Detailed Narrative
Strong Q4 and FY26 Financial Performance
PSP Projects concluded FY26 with a robust Q4, reporting a 66% year-on-year increase in revenue from operations to INR1,115 crores and a 244% YoY PAT growth to INR21 crores. For the full fiscal year, revenue from operations grew by 25% YoY to INR3,149 crores. While the full-year EBITDA margin moderated to 6% from 7.14% in FY25, management noted that excluding a one-time📎 INR29 crores provision, Q4 EBITDA margin would have been 8%.
Record Order Inflow and Robust Order Book
The company achieved its highest-ever order inflow in FY26, securing INR10,925 crores, with 85% originating from the Adani Group. This led to an 85% YoY growth in the outstanding order book, which stood at INR13,447 crores as of March 31, 2026. The order book is diversified, with 67% from Adani Group and 33% from non-Adani projects, and government projects now constitute 25% of the total. A strong bid book of INR6,600 crores, with 60% from group projects, provides further visibility.
Margin Outlook and Debt Reduction Strategy
Despite full-year margin moderation, management is confident in improving profitability, guiding for a 7-8% EBITDA margin for FY27. A key strategy for PAT margin improvement is debt reduction; the company aims to be debt-free by next year or within the next two quarters. This move is expected to convert INR41-45 crores of annual interest costs into profit, potentially boosting PAT margin to 3-4%.
Working Capital Management and Receivables
Trade receivables increased to INR928 crores as of March 31, 2026, contributing to approximately 100 working capital days. However, management expects this to normalize to 60-70 days going forward⏳, citing stringent payment timelines and ad hoc advances from new group projects. A provision of INR29 crores was made for expected credit loss on unbilled revenue from the Kashi project, and INR100 crores remains outstanding from UP Medical College projects, which are being actively pursued.
Operational Execution and Precast Technology Adoption
PSP Projects successfully completed three projects in Q4 FY26, including a 122-meter residential building and the Vishva Umiya Dham Package I, which set a world record for concrete pouring. The company's precast manufacturing facility continues to be a critical asset, enabling rapid execution, as exemplified by Project 90 where 21 floors were pre-executed in 148 days. The current precast capacity of 3 million sq ft/year is deemed sufficient for projected growth, with minimal capex needs for equipment if further expansion is required.
Future Growth and Bidding Pipeline
The company is targeting INR4,500 crores in revenue for FY27 and aims to maintain a 20-25% revenue growth rate for the next couple of years. Order inflow targets for FY27 include a minimum of INR5,000-6,000 crores from group projects, supplemented by INR1,000-2,000 crores from other tenders. Management is actively monitoring significant potential tenders, such as the INR7,000-8,000 crores Commonwealth Stadium project, which could be announced anytime in the current quarter.