SPML Infra Ltd Company Fundamental Analysis

SPMLINFRA SPML Infra Ltd is an infrastructure engineering and project execution company operating mainly in water management, power transmission and distribution, and sanitation. Its work includes water supply schemes, wastewater treatment, pumping stations, electrical substations, transmission lines and smart infrastructure projects. Q1 FY27 performance: Consolidated revenue increased approximately 82% YoY to ₹284.28 crore. Operating profit rose sharply to ₹26.85 crore, while reported net profit was ₹22.68 crore. Despite the strong quarterly growth, the full-year FY26 picture was less impressive: revenue grew 12.7% to ₹868.46 crore, but EBITDA declined 11.2% to ₹85.37 crore. Order book and growth prospects: SPML recently secured orders worth ₹186.41 crore from Power Grid Corporation of India, providing additional business visibility. Its exposure to water infrastructure and power distribution projects could benefit from government spending on infrastructure. At approximately ₹157.54 per share, based on the November 9 market data, its market capitalisation was around ₹1,330 crore. The P/E was approximately 15–18x, price-to-book around 1.1–1.35x, and debt-to-equity approximately 0.38. ROE was around 8–9%, while ROCE was only around 5–7%. More concerning is its FY26 operating cash flow, which was negative ₹112.53 crore despite reported profitability. Promoter shareholding also has a pledged component of approximately 22.85%, which is an additional risk worth monitoring. SPML Infra has exposure to attractive long-term sectors, and its recent revenue growth and new order wins are encouraging. However, its low return ratios, negative operating cash flow and promoter share pledging make the business riskier than its headline P/E suggests.