Engineers India Ltd Q2 FY26 Earnings Analysis

- EIL expects a revenue growth of around 15% for the current financial year, with a possible revision based on execution progress. - Consultancy segment growth is projected around 12% to 15%, contributing over 50% of total revenue. - Turnkey segment is expected to contribute about 40% to 45% of total revenue. - Management is optimistic about order inflows increasing by 10% to 20%, potentially achieving Rs. 8,000 crores or higher annually. - Long-term target is to reach a Rs. 5,000 crores turnover by FY 2028. - Opportunities in emerging sectors such as Small Modular Reactors (SMRs) and non-oil & gas infrastructure projects are expected to bolster growth. - International consultancy, especially in the Middle East, is showing strong potential, with secured business around Rs. 960 crores. - Conservative approach currently estimates 15% overall growth, with upside possible through change orders and project acceleration.

- Management expects a **15% to 20% growth in turnover** going forward, with potential for upward revision as order inflow increases. - **Consultancy business growth** is anticipated around **12% to 15% annually**, with consultancy margins maintained at **20% to 25%**. - Turnkey business contributes the remaining growth; overall margin profile is expected to sustain. - Profit before tax (PBT) and profit after tax (PAT) grew by approximately **27% in Q1 FY26**, indicating positive earnings momentum. - Management projects a **Rs. 5,000 crore turnover target by FY 2028**, aiming to possibly achieve it earlier. - Earnings per share (EPS) are stable, with Rs. 1.25 reported in Q1 FY26 compared to Rs. 0.97 in Q1 FY25. - Margins, especially consultancy EBIT margins, are likely to hold or improve moderately as more projects reach advanced stages. - JVs may show recovery; losses in earlier quarters due to shutdowns expected to be offset in subsequent quarters.

- The government is strongly pushing for the development and deployment of Small Modular Reactors (SMRs), with a target of achieving 100 Gigawatts from nuclear energy under the Viksit Bharat initiative. - Engineers India Limited (EIL) has secured a Rs. 30 crore contract for conceptual design and engineering services on a Bharat Small Modular Reactor (BSMR) project, marking the first assignment in this segment. - EIL anticipates many upcoming projects and investments in SMRs across India due to government focus on nuclear power expansion. - The company is seeing a strong pipeline of infrastructure projects with significant government CapEx investments, boosting opportunities in the infrastructure and non-oil & gas sectors. - EIL is focused on building order inflows with an internal target of 10%-20% growth annually, aligned with increased government investments and indigenization efforts. - The company aims to reach Rs. 5,000 crore turnover by FY 2028, driven by growing order books and project executions.

- The provided transcript from Engineers India Limited's Q1 FY '26 Earnings Conference Call does not mention any current or future plans for fundraising through debt or equity. - There is no discussion about raising capital via new debt instruments or equity issuance. - The focus is primarily on order inflows, revenue growth, margins, joint ventures, and project execution. - Management emphasizes sustained growth in order books and business segments without indicating a need for external fundraising. - Therefore, based on the available information on pages 1 to 18 of the document, no plans for new fundraising through debt or equity are disclosed.

- Order book position reached an all-time high of Rs. 12,145 crores as of June 30, 2025, up from Rs. 11,717 crores on March 31, 2025. - Order inflow in Q1 FY'26 stood at Rs. 1,430 crores (Rs. 609 crores in consultancy, Rs. 821 crores in turnkey). - Rs. 2,700 crores worth of new orders have been added during the current quarter. - Management expects order inflow to match or exceed last year's Rs. 8,000 crores, with an internal target growth of 10-20%. - Many projects in pipeline and under bidding; some L1 positions pending formal LOAs, including negotiated tenders. - International order intake stands at around Rs. 950 crores, mainly from the Middle East (Abu Dhabi, Kuwait). - Change orders are under process with clients and expected to materialize progressively.