ENGINEERS INDIA RESEARCH REPORT FOR LONG TERM INVESTORS

Engineers India (NSE: ENGINERSIN, BSE: 532178), a Miniratna Category-I PSU (Government of India 51.32%), is India’s leading refinery / petrochemical engineering consultancy and turnkey EPC house. It has engineered most Indian refineries and now exports that franchise: Dangote in Nigeria and Kenya, the Lekki fertiliser PMC, Bapco, Sonatrach and KNPC, plus a long-term in- Kingdom services agreement with Saudi Aramco. It carries CARE AAA/Stable, nil external debt and Rs 1,351 Cr of cash and liquid funds. Event 1 - Dangote’s Kenya refinery, >USD 450 mn. On 22-Sep-2026 EIL signed a PMC and EPCM contract worth more than USD 450 mn for Dangote’s new 700,000 bpd greenfield refinery and petrochemical plant in Kenya. It adds to the Nigeria Train-2 expansion (~USD 360 mn) and the Lekki fertiliser PMC (~USD 70 mn). At roughly Rs 3,900-4,200 Cr it is about one year of revenue in a single consultancy-margin contract, and it takes YTD FY27 inflow to ~Rs 6,700 Cr against management’s Rs 8,000 Cr target (Rs 2,750 Cr booked by 14-Aug). Event 2 - margins up, but not all of it is repeatable. FY26 revenue Rs 3,928 Cr (+27%) at an 18% OPM; Q1 FY27 PBILDT margin 15.4% vs 8.3% as consultancy rose to 63% of revenue (consultancy revenue +22%, turnkey -33%). However, CARE’s 4-Sep-2026 rationale states the FY26 margin gain came partly from a scope change and the reversal of liquidated-damages provisions, which added Rs 226 Cr to turnover. Excluding it, FY26 growth is ~+20%. Management guides FY27 at revenue growth of at least 10% and a 16% OPM. Q1 consolidated PAT of Rs 158 Cr (+141%) included Rs 42.5 Cr from the RFCL joint venture (standalone PAT +55%).