Detailed Narrative
Q2 FY26 Performance Overview
PSP Projects reported a strong Q2 FY26, with revenue from operations growing 20% YoY to INR 694 crore and 35% QoQ. Half-year revenue stood at INR 1,206 crore, a modest 1.38% YoY increase. EBITDA for the quarter was INR 48 crore, up 24% YoY, with the margin expanding to 6.93% from 6.72% in Q2 FY25. Net profit increased 33% YoY to INR 15 crore.
Order Book and Inflow Dynamics
As of September 30, 2025, the outstanding order book reached INR 9,883 crore, marking a 51% YoY growth. The company secured new orders worth INR 4,011 crore (excluding GST) during Q2 FY26, predominantly from the Adani Group, which now comprises 56% of the total order book. The bid book currently stands at INR 8,500 crore, with INR 7,000 crore from Adani Group projects, potentially leading to a total order book of INR 16,000 crore by March 2026.
Operational Efficiency and Execution Highlights
The improved revenue performance is attributed to enhanced project execution, better workfront availability, and recovery in labor post-monsoon. The company achieved a world record by completing a continuous concrete pour of 24,000 cubic meters in 54 hours for the Vishv Umiya Dham Temple foundation, generating INR 37 crore revenue for work that would typically take three months. Operational execution strengthened from mid-August 2025 following the end of the monsoon season.
Capital Expenditure and Debt Profile
The company incurred CAPEX of INR 41 crore in Q2 FY26, bringing the first-half CAPEX to INR 80 crore. Gross block as of September 30, 2025, was INR 683 crore, with net block at INR 325 crore. Long-term borrowings stood at INR 36 crore, and short-term borrowings at INR 314 crore. The company holds INR 224 crore in fixed deposits, with INR 36 crore lien-free. Mobilization advances, primarily from the Adani Group, totaled INR 486 crore and are entirely interest-free.
Receivables and Working Capital Challenges
Working capital days increased due to higher debtor days, primarily because a majority of sales were booked in September and some payments from government projects (Sabarmati Riverfront, Dharoi, Naranpura Sports Complex, Surat Metro Corporation) were stretched. The company made an ECL provision of INR 3.64 crore in Q2 FY26, significantly higher than INR 0.75 crore in Q2 FY25, linked to delays in recovery. Management expects working capital to stabilize in Q3 with advances from the Adani Group.
Project Updates and Challenges
Five projects were successfully completed in Q2 FY26, including student dormitories at IIM Ahmedabad and precast projects for Mundra Solar and Petrochem. Work at Ahmedabad Airport and GIFT City projects is progressing well. However, the GMC project remains on hold due to land acquisition issues, and the Dharoi Dam project has two pending land acquisition components expected to be finalized by November 2025. Mumbai projects face initial delays due to complex substructure work like sheet piling and excavation.