Concall AI

PSP Projects Limited — Q4 FY26 earnings call

Call held 30 Apr 2026

Management summary

PSP Projects delivered strong Q4 FY26 results with significant revenue and PAT growth, driven by robust execution and record order inflows. The order book expanded substantially, providing multi-year visibility. While full-year margins moderated and a provision was made for an old project, management is optimistic about margin improvement, debt reduction, and normalizing working capital days in the coming year.

Highlights

Q4 FY26 Revenue increased by 66% YoY to INR1,115 crores, reflecting strong execution momentum.
Q4 FY26 PAT grew sharply by 244% YoY to INR21 crores, demonstrating operating leverage.
FY26 Order Inflow reached INR10,925 crores, leading to an 85% YoY growth in the order book to INR13,447 crores as of March 31, 2026.
The company maintains a robust bid book of INR6,600 crores, providing strong future revenue visibility.
Management expects to be debt-free by next year or within the next two quarters, converting INR41-45 crores of interest cost into profit.

Concerns

FY26 EBITDA margin moderated to 6% from 7.14% in FY25, and Net Profit decreased by 2% YoY to INR55 crores.
A provision for expected credit loss of INR29 crores was made on unbilled revenue from the Kashi project, impacting Q4 profitability.
Trade receivables increased to INR928 crores, resulting in approximately 100 working capital days, though expected to normalize to 60-70 days.

Key financials

3 periods

Headline

Gross Block (Mar 31, 2026)
₹764 Cr
Net Block (Mar 31, 2026)
₹412 Cr
Net Unbilled Revenue (Mar 31, 2026)
₹440 Cr
Trade Receivables (Mar 31, 2026)
₹928 Cr
Trade Payables (Mar 31, 2026)
₹465 Cr
Retention (Mar 31, 2026)
₹240 Cr
Mobilization Advance (Mar 31, 2026)
₹814 Cr
Inventories (Mar 31, 2026)
₹347 Cr
Total Fixed Deposit (Mar 31, 2026)
₹351 Cr

Q4 FY26

Revenue
₹1,115 Cr
YoY +66%
EBITDA
₹60 Cr
YoY +85%
EBITDA Margin
5.4%
Net Profit
₹21 Cr
YoY +244%
Net Profit Margin
1.9%
Other Expenses
₹46 Cr
Depreciation
₹26 Cr

FY26

Revenue
₹3,149 Cr
YoY +25%
EBITDA
₹189 Cr
YoY +5%
EBITDA Margin
6%
Net Profit
₹55 Cr
YoY -2%
Net Profit Margin
1.7%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	586	630	673	518	703 +20%	813 +29%	1,115 +66%	853 +65%
Expenses	548	595	641	493	653	758	1,055	799
EBITDA	38	36	32	25	50 +32%	55 +53%	60 +88%	55 +120%
Margin	6%	6%	5%	5%	7%	7%	5%	6%
Other income	5	4	5	4	4	4	5	4
Interest	11	10	10	11	12	11	11	8
Depreciation	18	19	19	17	20	24	26	23
Profit before tax	14	10	8	1	22 +57%	24 +140%	27 +238%	28 +2700%
Tax rate	25%	36%	20%	41%	28%	25%	23%	35%
Net profit	10	5	6	0	16 +60%	18 +260%	21 +250%	18
EPS	2.58	1.27	1.63	0.11	4.08	4.50	5.32	4.63

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

₹13,447 Cr

as of 2026-03-31 quantified

85% YoY

Inflow this quarter

₹10,925 Cr

Execution

2.5 to 3 years for large volume projects

Composition

Mix 3 client types

Adani Group 67%
Non-Adani 33%
Government Projects 25%

Share of order book by client type· categories overlap, and sum to 125%

Pipeline

qualified rfp

Bid book of INR6,600 crores

The outstanding order book provides strong multi-year revenue visibility, with a significant portion from the Adani Group and a growing share from government projects. Execution timelines for large projects are estimated at 2.5-3 years.

Source: Prepared remarks

Capital allocation

high confidence

Capex ₹40 Cr this quarter · ₹192 Cr (FY26) planned

During Q4FY26, company has incurred capex of INR40 crores and year-to-date capex addition is INR192 crores.
Debt Gross ₹317 Cr

Long-term borrowing INR43 crores including short-term maturity of INR20 crores. Short-term borrowing is INR274 crores excluding short-term maturities of INR20 crores.
Liquidity Undrawn ₹588 Cr Total sanctioned credit facility of INR1,497 crores, with INR588 crores available for utilization. Mobilization advances of INR814 crores (non-interest bearing from group) contribute to liquidity.

Out of total sanctioned credit facility of INR1,497 crores, company has utilized non-fund based facility of INR735 crores and fund-based utilization is at INR174 crores. Limits available for utilization is INR588 crores.

Guidance & targets

Revenue

Revenue Revenue · FY27 · High confidence INR4,500 crores

We'll stick to our INR4,500 crores revenue for the next year.

— P.S. Patel

Profitability

EBITDA Margin Profitability · FY27 · High confidence 7-8%

We can consider 7% to 8%.

— P.S. Patel
EBITDA Margin Profitability · next two years · High confidence 7-8%

Yes

— P.S. Patel
PAT Margin Profitability · next year · Medium confidence 3-4%

So this INR41 crores or INR45 crores of interest can be converted into profit, which can put us to 3% or 4%.

— P.S. Patel

Working Capital

Working Capital Days Working Capital · going forward · High confidence 60-70 days

So we see that it should be within 60 days going forward.

— Hetal Patel

Debt

Debt Status Debt · next year or next two quarters · High confidence Debt-free

I think it should be nil, so I'm expecting the company should be debt-free by this year or maybe in next two quarters once the we receive all the payments and even the receivables from like Naranpura Sports Complex and UP.

— P.S. Patel

Order Inflow

Order Inflow from Group Order Inflow · FY27 · Medium confidence INR5,000-6,000 crores

Yes, we can consider that minimum INR5,000 crores to INR6,000 crores of order inflow from the group side.

— P.S. Patel
Order Inflow from Other Tenders Order Inflow · FY27 · Medium confidence INR1,000-2,000 crores

If we get an opportunity, we can think about INR1,000 crores to INR2,000 crores of order from the rest side also.

— P.S. Patel

Revenue Growth

Revenue Growth Rate Revenue Growth · next couple of years · High confidence 20-25%

100% because that is the minimum which we are targeting because now visibility is not a problem.

— P.S. Patel

Capex

Capex Capex · next year · High confidence INR120-150 crores

Yes, mostly it will be in the same range because again my experience and the operations and the size of the project which are going now, I think it should be in that range only. Broadly some of the quarters it can be larger than what we expect because as and when the project starts, sometimes the capex goes high, but on an average side we can consider that.

— P.S. Patel

What to watch in Q1 FY27

Net Debt Status

next year or next two quarters

Current INR317 crores gross debt

Target Debt-free

Why it matters

Achieving debt-free status will significantly boost PAT by eliminating interest costs.

I think it should be nil, so I'm expecting the company should be debt-free by this year or maybe in next two quarters once the we receive all the payments and even the receivables from like Naranpura Sports Complex and UP.

Risks & concerns

Project Delays due to Approvals/Site Issues
medium

Initial stages of projects, especially in Mumbai (e.g., Matunga), can face delays due to local issues like tree cutting and approvals, though not considered 'slow-moving' overall.

Management acknowledged
Receivables from Older Projects
medium

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 management is actively pursuing.

Management acknowledged
Margin Moderation
medium

Full-year EBITDA margin moderated to 6% due to changes in project mix and execution ramp-up in large-scale projects, though management expects improvement.

Management acknowledged

Q&A highlights

6 direct

Kashi Project Provision and Margin Impact Direct

See, it was because of the provisions of the accounts that any receivable beyond one year has to be made provision. So still we are trying with the organization and being a religious organization, we are chasing through our relationship what we had. But for now making provisions as of now.

Clarified the reason for the INR29 crores provision and its impact on reported margins, suggesting underlying operational margins are higher.

Asked by Shravan Shah

Debt-Free Target and PAT Margin Improvement Direct

I think it should be nil, so I'm expecting the company should be debt-free by this year or maybe in next two quarters once the we receive all the payments and even the receivables from like Naranpura Sports Complex and UP. Because if we get that money on now, there will be a big help, so we should be in a better position in terms of interest next year or zero interest, you're right.

Management provided a clear timeline for becoming debt-free and quantified the potential positive impact on PAT margin (3-4% from 2%).

Asked by Dhananjay Mishra

Working Capital Days Reduction Direct

Yes, so basically once we have started with these projects, the timelines of payment are very stringent and even we are getting ad hoc advances against bills submitted. So there won't be any further lengthening of the working capital days in terms of trade receivables and all. So we see that it should be within 60 days going forward.

Addressed concerns about increased working capital days (~100), providing a clear target for reduction to 60-70 days due to new project payment terms.

Asked by Shikha Doshi

Order Book Execution Pace Partial

Actually, we should not consider that as a slow-moving order, but because of the initial stage we can consider Mahim and Matunga. Mahim we have just completed the excavation part and Matunga we are just starting the sheet piling. And in Mumbai, there are so many issues related to tree cutting and getting the approvals on time.

Clarified that while some initial projects might be slow due to local issues, the majority of the large order book is expected to execute at a faster pace.

Asked by Lokesh Kashikar

Precast Facility Capacity for Future Growth Direct

See, presently the present capacity of the precast plant is 3 million square feet per year. And the way the precast operation is growing, after completing 120-meter building, we are having two more orders -- three more orders in execution from Adani and also we are with GIFT City in airport. So there will be good amount of precast order within the group itself. But presently if we go by the pace with which we have we are going on, I think there may not be any much expansion required. But going forward if we have to go forward, we have already expanded our plant to infrastructure point of view, the sheds are already ready. It can be on the equipment side, it will be in the range of INR15 to INR20 crores only even if I have to expand to one and a half times or something like that.

Addressed concerns about capacity constraints for higher revenue, indicating existing precast capacity is sufficient with minimal future capex needs.

Asked by Balasubramanium

UP Medical College Outstanding Receivables Direct

Yes, I'll brief about that. We have unbilled of around INR60 crores and receivable of Rs.40 crores. Since we have not received the GST invoices of INR40 crores, we haven't further billed. Otherwise, all final bills we have submitted and we are awaiting for the final certification of all seven projects.

Provided specific figures for outstanding amounts from UP Medical College projects and the reason for the delay in billing.

Asked by Dhananjay Mishra

Dharavi Project Values Partial

We are not mentioning project-wise order inflow in value terms. You can consider at first building INR47 lakhs per square feet and the second is INR75 lakhs.

Management provided unit rates for the Dharavi projects rather than total project values, indicating a focus on per-unit profitability.

Asked by Vaibhav Shah

Commonwealth Stadium Tender Status Direct

Actually, we were expecting in before March, but I think the government has still not announced, but yes, the projects are on, that can come anytime in this quarter.

Provided an update on a significant potential tender (INR7,000-8,000 crores), indicating it could be announced soon.

Asked by Balasubramanium

2 min read 6 chapters

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.

This is an AI-generated summary of a publicly available earnings call transcript.

View original transcript