KPIL margin slips as costs outpace revenue growth
Net profit rose +22.98% YoY, helped by a -33.89% fall in interest costs, but operating margin remained below the Industrials peer median.
Filed 05 Nov 2026, 18:33 IST · after market close · Kalpataru Projects International Ltd (KPIL)
Key takeaways
- Consolidated net profit grew +22.98% YoY to Rs 291.95 cr even as operating margin narrowed 0.31 percentage points.
- QoQ, expenses grew +9.87% against revenue growth of +9.31%, pulling operating margin down 0.48 percentage points to 8.29%.
- Other income contributed 11.07% of pre-tax profit, while the tax rate rose 0.69 percentage points QoQ to 26.60%.
Price around the results
T&D and B&F execution lifted revenue
Consolidated revenue grew +7.29% YoY and +9.31% QoQ. Management said T&D growth came from a strong order backlog and better project progress, while B&F benefited from project mix and execution in residential buildings. The company also said it secured its first Middle East water-treatment project and its first major UAE gas-pipeline project.
Costs kept margin below the sector median
Expenses grew faster than revenue both YoY and QoQ, narrowing operating margin by 0.31 percentage points YoY and 0.48 percentage points QoQ. The margin also reversed from 8.77% in Q1FY27 to 8.29% in Q2FY27. KPIL was below the 11.50% median operating margin of the 178 Industrials peers that had reported.
Lower interest costs supported profit growth
Profit before tax grew +23.69% YoY as interest costs fell -33.89%, partly offsetting the operating-margin pressure. Other income accounted for 11.07% of pre-tax profit, so reported earnings had a meaningful non-operating contribution. The tax rate increased 0.42 percentage points YoY and 0.69 percentage points QoQ.
Margin has not regained its Q2FY26 level
Operating margin improved from 7.70% in Q3FY26 to 8.77% in Q1FY27 before easing to 8.29% this quarter, leaving it below Q2FY26's 8.60%. Management said KPIL has manufacturing and fabrication facilities in Raipur and Gandhinagar with annual installed capacity of 240,000 MT. The presentation said management targets carbon neutrality by 2040, water neutrality by 2032 and construction-and-demolition waste circularity by 2035.
Results were filed after market close
The results were filed after market close, so there is no current-session reaction to assess. Across the eight recent results, the stock rose after five and fell after three, with a median absolute move of 3.64%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,004 cr | ₹6,408 cr | +9.31% | +7.29% |
| Other income | ₹44 cr | ₹77 cr | -42.98% | +88.20% |
| Expenses | ₹6,423 cr | ₹5,846 cr | +9.87% | +7.64% |
| Operating profit | ₹581 cr | ₹562 cr | +3.40% | +3.48% |
| Operating margin (%) | 8.29% | 8.77% | — | — |
| Interest | ₹91 cr | ₹82 cr | +10.44% | -33.89% |
| Depreciation | ₹137 cr | ₹137 cr | +0.06% | +8.23% |
| Profit before tax | ₹398 cr | ₹420 cr | -5.40% | +23.69% |
| Tax | ₹106 cr | ₹109 cr | -2.87% | +25.67% |
| Net profit | ₹292 cr | ₹312 cr | -6.29% | +22.98% |
| EPS (₹) | ₹16.92 | ₹18.16 | -6.83% | +20.34% |
Operating margin of 8.29% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- T&D revenue grew due to a strong order backlog and improved project progress.
- B&F revenue growth was driven by favorable project mix and strong execution in residential building projects.
Guidance & outlook
- KPIL targets carbon neutrality by 2040.
- KPIL targets water neutrality by 2032.
- KPIL targets circularity in construction and demolition waste by 2035.
Expansion
- KPIL has state-of-the-art manufacturing facilities in Raipur and Gandhinagar.
- KPIL has annual installed manufacturing and fabrication capacity of 240,000 MT.
New orders
- KPIL secured its first project in the Middle East for water treatment and supply.
- KPIL secured its first major UAE gas pipeline infrastructure project.
What to watch
- Whether operating margin recovers from 8.29% after the 0.48-percentage-point QoQ decline.
- Whether the 11.07% other-income contribution to pre-tax profit reduces in the next quarter.
- Whether KPIL narrows the gap between its 8.29% operating margin and the 11.50% Industrials peer median.