KEC International, a well-known player in the infrastructure and engineering sector, saw its shares rally over 7% on Tuesday after the company posted strong earnings for the fourth quarter of FY25 and announced a healthy dividend for shareholders. The stock opened strong on the BSE and maintained its upward momentum throughout the morning trade, reflecting strong investor confidence.
In this article, we’ll take a closer look at what drove the surge in KEC International’s share price, the company’s financial performance in Q4, its robust order book status, and what investors can expect in the near future.
Strong Q4FY25 Performance Boosts Investor Confidence
KEC International reported impressive earnings for the January-March 2025 quarter, outperforming street expectations and signaling strong operational performance across its business segments.
Net Profit Rises by 76%
The company posted a consolidated net profit of ₹268 crore in Q4 FY25, a substantial 76% increase from ₹152 crore in the same quarter last year. This sharp jump in profitability was one of the key factors driving investor optimism and the stock’s rally on Tuesday.
EBITDA Surges 39%
The earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹539 crore in Q4 FY25 — up 39% from ₹388 crore in Q4 FY24. The EBITDA margin also improved to 7.8%, compared to 6.3% in the previous year, indicating better cost control and operational efficiency.
Revenue Growth of Over 11%
The company reported revenues of ₹6,872 crore during the quarter, marking a year-on-year growth of 11.46% from ₹6,165 crore in Q4 FY24. This growth highlights KEC’s strong execution capabilities and its ability to deliver large-scale infrastructure projects across sectors.
Impressive Order Book: A Key Strength
Another major highlight from KEC International’s Q4 update was the strength of its order book.
FY25 Order Intake at ₹24,689 Crore
The company recorded a robust 36% year-on-year growth in order intake, with fresh orders worth ₹24,689 crore secured during the financial year 2024–25. This is a strong signal of the company’s growing market presence and its ability to win large infrastructure and engineering contracts across domestic and international markets.
Over ₹2,000 Crore in Fresh Orders for FY26
KEC International has already started FY26 on a strong note, having secured orders worth over ₹2,000 crore so far. This indicates continued business momentum and a strong start to the new fiscal year.
Total Order Book Over ₹33,000 Crore
As of March 31, 2025, the company’s total order book stood at ₹33,398 crore. When including the L1 (lowest bidder) positions, the total potential order pipeline exceeds ₹40,000 crore. This backlog ensures strong revenue visibility for the next couple of years.
Stock Market Reaction: 7% Intraday Jump
Following the earnings announcement and dividend declaration, KEC International shares surged in the early morning trade on May 28.
- Opening Price: ₹895.95 (up 4% from the previous close)
- Day’s High: ₹927 (up over 7%)
- Previous Close: ₹861.25
Investors cheered the strong results and optimistic outlook, resulting in increased buying interest in the stock. This movement stood out in a relatively flat market where benchmark indices were struggling for direction.
Dividend Announcement: ₹5.50 Per Share
As a reward to shareholders, the company’s board has recommended a dividend of ₹5.50 per equity share for FY25. This represents a 275% return on the face value of ₹2 per share.
The dividend will be subject to shareholder approval at the upcoming Annual General Meeting (AGM).
This payout reflects the company’s strong cash flow generation and its shareholder-friendly approach.
What’s Driving KEC’s Growth?
KEC International is a global infrastructure Engineering, Procurement, and Construction (EPC) company, and it operates across multiple sectors including:
- Power Transmission & Distribution (T&D)
- Railways
- Civil construction
- Urban infrastructure
- Oil & Gas pipelines
- Cables
The company is part of the RPG Group, a diversified conglomerate with a presence in multiple industries.
Several key factors are currently driving the company’s performance:
1. Diversified Business Segments
KEC’s multi-sector business model reduces dependence on a single revenue stream. Its diversification into civil infrastructure, railways, and oil & gas has helped it weather industry-specific slowdowns in the past.
2. Global Presence
With projects spread across over 100 countries, KEC benefits from global opportunities, especially in emerging markets where infrastructure spending is ramping up.
3. Strong Order Pipeline
The healthy and growing order book gives visibility on revenues and profitability for the coming quarters.
4. Execution Efficiency
The rise in EBITDA margin shows improved cost control and better project execution — crucial factors for sustaining profitability in EPC businesses.
Investor Outlook: What Should You Do?
With the company delivering strong Q4 results, declaring a handsome dividend, and reporting a robust order book, investor sentiment is clearly positive.
Here are a few points to consider if you are an investor or thinking of investing:
Long-Term Story Intact
KEC’s diversification, global footprint, and focus on infrastructure make it a good long-term story for investors looking to benefit from India’s infrastructure boom and international expansion.
Earnings Momentum Likely to Continue
The order inflow and execution strength are likely to support earnings momentum in FY26 as well.
Dividend Yield Adds to Returns
The ₹5.50 dividend adds to shareholder returns and reflects confidence in cash flows.
Valuation Check Needed
After the recent surge, investors should review the stock’s valuation in comparison to industry peers to ensure they are not overpaying. However, with a growing order book and earnings, the premium may be justified for long-term investors.
Final Thoughts
KEC International’s Q4 results have ticked all the right boxes — strong revenue growth, margin expansion, robust order book, and shareholder rewards. The stock’s sharp rally on Tuesday reflects market optimism about the company’s future prospects.
While short-term volatility may persist due to market conditions, KEC International looks well-positioned for sustainable growth in the coming years, especially as India and other developing countries continue to invest heavily in infrastructure development.
Investors with a long-term horizon may find value in tracking or holding this stock, especially given its diversified portfolio and growing global reach.
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