“Order inflows from PGCIL were estimated at about ₹1,500 crore in FY26, of which about ₹750 crore have been secured to date. Consequently, the company is likely to forgo about ₹750 crore of potential orders over the remaining four months of FY26,” PL Capital mentioned in a note. The broking firm estimates KECIL to miss out on a further about ₹700 crore of orders during the first five months of FY27. In addition, its peer Kalpataru Projects International may be benefitted in the short term from PGCIL’s action.
On Tuesday, the company told stock exchanges that it has been excluded from participating in tenders of PGCIL and award of contracts by it for a period of nine months for alleged transgression of contractual provisions.
Agencieswell-cushioned: Nine-month ban to result in loss of about ₹1,500 cr of orders, while for FY26 it has a ₹17,066-cr pipeline
However, the company clarified on Wednesday that the debarment will not impact KECIL’s ongoing PGCIL projects which form 15% (around ₹5,900 crore) of its total order book of ₹39,325 crore.
“The communication from PGCIL has no bearing on the execution of the existing PGCIL projects,” KECIL said in a statement to the stock exchanges. Its shares plunged 9.1% to close Wednesday’s trading session at ₹710.2 on the BSE.
The company is exploring options, including legal recourse or approaching PGCIL to reconsider the decision. In addition, the company does not foresee any material impact on its ongoing operations or financial position. It is confident of meeting its annual order intake target as it has a strong tender pipeline of over ₹1.8 lakh crore and an L1 (lowest bidder) position exceeding ₹4,000 crore.
