KEC International shares hit 52 week low, Q1 earnings hit investor sentiment

Shares of RPG Group-owned KEC International slipped to a fresh 52 week low today amid weak market sentiment arising from Q1 earnings. KEC International shares plunged 1.5% to a low of Rs 438 against the previous close of Rs 444.50. Market cap of the firm fell to Rs 11,676 crore. A total of 0.17 lakh shares of the firm changed hands amounting to a turnover of Rs 76.69 lakh. KEC International shares have a beta of 1.17, indicating high volatility in a year.

In terms of technicals, the relative strength index (RSI) of the KEC International stock stands at 31.8, signaling it's trading neither in the overbought nor in the oversold zone.

The stock has lost 9% since Q1 earnings were announced on August 10.

KEC International reported a 42% fall in consolidated net profit to Rs 73 crore in Q1FY27 from Rs 125 crore in Q1FY26. Revenue for Q1 remained flat at Rs 5,024 crore. EBITDA slipped 17% year-on-year (YoY) to Rs 291 crore while EBITDA margin fell 120 basis points YoY to 5.8% in the June'26 quarter. Profit before tax in the June 2026 quarter stood at Rs 90 crore, down 43% from Rs 159 crore in Q1 FY26.

KEC International shares fell 43% in a year and slipped 46% in two years.

Axis Direct reduced its price target to Rs 540 against the earlier Rs 590.

Performance remains constrained by geopolitical disruptions and supply chain challenges in the Middle East (a region representing 25% of the order book), with elevated logistics, freight and fuel costs 
additionally causing delays in execution and raw material dispatches. Management expects these pressures to persist into Q2FY27, with meaningful margin recovery delayed until Q3 FY27 or later.

The brokerage maintained its buy call on the stock.

Motilal Oswal has a price target of Rs 580 with a buy call.

The brokerage expects a CAGR of 14%/13%/24% in revenue/EBITDA/adjusted PAT over FY26-28. "We value the stock at 15x FY28E EPS to arrive at our TP of Rs 290. Reiterate BUY," said Motilal Oswal. 
 
The Middle East disruptions remained a key drag on execution during 1QFY27, with Rs 300 crore of revenue deferred in 1QFY27, and some spillovers are expected into 2Q. This region accounts for ~25% of KEC’s order book, or Rs 10000 crore, broadly split between Saudi Arabia and the UAE.

While projects continue to execute on the ground, elevated freight, insurance, and fuel costs have increased the cost of execution, with discussions ongoing with customers for recovery of these incremental costs. Correspondingly, execution growth has been tapered down. Supply-side disruptions remain more pronounced, with 25-30% of project revenues linked to supplies sourced from outside the region, while higher shipping costs and disruptions to shipping routes have resulted in deferral of
revenues. The Dubai facility has also faced delays in order finalization, said MOSL.

KEC International is a global infrastructure Engineering, Procurement and Construction (EPC) major. It has a presence in the verticals of Power Transmission & Distribution, Civil, Transportation, Renewables, Oil & Gas Pipelines and Cables & Conductors. It has a footprint in 110+ countries (includes EPC, Supply of Towers and Cables). It is the flagship Company of the RPG Group.