PSP Projects Targeted to Reach Rs 956 by Analysts at Prabhudas Lilladher
PSP Projects Delivers Robust Q4FY26 Performance, Boosts Revenue Growth
PSP Projects has reported a strong Q4FY26 performance, with revenue growth of 54% year-over-year (YoY). The company's revenue growth reflects a strong execution momentum, with the reported EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin standing at 5.4%. However, this margin was impacted by an ECL (Expected Credit Loss) provision of INR 290mn related to the Kashi project. Adjusted EBITDA margin remained healthy at approximately 8.3%, while adjusted PAT (Profit After Tax) was broadly in line with the research firm's estimates.
Key Highlights
| Metric | Q4FY26 | Q4FY25 |
|---|---|---|
| Revenue Growth | 54% YoY | - |
| Order Inflows | INR 59bn | - |
| Order Book Expansion | 85% YoY, 47% QoQ | - |
The company's order inflows improved to INR 59bn in Q4FY26, with a significant 85% contribution from the Adani Group. This reinforces visibility on near-term growth. The order book expanded to INR 134bn, marking a sharp 85% YoY and 47% QoQ increase. Of this, Adani-linked projects account for 67%, while non-Adani projects contribute 33%, providing a balanced growth mix.
Upgraded Estimates and Target Price
Following the results, the research firm has upgraded its revenue and PAT margin estimates, led by lower interest costs due to interest-free mobilisation advances. Consequently, the firm has raised its FY27E/FY28E EPS (Earnings Per Share) estimates by 7%/3%, and revised its target price to INR 956 (from INR 925), maintaining an 18x FY28E PER multiple.
The company's execution pipeline remains strong, with an active bid pipeline of INR 66bn, alongside incremental opportunities of INR 70–80bn expected to materialise in 1HFY27E (Commonwealth-related projects). Following a relatively muted 12% revenue CAGR over FY22–25, the firm now expects growth to accelerate to approximately 34% CAGR over FY26–28E, which should support sustained premium valuation multiples.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Investors should consider upgrading their revenue and PAT margin estimates for PSP Projects.
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