Patel Engineering has successfully raised INR 90 crore through the issuance of non-convertible debentures (NCDs) in a private placement, as announced by the company on August 26, 2025. This strategic move aims to bolster the company's financial position and support its ongoing operations.

Key Details of the NCD Issuance

Security and Repayment Structure

The NCDs are secured by a first-ranking exclusive charge over identified land parcels owned by the company. This security measure provides additional comfort to investors. The principal repayment is structured in three tranches:

1. 30% after 24 months
2. 30% after 30 months
3. 40% at maturity (36 months)

Significance of the Move

This NCD issuance demonstrates Patel Engineering's ability to access debt capital markets and diversify its funding sources. The structured repayment plan allows the company to manage its cash flows effectively while providing investors with a clear exit strategy.

Company's Statement

Shobha Shetty, Company Secretary of Patel Engineering, confirmed the allotment in a regulatory filing, stating that the Allotment Committee of the Board of Directors approved the issuance in a meeting held on August 26, 2025.

Investor Implications

For potential investors, these NCDs offer an attractive coupon rate of 10.25% with the added security of being backed by tangible assets. The listing on the National Stock Exchange will provide liquidity to the instrument.

Patel Engineering's successful raising of funds through NCDs reflects positively on its financial standing and may indicate confidence in the company's future prospects. However, investors should conduct their own due diligence and consider their risk appetite before making investment decisions.

Patel Engineering , a prominent player in the engineering and construction sector, has announced its financial results for the first quarter, showcasing robust growth in revenue and profitability.

Revenue and Profit Surge

The company reported a consolidated revenue of ₹1,233.00 crore for Q1, marking a significant increase of 12% compared to ₹1,102.00 crore in the corresponding quarter of the previous year. Patel Engineering's consolidated net profit saw a substantial rise of 56%, reaching ₹75.00 crore, up from ₹48.00 crore in the same period last year. This impressive growth in profitability underscores the company's operational efficiency and strong project execution capabilities.

Debt Reduction and Order Book

Patel Engineering has made significant strides in reducing its total debt, which stood at ₹1,527.00 crore as of June 30, down from ₹1,603.00 crore at the end of March. This reduction in debt reflects the company's commitment to improving its financial position.

During the quarter, the company secured new orders worth ₹2,250.00 crore, bringing its total order book to an impressive ₹16,285.00 crore. This robust order book provides visibility for future revenue growth and demonstrates the company's strong market position.

New Project Acquisition

Patel Engineering received a notable order worth ₹240.00 crore from NHPC for civil and hydro mechanical works at the Teesta-V project in Sikkim. This project win highlights the company's expertise in hydropower projects and its ability to secure high-value contracts.

Management Commentary

Kavita Shirvaikar, Managing Director of Patel Engineering Ltd, attributed the strong performance to consistent growth and enhanced operational efficiency. She noted the company's impressive track record of executing over 350 projects, underlining Patel Engineering's extensive experience and capabilities in the sector.

Outlook

With a strong order book, improved financial metrics, and a history of successful project execution, Patel Engineering is well-positioned to capitalize on the growing infrastructure development opportunities in India. The company's consistent performance and efforts to enhance operational efficiency are expected to drive sustainable growth in the coming quarters.

Note: All figures are in Indian Rupees (₹) crore.