Patel Engineering Limited announced its consolidated financial results for the third quarter and nine months ended December 31, 2025, demonstrating steady operational performance alongside significant business developments including a major hydropower project win and successful capital raising.

Consolidated Financial Performance

The company's consolidated financial results for Q3 FY26 showed resilient performance with revenue from operations reaching Rs 1,239 crore compared to Rs 1,206 crore in Q3 FY25, marking a growth of 2.81%. Operating EBITDA stood at Rs 145 crore with a margin of 11.68%, while net profit for the quarter was Rs 71 crore, representing a margin of 5.69%.

Nine-Month Consolidated Results

For the nine-month period ended December 31, 2025, Patel Engineering delivered strong year-on-year growth. Consolidated revenue from operations increased by 5.74% to Rs 3,681 crore. Operating EBITDA reached Rs 469 crore with a margin of 12.73%, while net profit grew by 6.51% to Rs 223 crore, achieving a margin of 6.06%.

Major Project Win and Strategic Development

A significant highlight during the quarter was the signing of a Memorandum of Agreement (MoA) with the Government of Arunachal Pradesh to develop the 144 MW Gongri Hydropower project in West Kameng. The project, valued at approximately Rs 1,700 crore, will be developed on a Build-Own-Operate-Transfer (BOOT) basis with a 40-year lease period and an estimated implementation timeline of around four years.

Capital Strengthening and Operational Excellence

Patel Engineering successfully completed a rights issue during the quarter, raising approximately Rs 400 crore. This capital infusion reflects strong shareholder confidence and provides additional financial flexibility to support project execution and future growth initiatives. The company also achieved a significant operational milestone with a successful TBM breakthrough at the CIDCO TWT-II project site, completed more than four months ahead of schedule and establishing a National Record by completing 812 meters of tunneling in January 2026.

Order Book and Future Outlook

The company maintains a well-diversified order book of Rs 15,123 crore as of December 31, 2025, providing strong topline visibility. During the quarter, Patel Engineering secured additional projects related to excavation works, which represents a natural extension of the large-scale infrastructure works the company undertakes and provides additional diversification opportunities.

Managing Director Kavita Shirvaikar commented on the results, highlighting the company's disciplined approach towards achieving top-line growth while maintaining sustainable profitability. CFO Rahul Agrawal emphasized the steady performance supported by stable operations and continued focus on disciplined execution, noting that the rights issue strengthened the balance sheet to support future strategic growth initiatives.

Ace investor Vijay Kedia, renowned for identifying multibagger smallcap stocks early, has acquired a 1.01% stake in Patel Engineering through his firm Kedia Securities Private Limited. The strategic investment comes despite the infrastructure stock declining over 40% in the past year, demonstrating Kedia's contrarian investment approach.

Investment Details

Kedia's acquisition represents a significant vote of confidence in the infrastructure company's long-term prospects. The investment adds institutional backing to the small-cap stock, which currently trades with a market capitalization of ₹2,908.03 crores.

Recent Project Wins

Patel Engineering has secured significant project contracts recently, strengthening its order book. The company signed a memorandum of understanding with the Government of Arunachal Pradesh for the restoration and development of the 144 MW Gongri Hydropower Project in West Kameng district.

Coal Projects Portfolio

The company also secured two Letters of Intent for coal excavation and transportation projects from Saidax Engineers and Infrastructure Private Limited. These projects involve excavation and associated works at the Jhiria West Open Cast Project in the Hasdeo Area of Bilaspur, Chhattisgarh, awarded by South Eastern Coalfields Limited.

Kedia Portfolio Performance

Amid heightened market volatility, Vijay Kedia's 16-stock portfolio value declined to approximately ₹1,170 crores, marking a nearly 38% decline from ₹1,896 crores in December. Only three stocks in his portfolio delivered positive double-digit returns, while six stocks recorded steep declines ranging between 25% and 68%. However, his holding in TechD Cybersecurity doubled during the year, turning into a multibagger.

Business Operations

Patel Engineering operates in the infrastructure and construction space with expertise in large-scale civil projects including dams, tunnels, hydroelectric plants, highways, bridges, railways, and real estate development. The company's recent project acquisitions worth ₹2,498.19 crores demonstrate its continued ability to secure significant infrastructure contracts despite market challenges.