KEC International Secures Rs 2,872 Crore PGCIL Order For Gujarat Green Energy Lines

KEC International shares will be in focus on Monday, 26 October, after the company secured turnkey orders worth Rs 2,872 crore from Power Grid Corporation of India Ltd. The project covers the design, supply and installation of 765 kV transmission lines to help move 8.5 GW of renewable energy out of Gujarat.

Growth And Orders

This deal marks the largest domestic transmission and distribution win ever for the firm. Managing Director and CEO Vimal Kejriwal noted that the projects have built strong business momentum and expanded their domestic order book. These fresh contracts push the company's year-to-date order intake past Rs 13,500 crore, with about Rs 9,500 crore coming from the transmission sector alone. This follows another announcement on 23 October where the firm bagged Rs 1,006 crore in orders spanning Oman, the Americas, and a domestic hospital project.

Financial Health

Despite the strong order flow, KEC International recently posted a 41 percent drop in net profit to Rs 73 crore for the April-June quarter of FY27, compared to Rs 125 crore in the same period last year. Revenue stayed flat at Rs 5,024 crore. On the debt front, the firm managed to cut its net debt by over Rs 150 crore down to Rs 6,568 crore by the end of June. Meanwhile, company shares closed 1.25 percent lower at Rs 327.55 on the BSE, weighed down by a 55.65 percent decline in the stock price so far this year.

Context

Power transmission projects of this scale are crucial for connecting remote solar and wind farms to major cities where electricity demand is high. Large infrastructure engineering firms like KEC International rely heavily on such state-backed orders to grow their order books and offset short-term profit dips.