Deepak Builders & Engineers India Ltd (DBEIL) reported a 52.9% jump in net profit for the third quarter of FY25, driven by robust execution across its engineering and infrastructure projects, as the company looks to capitalise on India’s growing infrastructure push.

Revenue for the quarter rose 22.02% year-on-year to ₹1,305.46 million, while EBITDA grew 33.82% to ₹301.34 million. Net profit surged to ₹162.62 million, compared to ₹106.33 million in the same period a year earlier. The company’s EBITDA margin expanded to 24.62% for the nine months ended FY25, up from 21.94% in FY24.

The company, which focuses on Engineering, Procurement and Construction (EPC) projects, holds an order book of ₹15 billion as of September 2024—three times its FY24 revenue—providing strong revenue visibility over the medium term. DBEIL operates across segments such as institutional buildings, hospitals, industrial infrastructure, and large-scale government projects.

Following its ₹2.6 billion initial public offering in October 2024, DBEIL is deploying capital towards growth initiatives and debt reduction. Khandwala Securities, in a recent initiation report, rated the stock a ‘Strong Buy’, citing attractive valuations and healthy earnings growth outlook.

At its current market price of ₹140, DBEIL trades at 7.33x FY25E earnings and 6.25x FY26E, compared to the sector average P/E of 28x. Khandwala forecasts an FY26E EPS of ₹22.41, implying a target price of ₹627 and an upside potential of 348%.

The Indian construction industry is forecast to touch $1.4 trillion by 2025, supported by government-led infrastructure schemes such as Gati Shakti and Bharatmala. Analysts say DBEIL’s execution track record in complex government EPC projects positions it as a key beneficiary of this upcycle.

DBEIL expects revenue and PAT to grow at a CAGR of 18% and 31% respectively over FY25E–FY26E.

With improving margins, a diversified project portfolio, and sector tailwinds, DBEIL is seen as a compelling bet in India’s infrastructure growth story.