Engineers India (ENGR IN) – Q4FY26 Result Update – Mixed quarter; Order prospects remain healthy – BUY
Published on 22 May 2026
We revised our FY27E/FY28E EPS estimates by -6.3%/-3.4%, factoring in a cautious outlook on Middle East operations amid ongoing geopolitical disruptions. Engineers India (EIL) reported a mixed quarterly performance with revenue declining ~8% YoY (against higher base), while EBITDA margin contracted 523bps YoY to 16.4% (against higher base). The order book remains healthy at ~Rs151bn with ~72% contribution from the consultancy segment, providing healthy multi-year revenue visibility. Management guided for FY27 order inflow of ~Rs80bn and consultancy revenue growth of ~15-20%, supported by execution ramp-up in recently secured domestic and overseas consultancy projects. We believe EIL’s long-term growth prospects remain intact given 1) strong order book prospects in non-oil & gas and oil & gas projects 2) Strong traction in overseas consultancy business from Middle East & Africa region 3) opportunities in energy transition & infrastructure, and 4) lean balance sheet. The stock is currently trading at a PE of 18.2x/15.0x on FY27/28E. We roll forward to Mar’28E and maintain our ‘Buy’ rating valuing the Consultancy/Turnkey segments at a PE of 22x/10x Mar’28E (22x/10x Sep’27E earlier) arriving at a SoTP-derived TP of Rs271 (Rs261 earlier).
