Kalpataru Projects International Receives Bullish Rating from Prabhudas Lilladher with a Target Price of Rs 1466

Kalpataru Projects International Sees Healthy Revenue Growth in Q4FY26

Kalpataru Projects International (KPIL) reported a 12.2% year-over-year (YoY) increase in revenue in Q4FY26, accompanied by a 9.6% expansion in EBITDA margin. This sustained momentum across the T&D and B&F segments reinforces management's guidance of an order intake exceeding INR300 billion in FY27, with an expected execution ramp-up supporting revenue growth of approximately 15% or more.

Improved Balance Sheet Health and Robust Growth Visibility

KPIL's improved collections in the Water segment, continued debt reduction, and net working capital days of 90 further strengthen its balance sheet health. Additionally, a robust domestic T&D tender pipeline exceeding INR1.0 trillion, coupled with strong B&F opportunities and expected tender finalizations in Smart Infra and O&G during H2FY27, enhances growth visibility for the company.

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Potential Disruptions from West Asia Conflict

However, potential disruptions arising from the West Asia conflict remain a key monitorable for KPIL's execution going forward.

Revised FY27E EPS Estimate and 'Buy' Rating

We revise our FY27E earnings per share (EPS) estimate by -4.6% factoring in supply chain disruptions and execution challenges arising out of the Middle East conflict. We maintain our 'Buy' rating valuing the core business at a price-to-earnings (PE) ratio of 16x for March 28, 2028, arriving at a sum-of-the-parts (SoTP) derived target price of INR1,466.

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