Revenue jumps 30.44%, but PSP Projects’ margin slips
A lower tax rate lifted profit, while costs grew slightly faster than revenue and other income contributed 12.21% of pre-tax profit.
Filed 02 Nov 2026, 14:54 IST · PSP Projects Ltd (PSPPROJECT)
Key takeaways
- Consolidated revenue grew +30.44% QoQ, but operating margin narrowed 0.21 percentage points as expenses grew +30.73%.
- Net profit rose +64.89% QoQ, helped by a 10.42 percentage-point fall in the tax rate to 24.65%.
- Operating margin at 6.21% was 5.32 percentage points below the 11.53% median for 88 reporting Industrials peers.
Price around the results
Revenue momentum came with a small margin giveback
PSP Projects reported consolidated revenue growth of +30.44% QoQ to Rs 1,113.24 cr, while operating profit increased a slower +26.21% to Rs 69.15 cr. Expenses grew +30.73%, so operating margin narrowed from 6.42% to 6.21%. This was the second quarter in the available trend, so the data shows a sequential decline rather than a multi-quarter pattern.
Tax relief, not operating leverage, drove the profit jump
Pre-tax profit grew +42.05% QoQ, with interest rising only +1.59% but depreciation increasing +13.78%. The tax rate fell 10.42 percentage points to 24.65%, helping net profit rise +64.89% to Rs 30.24 cr. Other income contributed 12.21% of pre-tax profit, so part of reported profit came from outside operations.
Margin trails the Industrials peer set
PSP Projects’ 6.21% operating margin was 5.32 percentage points below the 11.53% median among 88 Industrials companies that had reported the same quarter. The company ranked 10th from the bottom on this measure, making margin conversion the key gap versus peers.
Management points to order visibility and precast expansion
Management said its Rs 12,872 cr order book across public and private segments provides revenue visibility and growth over the medium term. The company said it is adding precast capacity in response to orders and demand from civil and infrastructure segments, while also exploring newer technologies through the facility. The presentation also said Adani Infra acquired a 34.41% stake through an open offer and share purchase agreement.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,113 cr | ₹853 cr | +30.44% |
| Other income | ₹5 cr | ₹4 cr | +20.69% |
| Expenses | ₹1,044 cr | ₹799 cr | +30.73% |
| Operating profit | ₹69 cr | ₹55 cr | +26.21% |
| Operating margin (%) | 6.21% | 6.42% | — |
| Interest | ₹8 cr | ₹8 cr | +1.59% |
| Depreciation | ₹26 cr | ₹23 cr | +13.78% |
| Profit before tax | ₹40 cr | ₹28 cr | +42.05% |
| Tax | ₹10 cr | ₹10 cr | -0.20% |
| Net profit | ₹30 cr | ₹18 cr | +64.89% |
| EPS (₹) | ₹7.63 | ₹4.63 | +64.79% |
Operating margin of 6.21% compares with a Industrials sector median of 11.53% across 88 peers that have reported Q2FY27.
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 company says its ₹12,872 crore order book provides revenue visibility and growth over the medium term.
- The company identifies six priorities to sustain profitable growth.
Expansion
- The company is adding capacity in precast because of orders and demand from civil and infrastructure segments.
- Adani Infra acquired a 34.41% stake in PSP Projects through the Open Offer and Share Purchase Agreement.
New initiatives
- The company is exploring newer technologies through its precast facility.
What to watch
- Whether operating margin recovers from 6.21% after the sequential decline.
- Whether expense growth falls below the +30.73% QoQ recorded this quarter.
- Progress on precast capacity addition against the Rs 12,872 cr order book cited by management.