PSP Projects Ltd has reported a sharp rise in revenue for the fourth quarter of the financial year 2026, driven by strong execution across its projects, although profitability came in below expectations.
The company’s revenue rose 65.7% year-on-year to ₹11,152 million, surpassing estimates, while gross profit nearly doubled to ₹1,423 million. Gross margins improved to 12.8%, reflecting better cost efficiencies.
However, earnings at the operating level were weaker than anticipated. EBITDA increased 84.8% to ₹598 million but fell short of forecasts, with margins at 5.4%. The company attributed this to higher employee costs linked to recruitment aimed at managing a growing order book.
Net profit surged 227.4% year-on-year to ₹212 million, though it also missed estimates. Profit margins improved modestly to 1.9%.
PSP Projects said its order book remained robust at ₹134.47 billion, up 85% from a year earlier, providing visibility for future growth. A significant portion of this is linked to projects from the Adani Group, which accounts for around two-thirds of the total order book.
The company said improved payment terms from key clients are expected to reduce working capital requirements and support its aim of becoming debt-free by the financial year 2027. It is also pursuing diversification through government projects and bidding for large upcoming contracts.
Looking ahead, PSP Projects expects margins to improve, supported by efficiencies from its pre-cast construction facilities and reduced financing costs. The company highlighted its ability to execute projects rapidly, citing examples of accelerated construction timelines.
It is currently managing 94 ongoing projects, including infrastructure and urban development works. While some projects have faced initial regulatory challenges, the company said key milestones have been achieved, reducing execution risks.
With planned capital expenditure remaining moderate and funding supported by advances from clients, PSP Projects said it remains well-positioned to scale operations further.
