01 — At a Glance
The Infrastructure Zombie That Woke Up and Asked for More Contracts
- 52-Week High / Low₹323 / ₹136
- Q3 FY26 Revenue₹230 Cr
- Q3 FY26 PAT₹20.3 Cr
- Q3 FY26 EPS₹2.66
- Annualised EPS (Avg Q1–Q3 × 4)₹8.60
- Book Value₹105
- Price to Book1.71x
- Order Book (Sep 2025)₹5,372 Cr
- Debt / Equity0.44x
- Pledged Promoter %24.8%
The Auditor’s One-Liner: SPML Infra closed Q3 FY26 with revenue of ₹230 crore (+22% YoY), PAT of ₹20.3 crore (+105% YoY), and an order book of ₹5,372 crore — the highest in years. The stock rewarded this by falling 38.7% in 6 months. If you are confused, so is everyone else. Meanwhile, NARCL is converting its debt into equity, promoters are issuing fresh warrants, and a BESS battery factory is being built in Pune. For a company that lost ₹117 crore in FY21, this is quite the glow-up.
02 — Introduction
From Near-Death to “SPML 2.0” — Every Comeback Needs a Branded Tagline
Let us begin with some empathy. SPML Infra, incorporated in 1981, spent most of the 2015–2022 period doing what many Indian infrastructure companies are exceptionally good at: losing money, accumulating debt, and baffling auditors. Peak debt crossed ₹1,846 crore in FY22. Revenue had collapsed from ₹2,276 crore in FY17 to ₹683 crore in FY21. The ROE was negative. The stock was the kind of thing you found in the “forgotten” section of your Demat account.
Then, quietly, things changed. The company settled with IFCI, restructured through NARCL (India’s bad bank), slashed debt aggressively — from ₹1,846 crore to ₹351 crore as of September 2025 — and started winning contracts again. Real ones. Jal Jeevan Mission water projects, power substations, and now, audaciously, a Battery Energy Storage System (BESS) manufacturing plant in Pune.
Q3 FY26 (October–December 2025) delivered the highest OPM in years at 11%, revenue growth of 22% YoY, and a PAT that more than doubled. Management is calling this “SPML 2.0” — which is either a genuine strategic transformation or a very confident PowerPoint slide. After reviewing the numbers, the truth is somewhere in between, leaning optimistic, with a side of “don’t ignore the pledged shares.”
Concall Note (Feb 2026): “We don’t bid where the funding is not there. We will not take any business with margin less than 10%.” — SPML Management. This is either a sign of learned wisdom or the most polite way to say they nearly died chasing bad contracts. Probably both.
03 — Business Model: WTF Do They Even Do?
They Build Stuff. Water Pipes, Power Lines, Batteries. Mostly Government Money.
SPML Infra is an infrastructure EPC (Engineering, Procurement, Construction) company. Translation: the government decides it wants clean water delivered to a village in Bihar or a substation built in Rajasthan, SPML bids for the contract, wins it (hopefully), and then spends the next 3–4 years building it. Revenue comes in as construction milestones are hit. Cash comes in even later. Welcome to infrastructure investing — please leave your patience at the door.
Their sweet spots are water treatment and distribution (the bulk of revenues, linked to Jal Jeevan Mission), power transmission infrastructure (substations, T&D), and waste management. They hold 650+ projects across Delhi, UP, Rajasthan, Bihar, Gujarat, Maharashtra, and Karnataka. Primary clients are state government departments and agencies like NTPC and Municipal Corp of Delhi.
The new bet is BESS — Battery Energy Storage Systems. SPML is building a 2.5 GWh Phase-1 manufacturing facility at Supa MIDC, Pune in a technology tie-up with Energy Vault USA. They pay 1.75% royalty per order executed. The plant is expected to go live Q1 FY27. If it does, SPML becomes an EPC player AND a battery manufacturer — which is either smart vertical integration or an ambitious stretch for a ₹1,400 crore market-cap company.
Order Book₹5,372 CrSep 2025
9M FY26 Inflows₹4,324 CrFresh + JV
New Higher-Margin₹2,800 CrOf order book
Legacy Orders₹1,540 CrBeing wound down
Revenue Mix Note: ~95% EPC/Construction contracts, ~2% O&M, ~3% arbitration award income. The arbitration number is notable — SPML has ₹621 crore of arbitration awards in hand (including interest) and claims ₹4,417 crore in total outstanding claims. This is an entire shadow business of recovering money from past projects. Indian infrastructure in a nutshell.
💬 What’s your view: Is BESS manufacturing a genuine differentiator for a mid-size EPC player, or is it an expensive detour? Drop your comment!
04 — Financials Overview
Q3 FY26: The Numbers That Made People Notice
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