Detailed Narrative
Q3 FY26 Financial Performance Overview
SPML Infra delivered a strong Q3 FY26, with revenue growing 21% year-on-year to INR231 crores. EBITDA saw an impressive 86% YoY increase, reaching INR26.3 crores, translating to a margin of 11.4%. Profit After Tax (PAT) surged by 97% YoY to INR20.5 crores, achieving a margin of 8.9%. For the nine months of FY26, stand-alone revenue stood at INR594 crores, with EBITDA at INR62 crores (10.4% margin) and PAT at INR48 crores (8% margin), indicating a positive trajectory driven by higher-margin new orders.
Robust Order Book and Inflow
The company's order book as of December 31, 2025, stands at INR4,358 crores, which includes SPML's proportionate share in JV projects. During 9M FY26, SPML Infra secured fresh order inflows totaling INR4,324 crores, primarily from water projects across Jharkhand, Madhya Pradesh, Rajasthan, and Tamil Nadu. The current order book is composed of approximately INR1,540 crores of legacy orders and INR2,800 crores of newly secured projects, providing strong execution visibility for the upcoming quarters.
Strategic Entry into BESS Segment
SPML Infra has made a strategic entry into the Battery Energy Storage System (BESS) segment, offering end-to-end EPC capabilities. The phase one manufacturing facility, with a capacity of 2.5 gigawatts, located at Supa MIDC Pune, is on track for commercial production in Q1 FY27. Construction is nearing completion, with machinery expected to arrive in February and March 2026. The company plans to scale this capacity to 5 GWh and eventually to 10 GWh, actively bidding for BESS opportunities with a visible pipeline of approximately INR9,000 crores over the next 6-12 months.
Infrastructure Sector Outlook and Bidding Strategy
India's infrastructure sector is poised for significant growth, supported by the Union Budget FY26's capital outlay of INR12.2 lakh crores, with substantial allocations for urban development and water infrastructure projects like Jal Jeevan Mission. SPML Infra is well-positioned to capitalize on these opportunities, focusing on disciplined growth, selective bidding, and projects with a minimum 10% margin. The company has bid for tenders worth approximately INR8,000 crores in Q3 and Q4 FY26 across water, BESS, and power segments, with an overall opportunity size of INR5.7 lakh crores in water and power EPC tenders.
Strengthened Financial Position and Liquidity
SPML Infra has significantly strengthened its financial position, repaying INR317 crores of debt over the last two years, including INR47 crores of prepayment. The remaining INR383 crores payable to NARCL is expected to be settled through existing arbitration awards of INR621 crores. The company's sanctioned bank facility has been enhanced from INR205 crores to INR505 crores, and it has secured approval for a INR180 crores surety bond. With a current ratio of 1.81x and an expected INR100 crores from warrant conversion by April 22, 2026, the company maintains sufficient liquidity.
Optimized Tax Position
The company plans to transition to the new tax regime from the next financial year, which will allow it to adjust existing carry-forward losses against future profits without the need for MAT provision. With roughly INR200 crores of accumulated losses, SPML Infra anticipates not having to pay tax for the next few years. Consequently, no MAT provision was made in Q3 FY26, and none is expected for Q4 FY26, contributing to improved profitability.