PSP Projects’ 6.43% margin ranks second-lowest among 27 peers
Standalone Q1FY27 operating margin was 8.21 percentage points below the 14.64% Industrials median, even as management pointed to a Rs 13,245 cr order book.
Filed 30 Jul 2026, 13:51 IST · PSP Projects Ltd (PSPPROJECT)
Key takeaways
- At 6.43%, PSP Projects’ standalone operating margin was the second-lowest among 27 Industrials peers reporting the quarter.
- The Rs 13,245 cr order book is the main disclosed support for management’s medium-term revenue visibility.
- A 36.84% tax rate further reduced the quarter’s Rs 24.0 cr pre-tax profit to Rs 15.16 cr.
Price around the results
Standalone earnings showed weak operating conversion
PSP Projects generated Rs 50.52 cr of operating profit on Rs 785.3 cr of revenue, leaving limited conversion into operating earnings at a 6.43% margin. Other income of Rs 4.1 cr was not the main source of pre-tax profit, while interest and depreciation remained material below operating profit. The 36.84% tax rate further reduced profit before tax of Rs 24.0 cr to net profit of Rs 15.16 cr.
Q1 margin was 8.21 percentage points below the Industrials median
The company’s 6.43% operating margin was 8.21 percentage points below the 14.64% median for the 27 Industrials peers that had reported the same quarter. PSP Projects ranked second from the bottom on this measure, making operating-cost absorption the clearest issue in the quarter’s performance.
Management highlighted order visibility and precast expansion
Management said the Rs 13,245 cr order book provides revenue visibility and medium-term growth across public and private segments. The company said it is adding precast capacity in response to civil and infrastructure demand and is exploring newer technologies for that business. The presentation said Adani Infra’s acquisition of a 34.41% stake could support higher order inflows and better project-pipeline visibility.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹785 cr |
| Other income | ₹4 cr |
| Expenses | ₹735 cr |
| Operating profit | ₹51 cr |
| Operating margin (%) | 6.43% |
| Interest | ₹8 cr |
| Depreciation | ₹23 cr |
| Profit before tax | ₹24 cr |
| Tax | ₹9 cr |
| Net profit | ₹15 cr |
| EPS (₹) | ₹3.82 |
Operating margin of 6.43% compares with a Industrials sector median of 14.64% across 27 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The ₹13,245 crore order book provides revenue visibility and growth over the medium term.
- The Adani partnership could lead to higher order inflows and stronger project pipeline visibility.
- The company aims to sustain profitable growth through six strategic priorities.
- The company is positioned to emerge as a leading EPC player in India.
Expansion
- The company is undergoing capacity addition in precast in response to civil and infrastructure demand.
- Adani Infra acquired a 34.41% stake in PSP Projects and joined the promoter group.
New initiatives
- The company is exploring newer technologies for its precast capabilities.
- The company has implemented SAP as part of its growth journey.
What to watch
- Revenue conversion from the Rs 13,245 cr order book.
- Whether operating margin improves from 6.43%.
- Progress on precast capacity addition and its effect on operating profit of Rs 50.52 cr.