A Construction Company Trading Like a Unicorn Startup

From Gujarat’s Best-Kept Secret to Adani’s Favourite Construction Arm

Let’s start with some context. PSP Projects was, until very recently, the kind of company that only Gujarat-focused investors knew about — a mid-size, high-quality civil construction firm that punched above its weight on project complexity and client relationships. Founded in 2008 by Prahalad S. Patel, it built hospitals, stadiums, universities, corporate campuses, and government buildings across India. Quietly. Efficiently. Profitably.

Then Adani happened. In 2025, Adani Infra (India) Limited acquired a 34.41% stake in PSP Projects, making it a co-promoter. In one transaction, PSP went from “best construction company you’ve never heard of” to “Adani Group’s preferred EPC contractor.” That’s not a lateral career move — that’s being picked up and placed on a ₹50,000 crore order pipeline.

The stock loved it. Then the execution caught up. Margins got hammered by legacy UP project overruns, election-related delays, and elongated receivables. ROCE fell from a respectable 19% in FY24 to 8.7% today. The P/E blew out to 77.9x — which makes perfect sense if you believe in the FY27 earnings ramp, and makes absolutely zero sense if you’re buying the current P&L at face value.

Q3 FY26 was, per management’s own words, the “best ever quarter revenue.” And yet PAT was ₹16 crore. In a world where ₹771 crore of revenue produces ₹16 crore in profit, the margin story is still very much a work in progress. But the order book is ₹9,178 crore and the Q4 guidance requires ₹1,100–1,200 crore in revenue. Strap in.

They Build Things. Mostly in Gujarat. Increasingly for Adani.

PSP Projects is an EPC (Engineering, Procurement & Construction) company. They take your blueprint, source materials, hire labour, and hand over a finished building. Institutional projects — universities, hospitals, government offices — have historically been the bread and butter. Residential towers, industrial facilities, sports complexes, and now Adani Group infrastructure round out the portfolio.

The company operates across three manufacturing plants — including a Precast concrete facility near Sana, Gujarat, with capacity of one million square feet, set up at ~₹109 crore. This backward integration gives PSP faster execution timelines for compatible projects, which is increasingly relevant as the Adani project pipeline demands scale delivery.

Geographically, this is a Gujarat story with aspirations. As of December 2025, 82% of ongoing work is in Gujarat, 14% in Maharashtra, and the rest scattered across Karnataka, UP, and Delhi. The concentration isn’t a bug — it’s a feature. Gujarat is a relatively constructive (pun intended) environment for construction, and PSP has the deepest relationships there.

Q3 FY26: The Numbers Behind “Best Ever Quarter”