Why Did PSP Projects Deliver a Solid 57% Profit Growth in Q2 FY26?
PSP Projects Ltd posted a healthy set of numbers for Q2 FY26, reporting a net profit of ₹16 crore — a 57% YoY increase from ₹10.2 crore last year. The growth was driven by steady execution, improved operating leverage, and efficient project management across industrial and institutional segments.
The company’s revenue grew 19% YoY to ₹702 crore from ₹589 crore, supported by a strong order book and timely execution of government and private projects. This sustained top-line momentum reflects PSP’s ability to deliver across verticals despite sectoral cost pressures.
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Operating performance strengthened further, with EBITDA rising 35% YoY to ₹50.6 crore versus ₹37.5 crore in Q2 FY25. The EBITDA margin expanded 79 basis points to 7.2% from 6.41%, reflecting better cost control and project efficiency.
The improvement in margins showcases PSP’s strong execution discipline and ability to manage input costs amid fluctuating raw material prices. Analysts note that the company’s focus on high-margin projects and efficient tender selection continues to aid profitability.
The ongoing expansion in PSP’s order pipeline, especially in urban infrastructure, commercial complexes, and institutional projects, provides multi-year visibility. Its balance sheet remains strong with low leverage, enabling faster execution and better cash flow management.
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With consistent revenue growth, margin improvement, and a robust project pipeline, PSP Projects remains a key midcap player in the construction and engineering space. The steady rise in profitability signals effective cost control and execution efficiency that may sustain in the coming quarters.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that PSP Projects’ Q2 FY26 results highlight disciplined execution and operational excellence. The healthy order book and improving margin profile make it a stable play in the infrastructure segment with long-term potential.
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Related Queries
- ✅ How did PSP Projects achieve 57% YoY profit growth in Q2 FY26?
- ✅ What contributed to PSP’s margin expansion this quarter?
- ✅ Is PSP Projects well-positioned for sustained infrastructure growth?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
