Infra Stock in Focus After Power Grid Revokes Tender Restriction

Synopsis: Infra stock is in focus after Power Grid Corporation of India revoked its nine-month tender restriction effective June 26, 2026, enabling the company to participate in PGCIL projects again and improving its prospects for future transmission infrastructure orders. 

The shares of this company have presence in the verticals of power transmission and distribution, railways, civil, urban infrastructure, solar, oil & gas pipelines, and cables are in the spotlight after the Power Grid Corporation of India revoked its nine-month tender restriction. 

With a market capitalisation of Rs. 13,935 cr, the shares of KEC International Ltd were trading at Rs. 523.50 per share, down from its previous close of Rs. 528.05 per share. The stock has delivered negative returns across most timeframes, declining 43% over the past year, 29% year-to-date, and 29% over the last six months, while gaining 5% in the past month.

What’s the News

KEC International Ltd has announced that Power Grid Corporation of India Ltd (PGCIL) has revoked its earlier order that barred the company from participating in PGCIL tenders and contracts. The revocation became effective June 26, 2026, allowing KEC International to immediately resume participation as a bidder or subcontractor in PGCIL projects.

The company had been excluded from participating in PGCIL tenders for a nine-month period starting November 18, 2025. Following representations made by KEC International and various corrective actions taken by the company, PGCIL decided to lift the restriction before the end of the exclusion period.

KEC International stated that it remains committed to maintaining the highest standards of corporate governance, ethics, and regulatory compliance, and will continue to conduct its business with integrity and transparency. The lifting of the restriction is expected to restore the company’s access to future transmission infrastructure projects from PGCIL.

Order Book 

KEC International has a diversified and robust order book exceeding Rs. 40,000 crore, including its current order book and L1 (lowest bidder) positions. The company maintains a healthy order book-to-revenue ratio of 1.7x, providing strong revenue visibility and reflecting a steady pipeline of projects across multiple infrastructure segments.

The Transmission & Distribution (T&D) business remains the largest contributor with around Rs. 25,200 crore in orders, followed by the Civil segment at approximately Rs. 10,400 crore. The Transportation segment contributes around Rs. 2,600 crore, while the Cables and Oil & Gas businesses account for approximately Rs. 1,100 crore and Rs. 300 crore, respectively, highlighting the company’s well-diversified project portfolio.

It is one of the leading global infrastructure engineering, procurement, and construction (EPC) companies and part of the RPG Group. The company executes projects across power transmission and distribution, civil infrastructure, transportation, renewables, oil & gas pipelines, and cables.

On the financial front, it reported a weak performance in Q4FY26. Revenue declined 7% YoY to Rs. 6,390 crore from Rs. 6,872 crore in Q4FY25, while EBITDA fell 17% YoY to Rs. 448 crore from Rs. 539 crore. Net profit decreased 28% YoY to Rs. 193 crore compared to Rs. 268 crore in the year-ago period, with EPS also declining 28% to Rs. 7.24 from Rs. 10.08.

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