Patel Engineering Limited's Board of Directors, via a resolution dated May 14, 2025, approved the proposal to divest the company's entire stake in ACP Tollways Pvt Ltd, an associate company. The divestment involves the sale of 84,95,040 equity shares of face value Rs. 100 each. The transaction is subject to receipt of necessary approvals from lenders of the associate company, to whom these shares are currently pledged. Further details will be disclosed to the exchanges upon completion of the requisite approval process and documentation.

Transaction Overview

The key parameters of the proposed stake sale, as disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are summarised below:

Financial Profile of ACP Tollways Pvt Ltd

As per the disclosures made under Annexure 1 of the regulatory filing, the financial contribution and carrying value of ACP Tollways Pvt Ltd in Patel Engineering's consolidated financials are as follows:

Regulatory Compliance and Next Steps

The intimation has been made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The sale agreement is to be entered into post receipt of lender approvals, as the shares are currently pledged with the associate company's lenders. The transaction does not fall under a related party transaction, nor does it involve a slump sale or a Scheme of Arrangement under Regulation 37A of the LODR Regulations. Patel Engineering has confirmed that the proposed buyer does not belong to its promoter, promoter group, or group companies.

Patel Engineering Limited has filed its investor presentation for the quarter and year ended March 31, 2026. The company reported a consolidated net profit of ₹294.50 crore for FY26, an increase of 21.60% compared to ₹242.17 crore in the previous year. Revenue from operations for the year stood at ₹5,102.74 crore, marginally up from ₹5,093.36 crore in FY25. The company maintained a healthy order book of INR 1,51,193 million across 53 ongoing projects, providing strong revenue visibility.

Q4 and FY26 Financial Performance

For the fourth quarter of FY26, the company achieved a net profit of ₹71.49 crore, a significant rise of 117.96% from ₹32.80 crore in the corresponding quarter of the previous year. Revenue from operations in Q4 FY26 was ₹1,421.48 crore. Operating EBITDA for the quarter stood at ₹215.23 crore with a margin of 15.14%, improving by 160 basis points from 13.54% in Q4 FY25. For the full year, operating EBITDA was ₹684.03 crore with a margin of 13.41%. The following table summarises key financial metrics for Q4 and the full year:

The annual consolidated income statement reflects a multi-year revenue growth trajectory, as shown below:

Order Book and New Order Inflows

Patel Engineering secured new project orders worth approximately INR 44,009 million during FY26, reflecting a diversified inflow across hydropower, irrigation, and other segments. The total order book as of March 31, 2026, stands at INR 1,51,193 million across 53 ongoing projects spread across 14 states domestically, with an international presence in Nepal and Bhutan. The segment-wise and client-wise breakdown of the order book is presented below:

Key orders received in Q4 FY26 included the Renuka Ji Dam Project (Hydropower, Himachal Pradesh) valued at INR 9,101 million and the Dorjilung Hydroelectric Power Project (Bhutan) valued at INR 2,307 million, totalling INR 11,408 million in LOA-received projects.

Operational Highlights

Patel Engineering achieved several significant operational milestones during FY26. The company commissioned the 4th Unit of the Subansiri Lower HEP, with 4 out of 8 units now operational, contributing 1,000 MW of clean energy to the national grid. The company set a national record with 812 meters of TBM tunnelling in a single month (January 2026) for the CIDCO Water Tunnel project, with TBM breakthrough achieved three months ahead of schedule. Additionally, 6.2 km of TBM tunnelling works have been completed at the CIDCO project. Across other key projects, over 11,50,000 cubic meters of dam concreting has been completed at one project, and over 3,00,000 cubic meters at another, reflecting strong execution momentum.

Financial Health and Balance Sheet

Patel Engineering improved its debt-equity ratio to 0.27x in FY26 from 0.43x in the previous year, reflecting continued balance sheet strengthening. The company realised approximately INR 1,850 million through the monetisation of non-core assets. The Board has approved the sale of its entire stake in associate company ACP Tollways Private Limited for ₹55 crore, subject to lender approvals. The consolidated balance sheet as of March 31, 2026, is summarised below:

Capital Market Data

As of March 31, 2026, Patel Engineering's market price stood at INR 22.23, with a 52-week high/low of INR 48.22/22.08. The company's market capitalisation was INR 22,055.32 million, with equity shares outstanding of 992.14 million. The face value per share is INR 1.00.

Established in 1949, Patel Engineering is a leading integrated infrastructure and engineering, procurement, and construction company headquartered in Mumbai, with over 75 years of experience and more than 350 completed infrastructure projects. The company holds a strong position in India's hydropower and underground tunnelling segments, with deep technical expertise across dams, tunnels, irrigation, water supply, and urban infrastructure.

Source: Company/INE244B01030/b165c7ae0f004376.pdf