Sattva Engineering Construction Limited has reported a 43% year-on-year increase in profit after tax to INR13.1 crores for FY26, driven by a 32% rise in revenue from operations to INR143.2 crores. The company’s order book as of May 15, 2026, stood at INR447 crores, providing visibility for future growth. Management is targeting revenue growth of 50% to 60% over FY27 and FY28, supported by execution ramp-up and expansion into new geographies like Karnataka.

The financial performance for H2FY26 showed revenue of INR78.20 crores, an 8% increase compared to the previous year, with a profit after tax of INR8.6 crores. EBITDA for the full year FY26 stood at INR22.1 crores, with margins at 15.4%, a moderation from 17.1% in FY25 primarily due to the commencement of the Water Treatment Plant (WTP) segment which incurred initial ramp-up costs. The company’s net debt-equity ratio improved significantly to 0.2 in FY26 from 0.8 in the previous year, while the current ratio rose to 1.9.

Key Financial Metrics

Operational Highlights

During the year, the company commissioned key projects and secured orders worth INR286 crores. Notable wins include a INR106 crore project for CMWSSB and orders from BWSSB Karnataka worth INR124 crores. The order book composition includes approximately INR127 crores from Karnataka, marking the company’s successful entry into that market. Trade receivables stood at INR49.5 crores as of March 2026, with 33% collected by the end of May 2026.

Management stated that the WTP segment is currently in the gestation phase and expects EBITDA margins to stabilize in the 15% to 16% range as operations scale up. The company is also focusing on the Odour Control System segment and Industrial and Utility Building vertical to expand its addressable market. Growth will be funded primarily through internal accruals and existing working capital facilities.

Sattva Engineering Construction Limited reported a 43% increase in net profit for the financial year ended March 31, 2026, rising to ₹13.1 crore from ₹9.1 crore in the previous year. Revenue from operations grew 32% to ₹143.2 crore, driven by the company's Engineering, Procurement, and Construction (EPC) business. The board approved the audited financial results for the year and half-year ended March 31, 2026, during a meeting held on May 25, 2026. The company subsequently submitted a corrigendum to the National Stock Exchange on June 1, 2026, to correct a clerical error in the Statutory Auditor's Report, where the company name was erroneously mentioned as “Sattva Engineering and Consultants Limited” instead of “Sattva Engineering Construction Limited”. The company clarified that this correction does not alter the audited financial results or the audit opinion.

The statutory auditors, Raghavan and Muralidharan, Chartered Accountants, issued an unmodified opinion on the audited financial results. The board also re-appointed M/s. Vikas Mishra & Company, Chartered Accountants, as the internal auditor for FY 2026-27. The company's earnings per share (EPS) for the year increased to ₹8.47 from ₹7.64 in the prior year.

Financial Performance for FY26

Operational Highlights and Outlook

The company's EBITDA stood at ₹22.1 crore for FY26, with margins at 15.4%, compared to 17.1% in the previous year. Sattva Engineering's order book stood at ₹323 crore as of March 2026, increasing to ₹447 crore as of May 15, 2026, with execution expected over the next 24-30 months. The company secured key projects in Tamil Nadu, including a 47 MLD Water Treatment Plant project worth ₹106.2 crore and an Odour Control System project worth ₹40.6 crore.

Management is targeting a 60% revenue CAGR through FY28, implying a 2.5x business scale-up from current levels. The company aims for sustainable EBITDA margins of 15-16% and PAT margins of 9-10% through FY27-FY28. Planned business growth is to be primarily funded through internal accruals, with incremental debt financing supported by disciplined working capital management.

Key Board Decisions

The board meeting approved the re-appointment of the internal auditor based on the Audit Committee's recommendation. M/s. Vikas Mishra & Company brings over three years of experience in statutory and internal audits, tax audits, and corporate finance. The company also submitted a declaration pursuant to Regulation 33(3)(d) of the SEBI Listing Regulations, confirming the unmodified audit opinion.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE14DW01018/516e0e22dee248fb.pdf