PSP Projects (PSPPL IN) – Company Update – Adani partnership to bear fruit – BUY
Published on 01 Feb 2026
PSP Projects Ltd (PSPPL) reported Q3FY26 revenue of Rs7.7bn, up 24% YoY, a clear improvement over the flattish revenue growth seen in 1HFY26, driven by better execution as multiple projects entered the revenue recognition phase. EBITDA margin stood at 6.7%; however, the management has maintained margin guidance of 8–9% from FY27E, supported by operating leverage. Order inflows in 9MFY26 were strong at Rs50bn, largely from the Adani Group, and PSPPL has reiterated its FY26 order inflow guidance of Rs100bn. Bid pipeline remains healthy at Rs66bn, with a 60:40 mix between the Adani Group and external opportunities. Robust inflows have expanded the order book to Rs91bn (~3.5x TTM revenue) versus Rs73bn at FY25-end, providing strong execution visibility, with 59% exposure to the Adani Group and 41% from external clients, although geographically concentrated with Gujarat contributing to 82% of the order book. After muted revenue CAGR of 12% over FY22–25, we expect growth to accelerate to ~30% CAGR over FY26–28E, supporting a premium valuation. We have ‘BUY’ rating with TP of Rs1,028, based on a 20x exit P/E multiple on FY28E EPS.
