01 — At a Glance
From Building Government Offices to Being Owned By Adani: The PSP Story
- 52-Week High / Low₹1,031 / ₹577
- Q3 FY26 Revenue₹771 Cr
- Q3 FY26 PAT₹16.1 Cr
- Q3 FY26 EPS₹4.05
- TTM EPS₹9.11
- Book Value / Share₹309
- Price to Book2.11x
- Order Book (Dec 2025)₹9,178 Cr
- Order Book to Revenue3.5x (annual)
- Working Capital Days67 days
Flash Summary: PSP Projects had what management lovingly called its “best ever quarter” with ₹771 crore revenue (+24% YoY). Net profit hit ₹16.1 crore—up 159% YoY. But here’s the comedy: the stock is priced at 71.5x P/E, meaning the market has priced in not just future growth, but also future miracles, Lakshmi’s personal blessing, and PSP developing time travel technology. Meanwhile, the company is 68.8% owned by the Patel family, now joined at the hip with Adani Group (34.41% stake). Working capital has expanded to 67 days. Translation: the company is paying suppliers faster and customers slower—a guaranteed recipe for excitement.
02 — Introduction
The Construction Company That Became a Subsidiary Before Becoming Public
PSP Projects Limited is a Gujarat-based construction firm incorporated way back in 2008 by the visionary Prahalad S. Patel, who spent 30+ years pouring concrete and now spends his time watching the stock price fluctuate wildly. The company did what most Indian construction companies do: it built schools, hospitals, government offices, and the occasional temple. Boring. Profitable. Boring.
Then, in 2025, the Adani Group walked in through the front door. Not a polite knock. A full acquisition play. In June 2025, Adani Infra acquired 11.32% via open offer, then bought another 23.09% directly from the Patel family. By September 2025, Adani owned 34.41%—making them joint promoters. The Board of Directors was reshuffled faster than IPL playing XI changes. A new CEO was appointed. Someone from Adani. Suddenly, PSP went from “mid-cap construction stock” to “Adani’s construction arm on the public market.” The market celebrated by pushing the stock up. Then scared itself. Then decided 71.5x P/E was “reasonable.” We’ll get to that.
Q3FY26 was genuinely impressive. Revenue of ₹771 crore (up 24% YoY) from project execution, EBITDA of ₹52 crore, and PAT of ₹16.1 crore (up 159% YoY). But—and this is a big but—almost all of that profit improvement came from a weird accounting incident: the Indian government’s new labor code (notified November 2025) hit PSP hard with a one-time ₹7–8 crore employee cost charge for increased gratuity and leave provisions. Remove that? Net margin looks more normal. Still okay, but not “wow” level. Management says it’s non-recurring. We’ll see.
Feb 2026 Concall Clarity: Management explicitly stated they want a 59% (Adani) / 41% (non-Adani) order mix going forward. They are NOT chasing smaller government tenders anymore. This is a pivotal moment. PSP is transitioning from a “small-ticket, fragmented builder” to a “large-ticket, Adani captive EPC contractor.” That’s either brilliant or dangerous depending on whether Adani keeps winning.
03 — Business Model: WTF Do They Even Do?
They Build Stuff. Very Expensive Stuff. With Other People’s Money.
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