PSP Projects Q2 FY27: PAT +87% YoY on 58% revenue growth, EBITDA margin slips to 6.2%

PSP Projects' consolidated (primary) Q2 FY27 print is strong on a year-on-year basis: revenue of ₹1,113.24 Cr grew 58.4% YoY (₹702.87 Cr in Q2 FY26) and 30.4% QoQ (₹853.47 Cr in Q1 FY27), while PAT of ₹30.24 Cr grew 87.1% YoY (₹16.17 Cr) and 64.9% QoQ (₹18.34 Cr). Basic EPS was ₹7.63 against ₹4.10 a year ago and ₹4.63 last quarter. Standalone PAT of ₹29.05 Cr (+95.2% YoY) actually grew faster than the consolidated number even as standalone revenue (+45.5% YoY, ₹1,009.13 Cr) grew slower than consolidated — the subsidiaries (PSP Construction Solutions, PSP Foundation) are outgrowing the parent on the top line, while the JV loss share trims the group bottom line marginally. The margin story is mixed and matters more than the headline suggests. Net profit margin expanded to 2.70% of total income from 2.29% a year ago and 2.14% last quarter — but the core operating margin (EBITDA excluding other income, on revenue from operations, the metric management guides on) actually compressed, to 6.21% from 7.10% YoY and 6.42% QoQ, a third straight quarter of decline. The NPM expansion was driven largely by a lower effective tax rate — 24.65% this quarter versus 35.09% in Q1 FY27 and 27.80% a year ago — rather than by operating leverage. No quarter-specific Street estimate for PSP could be found; full-year FY27 analyst consensus points to revenue of ~₹4,160 Cr (+39.3% YoY) and EPS of ~₹39, with the company reiterating its own ₹4,400–4,500 Cr FY27 revenue guidance. H1 FY27 consolidated revenue of ₹1,975.67 Cr (+60.8% YoY) is comfortably ahead of management's "20%+" growth floor from the August concall and keeps the full-year target in reach, though H2 would still need to run roughly 23–28% above H1's pace. Management's EBITDA-margin guidance of 7–8% is explicitly framed as "H2 FY27 onwards," so Q2's 6.21% doesn't yet count as a miss — but it leaves no room to slip further. Consolidated debt fell to ₹267.4 Cr from ₹317.2 Cr at FY26-end (-15.7% in H1), consistent with the prior guidance of turning debt-free within 2–3 quarters. The filing carries no fresh order-inflow disclosure against the guided ₹4,000–5,000 Cr for FY27 (revised down from ₹6,000–8,000 Cr last quarter); the most recent public order-book figure (Q1 FY27) was ₹13,250 Cr, 4.2x FY26 revenue. The board also approved shifting the registered office within Ahmedabad effective November 4, 2026 — administrative, not financially material to the print. The quarter sets up a clear test for Q3/Q4: can the 7–8% EBITDA margin band actually show up now that H2 has arrived, or does PAT growth keep leaning on a lower tax rate while core execution margins stay under pressure. Revenue growth and debt reduction are both tracking guidance; margin delivery is the open question.