What’s new

• H2 net profit rose 456% to ₹5.75 crore.
• Full-year profit reached ₹7.29 crore on revenue of ₹210 crore.
• The firm is the lowest bidder for a ₹70-74 crore defence project in Kanpur.

Why it matters

Konstelec is betting that shifting its project mix toward defence and data centres will sustain the profit gains seen in the second half. Management's refusal to provide near-term guidance suggests they are wary of the same raw material and geopolitical headwinds that have plagued the broader construction sector.

What we’re watching

• Formal award of the Kanpur ordnance factory contract.
• Profitability as the company executes its new project mix.
• Updates on raw material cost pressures in future quarters.

The full read

Konstelec Engineers is moving up the value chain. By shifting toward defence and data centre projects, the firm delivered a sharp 456% year-on-year jump in H2 net profit to ₹5.75 crore. Full-year profit landed at ₹7.29 crore on revenue of ₹210 crore. The company is now the lowest bidder for a ₹70-74 crore defence contract at an ordnance factory in Kanpur, a win that would solidify its strategic shift. With an order backlog of over ₹550 crore, the company has a clear runway for the coming years. But management remains cautious. They declined to offer near-term guidance, pointing to raw material cost pressures and geopolitical volatility. The next test is whether the firm can convert its low-bidder status into a signed contract and maintain these profit levels as it scales its new focus areas.

Primary source: NSE