KEC International Faces Stock Market Turbulence Following PGCIL Ban
Shares of KEC International witnessed a sharp decline on Wednesday, November 19, plummeting more than 7 percent in a single trading session. This significant drop came as a direct response to the company's disclosure that the Power Grid Corporation of India Ltd (PGCIL), a major state-run entity, has barred it from participating in its tenders.
Details of the PGCIL Tender Ban
The exclusion, which is set to last for a period of nine months starting November 18, 2025, prevents KEC International from both bidding on new PGCIL tenders and receiving any new contract awards during this timeframe. This disciplinary action is connected to an alleged breach of contractual provisions related to a prior issue. This earlier matter had been formally communicated to the stock exchanges via a letter dated March 24, 2025.
In a crucial clarification, KEC International assured investors and stakeholders that this restriction will not affect any of its ongoing projects currently being executed for Power Grid Corporation. All existing work will continue as planned.
Company Response and Financial Reassurance
In its official filing to the exchanges on Tuesday, November 17, KEC International outlined its course of action. The company confirmed it is evaluating multiple options, which include pursuing legal remedies and formally approaching PGCIL to request a reconsideration of the decision.
Despite the negative market reaction, the company sought to project stability. It emphasized that it does not anticipate any material impact on its operations or financial position. This confidence is reportedly backed by a strong order book and a healthy pipeline of tenders from other clients. KEC International further reinforced its commitment to high standards of corporate governance, ethics, and regulatory compliance.
Stock Performance and Broader Context
The market's immediate reaction was severe. The KEC International share price fell as much as 7.2 percent to an intraday low of ₹724.60. This places the stock nearly 45 percent away from its 52-week high of ₹1,312, which was recorded in December 2024. However, it still maintains a 20 percent gain from its 52-week low of ₹605.05 hit in April 2025.
The stock's recent performance has been challenging:
- Down 25% in the last one year
- Down 9.5% over the last 6 months
- Down 11% in the last 3 months
- Fallen over 12% in the past 1 month
Recent Positive Developments and Strong Financials
This setback comes amidst otherwise positive news for the company. Just a day before the PGCIL announcement, on Monday, November 16, KEC International announced it had secured new orders worth ₹1,016 crore across various business segments.
Vimal Kejriwal, MD and CEO of KEC International Ltd, expressed satisfaction with these wins. He highlighted that the civil business secured a maiden order for luxury villas in India and strengthened its position in the metals and mining sector. Notably, the oil and gas business marked a significant milestone by entering the GCC region. With these additions, the company's year-to-date order intake has crossed ₹17,000 crore, reflecting a 17 percent growth over the previous year.
Furthermore, the company reported a robust financial performance for Q2 FY26 (ending September 30, 2025):
- Consolidated revenue rose 19% YoY to ₹6,092 crore
- EBITDA increased to ₹430 crore from ₹320 crore
- Profit after tax surged 88% to ₹161 crore
