Patel Engineering Limited reported its financial results for the quarter and nine months ended December 31, 2025. Consolidated Operating Revenue grew to ₹12,394 Mn in Q3 FY26, up 2.81% year-over-year. However, Consolidated Operating EBITDA saw a decline of 21.31% to ₹1,448 Mn. The company highlighted strong order book visibility at ₹1,51,232 Mn and noted significant operational progress across key hydropower projects.
Q3 FY26 Financial Performance Overview
Patel Engineering Ltd. announced its results for the quarter ending December 31, 2025. The period demonstrated mixed operational results compared to the previous year, though the order book remains robust.
Consolidated Financial Highlights (Q3 FY26 vs Q3 FY25)
- Operating Revenue: Increased to ₹12,394 Mn, marking a 2.81% YoY growth.
- Operating EBITDA: Declined by 21.31% to ₹1,448 Mn, with the margin compressing from 15.26% to 11.68%.
- Net Profit for Owners of Parent: Decreased by 12.27% to ₹706 Mn (compared to ₹804 Mn in Q3 FY25). Basic EPS stood at ₹0.82.
For the 9M FY26 period, Consolidated Revenue grew by 5.74% to ₹36,813 Mn, while Operating EBITDA declined by 8.94%.
Standalone Financial Snapshot (Q3 FY26 vs Q3 FY25)
Standalone performance reflected similar trends:
- Revenue rose 3.68% YoY to ₹12,305 Mn.
- Operating EBITDA fell 20.63% YoY to ₹1,392 Mn, with the margin dropping to 11.31%.
- Net Profit After OCI saw a positive YoY growth of 20.16% to ₹887 Mn.
Balance Sheet Strength and Debt Management
The company successfully completed a Rights Issuance, raising ₹3,990 Mn (subscribed 1.15x). This issuance enhanced the balance sheet strength. The net proceeds are earmarked for Debt repayment (principal and interest) of ₹2,540 Mn during FY26 and FY27, alongside General corporate purposes of ₹950 Mn.
Key debt metrics as of Q3 FY26:
- Total Debt decreased to ₹14,328 Mn (down from ₹16,025 Mn in FY25).
- Debt To Op. EBITDA ratio stands at 2.29x.
- Debt To Equity ratio stands at 0.33x.
The company also reported a notable reduction in Interest Cost by ~₹122 Mn compared to the last year.
Order Book and Market Outlook
The Order book remains a significant strength, totaling ₹1,51,232 Mn, providing solid earnings visibility. The Q3 FY26 Book to Bill ratio was 3.08x.
Order Book Composition (Q3 FY26)
The book is heavily skewed towards the core segment:
- Hydroelectric: Accounts for 58.55% (₹88,551 Mn) of the total order value.
- Client Split: 59.23% of orders are from Central Government / PSUs.
- Geographic Spread: The business is highly diversified across 14 domestic states, with Jammu & Kashmir, Madhya Pradesh, and Arunachal Pradesh leading in project value.
Key Operational Milestones in Q3 FY26
The period saw significant progress on large-scale projects:
Subansiri Hydropower Project: Progress was achieved with the wet commissioning of Units 1, 2, and 3 completed, along with the final commissioning of Unit 2 and 3 and integration with the National Power Grid.
Kiru Hydropower Project: The team successfully poured over 10 lakh cubic meters of concrete in the dam structure.
Parnai Hydropower Project: A significant tunneling breakthrough was achieved between HRT Face-5 and Face-6 for the 9.2 km Head Race Tunnel.
The company also secured a major MOA for the Gongri Hydropower Project (144 MW) in Arunachal Pradesh, valued at ₹1,700 crores, on a BOOT basis.
Management and Vision
Patel Engineering reiterated its vision to deliver comprehensive solutions using its profound experience. Management achievements include receiving the “Best Emerging Economy – Infrastructure Enterprise of India” award. The Managing Director, Kavita Shirvaikar, was honored as the “Infra Woman Leader of the Year 2025”.
Sector Opportunities
The company remains focused on capitalizing on major government initiatives, including:
- The 76,000+ MW Hydroelectric capacity transmission plan for the Brahmaputra basin.
- Budget allocation of ₹6,76,700 Mn for the Jal Jeevan Mission for FY27.
- A substantial ₹12.2 Lac Cr budget for the overall Infrastructure Sector (4.4% of GDP).
Source: BSE
