Leapfrog Engineering's maiden FY26: PAT up 21% to ₹19.6 Cr, margins widen

Leapfrog Engineering Services — a Bengaluru EPC/engineering-services firm that listed on the BSE SME platform in June 2026 — posted its first audited results as a public company: FY26 standalone revenue of ₹152.34 Cr (+13.1% YoY from ₹134.66 Cr) and net profit of ₹19.58 Cr (+20.7% YoY from ₹16.22 Cr), with the auditor (GRSM & Associates) issuing an unmodified opinion. Profit grew faster than revenue because margins expanded on every line: PBT rose 25.3% to ₹27.39 Cr (PBT margin 18.0% vs 16.2%) and net margin widened to 12.9% from 12.0%. There were no exceptional or extraordinary items on either side — the growth is fully operational, so reported and adjusted YoY are the same. The headline masks a heavily back-ended year: H2 FY26 (Oct 2025–Mar 2026) alone delivered ₹113.97 Cr of revenue and ₹13.49 Cr of PAT — roughly 75% of the full-year topline — against just ₹38.37 Cr / ₹6.10 Cr in H1. Sequential 'growth' is therefore a seasonality artifact of project-execution timing, not momentum, and should not be read as acceleration. Two cautionary threads sit under the clean P&L: trade receivables of ₹107.07 Cr (~70% of annual revenue) and short-term borrowings up to ₹31.33 Cr pushed operating cash flow to negative ₹5.04 Cr for the year despite a ₹27.4 Cr PBT — cash conversion, not profitability, is the pressure point. There is no street consensus or management guidance to measure against: Simply Wall St shows zero analyst coverage, appropriate for a company listed weeks ago. The IPO prospectus cited a ₹384 Cr order book, and in early July 2026 (post-period) the company disclosed fresh wins — a ₹4.54 Cr Cotmac order and a ~₹60 Cr ($7.2M) Oman contract — which, with a 6.37% stake bought by Deep Health AI in June, form the demand backdrop for FY27. This is a solid, clean double-digit-growth print; the test next year is whether the order book converts and whether receivables are collected.