KEC Int falls sharply

KEC International shares fell sharply in early trade on Wednesday, emerging among the top three losers on the BSE, after Power Grid Corporation of India (PGCIL) barred the company from participating in fresh tenders for nine months beginning November 18, 2025.

The stock opened weak at Rs.744.95, slid to an intraday low of Rs.724.60, and was trading around Rs.735 levels, down nearly 6 per cent compared with a flat BSE Sensex. The fall comes after Monday’s post-market disclosure of PGCIL’s communication restricting new bidding, although ongoing projects awarded earlier will continue.

The development weighs on sentiment because PGCIL is India’s largest transmission utility and a key client for EPC players in the power T&D segment. While the restriction does not affect existing contracts, it temporarily removes KEC from one of the country’s most active tendering ecosystems at a time when the transmission capex cycle is strong. The stock’s reaction also reflects the broader caution toward governance-linked actions, even if companies later clarify their stance,  especially after KEC’s volatile performance over the past year. The stock had touched a 52-week high of Rs.1,312 last December before correcting sharply, and remains well below those levels.

KEC, in its exchange filing, said it does not foresee a significant financial impact, citing a strong multi-vertical order book, diversified tender pipeline, and healthy momentum in railways, civil, and international T&D markets. Analysts agree that KEC’s revenue mix has become far less dependent on any single client, but caution that the PGCIL pause may delay incremental order inflows in India’s domestic T&D business over the next two to three quarters. That could moderate the pace of margin recovery the Street was expecting in FY26, though it does not alter the company’s medium-term growth visibility.

The company reiterated its commitment to corporate governance and said it is evaluating legal and administrative options, including seeking reconsideration from PGCIL. Market participants will now track whether the restriction materially affects tender timelines in the sector and if KEC’s international order wins can offset any domestic shortfall.

With the stock down sharply from its 52-week high and hovering above its April low of Rs.605, investor attention will turn to upcoming quarterly commentary for clarity on execution, working capital, and margin trajectory through FY26.