Engineers India LtdQ2 FY25
Engineers India Ltd Q2 FY25 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹244P/E: 18.3Market Cap: ₹14.2K CrSector: Construction
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
N/A
Order
Yes
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- →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.
Margin guidance
Category 3- →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.
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Fundraise plans
- →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
Yes- →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.
Capex plans
Yes- →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.
How does Engineers India Ltd rank vs peers in Construction?
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