PSP Projects Q1 FY27: Execution improves, and the order book stays the headline

PSP Projects Limited entered FY27 with a large backlog and a better-than-usual first quarter for execution, despite management calling out the typical seasonal headwinds that hit construction companies in April to June. For the quarter ended 30 June 2026, the company reported consolidated revenue from operations of INR 853 crore, up 65% year on year. EBITDA rose to INR 55 crore and PAT improved to INR 18 crore.

The quarter matters less for its absolute numbers and more for what it signals. Management said several large projects have moved beyond excavation and underground activities and are now in the core construction phase, which typically supports faster billing and steadier progress. The company also highlighted the scale of mobilization, with over 16,000 labour deployed across sites.

A large order book sets the base for FY27

As of 30 June 2026, PSP reported an outstanding order book of INR 13,245 crore, which management described as a 103% year-on-year increase. The presentation positioned this as multi-year revenue visibility. During Q1 FY27, order inflow was INR 630 crore (excluding GST). On the conference call, management added that 93% of the quarter’s inflow came from the Adani Group.

Project concentration is visible in the way management discusses the pipeline. The company’s bid book was stated at INR 6,200 crore plus, with 61% from group projects and 39% external projects. PSP also reiterated that within-group projects represent about 70% of the current order book, with external projects contributing 30%.

Several large projects were referenced along with outstanding contract values, including Shree Ambaji Mata Temple (INR 962 crore), SMC high-rise building (INR 693 crore), a FinTech building at GIFT City (INR 259 crore), Human Biological Science Gallery at Science City (INR 248 crore), a residential project in GIFT City (INR 202 crore), Dharoi Dam region development (INR 198 crore), and Sabarmati Riverfront Phase 2 (INR 187 crore).

Financial performance: strong growth, margins still rebuilding

In Q1 FY27, PSP’s EBITDA margin was 6.42% and PAT margin was 2.12%. Management explained that employee cost as a percentage of sales was higher in the quarter because April and May revenue was lower and labour availability was strained, which reduced conversion of site activity into sales. They indicated that as execution normalizes and sales rise, employee costs should trend back toward the company’s usual range.

Management guidance remains the key takeaway. On the call, the company reiterated FY27 consolidated revenue guidance of INR 4,400 to 4,500 crore. On margins, management said EBITDA margin of 7% to 8% is expected in the second half of the year, while still indicating the full-year band remains 7% to 8%.

Financial snapshot

Note: Q1 FY26 PAT in the investor presentation is shown as INR 36.74 lakhs in the detailed table (approximately INR 0.37 crore).

Adani partnership and the Mumbai build-out

The investor presentation described the strategic partnership with Adani Infra as a platform for accelerated growth, with benefits ranging from access to large-scale opportunities to stronger governance alignment. PSP noted that Adani Infra acquired a 34.41% stake through the open offer and SPA and joined the promoter group.

On the call, management provided tangible colour on what this partnership means operationally. Roughly 45% of Q1 FY27 revenue was estimated to be from Adani Group projects, though the company clarified it did not have an exact number at the time. PSP also discussed Mumbai execution progress on key projects.

Dharavi redevelopment remains one of the most watched elements. Management said two Dharavi projects are included in the order book and the Dharavi component within the current backlog is about INR 3,000 crore. They also mapped this to output, suggesting it corresponds to roughly 30,000 to 32,000 houses based on an indicative cost per house. Management described the broader Dharavi plan as requiring about 2 lakh houses delivered over multiple years, with further development potential only after relocation.

Working capital and collections: improvement is visible, but monitoring stays critical

Working capital is central in construction, and the company’s commentary suggests near-term improvement. Management stated finance costs have reduced versus prior quarters, driven by lower usage of working capital facilities and surplus fixed deposits. They also indicated that all mobilization advances are interest-free. The company guided that further reductions in working capital borrowings are possible, and it could become net debt-free with near-zero finance cost in the next 2 to 3 quarters.

Collections remain an area to track. Management stated Surat Diamond Bourse receivables of INR 90 crore are still outstanding and discussions with the counterparty are ongoing. In addition, PSP discussed progress on the UP medical college and hospital projects, stating that EOT sign-offs are nearing completion and that unbilled amounts of INR 60 crore and receivables of INR 40 crore are expected to be resolved around end-August to mid-September.

Takeaways from Q1 FY27

PSP’s Q1 FY27 was defined by execution momentum and a continued focus on scaling for a larger project portfolio. Revenue growth was strong for a seasonally weak quarter, and management’s message was that the pipeline and staffing are being built for a much higher run-rate through the year.

The near-term investor debate is likely to stay centered on two points. First, whether margins can move into the guided 7% to 8% range as projects progress into more repeatable construction stages. Second, whether working capital continues to improve, particularly with large receivables such as the Surat Diamond Bourse still pending. With an INR 13,245 crore order book, FY27 is set up for growth, but delivery and collections will determine how much of that growth converts into sustainable profitability.