PSP Projects: Growth With Caution

PSP Projects has emerged as one of the more active names in India’s infrastructure theme. The company posted strong operating growth in FY26, with consolidated revenue rising 25% to ₹3,148.66 crore, while Q4 revenue jumped 66% year-on-year to ₹1,115.24 crore. EBITDA for FY26 stood at ₹189.05 crore, up 5%, and PAT was ₹55.01 crore, down 2%. The biggest support for the business is its order book, which reached a record ₹13,447 crore as of 31 March 2026, up 85% year-on-year. FY26 order inflows were ₹10,925 crore, much higher than the company’s earlier guidance, and this gives good revenue visibility for the next few years. For shareholders, this is helpful on the surface because a bigger order book usually signals stronger future execution and better business momentum. PSP Projects also reported lower short-term debt of ₹274 crore, while unbilled revenue of ₹440 crore, retention money of ₹215 crore, and mobilisation advances of ₹814 crore provide additional working capital support. Still, there are clear concerns. FY26 PAT growth was weak despite the jump in revenue, margins remained modest, and the company continues to face pressure from costs and execution complexity. A large part of the order book is linked to group projects, so investors should watch concentration risk carefully. The stock can benefit shareholders if management converts this large order pipeline into better margins and stronger cash flow. But if execution stays uneven or dependence on related work remains high, the upside may be limited.