Kalpataru Q4 profit rose 97.37% as margins recovered
Revenue grew faster than expenses, while lower interest, other income and a lower tax rate lifted profit before tax and net profit.
Filed 14 May 2026, 17:47 IST · after market close · Kalpataru Projects International Ltd (KPIL)
Key takeaways
- Consolidated Q4 net profit rose +97.37% YoY to Rs 430.6 cr, helped by lower interest, other income and a lower tax rate.
- Operating margin improved 0.62 percentage points YoY to 8.23%, but remained 7.43 percentage points below the 71-peer Industrials median.
- The stock gained +2.53% on results day, below its 4.48% median absolute move after the past eight results.
Price around the results
Lower finance costs and tax rate lifted consolidated profit
Kalpataru Projects International’s consolidated revenue grew +10.06% YoY, while expenses rose +9.32%, allowing operating profit to increase +19.06%. Net profit rose +97.37% because interest expense fell -10.98%, other income contributed 20.11% of profit before tax, and the tax rate fell by 10.43 percentage points to 15.79%. The scale of other income and the lower tax rate make the reported profit growth less representative of operating growth alone.
Margin recovered from Q3 but stayed below the sector median
Operating margin improved 0.62 percentage points YoY and 0.53 percentage points QoQ because revenue growth outpaced expense growth in both comparisons. The recovery followed a fall from 8.60% in Q2FY26 to 7.70% in Q3FY26, leaving the latest margin below the Q2 level. At 8.23%, it was 7.43 percentage points below the 15.66% median for 71 Industrials peers that had reported.
T&D execution supported growth while water collections remained weak
Management said T&D revenue growth was driven by project execution and a healthy order backlog, while the railways business benefited from a focus on closing projects. The company said it had completed all Fasttel projects in Brazil, which reported FY26 revenue of Rs 358 cr, and that major order wins improved the Buildings and Factories business’s market position. Management also said water-business revenue was affected by lower collections in JJM projects. The presentation said annual global transmission and distribution investment is expected to expand from USD 631 billion in 2024 to USD 1.1 trillion by 2050.
Initial market reaction was milder than the stock’s usual results move
The stock rose +2.53% on the first trading day after the results, compared with a median absolute move of 4.48% across the past eight result reactions. That makes the initial response smaller than the stock’s typical post-results move, although the five-day reaction was +3.33%.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,778 cr | ₹6,665 cr | +16.69% | +10.06% |
| Other income | ₹103 cr | ₹-1 cr | — | +681.53% |
| Expenses | ₹7,138 cr | ₹6,152 cr | +16.02% | +9.32% |
| Operating profit | ₹640 cr | ₹513 cr | +24.77% | +19.06% |
| Operating margin (%) | 8.23% | 7.70% | — | — |
| Interest | ₹105 cr | ₹137 cr | -23.57% | -10.98% |
| Depreciation | ₹127 cr | ₹128 cr | -0.39% | -7.69% |
| Profit before tax | ₹511 cr | ₹247 cr | +106.61% | +72.93% |
| Tax | ₹81 cr | ₹98 cr | -17.97% | +4.17% |
| Net profit | ₹431 cr | ₹149 cr | +188.90% | +97.37% |
| EPS (₹) | ₹25.42 | ₹8.91 | +185.30% | +89.42% |
Operating margin of 8.23% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.53% | +2.72% |
| Next session | +0.98% | — |
| 5 sessions | +3.33% | +3.21% |
| 15 sessions | +3.29% | — |
| 30 sessions | +11.70% | — |
Volume on the results session was 3.90× its 20-day average.
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 growth was driven by robust project execution and a healthy order backlog.
- The company closed all projects in Fasttel, Brazil, which reported FY26 revenue of ₹358 crores.
- Railways business revenue was led by a focused approach to project closures.
Guidance & outlook
- Global annual investment in transmission and distribution is expected to expand from USD 631 billion in 2024 to USD 1.1 trillion by 2050.
Competition
- The Buildings and Factories business reported an improved market position following major order wins.
Problems & risks
- Water business revenue was affected by lower collections in JJM projects.
What to watch
- Whether operating margin holds above 8.23% after the 0.53 percentage-point QoQ recovery.
- Whether other income remains near 20.11% of profit before tax.
- Whether interest expense stays below Rs 104.66 cr after falling -23.57% QoQ.