Kalpataru Projects: ₹66,607 cr backlog, 46% profit jump

Kalpataru Projects International Limited (NSE: KPIL) grew Q1 FY27 net profit 46% to ₹312 crore. Revenue grew 4% to ₹6,408 crore. T&D is the largest segment and the fastest growing. What happened T&D revenue rose 10% to ₹2,924 crore. EBITDA grew 7% to ₹562 crore, with margin expanding 30 basis points to 8.8%. KPIL secured ₹4,163 crore of T&D orders in Q1, 54% of its total new orders of ₹7,668 crore. The order book is ₹66,607 crore, T&D at 44%. It holds L1 in additional bids over ₹5,000 crore. Average project size has jumped 2.5 times to ₹500 crore. Net debt to equity is 0.1 times and working capital is 80 days, down from 91. Why it matters KPIL has completed over 38,000 kilometres of transmission contracts. Its HVDC and design-build capabilities let it win larger projects. The Green Energy Corridor directly adds to the T&D pipeline. My view KPIL offers the best blend of growth and returns among the three. ROCE is 18.3%, better than KEC's 16.5% and well above Power Grid's 9.1%. A net debt to equity of 0.1 times leaves room for large orders. The margin is the one thing to watch. At 8.8%, the best in eight quarters, it is thin for a company taking on ₹500 crore projects. Execution determines whether it expands further. At 20.8 times earnings, KPIL trades below its 10-year median of 23.1 times. That makes it modestly cheap relative to its own history. What I am watching Q2 FY27 results, margin above 9%, and whether the ₹5,000 crore L1 pipeline converts to firm orders. On the chart, ₹1,000 is the 52-week low and ₹1,520 is the high. My stance: Accumulate near ₹1,300. This is the best risk-reward among the three transmission plays. Disclosure: I do not hold a position in Kalpataru Projects International Limited at the time of writing. This is not investment advice.