Kalpataru Projects International reported a 60% surge in order inflows during the first half of FY27. The company secured orders worth Rs 23,900 crore, pushing its total order book to Rs 71,900 crore. Motilal Oswal said, "With approximately 2.5x years of revenue visibility at the current order backlog," growth looks strong.

Kalpataru Projects International (KPIL) reported strong order inflows in the first half of FY27, strengthening its revenue visibility for the coming years. The company secured orders worth Rs 23,900 crore during the period, marking a 60% year-on-year (YoY) increase.

Its total order book stood at around Rs 71,900 crore at the end of September, providing nearly 2.5 years of revenue visibility.

Brokerage house, Motilal Oswal expects the company to sustain its growth momentum. "With approximately 2.5x years of revenue visibility at the current order backlog, we expect order inflows/revenue to record a CAGR of 20%/14% over FY26-FY29," Motilal Oswal noted."

KPIL's order inflows expected to grow 20% annually through FY29

Kalpataru Projects' order inflows have been significantly ahead of its full-year estimate of Rs 32,600 crore, according to Motilal Oswal.

The company had an L1 position of around Rs 5,000 crore, indicating further potential order additions.

Kalpataru Projects' also expects to submit bids worth Rs 50,000-70,000 crore across its transmission and distribution (T&D), buildings and factories (B&F), and oil and gas (O&G) businesses over the next six months.

"Given this, we believe the company may also surpass the guidance of Rs 30,000 of inflows, despite selective bidding. With approximately 2.5x years of revenue visibility at the current order backlog," Motilal Oswal said.

The brokerage expects Kalpataru Projects' order inflows to grow at a compound annual growth rate (CAGR) of 20% between FY26 and FY29.

T&D orders and domestic demand to support growth

Kalpataru Projects' transmission and distribution (T&D) business continues to benefit from strong domestic demand. Revenue from the segment, excluding Brazil, increased 8% YoY to around Rs 6,000 crore in the first half of FY27.

The segment secured orders worth Rs 10,100 crore during the period, with around 65% coming from domestic clients. The company also has an L1 position of nearly Rs 5,000 crore in this segment.

Kalpataru Projects expects to submit T&D bids worth Rs 15,000-20,000 crore over the next two months, largely driven by opportunities in India.

Motilal Oswal expects "T&D to clock a revenue CAGR of 12% over FY26-29E, led by an order inflow CAGR of 15%."

B&F and O&G emerge as key growth drivers

Kalpataru Projects' buildings and factories business reported 20% YoY revenue growth in the second quarter, while revenue increased 17% in the first half of FY27 to Rs 2,000 crore.

The segment contributed around 27% to the company's consolidated revenue. Order inflows stood at nearly Rs 8,000 crore during the first half, taking its order book to Rs 21,700 crore.

Demand from industrial and residential projects continues to support the segment. The company is also securing larger orders, with most new contracts now valued at around Rs 1,000 crore.

Meanwhile, the oil and gas business reported 58% YoY revenue growth in the second quarter. A large gas pipeline order from the Middle East also strengthened its order book, which stood at Rs 8,200 crore.

Motilal Oswal expects the B&F business to record a revenue CAGR of 22% between FY26 and FY29.

Water business collections improve; infrastructure remains steady

KPIL's water business reported revenue of Rs 1,120 crore in the first half of FY27. Collections from the segment reached around Rs 1,100 crore on a year-to-date basis through October 2026.

However, the company still has receivables of around Rs 1,500 crore, of which nearly two-thirds are overdue.

The executable order book in the water business stands at around Rs 4,500 crore, including its first Middle East order. The company expects to complete its Jal Jeevan Mission (JJM) projects over the next 12 months before shifting greater focus towards opportunities in the Middle East.

The infrastructure business reported revenue of Rs 930 crore in the first half of FY27, with an order book of Rs 5,900 crore.

The brokerage believes the completion of JJM projects could reduce working capital pressure and support margins from FY28 onwards.

Conclusion

Motilal Oswal expects Kalpataru Projects' revenue, EBITDA and profit after tax to grow at CAGRs of 14%, 14% and 17%, respectively, between FY26 and FY29.

"We revise our estimates by 1% for FY28 and FY29 each and expect revenue/EBITDA/PAT to grow at a CAGR of 14%/14%/17% over FY26-29," Motilal Oswal said citing "Kalpataru Project (KPIL)'s Q2 result which was ahead of estimates due to better-than-expected execution."