CARE Ratings reaffirms ratings of KEC International at 'A+/A1+'
17-Dec-2025
The agency has also affirmed the company’s short-term rating at ‘CARE A1+’.
CARE Ratings stated that the ratings assigned to bank facilities of KEC International (KEC) continues to derive strength from its well-established business profile and experienced management under the RPG Group, one of India’s leading conglomerates with diversified interests across infrastructure, IT, tyres, and energy. The group’s strong reputation, financial flexibility, and market capitalisation provide strength.
The Ratings considers geographically and segmentally diversified order book of Rs 39,325 crore as on 30 September 2025 (1.8x of FY25 revenue), providing adequate revenue visibility for 18–24 months.
KEC reported healthy growth in scale of operations with consolidated revenue of Rs 21,854 crore in FY25 (up 10% YoY), driven by strong execution in T&D and cables. Profitability improved to 7.70% in FY25 (FY24: 6.82%) aided by operational efficiencies and higher margin in T&D and SAE Towers, though overall margins remain moderate due to weaker performance in non-T&D segments, especially in Railways and Civil Segment.
Ratings also take cognisance of augmentation of net worth base with successful completion of qualified institutional placement (QIP) of ₹850 crore in FY25.
However, ratings remain constrained by sustained high working capital intensity, with gross current asset (GCA) days at 330 in FY25, driven by slow recovery of receivables from railways, urban transportation, and water projects.
This has led to high indebtedness and moderate debt coverage indicators. Going forward, rationalisation of GCA days and consequent debt rationalisation remain key rating monitorable.
KEC is part of the RPG group. The company is a global EPC major in power T&D systems. It has also diversified in railway infrastructure, manufacturing cables (for power, telecom, solar and railways), civil construction with a focus on construction of industrial plants, warehouses, residential and commercial complexes, smart infrastructure, and renewable sector (solar) projects.
The company's consolidated net profit jumped 88.21% to Rs 160.75 crore in Q2 FY26, while revenue from operations rose 19.13% to Rs 6,091.56 crore. Its year to date order intake has crossed Rs 17,000 crore, up about 17% from last year.
The scrip shed 0.46% to currently trade at Rs 702.05 on the BSE.