Kalpataru Projects International Limited
Know the Company
Kalpataru Projects International Ltd (KPIL) is one of India’s largest specialized engineering, procurement, and construction (EPC) companies with a strong global presence. The company offers a diverse range of EPC services across key infrastructure sectors, including Power Transmission & Distribution (T&D), Buildings & Factories (B&F), Water Supply & Irrigation, Railways, Oil & Gas, and Urban Infrastructure. With over four decades of experience, KPIL has successfully established its footprint in 75 countries across the world. Following the merger with JMC Project, KPIL has expanded its expertise into the construction of commercial, residential, and institutional buildings, as well as industrial factories. Additionally, KPIL has diversified its business through the acquisition of Shree Shubham Logistics Ltd. (SSLL), which is engaged in agri-warehousing and allied activities. The company has also invested in real estate through its wholly-owned subsidiary, Energylink (India) Ltd. (EIL), further strengthening its business portfolio.
OPEN AN ACCOUNT
Invest in stocks curated and picked by our research team.
In the railways sector, KPIL delivers railway electrification, track laying, bridge construction, station development, and telecommunication infrastructure. In the oil and gas domain, KPIL specializes in cross-country pipelines, processing facilities, refineries, and fertilizer plants. The company also provides EPC services in urban infrastructure projects such as metro rail systems, highways, flyovers, tunnels, and airports.
KPIL’s manufacturing strength lies in its state-of-the-art transmission tower facilities located in Gandhinagar, Gujarat, and Raipur, Chhattisgarh. These facilities have a combined annual installed capacity of 240,000 metric tonnes (MTPA) as of March 31, 2024.
Company Strengths
KPIL’s legacy spans over four decades, its expertise, superior technical know-how, and adherence to world-class sustainability standards have enabled it to maintain a leadership position in its core business areas. The company has a well-diversified portfolio spanning multiple high-growth sectors. The company is a key player in the T&D sector, providing end-to-end solutions, including design, engineering, manufacturing, installation, and commissioning of transmission lines and substations. It also positioning itself as a leader in executing residential construction, metro rail, and international oil & gas projects. However, Company’s major portion of revenue comes from the T&D sector. KPIL currently executing more than 250 projects across over 30 nations.
The integration with JMC has enabled the company to undertake larger and more complex projects, improving operational efficiency and resource allocation. It also helps significant growth, both in terms of expertise and scale. The synergy has streamlined interdivisional processes, reduced related party transactions, and enhanced liquidity, thereby lowering borrowing costs. Also, these strategic advantages have contributed to a substantial increase in KPIL’s order book.
The company is taking advantage of growing infrastructure needs in different sectors. The power transmission and distribution (T&D) sector remains a key strength for KPIL, supported by rising electricity demand, grid upgrades, and the shift to renewable energy. As governments invest more in grid development, KPIL is in a good position to win projects and continue growing.
Financials Improve
In Q3 FY25, KPIL reported a consolidated turnover of Rs 5,732 crores, reflecting a year-on-year (Y-o-Y) growth of 17%. Its consolidated profit before tax increased by 5% Y-o-Y to Rs 202 crores and net profit stood at almost flat at Rs 140 crore. During the quarter, the T&D business grew by 42%, the B&F segment expanded by 26%, and the Oil & Gas segment reported a remarkable Y-o-Y growth of 123%. However, sluggish performance in the Water business impacted overall growth.
KPIL’s balance sheet significantly improved in the latest quarter, aided by the successful Qualified Institutional Placement (QIP) and efficient working capital management. The company alloted 83.26 lakh equity at Rs 1,201 per equity share to institutional investors to raise Rs 1000 crore. Additionally, the company’s divestment of its entire stake in Vindhyachal Expressway Private Limited (VEPL) for an enterprise valuation of Rs 775 crore will further improve financial flexibility, as it expects to realize Rs 450 crore from this transaction by September 2025. KPIL’s consolidated net debt decreased by 27% Q-o-Q to Rs 2,694 crores as of December 31, 2024.
KPIL has a robust order book position. It secured orders worth Rs 20,185 crores in the first three quarters of the current FY. Additionally, it secured an order for Rs 2,500 crores, primarily in the domestic Power Transmission & Distribution (T&D) segment. Notably, in Q3 FY25, KPIL further strengthened its competitive position by securing a prestigious order in the High Voltage Direct Current (HVDC) space. Key order wins include a major project in Sweden, large-scale B&F orders from a reputed developer, and an expansion into the metro rail segment with orders for the Nagpur Metro project. Our international order book stands at Rs 25,772 crores, accounting for 42% of the total order book as of Q3FY25. Regarding the total order backlog, the company has reached a record high of around Rs 61,500 crores as of December 31, 2024. This diversified order book provides strong visibility for execution and sustained growth in the immediate future.
On the international front, KPIL’s subsidiary, LMG Sweden’s revenue doubled Y-o-Y in both Q3 and the first nine months (9M) of FY25. The company’s order book stands at an all-time high of Rs 3,143 crores. In Fasttel Brazil, KPIL recorded a revenue growth of 18% in Q3 and 35% in 9M FY25, with an order book of approximately Rs 1,000 crores as of December 31, 2024.
Industry Overview and Opportunities
The growing population, rapid urbanization, and rising electricity demand are driving the power transmission and distribution market. The shift to clean energy and new power projects is increasing the need for advanced transmission systems. The rise of electric vehicles and heat pumps is further boosting demand for strong power infrastructure. Natural disasters have also highlighted the need for resilient grids, leading to more investment in reliable systems. As countries modernize their grids to improve efficiency and reduce losses, companies in the T&D sector have more growth opportunities.
India’s power sector is undergoing major reforms to achieve financial stability and operational efficiency while integrating more renewable energy. The Indian government aims to achieve 500 GW of non-fossil fuel-based electricity capacity which is almost doubling from the present position by FY2030. Further, the National Electricity Plan has proposed transmission schemes worth over Rs 3.13 trillion for inter-state transmission and Rs 1.61 trillion for intra-state systems from FY23 to FY27, presenting significant opportunities for companies like KPIL.
Bright Outlook
Construction industry outlook also promising as India’s construction sector is witnessing rapid expansion, driven by infrastructure investments from the government. The industry is expected to grow at a CAGR of almost 10% to touch Rs 34.4 trillion in FY28. Key projects under initiatives like the National Infrastructure Pipeline, Smart Cities Mission, Gati Shakti, Bharatmala, Sagarmala, and the AMRUT scheme will drive demand for construction services.
India’s urban population is expected to exceed 400 million by 2030, increasing demand for residential, commercial, and institutional properties. The Indian government’s focus on affordable housing and investment in real estate will further fuel growth for the buildings sector.
India has made remarkable progress in providing drinking water and sanitation. The government is working to bring tap water to all rural homes, leading to more investment in water supply infrastructure. Programs like Jal Jeevan Mission and Namami Gange are helping the sector grow. Irrigation projects under Pradhan Mantri Krishi Sinchayee Yojana and spending on wastewater treatment will also create more opportunities for companies like KPIL.
Going forward, KPIL anticipates strong execution across its verticals, including T&D, buildings & factories, oil & gas, and urban infrastructure. The water business, which faced short-term challenges due to budget constraints, is expected to recover, with projected collections of Rs 500-700 crore in Q4 FY25 and Q1 FY26. India’s transportation and infrastructure sector has a bright outlook. The national highway network is set to reach 200,000 km by FY2025, with over 9,000 km under the Bharatmala Pariyojana. These projects will boost demand for construction services. Railways will also see major investments in tracks, wagons, electrification, and station upgrades. The metro network is expected to expand to 1,985 km in the coming years. KPIL’s diverse business model and strong presence in high-growth sectors position it well for long-term expansion. With a solid order book, financial strength, and opportunities in power transmission, construction, and transportation, the company is ready to benefit from India’s and the global market’s growing infrastructure needs.
Risk Factors
Geopolitical issues like trade restrictions and conflicts may disrupt supply chains, raise costs, and affect market expansion. The Water business requires high working capital, and delayed payments can increase receivables, limiting investments and adding financial pressure. Dependence on external funding may lead to higher costs and interest rate risks. Therefore, strong capital management is key to maintaining financial stability.
Sector: Construction
Market Price: Rs. 881.50 as on today
FV: Rs 2/-
Stock Name: Kalpataru Projects International Ltd
BSE Code: 522287, NSE Code: KPIL
Market Cap.: Rs 14900 Cr
Book Value: Rs. 304
Segment: Metals – EPC – Power T&D
Incorporation: 1981
Headquarters: Mumbai, India
