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    Engineers India Limited

    ENGINERSINGood
    Construction·14 Nov 2025
    Management Summary

    Engineers India delivered a strong Q2 FY26 with significant top-line and bottom-line growth, supported by a record-high order book. While the consultancy segment continues to be the primary profit driver with high margins, the turnkey (LSTK) segment is providing the necessary scale for revenue growth. Management remains bullish on international opportunities, particularly in the Middle East and Africa, and has raised its annual revenue guidance following strong H1 performance.

    Highlights

    7

    • Revenue grew 33% YoY to ₹900 crore in Q2 FY26, driven by strong execution in both segments.

    • Order book reached an all-time high of ₹13,131 crore as of September 30, 2025.

    • PAT increased by 45% YoY to ₹115 crore, while PBT saw a 50% jump to ₹150 crore.

    • Consultancy segment margins remained robust at 28% for the quarter, aided by a ₹35 crore provision reversal.

    • Order inflow for H1 FY26 stood at ₹3,765 crore, with management targeting ₹8,000 crore+ for the full year.

    • Consolidated profit was impacted by a ₹25 crore loss from the Ramagundam associate project due to a 45-day shutdown.

    • Management raised full-year revenue growth guidance to 25% plus from the earlier 20% plus.

    What Changed3

    vs Q3 FY26

    Guidance items8 → 5 (-3)Risks discussed2 → 3 (+1)Q&A highlights8 → 3 (-5)

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue₹900 Cr+33.1%YoY
    2. 02EBITDA Margin17%
    3. 03PAT₹115 Cr+45.5%YoY
    4. 04Order Book₹13,131 Cr+8.1%QoQ
    5. 05Order Inflow₹3,765 Cr

    Segment breakdown

    • Consultancy & Engineering₹411 Cr45.7%
    • Turnkey Projects (LSTK)₹489 Cr54.3%
    Donut· Share of Revenue

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Full Year Revenue Growth
    25% plus
    		High
    Other
    Order Inflow Target
    ₹8,000 crore+
    		High
    Margin
    Consultancy Segment Profit Margin
    22-25%
    		Medium
    Margin
    LSTK Segment Profit Margin
    6-7%
    		Medium
    Dividend
    Dividend from NRL
    ₹20 crore
    		High

    Risks & concerns

    4
    RiskSeverity

    Technical issues and shutdowns at Ramagundam Fertilizer plant

    The plant faced stabilization issues and a 45-day shutdown, leading to a ₹25 crore loss share for EIL this quarter. — Both acknowledged

    medium

    Tapering of major international projects

    Major projects like Dangote (Nigeria) and Mongolia are tapering as work nears completion, requiring new wins to sustain overseas revenue. — Management acknowledged

    medium

    Competitive bidding environment for large CapEx

    While the pipeline is large (₹1.66 lakh crore from IOCL, etc.), management notes it is a competitive world and they must bid to win. — Management acknowledged

    low

    Areas of Evasion(1)

    • Vague on the specific 'other income' impact beyond the ₹35cr write-back when asked for the 'net of impact' in totality.

    Q&A highlights

    3

    “In this quarter, we have a profit segment of 28%. But if on the half-yearly basis, it is around 25%. We are sure that we will be able to secure our margin of around 25% on overall basis in the consultancy segment.”

    Clarifies that the high 28% margin in Q2 included a provision reversal (write-back) and sets a realistic 25% expectation for the full year.

    asked by Mohit Kumar, ICICI Securities

    2 min read5 chapters

    Detailed Narrative

    01

    Record Order Book Provides Strong Visibility

    Engineers India's order book has reached an all-time high of ₹13,131 crore, representing a significant jump from ₹12,145 crore in the previous quarter. The company secured ₹3,765 crore in new orders during H1 FY26 and has already crossed the ₹4,000 crore mark as of the call date. Management is confident of exceeding last year's total inflow of ₹8,000 crore, supported by a robust domestic pipeline in oil and gas and aggressive international expansion.

    02

    Consultancy Margins Bolstered by Provision Reversals

    The consultancy segment reported a high profit margin of 28% in Q2, which was partially aided by a ₹35 crore write-back related to the Dangote Refinery project in Nigeria as the defect liability period reduced. Excluding this, management expects to maintain a steady-state margin band of 22% to 25% for the full year. The segment remains the core profit engine, contributing ₹411 crore to the quarterly turnover.

    03

    Associate Losses at Ramagundam Impact Consolidated PAT

    Consolidated performance was dampened by a ₹25 crore loss share from the Ramagundam Fertilizer associate project. The plant was under shutdown for 45 days during the 90-day quarter due to technical stabilization issues. However, management noted that the plant is now running well and is expected to turn profitable in Q3 FY26, with a long-term potential to generate ₹500 crore in annual profits.

    04

    Strategic Pivot Toward International Markets

    EIL is aggressively focusing on international markets to offset the tapering of large legacy projects like Dangote and Mongolia. Overseas consultancy has already contributed over ₹1,600 crore to this year's order inflow. The company is leveraging long-term engineering consultant agreements in Abu Dhabi and targeting major projects in Africa to sustain its high-margin consultancy revenue stream.

    05

    Revenue Recognition and Execution Cycle

    Management provided clarity on its revenue recognition cycle, noting that new projects typically contribute 10-15% of their total value to turnover in the first year, peaking at 25-30% in years two and three. With the current record order book, this cycle suggests a strong multi-year revenue growth trajectory, supporting the management's upgraded guidance of 25% plus growth for FY26.

    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.