PSP Projects (PSPPROJECT) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue declined 11% year-over-year but rose 8% sequentially; nine-month FY25 revenue was INR 1,813 crore, flat versus prior year.

• Incorporated in 2008, the company operates as an integrated EPC player across six Indian states, with a 7-year CAGR of 29.61% in revenue.

• As of Dec 31, 2024, the order book stood at INR 6,417 crore, with 58 ongoing projects and 233 completed.

• Partnership with Adani Infra announced, with Adani acquiring up to 30.07% stake from the founder promoter, expected to drive future order inflows.

• In April 2024, raised INR 244 crore via QIP, primarily for debt repayment.

Financial highlights

• Q3 FY25 revenue: INR 623 crore (down 11% YoY, up 8% QoQ); EBITDA: INR 35 crore (down 50% YoY); PAT: INR 6 crore (down 81% YoY); EBITDA margin: 5.67%; PAT margin: 0.97%.

• 9MFY25 revenue was flat YoY at INR 1,813 crore; EBITDA declined 30% YoY to INR 148 crore; PAT decreased 53% YoY to INR 51 crore.

• Additional expenses of INR 18 crore on U.P. projects, asset write-off of INR 1.8 crore, and JV loss of INR 1.5 crore impacted profitability.

• CapEx for Q3: INR 16 crore; gross block: INR 591 crore; net block: INR 315 crore.

• Trade receivables: INR 565 crore; trade payables: INR 450 crore; inventory: INR 312 crore.

Outlook and guidance

• FY25 revenue guidance revised to INR 2,600 crore (from earlier INR 2,700–2,800 crore).

• FY26 revenue expected to exceed INR 4,000 crore, driven by Adani orders.

• Order inflow guidance: INR 3,500–4,000 crore for FY25; INR 5,000 crore for FY26.

• EBITDA margin guidance for Q4 FY25 and FY26: 9–10%.

• Management expects improved performance as major new projects awarded in Q4 FY24 have commenced execution in Q3 FY25.