PSP Projects Q1 FY27: Revenue Surges 65%, Order Book Crosses ₹13,245 Crore, Management Reaffirms FY27 Growth Outlook

PSP Projects Limited delivered a strong start to FY27, reporting robust revenue growth, significant improvement in profitability, and a record order book despite the seasonally weak first quarter for the construction industry. During its Q1 FY27 earnings call, the management highlighted healthy project execution, strong visibility from its growing order pipeline, and confidence in achieving its full-year guidance.

The company also shared updates on key infrastructure and real estate projects, its expanding relationship with the Adani Group, Dharavi redevelopment opportunities, and expectations of margin improvement in the second half of FY27.

Q1 FY27 Financial Highlights

PSP Projects reported an impressive operational performance during the quarter ended June 30, 2026.

Key Financial Highlights

• Revenue from operations increased 65% YoY to ₹853 crore from ₹518 crore.
• EBITDA jumped 121% YoY to ₹55 crore.
• EBITDA margin improved to 6.42% from 4.79%.
• Net profit surged to ₹18 crore, compared to just ₹37 lakh in Q1 FY26.
• Net profit margin improved to 2.12%.

Management attributed the improvement to stronger project execution as several large projects progressed beyond excavation and foundation stages into core construction activities.

Record Order Book Provides Multi-Year Revenue Visibility

One of the biggest highlights of the quarter was the company’s outstanding order book.

As of June 30, 2026:

• Total Order Book: ₹13,245 crore
• 103% Year-on-Year Growth
• Around 70% of projects are from group companies.
• The remaining30% comes from external clients.

The company believes this provides strong revenue visibility for the next several years.

Strong Order Inflow During the Quarter

PSP Projects secured fresh orders worth ₹630 crore during Q1 FY27.

Nearly 93% of these new orders came from the Adani Group.

Major orders include:

• Adani Healthcare & Research Foundation project in Mumbai
• Airport Office Building at Terminal-1 Mumbai
• Refurbishment of Port User Building at Mundra
• Skilled accommodation project at Green PVC Project, Mundra

Diversified Order Book

The company maintains a diversified portfolio across multiple sectors.

Current order mix includes:

• Industrial Projects – 39%
• Residential Projects – 37%
• Government Projects – 23%
• Institutional Projects – 1%

Major Ongoing Projects

Management highlighted several marquee projects currently under execution.

Some of the largest outstanding projects include:

Execution Momentum Improving

According to management, execution is expected to accelerate significantly in coming quarters.

Key updates include:

• More than 16,000 workers deployed across project sites.
• Labor availability is improving after seasonal shortages.
• Major projects have entered core construction phases.
• SMC High Rise project has completed core structure.
• RVNL projects nearing completion.
• Ahmedabad Airport city-side development progressing rapidly.
• Ambaji Temple project has entered excavation and foundation stages.

Management expects execution speed to improve steadily through the remainder of FY27.

Bid Pipeline Remains Healthy

PSP Projects currently has a bid pipeline exceeding ₹6,200 crore.

Break-up includes:

• Group Projects: 61%
• External Projects: 39%

Management expects a significant portion of this pipeline to convert into orders during the second and third quarters.

FY27 Revenue Guidance Maintained

Despite the traditionally weak first quarter, management reaffirmed its revenue guidance.

Expected FY27 Revenue:

₹4,400–₹4,500 crore

This implies another year of strong growth supported by the company’s record order book.

Margin Outlook Improves for Second Half

Although EBITDA margin improved to 6.42% during Q1, management expects further expansion.

The primary reason for relatively lower margins was:

• Higher employee costs
• Seasonal labor shortages
• Lower execution during April and May

Management expects:

• Employee cost ratio to normalize
• Better labor availability
• Higher execution intensity

As a result, EBITDA margins are expected to improve to 7–8% during the second half of FY27.

Dharavi Redevelopment: A Massive Long-Term Opportunity

One of the most discussed topics during the earnings call was the Dharavi redevelopment project.

Key highlights include:

• Current Dharavi order book of approximately ₹3,000 crore.
• Covers construction of nearly 30,000 houses.
• Total redevelopment involves around 2 lakh houses over five to six years.
• Management believes strong execution on current projects could position PSP Projects to secure additional packages in the future.

The company indicated that successful delivery would improve its chances of receiving the “first right of refusal” for future Dharavi contracts.

Adani Group Continues to Drive Growth

The Adani Group remains PSP Projects’ largest customer.

Highlights include:

• Approximately 45% of Q1 revenue came from Adani projects.
• The majority of new orders during the quarter were awarded by Adani entities.
• Management expects future order inflows from the group to remain strong.

Importantly, many Adani contracts follow a cost-plus/pass-through pricing model, reducing exposure to fluctuations in raw material prices.

Balance Sheet Remains Strong

Management also highlighted improving financial strength.

As of June 30, 2026:

• Mobilization Advance: ₹836 crore
• Trade Receivables: ₹745 crore
• Net Unbilled Revenue: ₹473 crore
• Fixed Deposits: ₹324 crore
• Available Bank Limits: ₹653 crore

The company expects finance costs to decline further as working capital efficiency improves.

Management even indicated the possibility of becoming net debt-free over the next few quarters.

Strategic Focus Remains Unchanged

Despite opportunities in multiple sectors, management reiterated that the company will remain focused on:

• Gujarat
• Maharashtra
• Building construction projects

Potential future opportunities include:

• Airports
• Hospitals
• Residential developments
• Commercial complexes
• Data centers
• Industrial buildings
• Defence infrastructure

However, the company clarified that it does not intend to diversify into non-building infrastructure segments.

Management Commentary

Chairman & Managing Director Prahaladbhai Patel expressed confidence that improving labor availability, stronger execution, and a healthy project pipeline will support higher revenues and profitability during the remaining quarters of FY27.

The management also emphasized continued investments in leadership, project management capabilities, and organizational expansion to support its rapidly growing order book.