SPML Infra Q1 FY27: Better order quality, a marquee BESS win, and a clearer turnaround narrative

SPML Infra Limited opened FY27 with a quarter that combined steady execution with a visible strategic shift. For Q1 FY27, the company reported revenue of INR 285.67 crore, EBITDA of INR 28.27 crore, and PAT of INR 22.70 crore. EBITDA margin improved to 9.90 percent and PAT margin to 7.95 percent.

Management framed the quarter as part of a broader SPML 2.0 reset. The headline is not only the year-on-year growth in operating metrics, but also the attempt to change the business mix towards projects that are funded, price-protected, and targeted at double digit margins. Alongside this, SPML is trying to establish a third growth engine in battery energy storage systems, moving beyond its traditional water EPC strengths.

A quarter defined by a large BESS entry and continued EPC momentum

The key operational highlight was SPML’s INR 1,128 crore contract from NTPC for a 250 MW and 1,000 MWh Battery Energy Storage System at the Baruni Thermal Power Station. The scope includes supply, civil works, erection, commissioning, and associated electrical infrastructure. The contract also includes 15 years of operations and maintenance.

The company also reported a INR 165.4 crore order from RRVPNL for the construction and commissioning of a 400 kV grid substation and transmission infrastructure in Kota, Rajasthan. These wins align with the company’s stated intent to scale its presence in power EPC alongside water.

The presentation also linked the medium-term opportunity set to public capex. Budget allocations cited include material spends on Jal Jeevan Mission and AMRUT 2.0, and a policy push for storage through viability gap funding for BESS.

Note: The presentation states Q4 FY26 PAT does not include a tax reversal of INR 6.77 crore.

Order book quality is the core operating lever management is emphasizing

SPML’s outstanding order book as of 30 June 2026 was stated at INR 5,094 crore. The company provided a clear split between legacy and new orders.

Legacy orders were reported at INR 1,251 crore, while new orders were INR 3,843 crore. This implies a 25 percent legacy and 75 percent new order mix.

Management’s messaging was direct: new orders are expected to carry operating margins of 10 to 12 percent, and projects are being selected to reduce working capital intensity through escrow-based structures. In the earnings call, management reiterated that it is not taking new orders below 10 percent margin and is prioritizing funded projects with price variation clauses. It also stated that most legacy orders should be executed in FY27 and FY28.

A key nuance is that SPML described parts of the legacy portfolio as back-to-back structured, carrying no execution or cash flow liability but also having lower margin profiles. The central thesis is that as this legacy portion tapers, blended margins should improve.

The company also disclosed new order wins in water, irrigation, and BESS, including Jal Jeevan Mission and AMRUT 2.0 projects with multi-year operations and maintenance components.

BESS manufacturing at SUPA MIDC: timelines and dependency on approvals

The BESS story is not only about one EPC order. SPML is positioning itself as a manufacturer and an OEM supplier of battery packs and container units.

The presentation states that Phase 1 of the 2.5 GWh battery assembly line at SUPA MIDC, Pune, is fully ready. It also states that IEC and UL certifications have been initiated for the battery pack, which is required for supplying containers for the NTPC order.

Management described the near-term milestone path for NTPC as follows: advance has already been received, design and drawing approvals are expected by Q3 FY27, and sample container approval is expected by December. Subject to approvals, supply and billing are targeted to begin in Q4.

For FY27, management indicated that BESS execution could be about INR 200 to 300 crore, subject to approvals. It also stated the line will be scaled from 2.5 GWh to 5 GWh with an annual capacity of 600 container units, targeted for completion in the first half of FY28.

On capex, management stated that the total requirement for the 5 GWh plus container facility is INR 236 crore, and that 25 acres of land have been acquired.

Separately, management shared a potential revenue range tied to capacity, stating that a 2.5 GWh scale could translate into revenue potential of about INR 2,000 to 2,500 crore, and a 5 GWh scale could translate into about INR 4,500 to 5,000 crore. These were stated as potential revenue generation figures from the BESS plant.

Balance sheet narrative: NARCL settlement, arbitration awards, and promoter capital

SPML continued to emphasize legacy debt resolution. The presentation states total debt inclusive of interest of INR 700 crore, of which INR 325 crore has been repaid and INR 375 crore remains outstanding.

The company states that the outstanding amount is backed by arbitration awards in hand of INR 678 crore inclusive of accumulated interest till June 2026. It also discloses claims filed till date of INR 4,526 crore and a stated expectation that about 40 percent of claims could convert into awards.

Promoter and investor support through preferential allotment also featured prominently. The presentation states that the company has raised INR 819 crore worth of equity since 2022, with promoters contributing about INR 400 crore. The company reported net worth of INR 999 crore in FY26 versus INR 509 crore in FY24. Debt to equity is shown at 0.4x in FY26 and 0.34x as of Jun-26.

The company also highlighted credit rating actions, stating ICRA upgraded and CRISIL assigned ratings of BBB Stable. The presentation references credit facilities rated amount of INR 860 crore and mentions a surety bond current draw of INR 300 crore from insurance companies.

Guidance: order intake, growth intent, and what to watch

For FY27, management reiterated an order intake guidance of more than INR 5,000 crore, noting INR 1,293 crore order inflow till June 2026 and an L1 position in INR 212 crore of orders.

On financial performance, management guided for revenue growth of more than 25 percent versus the prior year and similarly more than 25 percent growth in EBITDA and PAT, with updates expected in future con-calls based on order and execution progress.

The practical monitorables are also clear from the quarter’s discussion. For the BESS business, the timing hinges on NTPC approvals and the start of container deliveries. For the core EPC engine, the watch item is whether the company can continue improving the order book mix and execute legacy projects within the stated FY27 to FY28 window.

SPML’s Q1 FY27 update shows a company trying to shift its risk and return profile by selecting higher quality projects, improving liquidity headroom, and building a new manufacturing-led BESS vertical. The next few quarters will be judged less on the presence of a large order and more on whether approvals, billing, and execution ramp match the timelines management has laid out.