This small-cap infra stock, engaged in construction services, including industrial, institutional, residential, and commercial projects, offering design, engineering, and project management across India, is in focus after management expects revenue to be more than Rs. 3,000 crore in FY26.
With a market capitalization of Rs. 2,927.15 crore, the shares of PSP Projects Limited closed at Rs. 738.40 per equity share, down nearly 0.22 percent from its previous day’s close price of Rs. 740.
Guidance
For FY26, the management expects revenue to exceed Rs. 3,000 crore, with an EBITDA margin projected at 8–9 percent. The order inflow is anticipated to be between Rs. 4,000-5,000 crore, with 80–90 percent coming from the Adani Group, and they plan to execute 30–40 percent of these orders in FY26. The capital expenditure (capex) for FY26 is estimated at 3–5 percent of the revenue.
Debt Reduction
In FY25, PSP Projects Limited undertook significant measures to reduce its debt compared to FY25. The company successfully raised approximately Rs. 244 crore through a QIP in April 2024.
Out of the QIP proceeds, about Rs. 188 crore was directly utilized to repay existing borrowings, leading to a substantial reduction in total debt, from Rs. 455 crore at the end of FY24 to around Rs. 272 crore by the end of FY25, bringing down its debt-equity ratio to 0.22x by March 2025.
Adani Acquisition
Adani Infra has acquired a 30.07 percent stake in PSP for Rs. 685 crore and launched an open offer for an additional 26 percent. PSP expects orders worth more than Rs. 7,000 crore from the Adani Group over FY25-FY26, with projects valued at Rs. 50,000 crore anticipated over the next 5–6 years.
Order Book
PSP Projects Limited has shown steady growth in its order book over the years. In FY25, the company has an order book of Rs. 7,266 crore and an order inflow of Rs. 3,506 crore, with 13 projects completed and 58 ongoing projects. In FY24, the order book was Rs. 6,049 crore with an order inflow of Rs. 3,498 crore, and 17 projects were completed.
Key Projects
The company has secured major projects, including airport and city-side development with hotels, a Coca-Cola plant in Sanand, a Medicity and Research Center in Ahmedabad, commercial and hotel projects in Bangalore, the “Siban” residential project at GIFT City, a repeat order for Palladium Mall in Surat, a leadership guesthouse at Shantigram, and residential projects at Vaishnodevi and Shantigram.
PSP Projects Limited is a multidisciplinary construction company based in India, established in August 2008. The company offers a wide range of construction and allied services across various sectors, including industrial, institutional, government, government residential, and residential projects.
The company operations span the entire construction value chain, from planning and design to execution and post-construction activities, such as MEP (mechanical, electrical, and plumbing) work and interior fit-outs.
Coming into financial highlights, PSP Projects Limited’s revenue has increased from Rs. 667.76 crore in Q4 FY24 to Rs. 672.89 crore in Q4 FY25, which has grown by 0.77 percent. The net profit has decreased by 58.38 percent, from Rs. 15.52 crore in Q4 FY24 to Rs. 6.46 crore in Q4 FY25.
In terms of return ratios, the company’s ROCE and ROE stand at 8.71 percent and 5.31 percent, respectively. PSP Projects Limited has an earnings per share (EPS) of Rs. 14.2, and its debt-to-equity ratio is 0.22x.
Written By – Nikhil Naik
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