Patel Engineering Surges 6% After Strong Q3 Results, Up 200% in Two Years

Patel Engineering reported a 14.49% YoY increase in Q3 FY25 net profit to ₹80.4 crore, driven by a 13.62% rise in revenue to ₹1,205.5 crore. The company significantly reduced its debt to ₹1,422.4 crore while maintaining a strong order book of ₹16,396.4 crore, with a major focus on hydroelectric projects. Patel Engineering’s stock surged 6% post-results and has gained 200% over the past two years.

CONTENTS:

• Patel Engineering Jumps 6% After Strong Q3 Results, Up 200% in Two Years
• Patel Engineering Reports 14% Rise in Q3 Profit to ₹80 Crore
• Patel Engineering Surges 4.51% as Q3 Profit Rises 14% YoY to ₹80 Crore

Patel Engineering Jumps 6% After Strong Q3 Results, Up 200% in Two Years

Patel Engineering shares surged 6% to ₹48.51 on February 13 following impressive Q3 FY25 financial results, showcasing a 13.62% increase in revenue. The company has made significant progress in reducing debt and maintains a robust order book, positioning it well in India’s infrastructure sector.

Q3 FY25 Performance

For the December quarter, Patel Engineering reported consolidated revenue of ₹1,205.5 crore, marking a 13.62% year-on-year (YoY) increase from ₹1,061 crore in Q3 FY24. The company’s consolidated operating EBITDA rose by 29.50% to ₹184 crore, compared to ₹142.1 crore in the previous year.

As a result, the operating EBITDA margin improved to 15.26% from 13.39% in Q3 FY24. Net profit climbed to ₹80.4 crore, up from ₹70.2 crore a year ago. Additionally, the company successfully cut interest costs by ₹8.75 crore during the quarter.

Debt Reduction and Strong Order Book

As of December 31, 2024, Patel Engineering’s consolidated gross debt stood at ₹1,422.4 crore, significantly lower than ₹1,885.5 crore as of March 31, 2024, reflecting the company’s successful deleveraging efforts.

The company’s order book remains strong at ₹16,396.4 crore, with 63% of its projects focused on the hydroelectric sector. Currently, Patel Engineering is handling 15 hydroelectric projects worth ₹10,428.3 crore, including major ventures like Subansiri HEP (2,000 MW), Dibang Multipurpose Project (2,880 MW), Kiru HEP (624 MW), Arun-III HE Project (900 MW), Shongtong HEP (450 MW), and Kwar HEP (540 MW).

Future Prospects in Infrastructure and Hydropower

With an ₹11.21 lakh crore infrastructure allocation in the Union Budget 2025, equivalent to 3.1% of GDP, Patel Engineering is well-positioned to capitalize on sector growth.

India’s hydroelectric sector is expanding rapidly, with approximately 18,000 MW of projects under construction, of which Patel Engineering is involved in nearly 8,000 MW. The country now ranks as the world’s fifth-largest hydropower producer, having surpassed Japan, with an installed capacity of 51.74 GW.

Additionally, India’s large hydro capacity has grown from 35.9 GW in March 2008 to 46.9 GW by August 2024, while small hydro capacity has nearly quadrupled to 5.1 GW. The central and Arunachal Pradesh governments are working together to revive and implement 12 hydroelectric projects totaling 11,517 MW. This initiative aligns with India’s goal of reaching 500 GW of total energy capacity by 2030.

Stock Performance: A Volatile Yet Strong Gainer

While Patel Engineering’s stock has declined 30% over the past year amid broader small-cap selloffs, it remains up by 218% over the last two years. The stock faced significant selling pressure between January 2022 and February 2023, dropping 50%, but later rebounded and sustained its upward momentum.

From its March 2020 low of ₹7.10 per share, the stock has surged by an impressive 583%.

Patel Engineering Reports 14% Rise in Q3 Profit to ₹80 Crore

Mumbai-based Patel Engineering Ltd announced a 14.49% increase in its consolidated net profit, reaching ₹80.24 crore for Q3 FY25, driven by higher revenue. In comparison, the company had posted a net profit of ₹70.24 crore in the corresponding quarter last year, as per its latest exchange filing.

Key Financial Highlights

• Total Income: ₹1,265 crore (up from ₹1,076 crore YoY)
• Total Expenses: ₹1,125 crore (compared to ₹1,030.94 crore in Q3 FY24)

Future Outlook

Managing Director Kavita Shirvaikar expressed optimism about the company’s growth trajectory, stating:

“We are excited about strengthening our operational capabilities, expanding our project portfolio, and fostering innovation in the industry. The solid foundation we have built gives us confidence as we move into the next phase of growth, ensuring long-term value for our stakeholders.”

Strong Order Book & Sector Presence

As of December 31, 2024, Patel Engineering’s order book stood at ₹16,396.4 crore. The company specializes in engineering, procurement, and construction (EPC), with a significant presence in tunnel and underground projects for hydroelectric and dam infrastructure.

Patel Engineering Surges 4.51% as Q3 Profit Rises 14% YoY to ₹80 Crore

Shares of Patel Engineering climbed 4.51% to ₹46.34 after the company posted a 14.49% YoY increase in consolidated net profit, reaching ₹80.42 crore in Q3 FY25, compared to ₹70.24 crore in the same period last year.

Q3 FY25 Financial Performance

• Revenue from Operations: ₹1,205.5 crore (up 13.61% YoY from ₹1,061 crore)
• Profit Before Tax (PBT): ₹89.47 crore (9% growth from ₹82.08 crore YoY)
• Operating EBITDA: ₹184 crore (29.48% increase)
• EBITDA Margin: 15.26% (up from 13.39% in Q3 FY24)

The company witnessed strong project execution in key sectors such as hydropower, irrigation, and tunneling, reinforcing its role in India’s infrastructure development.

Order Book & Debt Position

As of December 31, 2024, Patel Engineering’s order book stood at ₹16,396 crore, reflecting a healthy project pipeline. The company also reduced its consolidated gross debt from ₹1,885.5 crore to ₹1,422.4 crore, highlighting its focus on financial discipline.

Leadership Insights

Managing Director Kavita Shirvaikar expressed confidence in the company’s momentum, stating:

“Our Q3 FY25 results demonstrate strong operational excellence, with a 13.62% revenue increase and significant profitability gains. These milestones reflect our commitment to delivering value to stakeholders while strategically optimizing our project pipeline. We are excited about expanding our operational capabilities and driving innovation in India’s infrastructure sector.”

Chief Financial Officer Rahul Agrawal emphasized the company’s robust financial position:

“Our strong performance in Q3 FY25 highlights disciplined financial management and a well-balanced growth strategy. With a solid balance sheet, we are confident in optimizing capital allocation, ensuring long-term value for our shareholders, and maintaining sustainable expansion.”

Company Overview

Patel Engineering specializes in hydropower and irrigation infrastructure, with expertise in the construction of dams, bridges, tunnels, roads, piling works, and industrial structures. The company plays a key role in India’s heavy civil engineering sector.