PSP Projects Q4 FY26 Earnings Analysis

- FY'26 revenue guidance remains in the range of INR 3,100 to 3,200 crores, as affirmed by management. - For FY'27, revenue is expected to be between INR 4,000 crores to INR 4,500 crores minimum, with clearer guidance expected by Q1 or Q2 of 2027. - Order inflow till date is around INR 5,900-6,000 crores with an additional INR 3,000 crores under discussion for FY'26. - For FY'27 and beyond, the company targets an order inflow run rate of INR 7,000 to 8,000 crores based on group requirements. - Management expects growth driven mainly by projects from the Adani Group and other institutional orders, with less exposure to real estate-specific projects. - Capex for equipment and shuttering materials supports upcoming project executions, projected to be around INR 200 crores for FY'26, with 3-4% of revenue invested annually thereafter.

- Revenue guidance for FY'27 is expected to be in the range of INR4,000 to INR4,500 crores, with clearer guidance to be provided in Q1 or Q2 FY'27. - EBITDA margins are expected to normalize to 8%-9% in FY'27, with stable margins on both Adani and non-Adani projects. - Net margin is projected to improve by 1.5%-2% over the current 2.14%, potentially reaching 3.5%-4% normalized net margin in FY'27 due to stable depreciation and finance costs. - Order inflow is anticipated at INR7,000 to INR8,000 crores for next year, supporting revenue growth. - Execution is expected to improve with better labor deployment and project progress. - Earnings potentially benefit from a one-time arbitration receipt (~INR61 crores) recognized in P&L. - Depreciation is expected to increase slightly due to recent capex (~INR200 crores this year). - Overall, stable margin improvement and revenue growth are expected to drive operating profits and EPS growth in FY'27.

- The company has incurred a capex of INR 80 crores in Q3 FY 26 and a year-to-date capex addition of INR 153 crores. - Gross block as of December 31, 2025, is INR 762 crores, with a net block of INR 414 crores. - The full-year capex target for FY 26 is approximately INR 200 crores. - Capex is mainly for new shuttering materials, equipment like cranes, and other machinery needed for Adani Group projects. - For FY 27 and FY 28, there may be a slight reduction in capex; however, new projects will require some capex as needed. - The company intends to maintain overall capex at about 3% to 4% of annual revenue going forward. - Capex investments are expected to support revenue generation in the next financial years.

- The company incurred around INR150 crores capex in the current year and plans a total of about INR200 crores for the full year. - Capex has been mostly funded through internal accruals; no long-term loans have been taken against equipment so far. - Fund-based facility utilization is improving due to advances to suppliers, leading to some working capital borrowing. - Future capex is expected to stick to around 3%-4% of overall revenue; capex in coming years may be slightly lower than current but new projects may require additional capex as needed. - No specific mention of new fundraising through debt or equity in the recent call. - QIP proceeds from 2 years ago were initially proposed for debt repayment but current capex is funded primarily internally. In summary, no explicit plans for fresh debt or equity fundraising were stated; capex is funded by internal accruals and working capital facilities.

- Closing order book as of Q3FY26: INR9,200 crores. - Order book breakup: 27% government, 73% private; 82% Gujarat, 14% Maharashtra; 59% group projects, 41% external. - Key project-wise order values: SMC Highrise - INR835 crores, Gati Shakti - INR325 crores, Dharoi Dam - INR280 crores, Fintech Building - INR264 crores, Sabarmati Riverfront - INR245 crores. - Order book expected to increase by INR2,000 to 3,000 crores by March 2026, targeting INR11,000 to 12,000 crores range. - Bid pipeline total: INR6,500 crores (INR3,900 crores Adani, INR2,600 crores non-Adani). - Near term expected orders include Dharavi Matunga project of around INR2,000 crores. - Guidance for new order inflows in FY27: minimum INR7,000 to 8,000 crores, largely from Adani Group.