Patel Engineering LimitedInfrastructure & ConstructionPATELENG
Q1 FY27 concall · earnings callPatel Engineering Limited
Patel Engineering delivered strong PAT growth of 24.5% on moderate revenue growth, guided for 10% revenue growth in FY27, and sees a large opportunity pipeline across hydropower, pump storage, tunneling, and urban infrastructure.
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue | ₹1,281 Cr | 4% | |
| Consolidated PAT | ₹93.5 Cr | 24.5% | |
| Consolidated Order Book | ₹14,636 Cr | — | |
| Operating EBITDA Margin (Consolidated) | 14.02% | — |
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹1,205.52 Cr+13.6% YoY+2.7% QoQ | ₹81.52 Cr+18.4% YoY+11% QoQ | ₹0.95+6.7% YoY+9.2% QoQ |
| Q2 FY25 | ₹1,174.33 Cr+15% YoY+6.6% QoQ | ₹73.45 Cr+95% YoY+34.2% QoQ | ₹0.87+89.1% YoY+33.8% QoQ |
| Q1 FY25 | ₹1,101.66 Cr-1.5% YoY-18% QoQ | ₹54.72 Cr+26.1% YoY-61% QoQ | ₹0.65-1.5% YoY-59.9% QoQ |
| Q4 FY24 | ₹1,343.18 Cr+3.5% YoY+26.6% QoQ | ₹140.35 Cr+65.5% YoY+103.9% QoQ | ₹1.62+3.8% YoY+82% QoQ |
| Q3 FY24 | ₹1,061.01 Cr+2.3% YoY+3.9% QoQ | ₹68.83 Cr+120.7% YoY+82.8% QoQ | ₹0.89+43.5% YoY+93.5% QoQ |
- Consolidated revenue grew 4% YoY to Rs 1,281 crores, while PAT grew 24.5% YoY to Rs 93.5 crores.
- Order book stood at Rs 14,636 crores, diversified across hydropower (62%), irrigation (17%), tunneling (4%), and roads/urban infrastructure (17%).
- Company sees a near-term opportunity pipeline of Rs 60,000 crores and has Rs 9,000 crores of bids under evaluation.
- Management targets 10% revenue growth in FY27, with growth weighted to the second half.
- EBITDA margin improved to 14.02% from 13.4% YoY, with a target to maintain 13-14% margins.
- Credit rating was upgraded to A stable from A-.
“We believe the next phase of India's infrastructure development will be driven by large, technically complex and capital-intensive projects across Hydropower, Pump Storage, Tunneling, Irrigation and Urban Infrastructure segments, where Patel Engineering has established capabilities and a strong execution track record.”
| Topic | What management said |
|---|---|
| PAT Growth vs Revenue Growth | Finance cost reduced by almost Rs 10 crores YoY due to lower debt, contributing significantly to higher PAT growth versus revenue growth. |
| Order Book Execution & Revenue Growth | Current order book of Rs 14,636 crores is expected to be executed over 3 years (book-to-bill ratio ~3). To achieve 10% revenue growth this year and 15% next, the company targets Rs 8,000 crores in new orders this year. |
| Exceptionals & Land Monetization | No exceptionals are expected in FY27. Land parcel of 27 acres sold for Rs 27 crores; target for non-core asset monetization is Rs 150-200 crores for the year. |
| Promoter Pledge | Pledge currently around 85-90%; management expects it to come down by at least 15-20% this year. |
| EBITDA Margin Outlook | Margins expected to be maintained at 13-14% despite competition; improvement from 13.4% to 14.02% in Q1 was due to project mix. |
| Working Capital & Funding | Incremental working capital needs may require Rs 100-200 crores in borrowings, to be funded by internal accruals, asset monetization, and client advances. |
| Arbitration & Receivables | Arbitration settlements are pursued where possible, but PSUs often lead to prolonged litigation. Receivable days are 40-45, a marked improvement from over 100 days previously. |
| Bid Pipeline | Rs 9,000 crores of bids are under evaluation, with a majority in Arunachal and the northeast; outcomes are expected around Diwali. |
- Target approximately 10% revenue growth for FY27, with a significant portion expected in the second half.
- Target Rs 8,000 crores in new orders for the year.
- Expect to maintain EBITDA margins between 13-14%.
- Aim for Rs 150-200 crores from non-core asset monetization in FY27.
- Expect promoter pledge to reduce by at least 15-20% this year.
Summary written from the transcript filed by Patel Engineering Limited for the call held on 17 Aug 2026; published 18 Aug 2026, 20:50 IST.
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