PSP Projects Limited delivered a robust first-quarter performance for FY27, reporting a 65% year-on-year (YoY) increase in revenue from operations to ₹853 crore and a 121% YoY jump in EBITDA to ₹55 crore for the quarter ended June 30, 2026. The company’s net profit surged approximately 50 times to ₹18 crore from ₹37 lakh in the corresponding period of the previous year, driven by improved execution momentum across key projects. Management highlighted that the order book expanded by 103% YoY to ₹13,245 crore, providing strong multi-year revenue visibility despite seasonal headwinds in the construction sector.

The filing was submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with reference number PSPPROJECT/SE/29/26-27 dated August 05, 2026. The transcript of the earnings conference call held on July 30, 2026, hosted by Ernst & Young, provides detailed insights into the financial results and operational updates. The communication was signed by Pooja Dhruve, Company Secretary and Compliance Officer.

Financial Performance Highlights

Revenue from operations rose significantly from ₹518 crore in Q1FY26 to ₹853 crore in Q1FY27. EBITDA margin improved to 6.42% from 4.79%, while net profit margin expanded to 2.12% from 0.07%. Employee costs increased from ₹35 crore to ₹46 crore due to annual increments and headcount growth from 2,400 to 2,600 employees. Depreciation rose from ₹17 crore to ₹26 crore, attributed to asset additions in FY26 and Q1FY27. Capital expenditure during the quarter stood at ₹28 crore.

Order Book and Project Updates

As of June 30, 2026, the outstanding order book stood at ₹13,245 crore, with within-group projects accounting for approximately 70% and external projects contributing 30%. During the quarter, the company completed six projects and secured new order inflows of ₹630 crore, 93% of which were from the Adani Group. Key orders included the Adani Healthcare and Research Foundation project in Mumbai, an airport office building at T1 Mumbai, and refurbishment work at Mundra port.

Major ongoing projects include the Shree Ambaji Mata Temple (₹962 crore), SMC High-Rise Building (₹693 crore), and the FinTech building at GIFT City Gujarat (₹259 crore). The bid pipeline stands at over ₹6,200 crore, comprising 61% group projects and 39% external projects. Management noted that most major projects have moved beyond initial excavation stages into core construction, enhancing execution efficiency.

Balance Sheet and Working Capital

The standalone balance sheet as of June 30, 2026, shows long-term borrowings of ₹38 crore (including ₹19 crore short-term maturities) and short-term borrowings of ₹217 crore. Trade receivables stood at ₹745 crore, while net unbilled revenue was ₹473 crore. Mobilization advances totaled ₹836 crore, all of which are interest-free. Inventories comprised ₹205 crore of construction material, ₹137 crore of work-in-progress, and ₹19 crore of finished goods. Out of a sanctioned credit facility of ₹1,497 crore, the company utilized ₹678 crore in non-fund-based facilities and ₹166 crore in fund-based facilities, leaving ₹653 crore available.

What the Numbers Show

The significant margin expansion in Q1FY27 is partly attributable to operational leverage as projects move into higher-value construction phases. However, management cautioned that employee costs remain elevated at 5.39% of sales due to seasonal labor deficits in April and May. Chairman Prahaladbhai Patel indicated that margins could improve to the 7-8% range in the second half of FY27 as labor availability normalizes and sales volume increases. The company expects to achieve net debt-free status in the next two to three quarters, supported by surplus fixed deposits and reduced working capital utilization. With Adani Group projects constituting a major share of the order book and revenue, PSP’s performance remains closely linked to the group’s infrastructure development pipeline.

PSP Projects reported a consolidated net profit of ₹183.43 crore for the quarter ended June 30, 2026 (Q1FY27), marking a substantial year-on-year increase from ₹4.23 crore in the corresponding period of FY26. The surge in profitability was primarily driven by robust top-line growth, with revenue from operations rising to ₹8,534.73 crore from ₹5,177.63 crore, alongside improved operating efficiency that expanded EBITDA margins by 160 basis points to 6.4%. This performance underscores strong business momentum and effective cost management within its construction and project activities segment, supported by a diversified order book of ₹13,245 crore as of June 30, 2026.

The Board of Directors approved the unaudited standalone and consolidated financial results during a meeting held on July 30, 2026, in compliance with Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the joint statutory auditors, Kantilal Patel & Co. and G.K. Choksi & Co., pursuant to Standard on Review Engagements (SRE) 2410. The company disclosed that the figures for the quarter ended March 31, 2026, represent balancing figures between audited full-year results and unaudited year-to-date figures.

Financial Performance Highlights

Consolidated revenue from operations reached ₹8,534.73 crore, reflecting a 64.8% increase compared to ₹5,177.63 crore in Q1FY26. Other income remained stable at ₹405.61 crore, slightly up from ₹399.69 crore previously. Total income for the group stood at ₹8,575.29 crore against ₹5,217.59 crore in the prior year period. On the expense side, cost of construction material consumed increased to ₹2,466.28 crore from ₹2,006.48 crore, while construction expenses rose significantly to ₹4,339.94 crore from ₹2,521.30 crore, aligning with the higher revenue volume.

Standalone net profit also saw a dramatic improvement, reaching ₹151.59 crore from ₹1.89 crore in the same quarter last year. Standalone revenue from operations grew to ₹7,852.96 crore from ₹5,127.59 crore. The earnings per share (EPS) on a consolidated basis stood at ₹4.63, a significant jump from ₹0.11 in Q1FY26. Similarly, standalone basic EPS rose to ₹3.82 from ₹0.05.

Operational Efficiency and Margins

EBITDA more than doubled to ₹548.00 crore from ₹248.00 crore, indicating enhanced operational leverage. The expansion in EBITDA margin to 6.4% from 4.8% suggests that the company successfully managed input costs and project execution efficiencies despite higher material and construction expenses. Finance costs decreased to ₹75.37 crore from ₹111.73 crore, contributing positively to the bottom line. Tax expenses for the quarter were ₹99.08 crore, including current tax of ₹124.49 crore and deferred tax benefit of ₹25.41 crore.

Strategic Positioning and Order Book

The company’s growth is underpinned by a well-diversified order book of ₹13,245 crore across public and private segments as of June 30, 2026. This visibility supports medium-term revenue stability. PSP Projects has strengthened its market position through strategic partnerships, notably with Adani Infra (India) Limited, which acquired a 34.41% stake via an Open Offer and Share Purchase Agreement, joining the promoter group. This alliance aims to accelerate growth and enhance governance. Additionally, the company continues to expand its precast concrete manufacturing capabilities, commissioned in December 2021, to drive speed, quality, and scale in infrastructure projects such as the National High Speed Rail project.

What the Numbers Show

The disproportionate rise in net profit relative to revenue growth highlights a critical inflection point in PSP Projects’ operational scale. With EBITDA margins expanding significantly while finance costs declined, the company is demonstrating improved capital efficiency. The inclusion of results from subsidiaries like PSP Construction Solutions Private Limited and PSP Foundation, along with a joint venture interest in GDCL and PSP Joint Venture, contributes to the consolidated strength. However, the sharp increase in construction expenses warrants monitoring to ensure margin sustainability as project volumes continue to scale.