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PSP Projects (NSE:PSPPROJECT): What Did Q1FY27 Earnings Call Reveal?

PSP Projects (NSE:PSPPROJECT): What Did Q1FY27 Earnings Call Reveal?

Source: Krish Capital Pty Ltd

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PSP Projects Limited (NSE:PSPPROJECT) filed the transcript of its Q1FY27 Earnings Conference Call with exchanges on 5 August 2026, pursuant to Regulation 30 of SEBI LODR. The call, held on 30 July 2026, disclosed consolidated revenue of Rs 853 crore for the quarter ended 30 June 2026, a 65% year-on-year increase, and an order book of Rs 13,245 crore.

Key Highlights

  • Consolidated revenue from operations rose 65% year-on-year to Rs 853 crore in Q1FY27, compared with Rs 518 crore in Q1FY26.
  • EBITDA grew 121% year-on-year to Rs 55 crore, with EBITDA margin improving to 6.42% from 4.79% in the prior-year quarter.
  • Net profit for Q1FY27 was Rs 18 crore versus Rs 37 lakh in Q1FY26, representing approximately 50 times year-on-year growth.
  • Outstanding order book as on 30 June 2026 stood at Rs 13,245 crore, reflecting 103% year-on-year growth, with 70% comprising intra-group projects.

About the Company

PSP Projects Limited (NSE:PSPPROJECT) is an Ahmedabad-headquartered construction company operating in the Power Infrastructure and Capital Goods sector. It undertakes industrial, residential, government, and institutional construction projects across India, with a notable presence in Gujarat. The company is listed on both BSE (scrip code: 540544) and NSE.

Announcement in Detail

The Q1FY27 conference call, moderated by Ernst and Young, was addressed by Chairman and MD Prahaladbhai Patel, CEO Pooja Patel, and CFO Hetal Patel. Order inflows for the quarter were Rs 630 crore, with 93% sourced from Adani Group. Key new orders included the Adani Healthcare and Research Foundation project in Mumbai, an airport office building at T1 Mumbai, and skilled accommodation at the Green PVC project in Mundra.

On the balance sheet, standalone long-term borrowing stood at Rs 38 crore and short-term borrowing at Rs 217 crore as on 30 June 2026. Trade receivables were Rs 745 crore and mobilisation advances Rs 836 crore. The company held total fixed deposits of Rs 324 crore, of which Rs 139 crore were lien-free. Capital expenditure during Q1FY27 was Rs 28 crore, with gross block at Rs 793 crore.

Impact on Investors

Investors will note that management reaffirmed FY27 revenue guidance of Rs 4,400 to Rs 4,500 crore, implying average growth above 25%. The filing shows EBITDA margin at 6.42% in Q1FY27, below the 7%-8% range management targets; the CMD attributed this partly to elevated employee costs at 5.39% of sales, against a typical 4%-4.5%, and indicated improved margins are expected from Q3FY27 onwards.

Shareholders will observe that 93% of Q1FY27 order inflows came from Adani Group, maintaining significant counterparty concentration. The bid pipeline stands at Rs 6,200 crore plus, with 61% from group projects, a factor the disclosed terms indicate is central to near-term revenue visibility.

Sector / Market Context

India's construction sector continues to be supported by central and state government infrastructure spending. The Union Budget FY26 allocated Rs 11.11 lakh crore for capital expenditure, sustaining order pipelines for construction firms. Seasonal headwinds in Q1, including monsoon onset and labour migration during festivals, are an established industry-wide pattern affecting Q1 execution across listed construction companies.

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