KEC’s Order Engine

KEC International looks attractive for shareholders because its order book gives strong revenue visibility, but the real benefit will depend on execution, margins, and cash flow. The company’s FY26 figures show revenue of Rs 23,506 crore, net profit of Rs 606 crore, and an order book of Rs 36,267 crore, with an additional L1 position of more than Rs 3,000 crore. KEC is one of the three power EPC names highlighted for holding a massive pipeline of unexecuted work, and that matters because power capex in India is rising sharply. Demand is being driven by higher electricity use, data centres, electric vehicles, renewable energy integration, and the need for more transmission lines and substations. For KEC, this is a clear positive because its main strength is in power transmission and distribution, which accounted for 68% of FY26 revenue, up from 59% in FY25. The company’s order intake also remained strong at a record Rs 25,280 crore in FY26, with around 70% coming from T&D. Management expects revenue growth of 12-15% in FY27 and order inflows of around Rs 30,000 crore. If KEC converts this backlog smoothly, shareholders can benefit from better earnings visibility and a longer growth runway. Still, the stock is not without risks. Net debt stayed high at Rs 6,722 crore, and the business has faced delays, freight cost pressure, labour shortages, and slower payments in some projects. That means a large order book is useful, but it is not enough on its own. For shareholders, the opportunity is real, but the upside depends on disciplined execution, faster debt reduction, and stronger cash conversion.