Patel Engineering Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript Patel Engineering Ltd-$ filed with BSE on 20 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Patel Engineering reported FY26 consolidated revenue of Rs 5,102 crore, operating EBITDA of Rs 684 crore at a 13.41% margin, and profit after tax of Rs 294 crore, up 21% year-on-year. The company secured new orders worth around Rs 4,400 crore during the year, closing FY26 with an order book of Rs 15,119 crore dominated by hydropower projects. Management also reported gross debt reduction of about Rs 458 crore during the year, aided by a rights issue and asset monetization of approximately Rs 185 crore.
Numbers mentioned
Revenue: Rs 1,421 crores (Q4 FY26 (consolidated))
p. 7
“For Q4, on a consolidated basis, our revenue is at INR 1,421 crores, operating EBITDA is INR 215 crores with a margin of 15.14%.”
Rahul Agarwal, page 7 of the filed PDF · View the filing
Profit after tax: Rs 71.5 crores (Q4 FY26 (consolidated))
p. 7
“Profit after tax, it is at INR 71.5 crores compared to INR 32.8 crores in Q4 FY’25.”
Rahul Agarwal, page 7 of the filed PDF · View the filing
Revenue: Rs 5,102 crores (FY26 (consolidated))
p. 7
“Revenue from operations is at INR 5,102 crores as compared to INR 5,093 crores in FY’25, operating EBITDA is INR 684 crores with a margin of 13.41% and profit after tax is INR 294 crores as compared to INR 242 crores in the previous year, which is up by 21%.”
Rahul Agarwal, page 7 of the filed PDF · View the filing
Order book: Rs 15,119 crore (as of March 31, 2026)
p. 4
“With this, as of March 31, 2026, our order book stands at INR 15,119 crore.”
Kavita Shirvaikar, page 4 of the filed PDF · View the filing
New order inflows: around Rs 4,400 crores (FY26)
p. 3
“During FY’26, we secured new orders worth around INR 4,400 crores across hydropower, urban infrastructure, irrigation, and other segments.”
Kavita Shirvaikar, page 3 of the filed PDF · View the filing
Gross debt: Rs 1,187 crores (as of March 31, 2026)
p. 8
“The consolidated gross debt as of March 31, 2026, is INR 1,187 crores compared to INR 1,645 crores at the end of FY’25, hence the debt numbers have come down significantly by INR 458 crores as compared to the previous year, majority of which has reduced in the last quarter due to rights issue.”
Rahul Agarwal, page 8 of the filed PDF · View the filing
Debt-to-equity ratio: 0.27 (as of March 31, 2026)
p. 8
“debt-to-equity ratio has improved to INR 0.27 as compared to INR 0.43 as of March’25.”
Rahul Agarwal, page 8 of the filed PDF · View the filing
Non-core asset monetization: approximately Rs 185 crores (FY26)
p. 6
“during FY’26, we successfully completed monetization of certain non-core assets and realized approximately INR 185 crores.”
Kavita Shirvaikar, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 10% · FY27
stated firmly by Kavita Shirvaikar
p. 7
“Considering our current order book and strong future pipeline, we expect FY’27 revenue to grow by 10%.”
Kavita Shirvaikar, page 7 of the filed PDF · View the filing
New order inflows — around Rs 8,000 crore · FY27
stated as an aspiration by Kavita Shirvaikar
p. 9
“We are already L1 in INR 1,600 crore worth of jobs, so we expect around INR 8,000 crore new order book during the year.”
Kavita Shirvaikar, page 9 of the filed PDF · View the filing
Non-core asset monetization — Rs 150 crores to Rs 200 crores · FY27
stated as an aspiration by Rahul Agarwal
p. 11
“For FY’27, we again consider around INR 150 crores, INR 200 crores will come from non-core assets, all combined.”
Rahul Agarwal, page 11 of the filed PDF · View the filing
Interest cost — FY27
stated conditionally by Rahul Agarwal
p. 11
“But what we expect is the interest cost will not go up drastically from here. It will remain around that region.”
Rahul Agarwal, page 11 of the filed PDF · View the filing
OCD repayment — fully repaid · by FY28
stated firmly by Rahul Agarwal
p. 12
“So that will, we will be repaying in some in FY’27, some in FY’28, earlier depending upon when the realization happens from now.”
Rahul Agarwal, page 12 of the filed PDF · View the filing
Promoter pledge reduction — around 15%, 20%
stated as an aspiration by Rahul Agarwal
p. 13
“So, see, the target is that, you know, we reduce it by around 15%, 20%. But let us see.”
Rahul Agarwal, page 13 of the filed PDF · View the filing
Land bank sale completion — entire land bank sold · four to five years
stated as an aspiration by Rahul Agarwal
p. 16
“Yes, for four, five years it should happen.”
Rahul Agarwal, page 16 of the filed PDF · View the filing
Arbitration award realization — balance of Rs 700 crores award · five to six years
stated as an aspiration by Rahul Agarwal
p. 15
“So, overall expected timeline of this will be around five to six years.”
Rahul Agarwal, page 15 of the filed PDF · View the filing
Subansiri Hydroelectric Project units — all eight units operational · this financial year
stated firmly by Kavita Shirvaikar
p. 5
“All eight units are expected to be operational in this financial year.”
Kavita Shirvaikar, page 5 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the loss was due to aggressive pricing by a new entrant.
Answered by Rahul Agarwal
Asked by Pritesh Chheda: What was the company's market share in hydropower order wins and why did it lose the large Dibang project bid?
p. 9
“So, there was very competitive bidding done, so somebody took it at a very low value, so we did not get it.”
Rahul Agarwal, page 9 of the filed PDF · View the filing
Management said there was nothing further remaining to be written off, explaining the current items related to hydro subsidiary and toll road investments.
Answered by Rahul Agarwal
Asked by Ritesh Poladia: Are there any further write-offs pending after this year's exceptional items?
p. 10
“No, this is, there is nothing remaining to be written off.”
Rahul Agarwal, page 10 of the filed PDF · View the filing
Management attributed it to a combination of project cash flows and non-core asset monetization, and expected it to continue.
Answered by Rahul Agarwal
Asked by Viraj Mahadevia: What is driving the high free cash flow generation and will it continue into FY27?
p. 11
“So, see, free cash flow, we have come, it is combination of, you know, what we have got from projects and non-core assets monetization. So, we expect that to continue.”
Rahul Agarwal, page 11 of the filed PDF · View the filing
Management clarified the effective borrowing rate is around 11-11.5%, with the remainder of finance cost attributable to client advances and non-fund-based limits like bank guarantees and LCs.
Answered by Rahul Agarwal
Asked by Bimal Tayal: Why does the interest cost appear high at 18%, and what is the actual borrowing rate?
p. 13
“The interest rates are around 11%, 11.5%.”
Rahul Agarwal, page 13 of the filed PDF · View the filing
Management explained the SPV still carries significant debt and major maintenance obligations, meaning equity returns would take years, making the sale preferable.
Answered by Rahul Agarwal
Asked by Bimal Tayal: How was the ACP Tollways stake sale valuation of Rs 55 crores determined against its Rs 18 crore annual profit contribution?
p. 14
“So once that is completed, then only some equity return can happen. So, we can see only equity return after only four or five years. So, it is better that we sell the investment and we get the money and reduce our debt.”
Rahul Agarwal, page 14 of the filed PDF · View the filing
Management said the promoters had disclosed in advance that they would subscribe only partly, with the remainder taken by the public.
Answered by Rahul Agarwal
Asked by Rajiv: Why did the promoter not fully participate in the rights issue while asking the public to subscribe?
p. 16
“So, promoters have subscribed around INR 20 crores, partly, and rest was taken by public.”
Rahul Agarwal, page 16 of the filed PDF · View the filing
Management said it could not give an exact timeline but would update after approaching lenders post the March results.
Answered by Kavita Shirvaikar
Asked by Rajiv: When will the promoter pledge come down and by what percentage?
p. 13
“So, at present, we will not be able to give the exact timeline, but our endeavor is to reduce gradually.”
Kavita Shirvaikar, page 13 of the filed PDF · View the filing
Risks flagged
Loss of a large hydropower project bid (Dibang) due to aggressive pricing by a new competitor
p. 9
“So, there was very competitive bidding done, so somebody took it at a very low value, so we did not get it.”
Rahul Agarwal, page 9 of the filed PDF · View the filing
Impairment of investment in hydro subsidiaries due to uncertain project revival prospects
p. 8
“During the quarter we have provided for impairment of investments made in hydro subsidiaries of approximately INR 56 crores considering the feasibility of revival in the near future”
Rahul Agarwal, page 8 of the filed PDF · View the filing
Delay risk in realizing arbitration awards due to prolonged litigation across court levels
p. 15
“Out of the INR 700 crores, more than INR 400 crores is in high court right now. And balance is in district court. So, it can take some time.”
Rahul Agarwal, page 15 of the filed PDF · View the filing
Uncertainty in timing of land bank monetization
p. 15
“Land bank sale, I mean, we cannot timeline. Timing wise, we cannot ensure that it happens immediately.”
Rahul Agarwal, page 15 of the filed PDF · View the filing
Continued promoter share pledge with no fixed reduction timeline
p. 12
“So now post-March results, we will be contacting the lenders and then we will update you.”
Rahul Agarwal, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.