1. At a Glance
Engineers India Ltd (EIL) — the PSU that’s been designing, consulting, and occasionally building India’s oil, gas, and infrastructure dreams since before “EPC” was a LinkedIn buzzword — just posted Q1 FY26 profits of ₹65 crore. That’s down nearly 29% QoQ, but before you panic, remember: EPC revenue recognition is as lumpy as government project approvals.
2. Introduction
Imagine a government-backed consultancy that can design a refinery in the morning, supervise a gas pipeline in the afternoon, and still have time to issue a tender for a fertilizer plant before chai break. That’s EIL.
Operating under the Ministry of Petroleum & Natural Gas (MoPNG), it is part consultant, part EPC contractor, and part PSU dividend machine. Growth is slow, competition is limited, and the biggest risk factor is project delays — which, in India, is like saying “the sun might set today.”
3. Business Model (WTF Do They Even Do?)
EIL has two main business streams:
- Consultancy & Engineering Services– Feasibility studies, design, procurement, and project management across petroleum refining, petrochemicals, pipelines, mining, infrastructure, and water projects.
- Turnkey EPC Contracts– Full execution from concept to commissioning.
It earns fees for advisory and charges like a contractor for EPC. Clients? Mostly large PSUs and government projects, meaning payments are almost guaranteed — eventually.
4. Financials Overview
Quarterly Performance – YoY & QoQ
(All values in ₹ crore unless stated)
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 870 | 624 | 1,010 | 39.42% | -13.86% |
| EBITDA* | 83 | 61 | 301 | 36.07% | -72.41% |
| PAT | 65.40 | 92.00 | 280.00 | -28.91% | -76.64% |
| EPS (₹) | 1.16 | 1.63 | 4.98 | -28.83% | -76.69% |
*EBITDA = Operating Profit (₹72 Cr) +
Depreciation (₹11 Cr)
Commentary:
- YoY revenue jumped nearly 40% thanks to higher execution, but PAT fell sharply from last year’s EPC-rich quarter.
- QoQ collapse is due to Q4’s one-off high-margin project completions — typical in EPC.
- Annualised EPS from Q1 = ₹4.64 → At CMP ₹201, P/E ≈ 43.3 (vs TTM P/E of 20.5 because last year was bumper).
5. Valuation (Fair Value RANGE only)
Method 1 – P/E
- Historical average P/E for EIL ≈ 15–22.
- Annualised EPS ₹4.64 → FV range = ₹69 – ₹102.
Method 2 – EV/EBITDA
- EBITDA TTM ≈ ₹533 Cr.
- Sector EV/EBITDA ≈ 10–12x → EV range = ₹5,330 – ₹6,396 Cr → Per share = ₹94 – ₹113.
Method 3 – DCF (Simplified)
- Base FCF ~₹300 Cr, growth 5%, discount 10%, terminal growth 3%.
- FV ≈ ₹95 – ₹110.
Educational FV Range: ₹69 – ₹113(For educational purposes only, not investment
