PSP Projects Q2 FY27 Results (NSE: PSPPROJECT)

2 Nov 2026 · Analysis by Alpha Inflection

Signal: Growth decelerated

The read

The trajectory is a revenue acceleration rather than a clean margin recovery: consolidated revenue rose 58.4% YoY to ₹111,323.66 lakh and PAT rose 87.1% to ₹3,023.93 lakh, but estimated EBITDA margin fell 89bps YoY to about 6.2% after the prior quarter's 6.4%, reversing the Q1FY27 margin expansion; H1FY27 operating cash flow also remained negative at ₹2,688.93 lakh.

P&L walk

Consolidated revenue increased to ₹111,323.66 lakh, +58.4% YoY and +30.5% QoQ, driven by a 122.0% YoY increase in construction expenses; estimated operating margin eased to about 6.2% from 7.1% as execution growth outpaced profitability.

Segments

The group reports one business segment, construction/project activities; the standalone parent generated ₹2,904.88 lakh of PAT versus consolidated PAT of ₹3,023.93 lakh, so subsidiaries and the joint venture added only ₹119.05 lakh net to group profit in the quarter.

Key positives

• Consolidated revenue rose 58.4% YoY to ₹111,323.66 lakh and 30.5% QoQ, extending the acceleration from ₹85,347.32 lakh in the prior quarter.
• PAT increased 87.1% YoY to ₹3,023.93 lakh, while finance costs declined 36.1% YoY to ₹766.34 lakh.
• Raw material cost fell to 24.1% of revenue from 43.0% a year ago, while PPE rose to ₹45,074.52 lakh and CWIP to ₹960.53 lakh, indicating a larger operating asset base.

Key concerns

• Estimated consolidated EBITDA margin declined to about 6.2% from about 7.1% a year ago and 6.4% sequentially, despite revenue growth of 58.4% YoY.
• Construction expenses increased 122.0% YoY to ₹63,158.34 lakh, outpacing revenue growth and driving the operating-margin compression.
• Operating cash flow was negative at ₹2,688.93 lakh for H1FY27 despite H1FY27 PAT of ₹4,858.20 lakh, indicating working-capital absorption.

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