Shares of KEC International Limited fell more than 7% in early trade on May 18, 2026, touching an intraday low of ₹506.30 — close to its 52-week low of ₹501.05 and less than half of its 52-week high of ₹947 — after the RPG Group infrastructure EPC company reported a disappointing set of Q4FY26 results marked by declines in revenue, EBITDA, and net profit on a year-on-year basis, with margin contraction driven by weakness in its Printed Circuit Board business and currency headwinds.
KEC International reported consolidated net profit of ₹193 crore for Q4FY26 — down 28.1% year on year from ₹268 crore in Q4FY25. Revenue from operations declined 7% year on year to ₹6,390 crore from ₹6,872 crore, reflecting weakness in execution and project inflows. EBITDA fell 16.8% to ₹448 crore from ₹539 crore, with EBITDA margin contracting 80 basis points to 7% from 7.8% — a level that is below the company’s medium-term targets and significantly below the margins being generated in its core Transmission and Distribution business.
What the concall revealed
Management’s post-results conference call provided the granular explanation for the margin miss. The primary drag is the PCB — Printed Circuit Board — segment, where margins have been impacted by a combination of three factors: CCL price increases, elevated gold prices, and currency depreciation. CCL — Copper Clad Laminate — is the primary raw material for PCB manufacturing, and its price has risen significantly in the current commodity environment. Gold, used in PCB plating and interconnect applications, hit record levels following India’s import duty hike and the global risk-on commodity trade. The rupee’s depreciation to record lows near 96 has inflated the rupee cost of dollar-denominated PCB inputs.
The organic PCBA pipeline stands at approximately ₹2,200 crore, while the PCB business is approximately ₹600 crore — giving a combined PCB and PCBA revenue profile that makes this segment a material contributor to consolidated results and therefore a meaningful driver of margin outcomes.
Management guided that PCB margins — currently approximately 5% — are expected to improve over the next two quarters as price increase negotiations with customers progress. Management noted that customers have responded positively to price increase requests, which are underway — a constructive signal that the margin pressure is transitional and cost-passthrough dependent rather than structural.
The T&D business remains the anchor
The core Transmission and Distribution business — which accounts for the majority of KEC International’s revenue and has historically been the most profitable segment — maintains a strong outlook amid rising power demand. KEC received large tower supply orders from Mexico and the United States in Q4FY26, reflecting the company’s international T&D order pipeline strengthening even as domestic execution faced headwinds. The portfolio has also expanded significantly across GIS — Gas Insulated Switchgear — and AIS — Air Insulated Switchgear — segments, broadening the product portfolio within the power infrastructure space.
The divergence between the T&D strength and the PCB weakness is the core narrative of Q4FY26 — a quarter where the consolidated numbers were dragged by a specific segment facing commodity and currency pressures, while the underlying infrastructure EPC business remains intact. Whether investors accept this distinction or continue to price the stock on the consolidated margin trajectory will determine the pace of any recovery from current levels.
At ₹506.30 intraday — approximately 46.5% below the 52-week high of ₹947 — KEC International is pricing in a significant erosion of earnings power. With management guiding for margin improvement in Q1 and Q2 FY27 and the T&D order pipeline remaining healthy, the stock’s trajectory from here will be closely watched by the infrastructure and capital goods sector.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.