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    Engineers India

    ENGINERSINGood
    Construction·18 Aug 2025
    Management Summary

    Engineers India delivered a strong start to FY26 with record-high order book levels and 40% revenue growth. While the quarter saw a temporary loss from the RFCL joint venture due to a planned shutdown, the core consultancy and turnkey segments showed robust execution. Management maintained a conservative growth guidance of 15-20%, despite analyst pressure regarding higher historical execution rates and more optimistic public statements from the MD.

    Highlights

    8

    • Order book reached an all-time high of ₹12,145 crores as of June 30, 2025.

    • Revenue for Q1 FY26 stood at ₹857 crores, a significant 40% YoY increase.

    • Order inflow for the quarter was ₹1,430 crores, with ₹609 crores from Consultancy and ₹821 crores from Turnkey.

    • Profit After Tax (PAT) grew by 27% YoY to ₹70 crores.

    • EBITDA margin improved to 12% compared to 14% in the previous year's quarter (based on ₹85cr on ₹611cr vs ₹105cr on ₹857cr).

    • Consultancy segment EBIT margin stood at 17% for the quarter, with a normalized target of 22%.

    • International order intake reached ₹950 crores till the date of the call, primarily from the Middle East.

    • Management declared a dividend of ₹4 per share (80% on face value of ₹5).

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue₹857 Cr+40%YoY
    2. 02EBITDA₹105 Cr+23.5%YoY
    3. 03EBITDA Margin12%
    4. 04PAT₹70 Cr+27%YoY
    5. 05Order Book₹12,145 Cr+3.6%QoQ

    Segment breakdown

    • Consultancy and Engineering₹408 Cr47.6%
    • Turnkey Projects (LSTK)₹449 Cr52.4%
    Donut· Share of Revenue

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Overall Top-line Growth
    15-20%
    		Medium
    Revenue
    Consultancy Top-line Growth
    12-15%
    		Medium
    Revenue
    Total Turnover Target
    ₹5,000 crores
    		Medium
    Margin
    Consultancy Segment Margin
    20-25%
    		High
    Margin
    LSTK Business Margin
    6-7%
    		High

    Risks & concerns

    6
    RiskSeverity

    Execution Pace of New Orders

    Management noted that new orders typically only contribute 10-15% to turnover in their first year. — Management acknowledged

    medium

    CMD Transition

    The current CMD is set to retire in February 2025; management declined to comment on extension possibilities. — Analyst deflected

    low

    JV Volatility

    Planned shutdowns in JVs like RFCL can materially impact quarterly consolidated earnings. — Both acknowledged

    medium

    Areas of Evasion(3)

    • Specific details on HPCL projects
    • CMD extension/succession planning
    • Reconciling MD's public growth targets with call guidance

    Q&A highlights

    3

    “On the conservative side, we are 15% to 20%... In case our change orders are approved by the client, then definitely our growth will be 30% to 35%.”

    Analysts challenged the 15-20% guidance as too conservative compared to the MD's public statements of 30-35% and historical execution rates.

    asked by Amit Anwani, PL Capital

    2 min read5 chapters

    Detailed Narrative

    01

    Record Order Book Provides Strong Visibility

    Engineers India's order book reached an unprecedented🌐 ₹12,145 crores as of June 30, 2025, up from ₹11,717 crores in March. Management further disclosed that they have secured an additional ₹2,700 crores in orders since the quarter ended, bringing the current visibility even higher. This record-high position is driven by both domestic infrastructure projects and a strong push into international markets, particularly Abu Dhabi and Kuwait.

    02

    Strategic Diversification into Non-Oil & Gas

    The company is successfully diversifying its portfolio, with non-oil and gas projects now making up approximately 35-45% of the order book. Key wins include infrastructure assignments for IITs, IIMs, data centers, and specialized projects like the Ram Janmabhoomi campus modification. Margins in this segment remain healthy, with consultancy work yielding 20-22% and LSTK work around 5-6%.

    03

    Nuclear Energy: A New Frontier with SMRs

    A significant strategic highlight is EIL's entry into the Bharat Small Modular Reactor (BSMR) space. The company was awarded a ₹30 crore conceptual design and engineering assignment by NPCIL. Management views this as a 'starting point' that could lead to a massive pipeline of assignments as the Government of India plans to deploy SMRs across the country to increase nuclear energy reach.

    04

    The Growth Guidance Debate

    A central point of contention during the call was the revenue growth guidance for FY26. While the Director of Finance insisted on a 'conservative' 15-20% growth path, analysts pointed out that the MD had publicly alluded to 30-35% growth. Management clarified that the 15-20% figure is the baseline, but if pending change orders are approved by clients, the growth could indeed accelerate to the 30-35% range.

    05

    JV Recovery and Cash Position

    The Q1 consolidated profit was impacted by a loss in the RFCL joint venture due to a 45-day planned shutdown. However, management confirmed the plant is now operating at over 90% capacity and expects the JV to be profitable for the remainder of the year, contributing ~₹100 crores to consolidated accounts. The company maintains a robust cash balance of approximately ₹1,100 crores, supporting its high dividend payout policy.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.