Kalpataru Projects International Ltd (KPIL) Q2 FY27 Results Analysis: PAT Jumps 23%, EBITDA Margin Slips 31 bps

Cofacto Research Published November 05, 2026 5 min read

Positive

Kalpataru Projects International Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 7,004.27 Cr (+7.29% YoY) and PAT growth of +22.98% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 05, 2026
Revenue (Q2)	Rs. 7,004.27 Cr (+7.29% YoY)
PAT (Q2)	Rs. 291.95 Cr (+22.98% YoY)
EBITDA margin	8.29% (-31 bps YoY)
EPS (Q2)	Rs. 16.92 (+20.34% YoY)

Quarter Snapshot

KPIL delivered record revenue of Rs.7,004.27 Cr (+7.29% YoY) with PAT up 22.98% and H1 PBT margin expansion of 128 bps versus management's +75 bps FY27 target, while cash conversion (CFO/PAT 1.95x) and deleveraging (D/E 0.32x vs 0.67x) were the standout quality signals. The offset is that core EBITDA margin slipped 31 bps YoY to 8.29% and EBITDA growth of 3.48% lagged revenue, with the FY27 revenue guide of ≥15% now requiring +23.26% H2 growth. Order momentum (>Rs.22,000 Cr YTD plus >Rs.4,000 Cr UAE LoA) and the LMG listing proceeds support the balance-sheet and visibility narrative.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Reported revenue	"in-line at best pending the quarter's book-to-bill" — conversion the laggard	+7.29% YoY, +9.31% QoQ — better than Q1's +3.84% but below a 15% FY27 run-rate	Partially
Margins	"flat-to-mildly-compressing" on copper/zinc uncovered tail + event costs	8.29% vs 8.60% YoY / 8.77% QoQ — mildly compressed	Played out
Steel inventory gain fade (Q1 note)	"higher replacement costs will pressure subsequent quarters"	EBITDA +3.48% lagging revenue +7.29%; materials +19.59% QoQ	Played out
Forex/other income	"roughly neutral-to-modestly-favourable" vs Q2 FY26 forex loss base	Other income Rs.44.02 Cr vs Rs.23.39 Cr; interest income Rs.26.03 Cr vs Rs.10.99 Cr	Played out
Finance costs vs Rs.67–68 Cr guide	flagged as a watch item	Standalone Rs.80.48 Cr / consolidated Rs.90.54 Cr — above guide	Contradicted
Order momentum	"top of the funnel ran hot"	Not disclosed in this filing (order book absent); announcements support >Rs.22,000 Cr YTD	Not observable in filing
KEPL petition status	watch item	SLP filed; no provision (filing Note 7)	Played out

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
Order inflow > Rs.30,000 Cr, FY27 (consolidated); upward revision possible "at the end of Q2 FY27"	Q1 FY27 earnings call	>Rs.22,000 Cr YTD by 21 Oct 2026 plus UAE gas pipeline LoA >Rs.4,000 Cr (28 Sep 2026), per company announcements; order book not disclosed in this filing	On Track
Revenue growth ≥15%, FY27 (consolidated)	Q1 FY27 earnings call (revised from 20% at the Q4 FY26 call)	H1 +5.61% YoY; required H2 growth now +23.26% (H2 must deliver ~Rs.17,802 Cr vs H2 FY26 Rs.14,443 Cr)	Stretch
PBT margin +75 bps, FY27 (consolidated)	Q1 FY27 earnings call	H1 PBT margin 6.10% vs 4.82% = +128 bps; Q2 YoY +75 bps	On Track
Interest cost Rs.67–68 Cr (near term, standalone basis per Q1 print)	Q1 FY27 earnings call commentary	Standalone Q2 finance costs Rs.80.48 Cr (consolidated Rs.90.54 Cr)	Missed
Capex ~Rs.800 Cr, FY27	Q1 FY27 earnings call	H1 capex Rs.584.20 Cr (incl. Rs.150 Cr rolling-mill approval, 11 Aug 2026)	On Track
NWC <100 days, FY27	Q1 FY27 earnings call	Filing proxy: debtors 94 days (vs 104 YoY); NWC days not restated in filing	Too Early
Core segments (B&F/T&D/O&G) 20%+ growth, FY27	Q1 FY27 earnings call	Not disclosed by vertical in filing; consolidated EPC +10.01% YoY	Too Early
"Well on track to reach our targeted goal of INR 30,000 crores of order inflow"	Q1 FY27 call	>Rs.22,000 Cr YTD by 21 Oct + >Rs.4,000 Cr UAE LoA (company announcements; not in filing)	Too Early / on-track per announcements
"Profitability growth continues to outpace our targeted levels"	Q1 FY27 call	PBT +23.69% YoY on revenue +7.29%; PBT margin +75 bps YoY — confirmed this quarter	Confirmed
Margin stability despite commodity/labor/supply constraints	Q1 FY27 call	Core EBITDA margin 8.29% (−31 bps YoY, −48 bps QoQ); other expenses +15.98% YoY — PBT margin held, EBITDA-level margin slipped	Partially

Key Numbers, Quarter by Quarter

Metric	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27	Q2 FY27
Core EBITDA margin	8.6%	7.7%	8.2%	8.8%	8.3%
Consolidated D/E (Reg 52)	0.67×	0.43× (FY26)	0.35×	0.34×	0.32×
Debtors days (Reg 52, consol)	104	111 (FY26)	111 (FY26)	113	94
Order book	Rs.64,682 Cr	Rs.63,287 Cr	Rs.65,457 Cr	Rs.66,607 Cr	not in filing

Key Investment Insights

Key Positives

Consolidated revenue of Rs.7,004.27 Cr grew 7.29% YoY and 9.31% QoQ, a quarterly record in the disclosed series, despite a ~Rs.158 Cr negative mix swing from divested road SPVs
EPC segment revenue grew 10.01% YoY with EBIT margin expanding 145 bps (5.16% to 6.62%) and EBIT up 41%
PAT grew 22.98% YoY to Rs.291.95 Cr; H1 PAT up 33.82% YoY; H1 PBT margin +128 bps vs management's +75 bps FY27 target
H1 CFO of Rs.1,179.77 Cr vs −Rs.411.71 Cr YoY; CFO/PAT 1.95x; FCF +Rs.595.57 Cr
Debt/equity fell to 0.32x from 0.67x YoY; borrowings down Rs.616.71 Cr vs March 2026; ISCR 5.63x vs 3.63x
LMG listed on Nasdaq Stockholm with Rs.572.02 Cr net proceeds recognized in other equity; net worth up 21.95% YoY
Standalone revenue grew 14.65% YoY with PBT up 34.86%; subsidiaries now contribute Rs.19.95 Cr (6.9% of consolidated PAT) after exits of loss-making units
Finance costs fell 33.89% YoY to Rs.90.54 Cr

Risk Factors

Core EBITDA margin slipped 31 bps YoY and 48 bps QoQ to 8.29%, the first sequential margin step-down in the disclosed trend
Core EBITDA grew only 3.48% against revenue growth of 7.29%; profitability growth came from finance costs, not operating leverage
Other expenses grew 15.98% YoY on 7.29% revenue growth, with the quantum not itemized
Standalone Q2 finance costs of Rs.80.48 Cr exceeded management's Rs.67–68 Cr near-term guide
FY27 revenue guidance of ≥15% growth requires H2 growth of +23.26% YoY versus +5.61% delivered in H1
KEPL/NHAI arbitral award dispute remains open with an SLP filed before the Supreme Court; management believes no provision is required