PSP Projects Limited — Q2 FY26 earnings call

Call held 17 Oct 2025

Management summary

PSP Projects Limited reported a strong Q2 FY26 with revenue up 20% YoY to ₹694 crores and net profit up 33% to ₹15 crores, driven by improved execution post-monsoon and Adani project mobilization. The order book grew 51% YoY to ₹9,883 crores, with ₹4,011 crores in new orders this quarter. However, working capital days increased due to stretched government receivables and higher ECL provisions, while some projects face land acquisition delays.

Highlights

  • Revenue of ₹694 crores, up 20% YoY, driven by enhanced execution and labor availability post-monsoon.

  • EBITDA margin expanded to 6.93% from 6.72% YoY, and Net Profit grew 33% YoY to ₹15 crores.

  • Order book reached ₹9,883 crores as of Sep 30, 2025, a 51% YoY growth, with ₹4,011 crores in Q2 FY26 order inflow.

  • Adani Group projects commenced mobilization, contributing 56% to the current order book and offering significant future order inflow visibility.

  • Successfully completed 5 projects in Q2 FY26 and achieved a world record for a continuous concrete pour for the Vishv Umiya Dham Temple foundation.

Concerns

  • ECL provision increased to ₹3.64 crores in Q2 FY26 from ₹0.0075 crores in Q2 FY25, linked to increased receivable days from certain government projects.

  • Working capital cycle increased to 102 days from 65 days last year, primarily due to stretched payments from some government projects.

  • GMC project (₹140 crores) and Dharoi Dam project are experiencing delays due to land acquisition issues.

  • Payment of ₹90 crores from SDB is still pending, though interest has been agreed upon, the timing of payment is uncertain.

Key financials

3 periods

Headline

  • Revenue
    ₹694 Cr
    YoY +20% QoQ +35%
  • EBITDA
    ₹48 Cr
    YoY +24%
  • EBITDA Margin
    6.9%
    YoY +3.1%
  • Net Profit
    ₹15 Cr
    YoY +33%
  • Half-Year Revenue
    ₹1,206 Cr
    YoY +1.4%
  • ECL Provision
    ₹3.64 Cr

Q2

  • CAPEX
    ₹41 Cr

H1

  • CAPEX
    ₹80 Cr

What they filed

Q1 FY27: revenue up 64.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue586 630 673 518 703 +20%813 +29%1,115 +66%853 +65%
EBITDA38 36 32 25 50 +32%55 +53%60 +88%55 +120%
Net profit10 5 6 0 16 +60%18 +260%21 +250%18
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹9,883 Cr

as of 2025-09-30 quantified

51% YoY

Inflow this quarter

₹4,011 Cr

Execution

Adani projects range from 24 months to 3 years completion period.

Composition

Mix 2 client types
  • Adani projects 56%
  • Non-Adani projects 44%

Share of order book by client type

Pipeline

qualified rfp

Total bid book of approximately ₹8,500 crores, comprising ₹1,300 crores of non-Adani projects and ₹7,000 crores of Adani Group projects.

Cancellations & deferrals

  • deferred: Dharoi Dam project has two land acquisition components pending, temporarily pausing horizontal development work.
  • deferred: GMC project work is on hold due to land acquisition issues.
  • deferred: Mumbai projects (e.g., Dharavi) facing delays in substructure work due to sheet piling and excavation.
Management expects significant order inflow from Adani Group due to their large CAPEX plans and aims for a total order book of ₹14,000-15,000 crores by March 2026.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹41 Cr
    • High value cranes for precast
    During Q2FY26, company has incurred a CAPEX of Rs. 41 crores. ... Overall CAPEX guidance I can say that it should be in the range of 3%-4% but probably this time as we have bought lot of high value cranes for precast, so can cross to 4% or 4.5% but that will be the maximum.
  • Debt Gross ₹350 Cr
    Long-term borrowing Rs. 36 crores which includes short-term maturity of Rs. 26 crores. Short-term borrowing Rs. 314 crores excluding short-term maturities of Rs. 26 crores.
  • Liquidity Undrawn ₹502 Cr Mobilization advance of ₹486 crores is entirely interest-free. Net unbilled revenue is ₹603 crores, and retention is ₹156 crores. Total fixed deposits are ₹224 crores, with ₹36 crores lien-free.
    Mobilization advance Rs. 486 crores. ... Net unbilled revenue of Rs. 603 crores. Retention is Rs. 156 crores. ... Fixed Deposit of Rs. 224 crores out of which lien-free deposit of Rs. 36 crores and FDs worth Rs. 163 crores are under lien with the bank for credit facilities and FD worth Rs. 25 crores is given to the client as security deposit. ... available for utilization: Rs. 502 crores.

Guidance & targets

Order Inflow

  • Full Year Order Inflow Order Inflow · FY26 · High confidence ₹11,000 crores
    So, Rs. 4000 Cr plus Rs. 7000 Cr more so total around Rs. 11000 odd crores for full year order inflow that we are looking at for this year

    — Prahaladbhai Patel

  • Fresh Order Inflow Order Inflow · FY27 · Medium confidence Same range as FY26
    For next year how much order that we are looking for as a fresh order inflow? See probably the way the pace of the projects which we are getting from the group and the total CAPEX the group is having depending on our full year's performance and stabilization of the project which they have already given, probably it should be in the same range for next year also.

    — Prahaladbhai Patel

Revenue

  • H2 Revenue Revenue · H2 FY26 · High confidence ₹2,000 crores
    and Rs. 2000 crores revenue in the second half that we are looking at.

    — Prahaladbhai Patel

  • Full Year Revenue Revenue · FY26 · High confidence ₹3,200 crores
    So, combining put together for full year revenue we are looking at around Rs. 3200 odd crores. 3200, right.

    — Prahaladbhai Patel

  • Revenue Revenue · FY27 · Medium confidence Exceeding ₹4,000 crores
    If we consider more than 20% it will be somewhere in the range of (+) 4000 crores. ... If progress continues as expected, we are confident of achieving revenues exceeding Rs. 4,000 crore. As you rightly pointed out, with an outstanding order book of around Rs. 15,000 crore, we should be well-positioned to deliver over Rs. 4,000 crore.

    — Prahaladbhai Patel

Margin

  • EBITDA Margin Margin · H2 FY26 and next year · High confidence 8-9%
    See margin as I originally said, as and when the revenue we will start, we should be in the position to stabilize at 8% to 9%.

    — Prahaladbhai Patel

Capex

  • CAPEX as % of Revenue Capex · FY26 · High confidence 4-4.5%

    Previously 3-4% → 4-4.5%

    Overall CAPEX guidance I can say that it should be in the range of 3%-4% but probably this time as we have bought lot of high value cranes for precast, so can cross to 4% or 4.5% but that will be the maximum.

    — Prahaladbhai Patel

Order Book

  • Total Order Book Order Book · March 2026 · High confidence ₹14,000-15,000 crores
    If the Adani projects materialize, our total order book could reach around Rs. 16,000 crore by March 2026. After accounting for potential revenues of over Rs. 2,000 crore during this period, our outstanding order book by March 2026 would likely stand between Rs. 14,000 crore and Rs. 15,000 crore.

    — Prahaladbhai Patel

What to watch in Q3 FY26

SDB Payment Status

next quarter (Q3 FY26)
Current ₹90 crores pending, agreed to pay with interest
Target Significant payment received

Why it matters

Resolution of a long-standing receivable impacting liquidity and working capital.

Lastly, what is the pending money to be received from SDB? Rs. 90 crores. ... But now they have considered interest as a part of the payment.

Risks & concerns

  • Land Acquisition Delays

    medium

    GMC project (₹140 crores) and Dharoi Dam project (2 components) are experiencing delays due to pending land acquisition.

    Management acknowledged

  • Stretched Government Receivables

    medium

    Increased working capital days and ECL provisions are due to delayed payments from government projects like Sabarmati Riverfront, Dharoi, Naranpura Sports Complex, and Surat Metro Corporation.

    Management acknowledged

  • Project Execution Delays in Mumbai

    medium

    Mumbai projects, particularly Dharavi, are facing delays in substructure work (sheet piling and excavation), impacting the overall execution timeline.

    Management acknowledged

  • Uncertainty of SDB Payment

    medium

    A payment of ₹90 crores from SDB is still pending, with the client struggling with office sales, making the timing of recovery uncertain despite an agreement on interest.

    Management acknowledged

Q&A highlights

5 direct
Order Inflow Disclosure Policy Direct
So, it is a company policy they have decided, orders received can be disclosed along with the quarterly results. However, it's not a SEBI requirement; it varies from company to company.

Clarifies why project-wise order wins are not announced immediately, indicating a specific internal policy rather than regulatory constraint.

Asked by Shravan Shah

Working Capital and Debtor Days Partial
So, that's the only reason that days have gone up. Otherwise, I think in the 3rd Quarter because of the advances which we are getting from group, we should stabilize in terms of working capital.

Explains the increase in working capital days due to late Q2 sales booking and stretched government payments, with an expectation of stabilization in Q3 due to Adani advances.

Asked by Shravan Shah

Pending Payment from SDB Partial
But last before one week only I have wrote a letter and they had a call with me as they have agreed to do with interest now and as they are still struggling with the sale of the offices and most of the offices still are closed. So, they have requested that please continue for some time and as and when they will get stabilized, we will first pay to you only.

Provides an update on the long-pending ₹90 crores from SDB, indicating an agreement on interest but continued delays due to SDB's financial struggles.

Asked by Vaibhav Shah

Adani Project Bidding Process Direct
Usually it is always a bid or sometimes depending on the situation, what type of project it is and what group it is making up. So, it can be negotiation also. But once it is to be bid, that is for sure, but later it is then calculated and understood how exactly it was cost plus percentage and what percentage it should be. But it is then negotiated.

Clarifies that Adani projects are typically awarded through a bidding process, sometimes followed by negotiation, rather than purely on a nomination basis.

Asked by Vishal

Impact of Adani Partnership on Margins and Working Capital Direct
Now one thing which we have already mentioned in the 1st Quarter also is after joining partnership with Adani, they themselves have a CAPEX of more than 2 lakh crores in next 1.5-2 years. So, probably the performance of the company and more and more we can increase our capabilities, there will be huge order inflow from the company itself. And at the same time, the conditions of contract, the way it is decided with Adani Group, it is 10% mobilization advance and most of the payments are being approved within seven days for 75% and maximum to 30 days for first 25% is approved. So probably this will help company a lot in terms of reducing the debt level and at the same time, minimize our working capital.

Highlights the strategic benefits of the Adani partnership, including significant order inflow potential, favorable payment terms (10% mobilization advance, quick approvals), and positive impact on working capital and debt reduction.

Asked by Vishal

ECL Provision Increase Direct
So, that format what we decide is like whenever this receivable goes beyond 90 days or 60 days or that percentage increases. So based on that, we have already accumulated around (+) Rs. 30 crores of ECL. Pandharpur ECL we have fully provided. So the receivable from Pandharpur Rs. 17 crores to Rs. 18 crores has been provided.

Explains the reason for the increased ECL provision, linking it to Ind AS requirements for receivables exceeding certain days, and provides the total accumulated ECL amount.

Asked by Vishal

Precast Capacity and Adani Projects Direct
Capacity, as we said previously also, we have almost done on the infrastructure side, we have that capacity to make it to five. Presently, we are having an order of four projects from Adani. So, as, and when this project requirement goes up and these L&T orders are getting over by maximum by February, so, we will have a lot of space, just it will be a CAPEX in terms of little bit machinery. So, we have that space, as and when the requirement comes up, we have that infrastructure ready, only the machinery which we may have to buy. Otherwise, the capacity is there.

Confirms sufficient existing precast capacity for upcoming Adani projects, with minimal additional CAPEX required, indicating readiness for new work.

Asked by Ankita Shah

FY27 Revenue Target vs Order Book Partial
You're absolutely right with a large order book, we should ideally be able to deliver stronger performance. However, at present, many of our projects, especially in Mumbai, are facing delays due to the nature of work. Sheet piling and excavation in Mumbai typically take considerable time. ... If progress continues as expected, we are confident of achieving revenues exceeding Rs. 4,000 crore. As you rightly pointed out, with an outstanding order book of around Rs. 15,000 crore, we should be well-positioned to deliver over Rs. 4,000 crore.

Analyst challenged the seemingly conservative FY27 revenue target despite a large order book. Management acknowledged the potential but cited current project execution delays in Mumbai as a factor, reiterating the target.

Asked by Shravan Shah

3 min read 7 chapters

Detailed narrative

Strong Q2 Performance and H1 Overview

PSP Projects reported Q2 FY26 revenue of ₹694 crores, a 20% YoY increase, and a 35% QoQ growth, driven by improved execution and labor availability post-monsoon. For the first half, revenue stood at ₹1,206 crores, marking a 1.38% YoY increase. EBITDA grew 24% YoY to ₹48 crores, with the margin expanding to 6.93%, and net profit increased 33% YoY to ₹15 crores. The company also achieved a world record for a continuous concrete pour for the Vishv Umiya Dham Temple foundation.

Robust Order Book and Inflow

As of September 30, 2025, the company's order book stood at ₹9,883 crores, reflecting a 51% YoY growth. Order inflow for Q2 FY26 was ₹4,011 crores (excluding GST), with total inflow reaching ₹4,118 crores by October 17, 2025. Adani Group projects constitute 56% of the current order book, providing significant future visibility. The company's bid book currently includes approximately ₹8,500 crores, with ₹7,000 crores from Adani Group and ₹1,300 crores from non-Adani projects.

Strategic Adani Partnership and Future Outlook

The Adani partnership is expected to generate substantial order inflow, with Adani Group planning over ₹2 lakh crores in CAPEX over the next 1.5-2 years. The partnership offers favorable contract conditions, including a 10% mobilization advance and payments approved within 7 days for 75% and a maximum of 30 days for the remaining 25%. These terms are anticipated to significantly reduce debt and minimize working capital for PSP Projects. Management projects a total order book of ₹14,000-15,000 crores by March 2026 if the Adani pipeline materializes.

Profitability and Working Capital Dynamics

The EBITDA margin of 6.93% in Q2 FY26 was impacted by heavy monsoon, which management estimates prevented an additional ₹100 crores in revenue. Management expects margins to stabilize at 8-9% in H2 FY26 and next year. The working capital cycle increased to 102 days from 65 days last year, primarily due to stretched payments from certain government projects. This led to an increased ECL provision of ₹3.64 crores in Q2 FY26, based on Ind AS formula for receivables exceeding 60/90 days, with a total accumulated ECL of ₹30 crores.

Capex and Precast Operations

Q2 FY26 capital expenditure was ₹41 crores, bringing the H1 total to ₹80 crores. For FY26, CAPEX is guided to be 4-4.5% of revenue, an increase from the initial 3-4% due to investments in high-value cranes for precast operations. The company has sufficient existing precast capacity for 5 units, with four Adani projects slated to utilize precast elements. One precast project is expected to start next month, with three more by December in Shantigram.

Project Delays and Challenges

Several projects are facing delays, including the ₹140 crore GMC project due to land acquisition issues and the Dharoi Dam project with two pending land acquisition components expected by November 2025. Mumbai projects, such as Dharavi, are experiencing substructure delays due to complex sheet piling and excavation work. Additionally, a payment of ₹90 crores from SDB is still pending, though interest has been agreed upon, the timing of recovery remains uncertain as SDB struggles with office sales.

Revenue and Order Inflow Guidance

The company targets a full-year FY26 order inflow of approximately ₹11,000 crores (₹4,000 crores already won plus ₹7,000 crores in pipeline). Management expects H2 FY26 revenue of ₹2,000 crores, leading to a full-year revenue of around ₹3,200 crores. For FY27, revenue is guided to exceed ₹4,000 crores, with fresh order inflow expected to be in a similar range as FY26, depending on group CAPEX and project stabilization.

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