Patel Engineering Limited , a leading infrastructure and construction services company in India, has reported mixed financial results for the second quarter of fiscal year 2026 (Q2 FY26).

Revenue Growth

The company's consolidated revenue from operations for Q2 FY26 stood at Rs. 1,208.47 crore, up 2.91% compared to Rs. 1,174.33 crore in Q2 FY25. For the first half of FY26 (H1 FY26), consolidated revenue grew 7.29% year-over-year to Rs. 2,441.91 crore.

Profitability Declines

Despite the revenue growth, Patel Engineering saw a decline in profitability:

• Consolidated operating EBITDA for Q2 FY26 was Rs. 158.67 crore, down 2.18% year-over-year, with the EBITDA margin contracting to 13.13% from 13.81% in Q2 FY25.
• Consolidated net profit after tax and share in profit/(loss) of associates from continued operations declined 0.57% to Rs. 73.03 crore in Q2 FY26.

Order Book Remains Strong

The company's order book as of September 30, 2025, stood at Rs. 15,146 crore, providing solid revenue visibility for the coming quarters. During H1 FY26, Patel Engineering received new orders worth approximately Rs. 2,500 crore.

Key Financial Highlights

Management Commentary

Kavita Shirvaikar, Managing Director of Patel Engineering, commented on the results: "We are pleased to report another quarter of consistent and resilient performance, marked by growth in revenues despite the operational challenges posed by prolonged monsoons across several project sites. This outcome underscores our unwavering commitment to operational excellence, disciplined project execution, and prudent financial management."

Outlook

The company remains optimistic about future growth prospects, citing robust infrastructure momentum across India. Patel Engineering is strategically positioned to capitalize on emerging opportunities, supported by its strong order book and diversified project portfolio.

About Patel Engineering Limited

Established in 1949, Patel Engineering Limited has evolved into a construction company specializing in hydropower and irrigation segments. The company is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures, and other heavy civil engineering projects.

Investors and stakeholders should note that this article is based on the company's official financial results and statements. As always, it is advisable to conduct thorough research and consider various factors before making investment decisions.

Patel Engineering Ltd (PEL) has reached a settlement agreement with Continental Casualty Company and Western Surety Company, resolving a longstanding legal dispute in the United States. The company will pay approximately $5 million (₹44 crore) to settle claims that originally amounted to around $40 million.

Settlement Details

The settlement, disclosed in a regulatory filing, brings closure to a lawsuit filed in 2019 by the US-based insurance companies. The dispute originated from sureties issued for ASI Constructors Inc., a former US subsidiary of Patel Engineering.

Background of the Dispute

The lawsuit stemmed from payment and other sureties issued by the plaintiffs to vendors, contractors, and clients of ASI Constructors Inc. After ASI's closure in 2017, the insurance companies incurred various costs related to these sureties.

Financial Implications

PEL has stated that it will make provisions for the settlement amount in its financial statement for the quarter ending September 30, 2025. The company plans to make payments in various tranches from internal accruals, asserting that this will not materially affect its liquidity or impact business operations.

Company's Perspective

Patel Engineering maintained that it was unlikely to face an adverse order for the full amount claimed by the plaintiffs, as neither PEL nor Patel Engineering Inc. were parties to the original indemnity agreement. However, the company opted for settlement to avoid high litigation costs in the US and to save on future administrative expenses.

This settlement marks a significant resolution for Patel Engineering, allowing the company to put this legal challenge behind it and focus on its core operations. The substantial reduction in the settlement amount compared to the original claim suggests a favorable outcome for the company, potentially minimizing the impact on its financial health.