Desco Infratech FY26 Revenue Nearly Doubles to Rs 118.61 Crore

Profit After Tax rose to Rs 16.38 Crore from Rs 9.06 Crore in the previous fiscal year.

Reader Takeaway: Strong growth in CGD and renewables drives performance, though investors must track pending audit compliance resolutions.

What just happened

Desco Infratech Limited reported a robust FY 2025-26, with revenue from operations climbing 99.53% to Rs 118.61 crore. The company's EBITDA rose to Rs 23.54 crore, marking a 76.40% year-on-year increase. PAT margins stabilized at 13.81%, while the company maintained a clean balance sheet with a debt-to-equity ratio of 0.22x.

Why this matters

The company is aggressively shifting its business mix. While City Gas Distribution (CGD) currently contributes 70% of revenue, the firm is pivoting toward renewable EPC, bio-energy, and hydrogen blending. An order book of Rs 370 crore provides visibility for its goal of reaching Rs 1,000 crore in turnover by 2030.

Strategic Moves

Recent expansion includes the acquisition of Shri Green Agro Energies to bolster bio-energy capabilities and the establishment of Desco Global FZ-LLC in the UAE to tap into GCC infrastructure markets. Additionally, an MoU with KPI Green Hydrogen & Ammonia signals a move into gas blending technology.

Risks to watch

The statutory auditor noted limitations regarding audit trails, stock reconciliation, and minor delays in statutory dues. Management has confirmed that internal controls are being strengthened to address these findings. Investors should monitor whether these administrative hurdles are fully cleared in subsequent quarters to maintain operational transparency.

Context metrics

The company is currently active across 14 Indian states and 55 cities. No dividend was declared as the board prioritized capital allocation for future acquisitions and expansion.