alongside the T&D win, KEC International’s civil business secured an order for incremental civil and structural works at a 150 MW thermal power plant. While smaller in size compared to the transmission contract, the order expands the company’s footprint in the power-related civil construction segment.

The civil business has faced near-term challenges due to monsoon disruptions, labour shortages, and delays in water infrastructure projects linked to slower payments. Against this backdrop, incremental orders in thermal power construction provide some balance and visibility for the segment as conditions normalise.

Order Momentum Supports Confidence on Growth and Margins

With the latest contracts, KEC International’s year-to-date order intake has crossed ₹18,000 crore. This milestone reinforces management’s confidence in achieving its stated targets for the financial year.

Earlier, Managing Director and CEO Vimal Kejriwal reiterated that the company expects to deliver operating margins of around 8 percent for the full year, along with revenue growth of about 15 percent. While margins faced pressure in the second quarter, management has highlighted the seasonal skew in revenues, with nearly 60 percent of annual revenue typically generated in the second half of the year.

This revenue concentration supports operating leverage, allowing margins to improve as execution accelerates in the latter part of the year.

Strong T&D Performance Offsets Civil Segment Weakness

KEC’s recent financial performance reflects a divergence across business segments. In the second quarter, the company reported a 19 percent year-on-year increase in revenue, driven primarily by robust growth in the T&D business.

The transmission and distribution segment posted a sharp 44 percent growth, benefiting from healthy execution of domestic and international projects. This strength helped offset softness in the civil construction business, which was impacted by weather-related disruptions and project-specific delays.

For investors, the continued outperformance of the T&D segment underscores its role as the company’s core growth engine, particularly as power infrastructure spending remains a national priority.

Market Reaction and Investor Takeaways

Ahead of the order announcement, shares of KEC International closed at ₹694.45 on the BSE, up 1.54 percent, reflecting positive investor sentiment around order inflows and execution visibility.

Large T&D orders are typically viewed favourably by the market, as they offer longer execution timelines, predictable cash flows, and relatively stable margins compared with more fragmented construction segments. The latest win further improves revenue visibility for the coming quarters.

Why the India T&D Segment Remains Strategic for KEC

India’s power transmission sector is entering a multi-year investment phase, supported by renewable energy targets, inter-state grid strengthening, and rising industrial and urban electricity demand. High-capacity transmission lines and substations are critical to evacuating power from renewable-rich regions to consumption centres.

KEC’s ability to secure a marquee 765 kV project highlights its technical credentials and competitive positioning in this evolving landscape. It also strengthens relationships with private developers, which are playing an increasingly important role alongside state utilities.

Execution and Cash Flow Will Be Key Going Forward

While order inflows remain strong, investors will continue to monitor execution pace, working capital discipline, and cash flow generation. EPC businesses are sensitive to delays, cost inflation, and payment cycles, making efficient project management critical to sustaining margins.

Management’s guidance suggests confidence that second-half execution will offset earlier pressures, but timely delivery of large projects like the new T&D contract will be central to meeting those targets.

The Bigger Picture for KEC International

The ₹1,150 crore order win marks a meaningful step in KEC International’s growth trajectory, combining scale, strategic relevance, and diversification. With year-to-date orders exceeding ₹18,000 crore and a strong pipeline in core segments, the company appears well positioned to navigate near-term challenges and capitalise on India’s infrastructure build-out.

For now, the latest announcement reinforces KEC’s standing as a key beneficiary of power transmission investments, while supporting management’s outlook on growth and profitability.

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