KEC International Share Price Target: KEC International reported a subdued performance for the quarter ended March 31, 2026, with revenue from operations declining nearly 7 per cent year-on-year. The company also saw a sharp contraction in profitability, as net profit fell 28 per cent YoY to Rs 193 crore, compared with Rs 268 crore in the corresponding period last year. (KEC International Q4 results)
Despite the disappointing results, some brokerage firms have adopted a more constructive stance on the stock. Analysts at Emkay and Elara have maintained their view, moving from “neutral” to “positive,” and projecting potential upside in the stock going forward, even as near-term performance remains under pressure.
Emkay Trims Stocks’ Price Target by 31%
The brokerage highlighted weak Q4FY26 performance across segments due to West Asia supply chain disruptions and labour shortages impacting execution timelines.
Additionally, elevated debt and high net working capital remain key balance sheet concerns for the company.
The order book remains healthy, but profitability is expected to remain under pressure in an inflationary input cost environment. Caution on execution persists due to geopolitical risks and disruptions in the Middle East, it added.
Elara Sees Over 43% Upside
Elara maintains a BUY rating on KEC International but reduces the target price to Rs 700 from Rs 930, indicating an upside of 43.5 per cent.
Echoing similar views, the brokerage highlighted Q4FY26 revenue disruptions due to conditions in the Middle East, with shipment delays impacting revenues by Rs 3-4 billion.
However, despite near-term pressure, FY27 revenue growth guidance remains strong at 12-15 per cent.
Additionally, order inflows surged 110 per cent YoY to Rs 59.3 billion, reflecting robust demand visibility. However, EPS estimates have been cut due to delayed execution and ongoing geopolitical tensions affecting project timelines and the profitability outlook.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
