KEC Vs Power Grid: Is the company allowed to bid for new PGCI tenders after new high court judgement?

Synopsis: The shares of this construction stock jumped 7% today following the Delhi court’s 9-month exclusion order being put on hold; this gives the company the chance to participate in future tenders for PGCIL. However, this is a temporary resume of tender participation till final orders arrive. 

The shares of this company, which is a global infrastructure EPC major which has a presence in the verticals of power transmission and distribution, railways, civil, and more have been in the news following the company’s 9-month exclusion from PGCIL tender bidding being temporarily put on hold. 

With the market cap of Rs 19,700 crore, the shares of KEC International Ltd had hit their intraday high at Rs 765, gaining more than 7 per cent compared to their previous day’s closing price of Rs 712.40. The shares are trading at a PE of 28.9, whereas their industry PE is at 19. 

About the exclusion order. 

KEC International has finally caught a bit of a break after the Delhi High Court stepped in on its dispute with Power Grid Corporation of India (PGCIL). The court has temporarily paused PGCIL’s earlier order that would have kept KEC out of tenders for nine months. In simple words, that restriction is not active right now, and PGCIL has been told to go back, review KEC’s response properly, and then take a fresh call.

What really matters on the ground is that KEC can continue bidding for projects without any interruption, including those floated by PGCIL. This is a big relief because PGCIL is an important client, and being locked out could have hurt future orders. With this clarity, KEC can keep pursuing new work and maintain business momentum instead of dealing with a sudden stop.

For investors, this update brings much-needed comfort. The issue isn’t completely behind the company yet, but the immediate risk has clearly eased. The court’s decision buys KEC time and reduces short-term uncertainty, while the company’s emphasis on following rules and maintaining governance helps rebuild confidence as the situation continues to unfold.

Financials  

The revenue from operations for the company stands at Rs 6,092 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 5,113 crores, up by about 19 per cent YoY. Similarly, the net profit stood at Rs 161 crore in Q2 FY26, up from Rs 85 crore in Q2 FY25, giving a rise of about 90 percent. 

The company has a strong and growing order book of Rs 39,325 crore, up 15% on a YTD basis, which gives good visibility for revenues ahead. A large part of this order book continues to come from the T&D segment, which accounts for around 65%, showing that the core business remains healthy.

Civil projects form about 25%, while transportation, cables & conductors, and other segments together add further diversification. On the geography side, the order book is well balanced, with 55% coming from domestic projects and 45% from international markets. 

This mix helps reduce dependence on any single region while keeping exposure to overseas growth opportunities. With steady YTD growth in both T&D and international segments, the expanding order book puts the company in a comfortable position as it moves into the next phase of execution.

KEC International focuses on building the infrastructure that keeps things running smoothly. It works on putting up power lines, executing transport and civil projects, developing energy-related infrastructure, and manufacturing essential components like cables and conductors. By handling projects from start to finish, the company helps create reliable systems for electricity, connectivity, and movement across regions.

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