Whalesbook
📉 The Financial Deep Dive
The Numbers:
Psp Projects Limited announced a robust top-line performance in its investor presentation for Q3FY26 and 9MFY26. The company achieved its best-ever quarterly revenue in Q3FY26, reaching ₹771 crore, a significant 24% year-on-year (YoY) increase and a 11% sequential (QoQ) rise. For the nine months ending December 2025 (9MFY26), revenue stood at ₹1,978 crore, marking a 9% YoY growth. This revenue growth was attributed to enhanced project execution, improved workfront availability, and better labour deployment.
However, the profitability metrics for the nine-month period present a contrasting picture. Profit After Tax (PAT) for 9MFY26 fell by 40% YoY to ₹30.65 crore, down from ₹51.43 crore in the prior year. EBITDA for 9MFY26 also decreased by 16% YoY to ₹124.46 crore. In stark contrast, Q3FY26 saw a strong YoY PAT growth of 159% to ₹15.69 crore, indicating a sharp improvement in quarterly profitability.
The Quality:
EBITDA margins witnessed a notable contraction for the 9MFY26 period, falling from 8.14% in 9MFY25 to 6.29% in 9MFY26. Similarly, PAT margins reduced from 2.83% to 2.43% over the same nine-month period. The Q3FY26 PAT margin did improve to 2.03% from 0.97% in the year-ago quarter, showing a rebound in project-level profitability for the latest quarter.
The Grill:
While the source text doesn't detail a specific analyst call, the strategic partnership with Adani Infra (India) Limited, which acquired a 34.41% stake and is now a promoter, is a significant development. This move is expected to channel a strong influx of orders from the Adani Group, leveraging its USD 100 billion capex pipeline. PSP Projects anticipates this partnership will enhance its financial risk profile and reduce receivables risk. The company also raised ₹244 crore via QIP in April 2024 to repay borrowings, indicating proactive financial management. The current leverage remains comfortable at 0.22 times (including mobilization advance) with a working capital cycle of 65 days as of FY25.