PSP Projects Q1 FY27 Earnings Call — Analysis (NSE: PSPPROJECT)
PSP Projects Q1FY27 revenue surges 65% YoY to ₹853 Cr, order book crosses ₹13,245 Cr with Adani Group driving 93% of quarterly inflows, while margin recovery expected from H2 as labour normalises.
The take
Q1FY27 Revenue from operations ₹853 Cr ( +65% YoY ) . New guidance — FY27 fy27 consolidated revenue ₹4,400-₹4,500 Cr . New story: Execution ramp despite seasonality .
Results
Revenue ₹853 Cr +65% YoY; EBITDA margin 6.42% (+163bps YoY); Net profit ₹18 Cr (vs ₹37 lakhs).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from operations | ₹853 Cr | +65% | yoy · Q1FY27 |
| EBITDA | ₹55 Cr | +121% | yoy · Q1FY27 |
| EBITDA margin | 6.42% | +163bps | yoy · Q1FY27 |
| Net profit | ₹18 Cr | +from ₹37 lakhs | yoy · Q1FY27 |
| Order book | ₹13,245 Cr | +103% | yoy · point_in_time · as on 30th June 2026 |
| Order inflow | ₹630 Cr | none · Q1FY27 | |
| Capex incurred | ₹28 Cr | none · Q1FY27 | |
| Workforce deployed | >16,000 | none · point_in_time · as on 30th June 2026 |
Guidance
FY27 revenue guided at ₹4,400-4,500 Cr (>25% growth); EBITDA margin expected to reach 7-8% from H2FY27.
What management committed to
- FY27 consolidated revenue will be in the range of ₹4,400-4,500 Cr, implying more than 25% year-on-year growth. — ₹4,400-₹4,500 Cr, FY27
- EBITDA margin will reach 7-8% from the second half of FY27, and the full-year margin is expected to be in that range. — 7-8%, FY27
- FY27 order inflow will be approximately ₹4,000-5,000 Cr, plus-minus ₹400-500 Cr. — ₹4,000-₹5,000 Cr, FY27
- FY27 capex will be approximately 3-4% of revenue, though it could be slightly higher if large projects require extra equipment. — 3-4%, FY27
- PSP Projects will become net debt-free in the next 2-3 quarters. — net debt-free, Q3FY27
- UP medical project collections (₹60 Cr unbilled + ₹40 Cr receivables) will be realised and the account closed by end of August or mid-September 2026. — ₹100 Cr (₹60 Cr unbilled + ₹40 Cr receivables), Q2FY27
- PSP will remain focused on building construction and will not enter projects that are not related to buildings. — ongoing
- Precast plant will generate revenue up to ₹200 Cr in FY27, all from Adani Group building projects. — up to ₹200 Cr, FY27
Key themes
Adani-led order book and execution ramp-up
How the narrative shifted
- Execution ramp despite seasonality: Management highlights 65% revenue growth in a traditionally weak quarter (labour migration, monsoons) as proof of execution capability and project progression into core construction phases.
- Adani Group anchor and concentration: The order book is 70% within-group Adani projects; Q1 inflows were 93% Adani. Management projects confidence that the Adani pipeline (Dharavi, airports, MediCity, real estate) will sustain growth for years.
- Margin recovery narrative: Q1 margin was depressed by temporary labour shortage and fixed employee costs. Management reassures that as revenue run-rate climbs and labour normalises, EBITDA margin will expand to 7-8% from H2, with the cost-plus structure providing a floor.
- Organisational capacity building: Headcount and employee costs rose as the company hired senior project management and leadership to scale execution capability 1.5-2x. This is positioned as a necessary investment to capture the large Adani order book.
- Working capital and balance sheet deleveraging: Finance cost has reduced; management expects further improvement and net debt-free status in 2-3 quarters. Mobilisation advances are interest-free, and unutilised credit lines remain ample.
- Geographic and segmental focus: Management explicitly rules out expansion beyond buildings and beyond Gujarat/Mumbai in the near term, citing sufficient visible pipeline from Adani and own projects.
- Cost-plus contract insulation: All Adani projects are said to be on a cost-plus basis, passing through material price volatility. Management frames this as a margin-protection mechanism, targeting 6-7% EBITDA at the Adani project level.
Operational commentary
- Order book composition: 70% within-group (Adani), 30% external; diversified across industrial (39%), residential (37%), government (23%), institutional (1%).
- Six projects completed in Q1; major new orders include Adani Healthcare & Research Foundation Mumbai, Airport office building T1 Mumbai, refurbishment at Mundra, skilled accommodation at Green PVC project Mundra.
- Key projects in execution: SMC High-Rise (core & shell done, MEP/interiors underway), RVNL (two buildings nearing handover, hospital RCC completed), Ahmedabad Airport & cityside development (RCC in full swing), Ambaji Temple (excavation/footing stage).
- Dharavi redevelopment: two rehabilitation projects underway (~30,000 houses) out of total 2 lakh planned; PSP has preferential position for future phases contingent on execution performance.
- Bid pipeline ₹6,200+ Cr, 61% from group, 39% external; no material order intake assumed from Commonwealth Games yet.
- Labour availability was tight in Apr-May (seasonal migration/weddings), normalising from Q2; workforce expected to add 3,000-4,000 in next 1-2 quarters as more projects enter core construction.
- Strategic organisational build-up: employee count up from 2,400 to 2,600; employee cost elevated in Q1 due to increments and leadership hires to handle 1.5-2x portfolio scale.
- UP medical projects: EOTs nearing signing; unbilled ₹60 Cr + receivables ₹40 Cr expected to close by Aug-end/mid-September.
- SDB receivables (₹90 Cr outstanding) – management invited for discussion with the client next week, no clear timeline yet.
- Precast plant capacity ~₹200 Cr p.a., fully focused on Adani building projects, margin profile similar to overall Adani works.
- Mobilisation advances ₹836 Cr, all interest-free; working capital improving, finance cost reduced, company expects net debt-free in 2-3 quarters.
- Credit facilities: sanctioned ₹1,497 Cr, non-fund utilisation ₹678 Cr, fund-based ₹166 Cr, unutilised limit ₹653 Cr; lien-free FDs ₹139 Cr.
Analyst Q&A
Q. Is the FY27 revenue guidance of ₹4,500 Cr and 20-25% growth trajectory intact?
Yes, we can say it will be, on average, more than 25%. So can be between ₹4,400 to ₹4,500. Still, we remain in the same line.
Q. When will EBITDA margin reach the guided 7-8% – Q2 or H2?
From second half onwards we should be in that range. Q1 employee cost was high due to lower sales in Apr-May; if we add that ₹7-8 Cr to EBITDA, margin would be above 7%. We will be in a better position from Q3 and Q4.
Q. What is the status of the Commonwealth Games project tender?
Still no clear idea; movement started with a control room being set up. Home Minister visited Glasgow for discussions. Maybe next quarter we should hear something. Order inflow guidance does not assume any Commonwealth projects.
Q. Can we expect SDB receivables resolution soon?
Outstanding is ₹90 Cr. They have called me for a discussion next week; I don’t know the positive direction yet, but they have contacted me to meet.
Q. What is the total opportunity from Dharavi for PSP?
Total Dharavi redevelopment is 2 lakh houses over 5-6 years. We are building ~30,000 houses in the first two projects. If we perform well, we have the first right of refusal for future phases, but other contractors may also participate to meet the timeline.
Q. Will PSP enter new construction segments like data centres?
We will remain in buildings only. Data centres in Mumbai/Visakhapatnam are not part of our scope now, but may come later because it’s still a building. For now, focus is on airports, cityside, real estate, MediCity.
Research and educational content only. Not investment advice.