💰 Financial Performance

Revenue Growth by Segment

The EPC segment is the primary revenue driver, contributing to a total operating income of INR 152.68 Cr in FY25, representing a massive 136.7% YoY growth from INR 64.51 Cr in FY24. Revenue is projected to grow a further 44% to reach INR 220 Cr in FY26 driven by the execution of a robust order book.

Geographic Revenue Split

KCEIL maintains an established regional presence primarily in Rajasthan, where it is based. While specific % splits per state are not disclosed, the company is expanding its footprint through government and private tenders across the power transmission sector.

Profitability Margins

Net profit margin improved to 11.17% in FY25 from 10.15% in FY24. This 102 basis point improvement is attributed to increased operating efficiency and better cost management during the scaling phase.

EBITDA Margin

Operating margins remained healthy but saw a slight compression from 19.9% in FY24 to 17.77% in FY25 due to intense competition in the tender-based bidding process. Margins are expected to stabilize around 18% in FY26.

Capital Expenditure

The company does not have any major debt-funded capex plans over the medium term. Networth improved significantly from INR 22.16 Cr in FY23 to INR 61.69 Cr in FY25, supported by an INR 15.93 Cr IPO in Jan 2024 and an INR 25 Cr QIP in April 2025.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook from CRISIL. Interest coverage ratio improved significantly to 5.74 times in FY25 from 3.11 times in FY24, indicating a strong ability to service debt despite a 50.85% increase in borrowings used for working capital.

⚙️ Operational Drivers

Raw Materials

Primary inputs include extra high-voltage (EHV) transmission line materials, substation equipment, automation components, and power distribution hardware. Specific percentage breakdowns per material are not disclosed.

Import Sources

Materials are primarily sourced from domestic suppliers within India to support EPC projects for regional government and private power entities.

Key Suppliers

Not specifically named in the documents, though the company maintains long-term relationships with a diverse base of power equipment manufacturers and engineering suppliers.

Capacity Expansion

KCEIL operates as an EPC service provider rather than a manufacturer; its 'capacity' is measured by its order book, which stood at INR 536.90 Cr as of April 30, 2025, to be executed over 18-24 months.

Raw Material Costs

Total expenditure increased from INR 55.88 Cr in FY24 to INR 130.41 Cr in FY25, a 133% increase, closely tracking the 136% revenue growth, indicating stable procurement costs relative to scale.

Manufacturing Efficiency

Efficiency is measured by project execution timelines. Inventory turnover ratio improved significantly by 112.64% YoY, rising from 1.74 to 3.70 in FY25, reflecting faster movement of project materials.

Logistics & Distribution

Distribution costs are embedded within the EPC project costs for handling, erection, and commissioning at various substation and transmission sites.

📈 Strategic Growth

Expected Growth Rate

44%

Growth Strategy

Growth will be achieved through the execution of the INR 536.90 Cr unexecuted order book. The strategy involves leveraging the INR 25 Cr QIP funds raised in April 2025 to reduce reliance on bank limits and support larger-scale project bidding in the EHV and power automation segments.

Products & Services

EPC services for power transmission and distribution, construction of substations, EHV line handling, testing and commissioning, and power system automation/modification.

Brand Portfolio

Kay Cee Energy & Infra Limited (KCEIL).

New Products/Services

Expansion into advanced power system automation and extension/modification of existing EHV power systems is expected to contribute to the projected INR 220 Cr revenue in FY26.

Market Expansion

The company is targeting a transition from a regional Rajasthan-based player to a broader EPC contractor by onboarding new private and government customers in the power sector.

Market Share & Ranking

Not disclosed; however, the company is categorized as a mid-sized player in a highly fragmented EPC industry.

Strategic Alliances

The company operates joint operations for certain projects, though specific partner names for current active JVs were not detailed.

🌍 External Factors

Industry Trends

The industry is shifting toward increased automation and EHV line expansion to stabilize the national grid. KCEIL is positioning itself by focusing on 'extra high-voltage' segments which have higher technical barriers to entry.

Competitive Landscape

Highly fragmented with several mid-sized players competing for EPC contracts, which constrains overall scalability and pricing power.

Competitive Moat

The moat is built on the promoters' 30 years of technical qualifications and established relationships with state utilities. This provides a competitive edge in meeting stringent technical pre-qualification criteria for large tenders.

Macro Economic Sensitivity

Highly sensitive to government fiscal policy and economic cycles, as PSU expenditure on power infrastructure is the primary revenue driver.

Consumer Behavior

Not applicable as the company serves B2B and B2G (Government) segments rather than retail consumers.

Geopolitical Risks

Minimal direct impact as operations are domestic, but global commodity price fluctuations (steel/copper) can impact the cost of materials used in EPC contracts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and technical standards for power transmission set by state and central electricity authorities. As an SME-listed entity, it is exempt from certain corporate governance certification requirements under Regulation 15(2).

Environmental Compliance

The company has adopted an Occupational Health & Safety Management System to ensure conformance with legal and statutory requirements.

Taxation Policy Impact

The company follows standard Indian corporate tax rates; specific effective tax rate % was not disclosed.

Legal Contingencies

The auditor's report issued an unmodified opinion, and no major pending litigation values in INR were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the tender-based nature of the business; failure to win new contracts could lead to a revenue decline below the INR 10 Cr cash accrual threshold monitored by rating agencies.

Geographic Concentration Risk

High concentration in Rajasthan and regional power grids, making the company vulnerable to local policy shifts or regional economic slowdowns.

Third Party Dependencies

Significant dependency on government agencies for timely payments and project approvals, as evidenced by the high 369-day GCA.

Technology Obsolescence Risk

Risk is moderate; the company must continually update its capabilities in substation automation to remain competitive in modern grid tenders.

Credit & Counterparty Risk

Receivables stood at over 48 days as of March 2024. While the counterparty risk is mitigated by dealing with government entities, payment delays remain a key monitorable for liquidity.