SPML Infra Limited , a leading infrastructure development company, reported mixed results for the first quarter, with revenue declining but margins improving. The company also announced significant developments in its Battery Energy Storage Systems (BESS) business and a robust order book in its core water infrastructure segment.

Q1 Financial Performance

SPML Infra reported a revenue of Rs. 172.90 crore for Q1, down from Rs. 200.70 crore in the previous quarter. Despite the revenue decline, the company saw improvements in profitability:

The company attributed the softer performance to heavy rainfall impacting project execution.

Strong Order Book and Future Outlook

SPML Infra's order book stands at Rs. 4,500.00 crore, including Rs. 2,500.00 crore in new orders. The company expects to convert Rs. 2,200.00 crore worth of L1 positions by October. Notable recent wins include:

• Rs. 1,073.00 crore project from Indore Municipal Corporation for water supply system augmentation
• Rs. 385.00 crore project in Kekri, Rajasthan
• Rs. 254.00 crore JV project in Chennai

The company is targeting annual order inflows of Rs. 4,000.00-5,000.00 crore, focusing on high-margin projects with full funding visibility.

Entry into Battery Energy Storage Systems (BESS)

In a significant strategic move, SPML Infra is entering the Battery Energy Storage Systems market:

• Partnership with Energy Vault, a NASDAQ-listed US company
• Setting up a manufacturing facility in Pune MIDC
• Initial capacity of 2.5 GW planned by Q1 FY27, expandable to 5 GW
• Total investment of Rs. 175.00 crore, funded through preferential allotment and internal accruals

The company expects the BESS segment to contribute significantly to revenues from FY27 onwards, aiming for equal revenue contribution from water and power segments by 2029-30.

Management Commentary

Manoj Digga, Director Commercials & Chief Financial Officer, stated, "We have entered the new fiscal year on a strong footing both operationally and strategically. The momentum built over Financial Year 2025 has continued into this quarter, and we are happy with the progress across order inflow, execution, balance sheet strengthening, and new opportunities."

Debt Resolution and Financial Position

The company's current debt stands at approximately Rs. 407.00 crore, payable over 6 years. This debt is backed by arbitration awards amounting to Rs. 636.00 crore and additional claims totaling Rs. 4,609.00 crore. SPML Infra has already repaid Rs. 23.00 crore ahead of scheduled timelines to NARCL and plans to continue this practice.

Conclusion

Despite a temporary setback in Q1 revenues, SPML Infra's strong order book, strategic entry into the BESS market, and focus on high-margin projects position it well for future growth. The company's diversification into the energy storage sector, coupled with its established presence in water infrastructure, presents a balanced growth strategy aligned with India's infrastructure development needs.

SPML Infra Limited , a leading water infrastructure development company in India, has clinched a significant contract worth Rs. 1073.00 crore from the Indore Municipal Corporation. The project, awarded under the AMRUT 2.0 scheme, aims to augment the city's water supply system, catering to over 2 million residents of Indore.

Project Scope and Timeline

The comprehensive project encompasses several key components:

1. Construction of a 1,650 MLD capacity intake facility
2. Development of a 400 MLD water treatment plant
3. Establishment of clear water booster pumping stations
4. Installation of 22 kilometers of pipeline (1200 mm to 2337 mm diameter)
5. Setting up of a 132/33 kV power substation

The Engineering, Procurement, and Construction (EPC) portion of the project is slated for completion within 30 months, including rainy seasons, from the contract signing date.

Long-term Operations and Maintenance

In addition to the construction phase, SPML Infra has secured a 10-year Operation and Maintenance (O&M) contract. This long-term agreement ensures the optimal performance of the water supply system and includes structured escalation provisions.

Strategic Importance

Mr. Subhash Sethi, Chairman of SPML Infra Limited, emphasized the project's significance, stating, "The scope of this project is truly unique, placing SPML Infra among a handful of companies worldwide with the capability to design and deliver such an integrated water infrastructure system."

The project aligns with India's vision of making cities "water secure" and self-reliant under the AMRUT 2.0 initiative launched by the Government of India.

Financial Impact

The contract value of Rs. 1073.00 crore (inclusive of GST) represents a substantial addition to SPML Infra's project portfolio. The company disclosed this information to the stock exchanges on August 19, 2025, in compliance with SEBI regulations.

Upcoming Investor Meeting

In a separate announcement, SPML Infra informed the stock exchanges that it will be participating in a Water & Recycling Conference hosted by Ashika Group on August 22, 2025, in Mumbai. The company plans to engage with investors and analysts, sharing publicly available information about its operations and projects.

SPML Infra's latest contract win reinforces its position as a key player in India's water infrastructure sector, contributing to the country's development goals while potentially enhancing shareholder value.