PSP Projects Limited has informed the Exchange about Transcript
PSPPROJECT · price
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PSP Projects reported a sharp decline in Q1FY26 performance with revenue falling 16% YoY to Rs. 513 crore and EBITDA plummeting 67% to Rs. 24 crore (margin at 4.77% vs 12% last year), with net profit nearly wiped out at just Rs. 13 lakhs. The weakness was driven by a 37% labor shortage in April-May 2025 (now reduced to 19%), elevated employee costs at 6.8% (vs usual 4-5%), Rs. 4.5 crore extra expenses on UP projects, and Rs. 8.68 crore in ECL provisions. Despite the weak quarter, management maintained its FY26 EBITDA margin guidance of 8-9%, expecting recovery from Q2FY26 onwards. Order book stood at Rs. 6,514 crore (11% YoY growth), with the company guiding for Rs. 7,500-8,000 crore of new order inflows from the Adani Group in FY26. Management also indicated potential FY27 revenue of around Rs. 4,500 crore. Adani Infra completed its open offer acquiring 11.32% stake in June 2025.
Near-term stock sentiment is likely weak given the sharp Q1 profit decline and margin compression, but management's reaffirmation of 8-9% margin guidance and strong order pipeline visibility from the Adani Group provide medium-term comfort. Shareholders should watch Q2FY26 execution closely to confirm margin recovery and labor availability.