Engineers India Limited: Q2 FY26 Performance Highlights Strong Growth and Strategic Diversification

Engineers India Limited (EIL), a prominent Indian government undertaking in the engineering consultancy and EPC sector, has reported a robust performance for the second quarter and first half of the financial year 2025-26. The company's standalone financial results underscore a period of significant growth, strategic diversification, and an all-time high order book, signaling strong future revenue visibility. The management's commentary reflects confidence in sustained growth, driven by both traditional and emerging energy sectors.

For Q2 FY26, EIL registered a total income of INR 948.24 crore, a substantial increase from the previous year. The consultancy segment, a key driver of profitability, contributed INR 411.30 crore, while the turnkey segment added INR 489.11 crore. Other income accounted for INR 47.84 crore. This performance translated into impressive bottom-line growth, with Profit Before Tax (PBT) surging by 50% year-on-year to INR 149.58 crore and Profit After Tax (PAT) increasing by 45% to INR 114.91 crore. The Earnings Per Share (EPS) for the quarter stood at INR 2.04, up from INR 1.41 in the corresponding period last year. The half-yearly performance further solidified this trend, with a 37% increase in turnover and a 40% rise in PBT, demonstrating strong operational execution.

Strategic Thrusts and Market Opportunities

EIL's management highlighted several strategic initiatives aimed at sustaining growth and diversifying its revenue base. A significant thrust is on expanding into new energy sectors, including hydrogen, coal gasification, and bio-refinery. The company has already secured an assignment for coal gasification from NTPC and is actively bidding for similar projects, signaling a proactive approach to the evolving energy landscape. This diversification is crucial as EIL seeks to reduce its reliance on traditional hydrocarbon projects and tap into the burgeoning green energy market.

International market expansion remains a key focus. EIL is aggressively pursuing overseas consultancy opportunities, having secured approximately INR 1,600 crore from international projects in H1 FY26. This strategic push aims to diversify revenue streams geographically and capitalize on global demand for engineering and consultancy services. Domestically, EIL is engaged in a robust pipeline of refinery and petrochemical projects, including feasibility studies for the Andhra refinery and potential expansions for AGCPL. The company is also involved with major clients like BPCL, IOCL, and ONGC Gujarat Jamnagar on their significant investment plans, ensuring a strong domestic order book.

Order Book and Future Outlook

The company's order book reached an all-time high of INR 13,131.1 crore as of September 30, 2025, a substantial increase from INR 12,145 crore in the previous quarter. This robust order book provides excellent revenue visibility for the coming years. The management has guided for a full-year turnover growth of over 25% and aims to exceed INR 8,000 crore in order inflows for FY26. The consultancy segment is expected to maintain its strong profitability with a 25% segment profit margin, while the turnkey segment is targeted for a 6-7% margin. The overall mix between consultancy and turnkey business is projected to remain balanced, around 50-50.

Despite the strong performance, EIL acknowledged some challenges, notably technical issues and a 45-day shutdown at the Ramagundam Fertilizer Project, which resulted in losses for the first half of FY26. However, the management confirmed that the plant is now operational and is expected to generate profits in Q3. The company's disciplined capital allocation strategy, guided by DPE guidelines, focuses on identifying investment opportunities with lower capital expenditure to enhance shareholder value.

Concluding Thoughts

Engineers India Limited's Q2 FY26 results demonstrate a company in a strong growth trajectory, backed by a record order book and a clear strategic vision. The emphasis on diversification into new energy sectors and aggressive international expansion, coupled with a robust domestic project pipeline, positions EIL favorably for sustained performance. While minor operational challenges were noted, management's transparency and proactive measures instill confidence. EIL continues to deliver excellence, leveraging its engineering prowess to contribute to nation-building and deliver value to its stakeholders.