PSP Projects Limited H1 revenue reaches Rs 1,967 crore, margins lag

PSP Projects Limited reported record revenue from operations of Rs 1,967 crore in H1FY27, up 61% year on year, while profit after tax rose 193% to Rs 48 crore; EBITDA margin improved to 6.3% but remained 8.5 percentage points below the 14.8% reported in FY22.

How did PSP Projects perform in H1FY27?

PSP Projects delivered its highest half-yearly revenue, with H1FY27 revenue from operations of Rs 1,967 crore against Rs 1,221 crore in H1FY26. Chairman and Managing Director Prahaladbhai Patel attributed the 61% increase to improved execution across projects and improved labour availability. The company also reported its highest quarterly revenue of Rs 1,113 crore in Q2FY27.

EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 66% to Rs 124 crore in H1FY27 from Rs 75 crore a year earlier. EBITDA margin rose by 0.2 percentage points to 6.3% from 6.1%, meaning operating profit grew faster than revenue during the half year. H1FY27 revenue was also equivalent to about 62% of the Rs 3,149 crore reported for the full FY26.

Profit after tax, or PAT, increased to Rs 48 crore in H1FY27 from Rs 16 crore in H1FY26, lifting the PAT margin to 2.5% from 1.4%. Profit before tax and exceptional items rose 196% to Rs 68.38 crore from Rs 23.11 crore. The consolidated statement recorded no exceptional gain or loss in either H1FY27 or H1FY26.

What drove PSP Projects’ H1FY27 profit increase?

PSP Projects’ profit increase reflected higher revenue, a small operating-margin improvement and lower finance costs. Finance costs fell to Rs 15.20 crore in H1FY27 from Rs 23.17 crore in H1FY26, while other income increased to Rs 8.96 crore from Rs 8.11 crore. Those changes accompanied the 1.1-percentage-point rise in PAT margin to 2.5%.

Operating expenses increased 61% to Rs 1,842.77 crore in H1FY27 from Rs 1,145.91 crore, matching the revenue growth rate. Construction expenses rose to Rs 1,065.58 crore from Rs 536.59 crore, while the cost of materials consumed, including work in progress, increased to Rs 642.10 crore from Rs 513.98 crore. The cost data show that the larger revenue base was accompanied by substantially higher execution spending.

Employee-benefit expense rose to Rs 95.71 crore from Rs 68.29 crore, and depreciation increased to Rs 49.32 crore from Rs 36.54 crore. Tax expense was Rs 19.80 crore in H1FY27, compared with Rs 6.52 crore in the prior-year half. Despite the higher tax charge, PAT nearly tripled because profit before tax expanded from Rs 23.11 crore to Rs 68.38 crore.

Why are PSP Projects’ margins still below FY22 levels?

PSP Projects’ H1FY27 EBITDA margin of 6.3% remained below the FY22 margin of 14.8%, a difference of 8.5 percentage points. The margin was above the 6.0% reported in FY26, but the presentation shows a multi-year decline from 14.8% in FY22 to 11.9% in FY23, 10.4% in FY24 and 7.1% in FY25 before the H1FY27 improvement.

PAT margin followed a similar path, reaching 2.5% in H1FY27 after 1.7% in FY26 and 2.3% in FY25. It remained 7.0 percentage points below FY22’s 9.5%. The presentation provides the margin history but does not give a separate explanation for the difference between the FY22 and H1FY27 operating or net margins.

The absolute comparison also differs by measure. H1FY27 revenue of Rs 1,967 crore was higher than FY22 full-year revenue of Rs 1,748 crore, whereas H1FY27 EBITDA of Rs 124 crore was below FY22 EBITDA of Rs 258 crore. H1FY27 PAT of Rs 48 crore was also below FY22 PAT of Rs 166 crore, indicating that higher revenue has not yet been matched by the profit levels reported in that earlier full year.

What do Q2FY27 results and the order book show?

PSP Projects reported Q2FY27 revenue of Rs 1,113 crore, up 58% from Rs 703 crore in Q2FY26 and 30% from Rs 853 crore in Q1FY27. Q2FY27 EBITDA increased 38% year on year to Rs 69 crore and 26% sequentially from Rs 55 crore. However, the 6.2% quarterly EBITDA margin was below both Q2FY26’s 7.1% and Q1FY27’s 6.4%.

Q2FY27 PAT was Rs 30 crore, compared with Rs 16 crore in Q2FY26 and Rs 18 crore in Q1FY27. PAT margin increased to 2.7% from 2.3% a year earlier and 2.1% in the preceding quarter. Earnings per share were Rs 7.63 in Q2FY27, up from Rs 4.10 in Q2FY26 and Rs 4.63 in Q1FY27.

PSP Projects had an order book of Rs 12,872 crore as of 30 September 2026, which management said was 30% higher year on year. Institutional projects accounted for 39% of the order book, residential projects 36%, government projects 23% and industrial projects 3%. Management reported H1FY27 order inflow of about Rs 1,305 crore, including Rs 675 crore during Q2FY27.

The order book was lower than Rs 13,447 crore at FY26, while the number of ongoing projects rose to 105 in H1FY27 from 94 in FY26 and 58 in FY25. Management also disclosed a current bid pipeline exceeding Rs 7,800 crore. The presentation does not set out a timetable for converting either the existing order book or the bid pipeline into revenue.

Conclusion

PSP Projects combined record H1FY27 revenue of Rs 1,967 crore with PAT of Rs 48 crore, as higher project execution and labour availability supported revenue growth while lower finance costs aided net profit. The half-year figures also show a modest margin recovery from FY26, but EBITDA and PAT margins of 6.3% and 2.5% remained materially below FY22 levels of 14.8% and 9.5%.

The next results will indicate whether PSP Projects can sustain execution across its 105 ongoing projects and improve profitability while converting its Rs 12,872 crore order book. Management’s disclosed bid pipeline of more than Rs 7,800 crore and H1FY27 order inflow of about Rs 1,305 crore make new order wins, order-book movement and quarterly margins the disclosed measures to watch next.