PSP Projects Ltd (PSPPROJECT) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the PSP Projects Q2 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Krishna Patel. Thank you, and over to you, ma'am.
Krishna Patel: Thank you, Aviraj, and good evening, everyone. Welcome you all to PSP Projects Limited Q2 FY27 and H1 FY27 earnings conference call. To take us through the results and to answer your questions, we have with us the management of PSP Projects, represented by Mr. Prahaladbhai Patel, the Chairman and Managing Director; Miss Pooja Patel, the Chief Executive Officer; and Miss Rupal Patel, the Chief Financial Officer. Please note that the discussions that we may have today will contain certain forward-looking statements relating to the future events and future performance. Numerous factors could cause the actual results to differ materially from those in the forward-looking statements. Now, I would like to hand over the call to Miss Pooja Patel, the CEO, for her opening comments. Thank you, and over to you, Pooja.
Pooja Patel (PSP Projects Ltd): Thank you, Krishna, for the introduction. Good evening, everyone, and thank you for joining us today to discuss our financial and operational performance for the second quarter and half year ending September 30, 2026. We concluded the board meeting earlier today. I am pleased to share that PSP Projects delivered its highest-ever quarterly and half-yearly revenue. Revenues from operations stood at 1,113 crore in Q2 FY27,
Pooja Patel (PSP Projects Ltd): and profit after tax increased by 87% to 30 crore. For H1 FY '27, EBITDA grew by 66% year-on-year to 124 crore and profit after tax increased by 193% to 48 crore. H1 FY '22 EBITDA margin stood at 6.30% compared with 6.12% in H1 FY '26. As of 30th September 2026, outstanding order book stood at 12,872 crore, 30% year-on-year growth providing a healthy multi-year revenue visibility. Of the total order book, within group projects accounts for approximately 72%, that is 9,229 crore, while external projects contribute the remaining 28%. During H1 FY '27, we secured order inflow of approximately 1,305 crore including 675 crore during the second quarter. The quarter 2 additions comprised projects across healthcare, airport infrastructure, office building, refurbishment, and key accommodation from Adani Group. During the quarter, we completed an important landmark project, Project 19, which demonstrates the speed and scalability of our precast capabilities. The project comprises three basement levels, a ground floor and 18 upper floors, and its RCC structure was completed in only 121 days, making it one of the fastest precast high-rise project executed in Gujarat. As part of Project 19, we also completed our new PSP corporate house located adjacent to Project 19 in 240 days, including MEP and MEP and interior fit-out work. This project demonstrated how precast technology can enable faster execution, consistent quality, improved precision and more efficient deployment of labor and resources. Given the demand visible across building and infrastructure projects, we are progressing with capacity enhancement at our precast facility. I am also pleased to share that we will commence operations of our new corporate house on November 4, 2026. During the quarter, overall, the company successfully completed 17 projects, of which major completed projects in addition to the Project 19 are, precast concrete cable duct project and supply of noise barrier for National High Speed Rail Corporation Limited for NHSRCL in Gujarat, service order of SITC of civil, structure, facade, interior and MEP work for Navbharat Mega Developers Private Limited. Out of the current order book, please make note the key projects and their outstanding contract value: Shri Ambaji Mata Temple, 931 crore. We have started work on the all fronts, that is general development work, that is cutting and filling, and all building works which are on different level, that is on foundation or and on plinth level. For SMC high-rise building, 613 crore. As you all know, RCC work is already completed. MEP work is completed till 15th floor, interior work is going on from first to fifth floor, and facade work is going on from fifth to tenth floor. Construction of fintech building at GIFT City, Gujarat, 251 crore. Currently we are doing RCC work on sixth floor. Human Biology Science Gallery at Science City, 238 crore. Major work of RCC and fabrication is already done, and soon we will be starting MEP work in that project. Building's biggest residential project in GIFT City, 187 crore. We have completed all RCC work up to ground floor for that particular project and are executing at third third level, first level, and second level for different buildings, that is block A, B, C, D. Development of Dharoi Dharoi Dam region, 171 crore. Sabarmati Riverfront development phase two, INR 155 crore. Update on RVNL project, out of three buildings we have successfully handed over two buildings, that is lab and lab building. In our hostel building, we are currently doing flooring work, MEP work, interior work, and facade work. The current bid pipeline is 7,800-plus crore with 52% group projects and 48% external projects. To conclude, based on the execution achieved during H1 FY '27, the strength
Pooja Patel (PSP Projects Ltd): robust order book and progress across key project, we remain on track to achieve our stated guidance of approximately 25% year on year revenue growth in FY25. Our priority for the second half will remain disciplined project execution, timely delivery, cost control, working capital management, and the selective pursuit of new orders. With this, I will now handover the call to Hetal ma'am to share the financial and other details.
Hetal Patel (PSP Projects Ltd): Thank you, Pooja. Good afternoon, everyone. We brief about consolidated financial performance for the quarter ended September 30th, 2026. Quarter 2 FY27 versus Quarter 2 FY26: revenue from operations for the quarter is Rs. 1,113 crore versus Rs. 703 crore, which is increased by 58% on Y-o-Y basis. EBITDA for the quarter is at 69 crore versus 50 crore, increased by 38% on Y-o-Y basis. EBITDA margin is at 6.21%, which was 7.10% in similar earlier Quarter, yes. Net profit for the quarter is Rs. 30 crore versus 16 crore, which is increased by 87% on year-on-year basis. Net profit margin is 2.69% versus 2.28%. During the quarter under review, employee cost has increased from 33 crore to 50 crore on Y-o-Y basis, mainly on account of annual increment and increase in number of employees. Increase in depreciation from 20 crore to 26 crore on year-on-year basis is mainly attributable to addition in asset block during H1 FY27. During Quarter 2 FY27, company has incurred capex of 62 crores, and in H1 half-year ended 30th September, capex stands at 91 crore. So, the gross block as on 30th September is 851 crore, and net block is 451 crore. Yes. Would like to mention some of the balance sheet numbers which are important as on 30th September '26. Long-term borrowing stands at 30 crore, which includes short-term maturity of 14 crore. Short-term borrowing is 238 crore, excluding 14 crore of short-term maturity. Net unbilled revenue is 632 crore. Trade receivable is 809 crore. Trade payable are 499 crores. Retention money, 229, current and non-current both. Mobilization advance stands at 933 crore. Inventories of 416 crore comprises of 247 crore of construction materials, 140 crore of work-in-progress, and 29 crore of finished goods. During the quarter, company has reduced its sanctioned credit limit by 110 crore as it was no longer required. Out of revised sanctioned credit facilities of 1,387 crore, company utilized non-fund-based facilities of 753 crore, and fund base utilization is 142 crore. Free limit available for utilization is 492 crore. As on September 30th, 2026, the company has total fixed deposits of 237 crore, out of which lien-free deposits are of 44 crore and FD worth 193 crore are under lien with the bank and for credit fa- facilities and gi- given as security deposit to clients. Work-on-hand as on 30th September is 12 1,000 crores, 872 crore. Detailed bifurcation is provided in the uploaded presentation. That concludes the update on the financials, and we are now open for the question and answer session. Thank you.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press "*" and "1" on the touchtone telephone. If you wish to remove yourself from the question queue, you may press "*" and "2". Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue
Moderator: The first question is from the line of Dhananjay Mishra from Centrum Broking. Please go ahead.
Dhananjay Mishra (Centrum Broking): Yeah. Congrats on really strong Q2 numbers. Sir, what is the outlook for order inflow? We have five months left in this financial year.
Prahaladbhai Patel (PSP Projects Ltd): See, will be the same guideline what we have said last year. So, it will be the range of the one or minimum 4,000 to 5,000 approximate.
Dhananjay Mishra (Centrum Broking): Okay, so based on current bid pipeline, which is about 7,000 plus, we will be winning 4- 3,000 more, 3 to 4,000.
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