PSP Projects Q1: consolidated PAT ₹18.3 Cr on 65% YoY revenue jump, margins recover

PSP Projects opened FY27 with consolidated revenue of ₹853.5 Cr, up 64.8% year-on-year from a weak ₹517.8 Cr in Q1 FY26, and net profit of ₹18.3 Cr against a near-zero ₹0.42 Cr a year ago — a genuine profitability recovery, though the eye-catching YoY PAT multiple is largely a low-base artefact rather than 40x underlying growth. Net margin widened to 2.1% (from 0.1% YoY) and operating margin to roughly 6.4% (year-ago 4.8%), the margin repair management has been guiding toward. There were no exceptional items on either side, so reported and adjusted growth are the same.

Sequentially the print is softer: revenue fell 23.5% and PAT 13.0% versus the seasonally strong ₹1,115.2 Cr / ₹21.1 Cr Q4 FY26 — a normal Q1 slowdown for an EPC contractor whose execution back-loads into the second half, not a deterioration. Finance costs dropped to ₹7.5 Cr from ₹11.2 Cr YoY, consistent with the deleveraging drive; management's FY26-call goal of turning debt-free (aided by Adani group interest-free advances) is the lever meant to lift PAT margins further. Standalone tells the same story (revenue ₹785.3 Cr, PAT ₹15.2 Cr), with the consolidated uplift coming from subsidiary profit of ~₹3.3 Cr.

The stock went into the print at ₹1,012, down 2.1% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters.

Against management's own FY27 guidance — revenue ₹4,500 Cr and 7–8% EBITDA margin, backed by an order book that closed FY26 at ₹13,447 Cr (up 85%) — Q1 is on-track but not ahead: ₹853 Cr is ~19% of the annual target (acceptable given H2-heavy execution), while the ~6.4% operating margin still sits below the 7–8% band. No brokerage consensus was available for this small-cap quarter, and the company gives formal annual guidance rather than quarterly. The result confirms, rather than contradicts, the bullish, margin-improvement tone struck on the April concall.