PSP Projects (PSPPROJECT) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 performance was impacted by a 37% labor shortfall in April-May, now reduced to 19%, and early monsoon in Gujarat, leading to delays and lower profitability.

• Eight projects were completed in the quarter, with several new large projects in the foundation stage.

• Adani Infra acquired 11.32% equity via open offer, settled on June 11, 2025, and entered a strategic partnership with equal board representation.

• As of June 30, 2025, the order book stands at ₹6,514 crore, with 27% from Adani projects and 45% from government projects.

• Incorporated in 2008, the company operates as an integrated EPC player across multiple Indian states.

Financial highlights

• Q1 FY26 revenue from operations declined 16% YoY to ₹513 crore; EBITDA dropped 67% YoY to ₹24 crore; PAT fell to ₹0.03 crore.

• FY25 revenue was ₹2,468 crore, flat YoY; EBITDA fell 32% YoY to ₹124 crore; PAT declined 55% YoY to ₹56 crore.

• 8-year CAGR (FY17–FY25): Revenue 26%, EBITDA 13%, PAT 4%.

• Additional Q1 expenses: ₹4.5 crore for UP project, ECL provision of ₹8.68 crore.

• Gross debt increased to ₹382 crore, mainly due to CapEx and working capital needs.

Outlook and guidance

• Order inflow for FY26 expected at ₹7,500–8,000 crore, mainly from Adani projects.

• Revenue guidance to be updated after Q2; EBITDA margin expected at 8–9% from Q2 or Q3.

• FY27 revenue could reach ₹4,500 crore, supported by a strong order book.

• Labor shortages impacted Q1FY26, but the situation is improving and expected to normalize from August 2025.

• CapEx guidance remains at 3–4% of revenue.