SPML Infra FY26 Performance Shows Recovery, Eyes Growth with BESS Expansion

Q4 FY26 Revenue: ₹293.9 crore
FY26 Profit After Tax (PAT): ₹76 crore

Reader Takeaway: Growth expected from BESS expansion, but debt repayment relies on arbitration awards.

What just happened

SPML Infra has reported its financial results for the fourth quarter and full year of FY26. The company posted a revenue of ₹293.9 crore for Q4 FY26 and ₹868 crore for the full fiscal year. Net profit after tax (PAT) for FY26 stood at ₹76 crore, with an EBITDA of ₹86 crore, reflecting a 9.7% margin. The consolidated order book was ₹5,369 crore at the beginning of Q4 FY26.

Why this matters

The results indicate a recovery for SPML Infra. The company is actively pivoting to its 'SPML 2.0' model, which involves selective project selection based on profitability and funding. A key strategic move is the expansion into Battery Energy Storage System (BESS) manufacturing, with a new 2.5 GW assembly facility in Pune, aiming for 5 GW capacity. This diversification into the energy storage sector is crucial for future revenue streams, aligning with India's renewable energy push.

The backstory

SPML Infra has been navigating a period of debt resolution. The company has a structured repayment plan with NARCL, with an outstanding balance of ₹380 crore as of March 2026. Debt servicing is significantly linked to the realization of arbitration awards. To bolster liquidity, the company has raised ₹476 crore since May 2024, including ₹313.5 crore from promoter contributions.

What changes now

The company's focus is on executing legacy orders within the next 2-3 years while prioritizing new projects under the 'SPML 2.0' framework. The expansion of BESS manufacturing is expected to open a new growth vertical. Management has guided for a minimum 25% growth in both revenue and profit for FY27, driven by design approvals for upcoming projects.

Risks to watch

Reliance on arbitration awards for settling remaining dues with NARCL presents a significant risk due to the inherent uncertainties of legal processes. Additionally, the company's revenue visibility is tied to government fund availability for projects, although the 'SPML 2.0' strategy aims to mitigate this by focusing on projects with secured funding.

Peer comparison

While specific peer comparisons are not detailed in the filing, SPML Infra's move into BESS manufacturing positions it within the growing renewable energy support sector. Companies involved in power transmission, distribution, and renewable energy infrastructure are key players in this space.

Context metrics (time-bound)

• Consolidated order book stood at ₹5,369 crore as of the beginning of Q4 FY26.
• Promoter contributions of ₹313.5 crore were part of ₹476 crore raised since May 2024.
• Outstanding balance to NARCL was ₹380 crore as of March 2026.
• Accumulated losses exceeding ₹500 crore provide a tax shield.

What to track next

Investors will be closely watching the execution progress of the BESS facility and the company's ability to secure new projects under the 'SPML 2.0' model. The realization of arbitration awards and their impact on debt reduction will also be critical indicators.