Detailed Narrative
Q1 FY27 Financial Performance Highlights
PSP Projects reported a robust Q1 FY27, with revenue from operations growing 65% YoY to ₹853 crores, up from ₹518 crores in Q1 FY26. EBITDA increased by 121% YoY to ₹55 crores, with the EBITDA margin expanding to 6.42% from 4.79%. Net profit saw a significant surge of almost 50 times YoY, reaching ₹18 crores, resulting in a net profit margin of 2.12%. Employee costs increased to ₹46 crores (5.4% of sales) in Q1 FY27, up from ₹35 crores in Q1 FY26, primarily due to strategic team expansion.
Strong Order Book and Inflow Dynamics
As of June 30, 2026, the outstanding order book stood at ₹13,245 crores, reflecting a strong 103% YoY growth and providing multi-year revenue visibility. The company secured new order inflows of ₹630 crores in Q1 FY27, with 93% of these orders originating from the Adani Group. The bid pipeline remains healthy at over ₹6,200 crores, comprising 61% group projects and 39% external projects, indicating continued growth opportunities.
Order Book Composition and Project Execution
The current order book is diversified, with industrial projects accounting for 39%, residential 37%, government 23%, and institutional 1%. Within this, 70% are within-group projects and 30% are external. Key projects include Shree Ambaji Mata Temple (₹962 crores) and SMC High-Rise Building (₹693 crores). Most major projects have now moved beyond initial excavation and underground works into the core construction phase, enabling improved execution momentum.
Working Capital and Debt Management Strategy
The company reported long-term borrowings of ₹38 crores and short-term borrowings of ₹217 crores. Mobilization advances stood at ₹836 crores, all of which are interest-free, significantly aiding working capital. Management aims to achieve a net debt-free status within the next two to three quarters, supported by reduced finance costs and a healthy surplus of lien-free fixed deposits amounting to ₹139 crores, alongside a cash balance of approximately ₹400 crores.
Strategic Focus and Execution Capabilities Enhancement
PSP Projects continues its focused strategy on building projects primarily in Gujarat and Mumbai, with 70-75% of its order book from Adani Group projects and 25-30% from non-Adani projects. The company deployed over 16,000 laborers across project sites in Q1 FY27 and plans to add 3,000-4,000 more in the coming quarters⏳ to further enhance execution capabilities. This strategic investment in human capital is expected to normalize📎 employee costs to 4-4.5% of sales from Q2 onwards.
Dharavi Redevelopment: A Long-Term Opportunity
The company has ₹3,000 crores worth of Dharavi projects in its order book, involving the construction of 30,000-32,000 houses as part of the larger 2 lakh houses to be built over 5-6 years. PSP Projects holds the 'first right of rejection' for future phases of the Dharavi redevelopment, indicating a significant long-term opportunity as it establishes its presence and performance in Mumbai. The phased development will see shifts of residents and subsequent land vacation for new development over 6-7 years.
Margin Structure and Cost Management
Management clarified that most Adani projects (comprising 70-75% of the order book) are on a cost-plus basis, yielding an EBITDA margin in the range of 6-7%. Other PSP projects typically achieve 8-9% EBITDA. While raw material cost escalations, particularly for aluminum and copper, impacted some activities in SMC and RVNL projects, the pass-through nature of Adani contracts mitigates broader impact on overall margins.