PSP Projects FY26: Record Order Book, Faster Execution, and the Margin Question

PSP Projects closed FY26 with a sharp finish. Q4FY26 delivered the company’s highest-ever quarterly revenue, supported by faster execution across institutional, residential, industrial and government projects. Consolidated revenue from operations in Q4FY26 rose 66% year on year to INR 1,115 crore. EBITDA increased 85% to INR 60 crore. Profit after tax climbed to INR 21 crore.

For the full year, consolidated revenue grew 25% year on year to INR 3,149 crore. But profitability did not keep pace. FY26 EBITDA was INR 189 crore, and the EBITDA margin moderated to 6% from 7.14% in FY25. PAT was INR 55 crore, down 2% year on year, translating to a PAT margin of 1.74%.

Management framed FY26 as a year of scale and transition. The company highlighted a larger and changing project mix, with execution intensity rising meaningfully in the final quarter. The other key narrative was strategic: Adani Infra has become a promoter, and within-group orders now form the majority of the backlog.

Execution surged in Q4, while full-year margins stayed under pressure

The Q4 step-up was visible in both the revenue trajectory and the operating cadence. PSP has been executing larger, multi-site projects simultaneously, and the company noted it is now running 94 ongoing projects across Gujarat, Uttar Pradesh, Rajasthan, Karnataka, Maharashtra and Delhi NCR.

That said, the profitability discussion was dominated by two factors:

First, management cited project mix and ramp-up on large orders as the reason margins were lower on a full-year basis.

Second, the CFO disclosed that Q4 other expenses increased sharply because the company booked an expected credit loss provision. Other expenses rose to INR 46 crore in Q4FY26 from INR 17 crore in Q4FY25, largely due to an INR 29 crore provision on unbilled revenue related to the Kashi project. Management stated it will continue to follow up for recovery, but provided for it as the amount had been outstanding for a long period.

Financial snapshot (consolidated)

The order book moved into a new league

The most important operating metric in PSP’s FY26 story is the order book. Outstanding order book stood at INR 13,447 crore as on 31 March 2026, up 85% year on year. FY26 order inflow was INR 10,925 crore.

The composition of the backlog has also shifted. The presentation states that 67% of the order book is within-group projects and 33% is external. On the earnings call, management reiterated the concentration and quantified it further, indicating that about INR 9,000 crore is Adani-related and about INR 4,300 crore is non-Adani.

The company also highlighted that the backlog is more balanced than last year between private and government work. Government projects formed about 25% of the FY26 order book compared to 43% in FY25.

Working capital, receivables, and the importance of collections

Investors spent significant time on working capital quality, and the discussion was direct.

As of 31 March 2026, the CFO disclosed key balance sheet items including trade receivables of INR 928 crore, net unbilled revenue of INR 440 crore, retention money of INR 240 crore and mobilization advances of INR 814 crore.

Trade receivables increased sharply versus FY25, and management attributed this to the Q4 revenue spike, with a large portion of sales booked in February and March and expected to be collected in April. Management guided that receivable days should trend down to around 60 to 70 days as execution shifts further toward within-group projects, where payment terms are described as stringent and the company receives ad hoc advances against bills.

A key positive for liquidity is that management stated mobilization advances from the group are non-interest bearing. This matters because interest cost has been a drag on net margins. Finance cost for FY26 was INR 45.24 crore.

On leverage, management stated an ambition to become debt-free by next year or within the next few quarters, contingent on collections. If achieved, it would reduce interest costs meaningfully and improve PAT conversion even if operating margins stay in the mid-single digits.

Precast: building a capability moat, not just a marketing slide

PSP has been highlighting its precast facility since it was commissioned in December 2021, and FY26 included a clear proof point.

Management called out Project Ninety, a 3-basement plus ground plus 18-floor project executed in 148 days using precast. The company positioned this as a demonstration of speed, quality consistency and safety.

On the call, management stated current precast capacity is around 3 million square feet per year. If expansion is required, the incremental capex would largely be equipment-led because the sheds are already in place, and could be in the range of INR 15 to INR 20 crore.

This matters because the company’s medium-term margin improvement narrative is tied partly to technology-led construction methods. Management also stated that adoption of precast and modular construction can improve productivity and margins over the medium term.

FY27 guidance: growth visibility is high, margin recovery is the test

The FY27 guidance was explicit:

Management reiterated revenue guidance of INR 4,500 crore for FY27.

For EBITDA margins, management guided 7% to 8% for the year. The MD noted that if the Q4 ECL provision were adjusted, quarterly EBITDA margin would look closer to 8%, but management preferred to stay conservative.

On order inflow, management indicated an expectation of INR 5,000 crore to INR 6,000 crore from group projects in FY27, with an additional INR 1,000 crore to INR 2,000 crore possible from non-group tenders if opportunities arise.

Capex guidance was described broadly as similar to FY26 on average, around 3% to 4% of topline, though management noted it can vary depending on project starts.

Bottom line

PSP Projects is moving through a scale inflection. The order book has more than doubled in two years, and FY26 order inflow was exceptional. The Adani Infra partnership has clearly changed the pipeline and the funding profile, including the role of interest-free mobilization advances.

The next phase is about proving that execution scale can translate into stable margins and cleaner cash conversion. Management’s FY27 guidance sets clear markers: INR 4,500 crore revenue and 7% to 8% EBITDA margin. If the company can also deliver on its stated goal of becoming debt-free and reducing interest costs, net profitability could improve materially. But receivables, provisions and working capital discipline will remain the key items to track quarter by quarter.