BSEDesco Infratech LtdMinimalNeutral
Announced Tue, 5 May · 09:52 IST

Press Release

Price

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Price reaction · full curve 14 horizons · vs prior close
+3.9%1-day move
₹249.75
prior close
₹261.75
base price
In-mkt
timing
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+0.0+0.0+0.0-0.1+3.9+1.3-2.7-4.9-9.9-0.7-5.1-11.6-16.3
Up moveDown movePending
AI summary

Desco Infratech Limited reported exceptional financial performance for FY 2025-26 with revenue nearly doubling to ₹11,879.26 Lacs (up 99.28% YoY), while EBIT grew 76.30% to ₹2,343.48 Lacs and Net Profit increased 80.87% to ₹1,638.12 Lacs. The City Gas Distribution (CGD) segment remained the primary growth driver contributing ₹8,324.04 Lacs in revenue with a healthy 15.42% PAT margin, while the newer Power and Renewable EPC segment contributed ₹3,537.22 Lacs at 10.01% margin. The company completed acquisition of SHRI GREEN AGRO ENERGIES PRIVATE LIMITED to gain ready government approvals and reduce project gestation periods, and incorporated DESCO GLOBAL FZ-LLC in UAE's Ras Al Khaimah Economic Zone for international expansion. The order book stands robust at ₹345+ Crores with a tender pipeline of ₹650 Crores. Working capital deployment increased due to higher receivables and project mobilization, resulting in negative operating cash flow of ₹1,795.97 Lacs.

Likely market impact

Strong double-digit growth across all metrics signals solid execution capability; the ₹345+ Cr order book provides near-term revenue visibility. Working capital strain and negative cash flow warrant monitoring, but strategic acquisitions and international expansion position the company for sustained growth.