SPML Infra — Q3 FY26 earnings call

Call held 17 Feb 2026

Management summary

SPML Infra reported a strong Q3 FY26, with significant year-on-year growth in revenue and profitability, driven by execution of new, higher-margin projects. The company secured substantial new orders, bolstering its order book, and is on track to commission its BESS manufacturing facility in Q1 FY27. Financial health improved with debt reduction and enhanced liquidity, positioning the company for continued growth in water, power, and BESS segments.

Highlights

  • Q3 FY26 Revenue grew 21% year-on-year to INR231 crores, demonstrating strong execution momentum.

  • Q3 FY26 PAT increased by 97% year-on-year to INR20.5 crores, with an improved margin of 8.9%, driven by higher-margin new orders.

  • The company secured INR4,324 crores in new order inflows during 9M FY26, contributing to a robust order book of INR4,358 crores.

  • The BESS manufacturing facility is progressing as planned, with commercial production anticipated in Q1 FY27.

  • Financial position strengthened through INR317 crores debt repayment over two years and enhanced bank facilities to INR505 crores.

Concerns

  • Interest cost increased in Q3 FY26 due to one-time income tax, BG/LC charges, and mobilization advances, though this is a past event.

  • Current ratio slightly impacted in Q3 due to bills raised at quarter-end, with realization expected in Q4.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹231 Cr
    YoY +21%
  • EBITDA
    ₹26.3 Cr
    YoY +86%
  • EBITDA Margin
    11.4%
  • PAT
    ₹20.5 Cr
    YoY +97%
  • PAT Margin
    8.9%

9M FY26

  • Revenue
    ₹594 Cr
  • EBITDA
    ₹62 Cr
  • EBITDA Margin
    10.4%
  • PAT
    ₹48 Cr
  • PAT Margin
    8%

What they filed

Q1 FY27: revenue up 82.1%, net profit up 91.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue189 188 189 156 190 +1%230 +22%291 +54%284 +82%
EBITDA13 10 10 7 11 −15%25 +150%20 +100%27 +286%
Net profit13 10 12 12 15 +15%20 +100%27 +125%23 +92%
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

₹4,358 Cr

as of 2025-12-31 quantified

Composition

Mix 2 contract types
  • Legacy Orders ₹1,540 Cr 35.5%
  • Newly Secured Projects ₹2,800 Cr 64.5%

Share of order book by contract type, derived from disclosed amounts

Pipeline

qualified rfp

Bids for tenders across water, BESS and power segments

Strong order momentum with significant new inflows, providing healthy execution visibility for coming quarters.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Debt disclosed
    • Repayment Debt repaid over the last 2 years, including INR47 crores of prepayment on overall liability. ₹317 Cr
    • New borrowing Sanctioned bank facility enhanced from INR205 crores to INR505 crores by leading public sector bank. ₹505 Cr
    meaningfully strengthened its financial position with steady progress on de-leveraging including around INR317 crores of debt repaid over the last 2 years which includes INR47 crores of prepayment on the overall liability.
  • Liquidity Undrawn ₹505 Cr Current ratio of 1.81x as of Q3 FY26, indicating sufficient liquidity. Expecting INR100 crores from warrant conversion by April 22, 2026. Also, INR180 crores surety bond approval received.
    The company is having strong current ratio of 1.81x as of Q3 FY '26 which shows the sufficient liquidity into the company. Further, the company is expecting more than INR100 crores latest by 22nd April '26 from conversion of warrants which will improve the liquidity further. We have received approval for a surety bond of around INR180 crores from the leading insurance companies further enhancing our bidding capabilities.

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · High confidence 25-30%
    We remain well positioned to meet our full year growth for FY '26 and around 25% to 30% on the revenue

    — Arun Agarwal

Profitability

  • FY26 PAT Growth Profitability · FY26 · High confidence 40-50%
    and approximately 40% to 50% on the PAT.

    — Arun Agarwal

  • FY26 EBITDA Growth Profitability · FY26 · High confidence 30-35%
    total EBITDA should grow more than around 30% to 35%

    — Manoj Digga

Margin

  • Minimum Project Margin Margin · ongoing · High confidence >10%
    As I told you we have a clear discipline we will not take any business with margin that less than 10%, whether it is BESS, power substation or water.

    — Manoj Digga

Capacity

  • BESS Capacity Expansion Capacity · next 1-2 years · High confidence 5 GWh, then to 10 GWh
    Now what SPML is doing is we are positioning for at least 5 gigawatt hour in phase two, which will be in the next one to two years and then we will expand that further to 10 gigawatts.

    — Samir Patel

What to watch in Q4 FY26

BESS Plant Commercial Production

Q1 FY27
Current Under construction, machinery arriving Feb/March 2026
Target Commercial production in Q1 FY27

Why it matters

Successful commissioning will mark the start of a new strategic revenue stream and validate the company's pivot into BESS.

The machineries are expected to reach us during February and March after which commissioning will commence in a phased manner. We also anticipate making the plant operational from Q1.

Q&A highlights

7 direct
Tax adjustment for earlier losses Direct
We have roughly around INR200 crores of loss and then the further assessment is going on, so last next few years we don't have to pay tax.

Clarifies the company's tax shield from accumulated losses, indicating future tax efficiency.

Asked by Hardik Gandhi

BESS plant timeline and contribution Direct
Two things as Arun has explained, our BESS plant is on track. We are expecting the commercial production in Q1. Basically the construction work has almost completed and is in the advanced stage of progress, machinery equipment order we have already given and they are expected to come in February and March. So we are, BESS plant is on track.

Confirms the strategic BESS project is on schedule for commercial production, signaling a new revenue stream soon.

Asked by Hardik Gandhi

Bottom line growth expectation for next year Partial
No, this guideline what we have given guidance that is for this year and the Q4. The overall year growth we expected roughly around 25% to 30% growth into the top line and roughly around 40% to 50% growth into the bottom line that is for this year. As we have informed in our opening remark that the yearly guideline we will give into our yearly con-call.

Management defers specific next-year guidance, indicating it's still being formulated based on tender visibility.

Asked by Hardik Gandhi

Order book composition and JJM receivables Direct
As we have told in the opening remarks, old orders under JJM, we have roughly around INR200 to INR300 crores. The new JJM orders all as per the new scheme of the government, where we have we have received two orders from the JJM, one in the Bharatpur and another is into the Kekri, which is recently and which are executing well. JJM old we don't have. In the Kekri we have recently towards the end we have issued certain bills which we are expecting the payment in this month.

Provides clarity on the nature and value of JJM projects and the status of associated receivables, indicating healthy cash flow for new projects.

Asked by Maitri Shah

BESS industry size and SPML's capacity Direct
So, the entire industry size is about 236 gigawatt for the next five years. So by FY '32 for India, this is the scale, 236 gigawatt hour. Now what SPML is doing is we are positioning for at least 5 gigawatt hour in phase two, which will be in the next one to two years and then we will expand that further to 10 gigawatts. So, in terms of the container itself is 5 megawatt, that's the capacity. 5 megawatt is like 5,000 kilowatt hour, okay.

Quantifies the significant market opportunity for BESS and outlines SPML's ambitious capacity expansion plans in this segment.

Asked by Sanjay Nandi

Funding for BESS capex Direct
If you see from the last 2-3 years we have infused roughly around INR460 crores by part which is conversion of debt also. So INR460 crores has been raised into the company. The liquidity is sufficient. We are further getting INR100 crores of the warrant money in the Q4 and early part of the April. So at the moment we have sufficient liquidity plus we have INR500 crores of bank limit, we have INR180 crores of surety bond limit. So at this moment the liquidity is more than sufficient. You can see from our current ratio which is 1.81. And at the moment we don't have any plan.

Assures investors that the company has adequate liquidity and funding mechanisms in place for its strategic initiatives without needing further institutional fundraises currently.

Asked by Kritika Khurana

Legacy vs new project margins Direct
As I told you, out of the INR4,358 crores gross order which includes our share of JV also, INR2,800 crores is the order which is having the higher margin, which is the order which we have acquired in last 1 year. And INR1,540 is the legacy order. This legacy order will be completed into the next year or maybe one more year.

Clarifies the improving margin profile of the order book as higher-margin new projects increasingly dominate over legacy ones.

Asked by Priyanshi Mehta

Waste water management projects Direct
Waste water management we are qualified but our focus is into the bulk sector where the pipeline etcetera is laying of the pipeline that is our preferred, because there we have a great connect with the suppliers and the execution normally become fast. But yes, we are qualified for the waste water and we are also looking in to the waste water.

Indicates the company's strategic focus on bulk water projects due to execution efficiency, while still exploring wastewater management opportunities.

Asked by Kamal Jaswani

3 min read 6 chapters

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.

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