PATELENG - Patel Engineerin

📊 NSE: PATELENG 🏢 Construction 📅 Last Updated: 12/14/2025 10:55

💰 Financial Performance

Revenue Growth by Segment

The company achieved approximately INR 1,200 Cr in revenue for Q2 FY26. The order book of INR 15,217.60 Cr is segmented into Hydroelectric (66%), Irrigation (23%), Tunnels (8%), and Roads/Others (3%).

Profitability Margins

The company has maintained sustained profitability margins according to credit rating reports, though specific Gross, Operating, or Net percentage figures for Q2 FY26 were not disclosed.

Capital Expenditure

The company is raising up to INR 398.97 Cr (INR 3,989.68 million) through a Rights Issue of 14,77,65,820 equity shares at INR 27 per share to fund working capital and general corporate purposes.

Credit Rating & Borrowing

The company's credit rating was recently upgraded due to continuous improvement in the scale of operations and a robust order book; specific borrowing cost percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, cement, and aggregates required for heavy civil engineering projects like dams and tunnels; specific cost percentages for each were not disclosed.

Capacity Expansion

Current unexecuted order book stands at INR 15,217.60 Cr as of March 31, 2025, which is 3.04 times the FY25 revenue, providing strong visibility for future execution.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth will be achieved by executing the INR 15,217.60 Cr order book, focusing on high-value hydroelectric and irrigation projects, and strengthening the balance sheet through a INR 398.97 Cr Rights Issue to support working capital needs.

Products & Services

Construction of dams, bridges, tunnels, roads, piling works, industrial structures, and heavy civil engineering for hydro, irrigation, and water supply sectors.

Brand Portfolio

Patel Engineering Limited.

New Products/Services

The company has forayed into urban infrastructure and transport segments to diversify its project portfolio.

Strategic Alliances

Extensive use of JVs including Patel Michigan JV, CICO Patel JV, Patel SEW JV, PATEL-KNR JV, and 19 others to leverage partner expertise and capital.

🌍 External Factors

Industry Trends

The industry is shifting toward large-scale renewable energy (hydro) and water security (irrigation) projects; the company is positioned with 89% of its order book in these two growing segments.

Competitive Landscape

The company faces intense competition from both domestic and international infrastructure firms in the heavy civil engineering sector.

Competitive Moat

A 75-year track record (since 1949) and specialized technical expertise in complex tunneling and hydroelectric works create high entry barriers and a durable competitive advantage.