Oval Projects Engineering reported a strong financial year with revenue rising 50% to Rs 153.14 crore and net profit climbing 59% to Rs 14.81 crore. The company announced a dividend of Rs 1 per share and outlined plans to increase borrowing limits to Rs 300 crore to fuel further growth. With an active order book of Rs 796 crore, the company maintains healthy revenue visibility in the EPC and infrastructure sectors.
Oval Projects Engineering FY26 Performance Update
Revenue at Rs 153.14 crore, Profit After Tax at Rs 14.81 crore.
Reader Takeaway: Strong revenue growth and order book visibility are positive, but increased borrowing limits signal potential future leverage risks.
What just happened
Oval Projects Engineering Limited has released its FY 2025-26 standalone financial results, marking a year of significant expansion. Revenue from operations reached Rs 153.14 crore, a 50% increase compared to the previous year. Profit after tax saw a 59% jump to Rs 14.81 crore. The board has proposed a final dividend of Rs 1 per equity share of Rs 10 face value.
Why this matters
The results demonstrate the company’s ability to scale following its public listing. Net worth nearly doubled to Rs 111.22 crore, strengthened by IPO proceeds and retained earnings. A debt-equity ratio of 0.12 indicates a conservative balance sheet, providing the company with room for future capital deployment.
The order book
As of April 30, 2026, the company holds an active order book valued at approximately Rs 796 crore. The projects span Oil & Gas EPC, City Gas Distribution, and civil infrastructure, ensuring consistent revenue visibility over the coming years.
What changes now
At the upcoming 13th Annual General Meeting on September 29, 2026, the company will seek shareholder approval for several key strategic moves:
- Raising the overall borrowing limit to Rs 300 crore.
- Securing assets against potential future debt.
- Increasing the threshold for investments and loans in other corporate bodies to Rs 100 crore.
Risks to watch
While the order book is robust, shareholders should monitor execution timelines. The shift toward higher borrowing limits indicates a strategy to finance aggressive expansion, which will require disciplined capital allocation to maintain the current debt-equity profile.
What to track next
The record date for the dividend is set for September 22, 2026. Investors should watch the actual conversion of the Rs 796 crore order book into quarterly cash flows and observe whether the proposed higher borrowing limits are utilized for projects that drive margin expansion.