Kalpataru Projects Q1: PAT +46% YoY to ₹312 Cr on margin gains; revenue growth just 4%

Kalpataru Projects International reported consolidated revenue of ₹6,407.97 Cr (+3.8% YoY, -17.6% QoQ) and consolidated profit for the period of ₹311.53 Cr (+45.8% YoY, -27.6% QoQ) for Q1 FY27, with basic EPS at ₹18.16 versus ₹12.51 a year ago and ₹25.42 in the March 2026 quarter. The sharp QoQ drop in both revenue and profit is largely the normal seasonal pattern for this EPC business — Q4 (Jan-Mar) is typically the strongest execution quarter and Q1 the softest — rather than a sign of sequential deterioration, so the YoY read is the one that matters here.

Profit grew far faster than revenue because of a genuine, non-one-off margin improvement rather than one-off items: neither this quarter nor the year-ago quarter carried any exceptional items (unlike Q4 FY26, which had a net ₹66 Cr exceptional gain), so the YoY comparison is clean. Operating margin rose to 8.8% from 8.5% and net profit margin to 4.9% from 3.5% YoY, driven chiefly by a 32.8% YoY drop in finance costs (₹81.98 Cr versus ₹122.03 Cr) and a jump in other income to ₹77.20 Cr from ₹16.35 Cr a year ago — below-the-line items rather than core EPC execution improving to the same degree.

The stock went into the print at ₹1,333.15, down 0.4% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters.

No Q1-specific street consensus for this print could be found, so vsStreet is marked unknown. Management had separately guided (per prior brokerage commentary, not in our database) for roughly 15% full-year FY27 revenue growth toward over ₹30,000 Cr and a 75-80 bps operating-margin improvement; against that annual bar, Q1's 3.8% YoY revenue growth is well behind pace — though Q1 is seasonally the weakest quarter for the segment, so a single quarter's shortfall does not by itself confirm a miss for the year — while the 8.8% OPM print (versus 8.3% for full-year FY26) is a reasonable start toward the margin target. Standalone (parent-only) results diverge from the consolidated print: standalone revenue grew a faster 8.8% YoY to ₹5,481.86 Cr while standalone PAT grew a slower 32.2% YoY to ₹265.36 Cr, consistent with subsidiaries/JVs and other-income items adding to the extra profit growth seen at the consolidated level.