ENGINERSIN - Engineers India

📊 NSE: ENGINERSIN 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/13/2025 21:52

💰 Financial Performance

Revenue Growth by Segment

In H1 FY26, total turnover grew 37% YoY to INR 1,757 Cr. Segmentally, Consultancy & Engineering (C&E) revenue was INR 819 Cr (46.6% of H1 total) and Turnkey revenue was INR 938 Cr (53.4% of H1 total). For FY25, C&E revenue grew 15.4% to INR 1,678.76 Cr, while Turnkey revenue declined 24.1% to INR 1,349.59 Cr.

Geographic Revenue Split

Domestic operations dominate the revenue mix; however, international consultancy business is expanding with a recent order in Africa valued at over INR 600 Cr. Specific percentage split between domestic and international revenue for the current period is not disclosed in available documents.

Profitability Margins

PAT margin improved significantly to 15.36% in FY25 from 11.04% in FY24. PBT margin also rose to 20.37% in FY25 from 14.55% in FY24. The improvement was driven by a higher mix of high-margin consultancy work and reversal of provisions amounting to INR 12 Cr.

EBITDA Margin

EBITDA margin (including other income) for H1 FY26 stood at 14% (INR 265 Cr) compared to 15% in H1 FY25. Standalone operating margin for Q2 FY26 was 11.3% (INR 102 Cr), up from 7% (INR 47 Cr) in Q2 FY25.

Capital Expenditure

EIL maintains a low-capex model. Recent investments include a rights issue in Numaligarh Refinery Limited (NRL) totaling INR 138 Cr, with INR 35 Cr already paid in Q2 FY24. The company plans to utilize its cash reserves of INR 900-1,000 Cr for strategic opportunities like NRL and RFCL.

Credit Rating & Borrowing

The company maintains a robust credit profile with negligible debt. Total Outside Liabilities to Net Worth (TOL/TNW) improved to 0.78x as of March 31, 2025, from 0.96x in the previous year. Borrowing costs are minimal as operations are funded through internal accruals.

⚙️ Operational Drivers

Raw Materials

As an engineering consultancy, the primary 'input' is technical man-hours. For Turnkey (LSTK) projects, procurement includes specialized equipment and construction materials (steel, piping, instrumentation), though specific percentage breakdowns per material are not disclosed.

Capacity Expansion

Current capacity is measured in engineering man-hours. The company is expanding its service capacity into new sectors like Green Hydrogen, Ammonia, and high-end Data Centers, which now account for ~35% of H1 FY26 order inflows.

Raw Material Costs

Not applicable as a percentage of revenue for consultancy; Turnkey project costs are managed to maintain a 6-7% segment profit margin. Operating margins are sensitive to the execution stage of these turnkey contracts.

Manufacturing Efficiency

Not applicable; efficiency is measured by segment profit margins: 25-28% for Consultancy and 6-7% for Turnkey projects.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be achieved through a record-high order book of INR 13,131 Cr (as of Sept 2025). Strategy includes diversifying away from pure Oil & Gas (reducing concentration from 95% to 78%), expanding international consultancy footprints (e.g., Africa), and entering energy transition sectors like biofuels and green hydrogen.

Products & Services

Engineering consultancy, project management services (PMS), and Lump Sum Turnkey (LSTK) project execution for the hydrocarbon, petrochemical, and infrastructure sectors.

Brand Portfolio

Engineers India Limited (EIL).

New Products/Services

New service offerings in high-end Data Centers, academic complexes, and energy-efficient infrastructure contributed ~35% of H1 FY26 order intake.

Market Expansion

Expanding international operations in Africa (INR 600 Cr order) and the Middle East to leverage technical credentials in the hydrocarbon sector.

Market Share & Ranking

EIL is a leading player in the Indian hydrocarbon engineering space, benefiting from sovereign ownership and technical credentials.

Strategic Alliances

Key JVs include Ramagundam Fertilizers and Chemicals Limited (RFCL) (26% stake) and Numaligarh Refinery Limited (NRL) (4.8% stake).

🌍 External Factors

Industry Trends

The industry is evolving toward a 'refinery hub' model in India. Future growth is driven by mega-projects in petrochemicals and refining, alongside a shift toward energy transition and green energy infrastructure.

Competitive Landscape

Faces competition from international engineering consultancies and EPC firms, which can exert pricing pressure on turnkey projects.

Competitive Moat

Durable moat derived from majority sovereign ownership (MoPNG), which provides preferential access to PSU bids, and decades of technical expertise in complex hydrocarbon projects that act as a high entry barrier.

Macro Economic Sensitivity

Highly sensitive to global oil demand (expected to reach 112.3 mb/d by 2029) and India's refining capacity expansion (currently 248.91 MMTPA).

Consumer Behavior

Not applicable; demand is driven by industrial capex and government energy policy rather than individual consumer trends.

Geopolitical Risks

Global momentum shifting away from fossil fuels poses a transitional risk, requiring EIL to pivot toward renewables and sustainability-linked projects.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by MoPNG guidelines and DPE (Department of Public Enterprises) guidelines for cash deployment and investment.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 24.5% (Income Tax Expense of INR 151.49 Cr on PBT of INR 616.73 Cr).

Legal Contingencies

The company reversed provisions of INR 12 Cr in recent quarters. Specific pending court case values are not detailed, but the company monitors liquidated damages and provision reversals as part of project closure.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the pace of the energy transition; a rapid shift away from fossil fuels could strand 78% of the current order book if diversification into renewables is not accelerated.