Detailed Narrative
Macroeconomic Outlook & Infrastructure Spending
SPML Infra highlighted a positive outlook for India's infrastructure sector, reinforced by steady geopolitical conditions. The Union Budget FY27 allocated a record ₹12.2 lakh crores in capital expenditure, with GDP growth projected between 6.6% to 6.9%. Government priorities are increasingly aligning with SPML Infra's core strengths, particularly in water, power, and energy transition. The Jal Jeevan Mission 2.0, with an enhanced outlay of ₹8.69 lakh crores, and AMRUT 2.0 are expected to create a strong pipeline of opportunities.
BESS Segment Expansion & Strategy
The company is making significant strides in the Battery Energy Storage System (BESS) segment, with 92 GW of projects in the pipeline and 69 new tenders totaling 102 GW floating in the last year. SPML Infra expects to commence operation of a 2.5 GW BESS assembly line manufacturing facility at Supa MIDC Pune by June 2026, with plans to expand to 5 GW and produce 600 containerized BESS units by year-end. This expansion is expected to significantly strengthen the company's presence, enhance revenue visibility, and contribute to its growth, with a target revenue potential of ₹2,500 crores for 2.5 GW and ₹5,000 crores for 5 GW.
Operational Update & Order Book
SPML Infra's consolidated order book stood at ₹5,369 crores as of March 31, 2026, comprising ₹4,000 crores from new projects and ₹1,369 crores from legacy orders. The company secured over ₹4,280 crores in new project orders since FY25, including a significant ₹1,128 crore NTPC BESS project. Legacy orders, predominantly joint control contracts with lower margins, are expected to be fully executed over the next 2-3 years. The company is focused on selecting high-margin, price-protected, and fully funded projects, aiming for an annual order inflow of ₹5,000 crores (including JV share) and a net order inflow of ₹2,500-3,000 crores.
Financial Performance & Margin Analysis
For Q4 FY26, revenue increased by 53% YoY and 27% QoQ to ₹293.9 crores. EBITDA was ₹25 crores with an 8.4% margin, and PAT grew 140% YoY to ₹28 crores. For the full year FY26, revenue grew 13% YoY to ₹868 crores, EBITDA increased 37% to ₹86 crores (9.7% margin), and PAT rose 55% YoY to ₹76 crores. The Q4 EBITDA margin was impacted by one-time📎 legal and consultancy costs related to arbitration matters and non-cash regulatory provisions. Management expects healthy EBITDA margins of around 10% for new orders.
Capital Structure & NARCL Resolution
The company successfully raised ₹476 crores since May 2024, with promoters contributing ₹313.5 crores, significantly improving liquidity. Regarding NARCL dues, the total amount was ₹700 crores (including interest), of which ₹320 crores have been paid, including a ₹48 crore prepayment for 2027-28 dues. The remaining ₹380 crores is expected to be covered by arbitration awards, with ₹630 crores already in hand and an additional ₹4,526 crores in claims. The company's debt-to-equity ratio improved to 0.4x, and net debt-to-EBITDA to 4.41. The credit limit has been enhanced to ₹505 crores, and surety bond options are being utilized.
Working Capital Management & Receivables
Current trade receivables increased from ₹299.55 crores to ₹417.50 crores. However, management clarified that working capital is not blocked, as ₹137 crores are from back-to-back contracts with similar liabilities, and ₹186 crores are normal debtors expected to be realized in the normal cycle. The company employs an escrow mechanism for working capital management, ensuring minimal fund utilization. Receivables for NTPC and World Bank-funded projects are typically settled within 15-30 days, mitigating risk in the BESS segment.