PSP Projects (PSPPL IN) – Q2FY27 Result Update – Execution-led beat; attractive risk reward – Upgrade to ‘BUY’
Published on 03 Nov 2026
PSP Projects reported its highest-ever quarterly revenue in Q2FY27, with standalone revenue +45% YoY to INR 10.1bn, 16% ahead of our estimates, supported by improved labour availability (23,000–25,000 workers deployed across sites vs 16000 as Q1FY27). EBITDA margin stood at 6.7% (-26bps YoY), and management guided for margins of ~7% in H2FY27 and 7.5–8% over the medium term, driven by projects transitioning from the structural phase to MEP and finishing stages. Though order inflows was subdued at INR 6.75bn / INR13bn in Q2FY27/1HFY27, largely comprising Adani group projects; however, the bid pipeline expanded to over INR 78bn (52% group / 48% external) from INR 62bn in Q1FY27. The order book stood at INR 128.7bn (~3.6x TTM revenue), up 30% YoY, with intra-group projects accounting for ~72%. Management reiterated its commitment to deliver 25–30% revenue growth post FY27 (FY27 target INR44-45bn). Following the recent stock price correction, we see a favourable risk-reward and upgrade our rating to BUY, with a TP of INR 1,061, valuing the stock at 18x 1HFY29E EPS. At the current price, the stock trades at an attractive 11x FY29E EPS, factoring 31% EPS CAGR over FY26–29E.
