India’s civil construction sector is experiencing rapid growth, projected to reach INR 25.31 trillion (about $1.4 trillion) by 2025, with an annual growth rate of 11.2%. The industry employs over 70 million people as of 2023 and is expected to become the world’s third-largest construction market by 2025, driven by major infrastructure and housing initiatives.
With a market capitalization of Rs 3,606.33 crore, the shares of Patel Engineering Ltd. closed at Rs 42.71 per share, decreased around 0.72 percent as compared to the previous closing price of Rs 43.02 apiece.
Over the last three years, Patel’s order book peaked at Rs 20,806.7 crore in FY23, then declined to Rs 18,663.0 crore in FY24 and further to Rs 15,217.6 crore in FY25. The FY25 figure excludes Rs 458.1 crore in L1 projects and Rs 2,036.8 crore received post-year-end, indicating a temporary dip rather than a structural downturn.
Furthermore, Patel Engineering faces key concerns, with 89 percent of promoters holding pledged, management plans to address this with lenders. Labor availability remains stable but could be affected by prolonged border tensions. Competitive intensity is high due to large sectoral opportunities. Notably, the company hasn’t secured major tunneling orders recently, citing a strict focus on margin-driven bidding.
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Looking forward to the company’s financial performance, revenue increased by 20 percent from Rs 1,343 crore in Q4FY24 to Rs 1,612 crore in Q4FY25. Further, during the same time frame, net profit decreased by 72 percent from Rs 140 crore to Rs 38 crore.
Patel Engineering targets Rs 40,000–50,000 crore in FY26 bids, with a 15–20% historical success rate. It sees strong opportunities in hydropower and pumped storage (30,000 MW expected for bidding), hydro civil works (~₹5 crore/MW), and infrastructure projects like NHAI tunnels, Jal Jeevan Mission, and state irrigation schemes totaling multi-lakh crore allocations.
Patel Engineering expects flat revenue in FY26 due to weak FY25 order inflows, but projects 10–15% growth from FY27 onwards, driven by fresh orders and sector momentum. EBITDA margins are guided at 13–14%, with limited operating leverage benefits, management is confident in scaling operations as needed.
Patel Engineering Ltd is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures, and other kinds of heavy civil engineering works in areas like hydro, irrigation & water supply, urban infrastructure, and transport.
Written by Abhishek Singh
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